Merge eFilm Expands Line of Credit to $5 Million. Financial strategy supports plans for growth and strategic investments.
Milwaukee, WI, January 9, 2003

Milwaukee, WI, January 9, 2003 - Merge eFilm (Nasdaq: MRGE), a leading global medical image and information management solutions provider, today announced that it has signed an expanded $5 million line of credit agreement with Merchants and Manufacturers BanCorp (MMBC), a Milwaukee-based firm that operates six Midwest banks. The previous $3 million line of credit, from which no monies have been drawn, was set to expire in April 2003. The agreement will provide Merge eFilm with additional flexibility in support of the company's growth.

"The combination of this capital, along with our growing cash position, will enable us to expand our options for profitable growth," said Rich Linden, President and CEO of Merge eFilm. "Our target market is accelerating its acceptance of digital image and information management systems, so it is notable that we have a strong capital foundation in place to capture these market opportunities."

"This agreement is the next step in the planned evolution of our company," said Scott Veech, Chief Financial Officer. "Our expanded line of credit agreement is reflective of the financial strength that has been built over the past few years. Highlights of the new line of credit include a lower interest rate, broadened usage parameters, and a more favorable borrowing formula. We are pleased that MMBC is expanding its support of our business model, financial strength and strategic direction."

Press Contact
Attn: Beth Frost-Johnson Merge Healthcare 6737 West Washington St. Suite 2250 Milwaukee, WI 53214		Phone: 1-(414) 977-4254
Email Address: marketing@merge.com
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