Merge eFilm Shareholders Approve Merger With Cedara MILWAUKEE, May 24 /PRNewswire-FirstCall/ -- Merge Technologies Incorporated (NASDAQ:MRGE), d.b.a. Merge eFilm, a leading global healthcare software and services company, today announced that shareholders overwhelmingly approved its merger with Cedara Software Corp., (Nasdaq: CDSW; TSX: CDE), a leading independent developer of medical software technologies for the global healthcare market, at a special shareholder meeting held today in Milwaukee, WI. The merger is expected to close June 1, 2005, following court approval in Canada. Upon completion of the transaction, the combined company will provide the diagnostic OEM and end user markets with an industry leading image and information management solution for managing clinical and business workflow. The combined company will have an extensive imaging product suite to meet the current and emerging needs of OEM and end user customers in radiology and multiple clinical specialties. The international presence, strong product and distribution market coverage and financial strength of the combined company will allow it to capitalize on the continued digitization of the healthcare industry. The expanded opportunities provided by this transaction will play an important role in continuing Merge eFilm's track record as one of the fastest growing healthcare information technology companies in the market. About Merge eFilm Merge eFilm is a global healthcare software and services company focused on accelerating the productivity of imaging centers, small- to medium-sized hospitals and clinics with a suite of RIS/PACS products that more efficiently streamline, integrate and distribute image and information workflow across the healthcare enterprise. Since 1987, Merge eFilm has leveraged its healthcare integration and connectivity experience to create workflow solutions that improve our customers' productivity and enhance the quality of care they provide. For more information about Merge eFilm's products and services, visit our website at http://www.merge-efilm.com/ , or call Beth Frost-Johnson, Senior Vice President-Marketing and Strategic Planning, at 414-977-4254, email . About Cedara Software Corp. Cedara Software Corp. is a leading independent provider of medical imaging technologies. Cedara's software is deployed in hospitals and clinics worldwide and is licensed by many of the world's leading medical device and healthcare information technology companies. Approximately 28,000 medical imaging systems and 6,400 Picture Archiving and Communications System (PACS) workstations have been licensed to date. Cedara recently acquired eMed Technologies Corporation, widely known as a provider of innovative PACS and teleradiology solutions that have been installed in over 2,000 hospitals and imaging centers. Cedara is quite unique in that it has technologies and expertise that span all the major digital imaging modalities including computed tomography (CT), magnetic resonance imaging (MRI), digital X-ray, mammography, ultrasound, echo-cardiology, angiography, nuclear medicine, positron emission tomography (PET) and fluoroscopy. Furthermore, the Company's medical imaging offerings are used in all aspects of clinical workflow including the capture of a patient's digital image; the archiving, communication and manipulation of digital images; sophisticated clinical applications to analyze digital images; and even the use of imaging in minimally-invasive surgery. For more information about Cedara's products and services, visit our website at http://www.cedara.com/ . Notice to Investors, Prospective Investors and the Investment Community Cautionary Information Regarding Forward-Looking Statements Statements in this press release regarding the proposed merger of Merge Technologies, (d.b.a. Merge eFilm) and Cedara Software Corp. which are not historical facts, including expectations of financial results for the combined companies (e.g., projections regarding revenue, earnings, cash flow, cost savings and future growth), are "forward-looking statements." All forward- looking statements are inherently uncertain as they are based on various expectations and assumptions concerning future events and they are subject to numerous known and unknown risks and uncertainties which could cause actual events or results to differ materially from those projected. Investors are cautioned not to place undue reliance on these forward-looking statements and any such forward-looking statements are qualified in their entirety by reference to the following cautionary statements. Merge eFilm and Cedara undertake no obligation to publicly release the result of any revisions to these forward-looking statements that may be made to reflect any future events or circumstances. DATASOURCE: Merge Technologies Incorporated CONTACT: Richard Linden, President & CEO, +1-414-977-4665, or Scott Veech, Chief Financial Officer, 414-977-4264, both of Merge eFilm Web site: http://www.merge-efilm.com/ http://www.cedara.com/

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