Merge eFilm Signs Agreement with Infocom for Development of Japanese Version of eFilm Workstation™. Japanese version to debut at RSNA, December, 2002.
Milwaukee, WI, November 19, 2002

Milwaukee, WI, November 20, 2002 - Merge eFilm (NASDAQ: MRGE) today announced that it has signed an agreement with Infocom Corporation for the Japanese translation, localization, marketing and distribution of Merge eFilm's internationally known eFilm Workstation medical image visualization software. Richard Linden, Merge eFilm President and Chief Executive Officer, and Akira Kobayashi, Infocom General Manager, Life Science Division, signed the agreement in Tokyo, Japan. As a term of the agreement, Infocom will have exclusive distribution rights in Japan for two years, and Merge eFilm will retain royalty revenues from Japanese sales. The Japanese market includes more than 9,000 hospitals, and 300 million radiological procedures annually.

Merge eFilm and Infocom established their relationship ten years ago when Infocom licensed Merge eFilm's DICOM development tool for the creation of a radiology information system (RIS). The agreement announced today represents an expanded partnership involving the localization of PACS components, the first being image visualization via eFilm Workstation. Infocom is expected to release the software in the second quarter of 2003, and will provide technical and user support locally.

"This is the natural evolution of a successful long-term relationship," said Linden. "We're very excited about the opportunity to partner with Infocom, bringing a new model of affordable enterprise-wide digital medical imaging to Japan. Our historical experience of trust and mutual regard serves as the foundation for this new venture between us, and we look forward to cooperatively changing the model of medical image and information management."

"We have chosen to partner with Merge eFilm because of their knowledge and understanding of radiology workflow, and for their affordable, innovative software solutions that support it," said Akira Kobayashi, Infocom's Divisional General Manager. "Our agreement will extend the accessibility of diagnostic images by radiologists and clinicians throughout Japanese healthcare organizations. We will leverage our experience in the Japanese healthcare system to incorporate the nuances of the Japanese language into this clinically robust visualization tool. We are pleased to bring the efficiencies and cost savings that this innovative software has generated throughout the world to our country."

Infocom will demonstrate a beta version of the software at RSNA (Radiological Society of North America) in Chicago, Illinois, McCormick Place, December 1-5, at the Merge eFilm exhibit, booth 2117.

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