We are developing a new method of breast cancer screening that we call Automated Breast Cancer Diagnosis (ABCD). This system uses computerized three-dimensional (3D) imaging techniques and statistical analysis to base diagnosis on data obtained from ultrasound images. Here we use this system to investigate ten parameters and their effectiveness in determining the malignancy of tumors. Twenty-nine benign tumors and 32 malignant tumors were studied. The benign tumors comprised 8 cysts and 21 fibroadenomas; the malignant tumors were 23 ductal carcinomas, 2 special carcinomas, 1 malignant lymphoma, and 6 other types of lesions. The procedure requires the simultaneous acquisition of both the ultrasonic image data and the position and orientation of the probe for each slice. This data is transferred to a computer, where the tumor surface is determined using fuzzy reasoning and relaxation techniques. The extracted tumor image is then rendered in 3D, allowing interactive manipulation and observation. A significant distinction between benign (0.57±0.25, 2.08±0.12, 0.76±0.25) and malignant tumors (0.78±0.33, 2.22±0.16, 0.58±0.29) was obtained for all three parameters (Sz/Sxy, M-D, and Vei/V). A malignancy probability expression is calculated using multivariate logistic regression analysis in combination with the five parameters (Sz/Sxy, M-D, Vei/V, 3D-D/W, and S/Vindex). Satisfactiorily results were obtained when this method was applied to newly prepared external data that consist of three benign and two malignant tumors additional tumors.