Merge eFilm and VAR Partner TPS Medical Acquire Multiple Scotland Hospital Contracts. Twenty-one hospitals select Merge eFilm PACS, Teleradiology and Image Distribution software solutions.

Milwaukee, WI, February 3, 2003 - Merge eFilm (Nasdaq: MRGE), a leading global medical image and information management solutions provider, and TPS Medical, a Glasgow, Scotland-based provider of digital imaging healthcare solutions, today announced that twenty-one acute and primary care National Health Service (NHS) trust hospitals across Scotland have selected Merge eFilm and TPS Medical as their partner for digital image and information solutions. The NHS trusts are groups of government-funded hospitals that are responsible for the provision of healthcare services in Scotland.

The most recent agreement was signed in January 2003 with the Fife Trust, which is comprised of two acute care hospitals and four primary care facilities in the Fife region, providing over 180,000 radiological exams annually. The Fife Trust contract with TPS Medical includes Merge eFilm's FUSION Server™ software, a digital image and information solution that supports clinical workflow from exam request, through image acquisition, interpretation, and reporting of results.

Dr Peter Curry, Chair, Fife Acute Hospitals Trust Information Communications and Technology Committee, said, "As an important component of making quality healthcare available everywhere, this demonstrates the commitment of NHS Fife to taking forward 'Right For Fife' agenda in its full spirit in partnership with Merge eFilm."

"We are pleased that our solution will play a role in improving the delivery of healthcare in Scotland," said Rich Linden, President and CEO of Merge eFilm. "With the high level of accessibility in Scotland's healthcare system, and their shortage of radiologists, our solution delivers a cost-effective way to improve the radiologists' productivity. I'm also pleased with the success of our VAR Partnership with TPS Medical, which is reflective of the market's receptivity to this business development model. Going forward, our innovative technology and value-based pricing will continue to be a distinguishing factor as we continue to leverage market opportunities in Europe."

"The relationships among Merge eFilm, TPS Medical and our customers fulfills the need for a solid solution with local ongoing support," said David Lawrence, Managing Director of TPS Medical. "We have partnered with our customers in the design of their specific solution. We are knowledgeable about their radiology operations and technologies, as well as the environments in which they operate. They have the comfort of knowing that we are nearby and readily available for service, support and solutions for their evolving needs."

"Our FUSION Server solution provides unlimited access to diagnostic quality software throughout the enterprise, without incremental cost to the customer," said Catherine McCallum, Vice-President of Professional Services at Merge e-Film. "Our solution improves the speed, clinical effectiveness and communication among radiologists and practitioners in Scotland's primary and secondary healthcare facilities, which ultimately leads to improved patient care."

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