Merge eFilm Completes Integration of PACSbuilder with EMC's Centera Content Addressed Storage Solution; Quantum Diagnotic Imaging of Dallas to implement combined solution for improved image and information access for radiologists and referring physicians.
Milwaukee, WI, October 24, 2002

Milwaukee, WI, October 24, 2002 - Merge eFilm (Nasdaq: MRGE) today announced that it has completed the integration of its PACSbuilder™ solution with EMC's Centera content addressed storage (CAS); and that Quantum Diagnostic Imaging, Dallas, Texas, will be the first to implement this integrated system. PACSbuilder optimizes workflow among clinicians throughout the healthcare enterprise, integrating database, image storage, and workflow capabilities on a unified, scalable platform that supports a suite of application modules. These modules include HIS/RIS integration, archiving, image streaming, and image web access. PACSbuilder's archiving application is supported with EMC's Centera, a new software-driven storage architecture that addresses the unique information storage requirements of long-lasting, unchanging digital objects -- or "fixed content" -- such as radiological images. The combination of PACSbuilder and Centera will provide health care organizations with an unprecedented amount of disk-based networked storage for rapid access to all types of radiological images - thereby improving the speed, performance and efficiency of their workflow among all clinicians involved in patient care.

"Quantum Diagnostic Imaging prides itself on service excellence, operational efficiency, and outstanding patient care", said Doug Schapiro, Chief Operating Officer of Quantum Diagnostics. "With the selection of the Merge eFilm and EMC Centera solution, we are assured of a partnership that supports these principles, scales with the growth of our business, reduces the time involved in study turnaround by quickly delivering images to the treating physicians, and provides our customers with robust, intuitive tools to view images."

"The average hospital produces some 500,000 sheets of film annually that must be available for medical reference and, in compliance with federal regulations, stored for at least seven years," said Tom Heiser, EMC's Vice President and General Manager, Content Addressed Storage. "The integration of Merge eFilm's PACSbuilder solution with EMC Centera provides online access to radiological images, while ensuring storage of these images for the life of the patient. We are pleased that Quantum has recognized the value of our joint solution for its patients, radiologists and referring physicians."

"Our partnership with EMC has resulted in an integrated PACS and enterprise-wide image management solution that focuses on the speed and performance that is required for optimal efficiency in a digital healthcare environment," said Rich Linden, Merge eFilm's President and CEO. "In conjunction with EMC, we are extremely pleased that Quantum Diagnostics has chosen to partner with Merge eFilm and deploy our PACSbuilder solution in support of their business model and growth strategy. Quantum's recognition of the workflow impact of this comprehensive solution is representative of their commitment to superior patient care and referrer-focused operational excellence."

Quantum Diagnostic Imaging has two convenient, free-standing imaging centers in the Dallas area metroplex. By combining advanced equipment with a knowledgeable and friendly staff, Quantum has created a comfortable and trusted environment for both patients and referring physicians. For more information, visit www.quantumcenters.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.