Merge eFilm: Shareholders Approve Merger with Cedara

Milwaukee, WI, USA; May 24, 2005 – 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.

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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 www. merge-efilm.com, or call
Beth Frost-Johnson, Senior Vice President-Marketing and Strategic Planning,
at 414-977-4254, email [email protected]

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 www.cedara.com.