MERGE EFILM RAISES $8 MILLION IN CASH

Milwaukee, WI, July 24, 2003 - Merge Technologies Incorporated (NASDAQ: MRGE), d.b.a. Merge eFilm, today announced today that it has raised $8 million in cash via the sale of 667,000 shares of its common stock for $12.00 per share. The private placement was made to several strategic institutional investors.

Richard Linden, Merge's President and CEO, said, "We are pleased to be adding high-quality investors to our growing group of institutional owners, prudently leveraging market conditions that yielded favorable terms which allowed us to strengthen our cash position. Our continued growth and strong financial performance has led to a steady increase in investment community exposure and interest in our company. The combination of our cash reserves, the newly raised cash, and our $5M line of credit provides Merge eFilm with a strong balance sheet and the financial flexibility for strategic growth."

The newly issued shares of common stock have not been registered under the Securities Act of 1933 and may not be offered or sold in the United States in the absence of an effective registration statement. The company has agreed to register the shares issued to the investors.

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About Merge eFilm
Merge eFilm is a global healthcare software and services company focused on delivering a suite of RIS/PACS software solutions and professional services to hospitals and imaging centers. Our strength lies in our ability to automate, integrate and replicate optimal workflow for everyone involved in the care of the patient. For more than sixteen 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, visit our web sites at www.merge.com and www.rislogic.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.