MERGE EFILM EXPANDS LINE OF CREDIT TO $15 MILLION - Financial strategy supports plans for growth and strategic investments

Milwaukee, WI, November 24, 2003 - Merge eFilm (Nasdaq: MRGE), a leading global healthcare software and services company, today announced that it has signed a new $15 million unsecured line of credit agreement with Merchants and Manufacturers BanCorp (MMBC), a Milwaukee-based firm. The previous $5 million line of credit, from which no monies have been drawn, was set to expire in December 2005. The three-year agreement will support Merge eFilm’s continued growth and strategic investments.

"This agreement strengthens our financial position and provides capital for future strategic growth," said Rich Linden, President and CEO. "Our expanded line of credit agreement, in conjunction with our $15 million cash balance, provides a $30 million foundation that strengthens our ability to leverage strategic opportunities in the RIS/PACS marketplace and our target market. We are pleased that MMBC continues to support our business model and strategic direction, and has recognized that our financial strength is supportive of a $15 million unsecured line of credit."

"Having the flexibility of a line of credit is essential to the Company’s growth," said Scott Veech, CFO. "Having a strong capital foundation will ensure our ability to support our strategic direction."

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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, imaging centers and clinics. For more than sixteen years, Merge eFilm has leveraged its healthcare IT, clinical and engineering experience to increase productivity, reduce costs and improve patient care by efficiently integrating and automating clinical and administrative workflow. For additional information, visit our web site at
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.