MERGE TECHNOLOGIES' NATIONAL MARKET LISTING APPROVED BY NASDAQ

Milwaukee, WI, June 3, 2003 - Merge Technologies (d.b.a. Merge eFilm) (Nasdaq: MRGE), a leading global radiology software and services company, today announced that it has been advised by Nasdaq that its application to move its common stock has been approved, and will begin trading on the National Market effective today, June 3, 2003. Formerly trading on the Nasdaq Small Cap Market, Merge Technologies common stock will continue to trade under the MRGE symbol. The MRGE price quotation will be available in leading financial newspapers and online services, although it may be located in a different section.

"The move to the Nasdaq National Market is an important event in Merge eFilm's sixteen year history," said Scott Veech, Chief Financial Officer. "It is a formal milestone consistent with the company's growth and evolution, and it is supported by our strong continuous financial performance and interest in broadening our investor base."

Indicative of Merge eFilm's operating strength, net sales for the quarter ended March 31, 2003, were $6,117,000, an increase of 35% over Q1 2002 net sales of $4,535,000. Also in Q1 2003, net income was $1,316,000, generating $0.11 diluted EPS compared to $704,000 net income and $0.07 diluted EPS in Q1 2002, and Q1 2003 gross margin, was 66%, compared to 61% in Q1 2002. The Company's operating margin, defined as operating income divided by net sales, was 24% in the Q1 2003, compared to 16% in Q1 2002. At March 31, 2003, the Company had a cash balance of $6,570,000 and no outstanding draws on its $5 million bank line of credit. This first quarter cash balance represents an increase of 49% from December 31, 2002.

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Merge eFilm provides integrated healthcare image and information workflow solutions that create a filmless workflow environment, address the clinical imaging needs across the healthcare enterprise, and enable cost-effective, patient-centric care. For more than fifteen years, Merge eFilm has leveraged its healthcare IT, clinical and engineering experience to create elegant and affordable solutions that improve the clinicians' productivity and enhance the quality of the care they provide. For additional information, go to www.merge.com.

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
Except for the historical information herein, the matters discussed in this news release include forward-looking statements that may involve a number of risks and uncertainties. When used in this press release, the words “will,” “believes,” “intends,” “anticipates,” “expects” and similar expressions are intended to identify forward-looking statements. Actual results could differ materially from those expressed in, or implied by, the forward-looking statements based on a number of factors, including, but not limited to, the uncertainty created by, the adverse impact on relationships with customers, potential customers, suppliers and investors potentially resulting from, and other risks associated with, the changes in the Company’s senior management; costs, risks and effects of the investigation by the Audit Committee of the Board of Directors; the impact of the restatement of financial statements of the Company and other actions that may be taken or required as a result of such restatement; the Company's inability to timely file reports with the Securities and Exchange Commission; risks associated with the Company's inability to meet the requirements of The NASDAQ Stock Market for continued listing, including possible delisting; costs, risks and effects of legal proceedings and investigations, including the informal, non-public inquiry being conducted by the Securities and Exchange Commission and class action, derivative, and other lawsuits; risks in product and technology development, market acceptance of new products and continuing product demand, the impact of competitive products and pricing, ability to integrate acquisitions, changing economic conditions, credit and payment risks associated with end-user sales, dependence on major customers, dependence on key personnel, and other risk factors detailed in the Company’s filings with the Securities and Exchange Commission. Except as expressly required by the federal securities laws, the Company undertakes no obligation to update such factors or to publicly announce the results of any of the forward-looking statements contained herein to reflect future events, developments, or changed circumstances, or for any other reason.