Merge Technologies Signs Definitive Agreement to Acquire eFilm Medical, Inc. Acquisition solidifies image and information workflow strategy; expands product offering and customer base.
Milwaukee, WI, April 17, 2002

Merge Technologies (NASDAQ: MRGE) today announced the signing of a definitive agreement to acquire eFilm Medical Inc., a privately held company based in Toronto, Canada, that develops and markets medical imaging and information workflow products. The transaction is priced at one million shares of Merge common stock and is subject to closing conditions.

Richard Linden, Merge's President and CEO, said, "We are very pleased to have eFilm join the Merge family. eFilm has an excellent reputation for image viewing solutions as well as a large installed base of satisfied customers. We have developed a high level of trust and shared vision after working together for the past year in the co-development of image distribution technologies. Our mutual respect has grown throughout this relationship and this strategic move represents the next logical step in our shared vision of delivering a complete image and information workflow solution to the healthcare market."

Along with expertise in connectivity, integration and image management, Merge's domestic and international sales and service presence is a strong complement to the products offered by eFilm. Since its inception, eFilm has demonstrated an unwavering commitment to customer service as evidenced by large multi-year service and software licensing contracts with several Toronto hospitals where eFilm's products and services have delivered a completely filmless workflow environment. Additionally, eFilm has formed several domestic and international distributor partnerships, which will complement Merge's extensive value added reseller customer base. These important relationships along with eFilm's e-commerce distribution strategy hasThese important relationships along with eFilm's e-commerce distribution strategy have resulted in thousands of clinicians worldwide using their image visualization workstation.

"Merge and eFilm both originated with a vision of offering a patient-centric image and information workflow solution," commented Gregory Couch, President and CEO of eFilm Medical Inc. "The consistency of the vision and philosophy between Merge and eFilm assures our customers of a continued clinical focus and an expanded range of integrated image and information management technologies that will improve the quality of care that patients receive."

Commenting further, Linden said, "eFilm's profitability, positive cash flow and revenue base associated with multi-year service and software licensing contracts will create long-term accretive value for our shareholders as we take full advantage of the synergies between the two companies."


eFilm Medical Inc., is a leading player in the development of medical imaging workflow products and services. Founded inside two of Canada's leading healthcare institutions, the company develops innovative medical image viewing and related solutions. The unique perspective gained from developing within a clinical environment, combined with the global use of its medical imaging solutions, has provided eFilm with a recognized level of customer knowledge and understanding. For more information please visit www.efilm.ca.

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