Cedara Receives Product Innovation Award for its Clinical Data Management Tool, Cedara OrthoWorks Care Manager.

PALO ALTO, Calif. -- Frost & Sullivan's recent analysis, Advances in Telemedicine and Patient Care Technology in North America, selected Cedara Software Corp. (TSX:CDE) (NASDAQ:CDSW) as the recipient of the 2005 Product Innovation Award in the field of telemedicine (orthopedic knowledge management). Cedara's unique and innovative clinical data management tool, OrthoWorks Care Manager(TM), is helping enhance orthopedic surgeons' decision-making capabilities to deliver a higher standard of surgical therapy and patient care.

Each year, this Award is presented to a company that has demonstrated excellence in introducing new products and technologies within its industry. The Award lauds innovation efforts and the launch of a broad line of emerging products and technologies.

"Orthopedic surgeons usually maintain manual records of surgeries with separate records for care and recovery and this 'hard copy approach' makes it time consuming to perform statistical analysis and visualize trends," says Frost & Sullivan Research Analyst Sachin Thukral. "OrthoWorks Care Manager simplifies and accelerates the process by facilitating efficient data mining and statistical analysis and it ultimately enables real-time feedback for patient treatment strategies as well."

OrthoWorks Care Manager employs a proprietary technology that captures relevant clinical parameters during diagnosis, therapy, and post-therapy follow-up. Thereafter, it transfers the data into a structured query language (SQL) database. It is equipped with powerful and intuitive data-mining tools to perform outcome analysis, which is then analyzed by a statistical package.

OrthoWorks Care Manager allows data sharing between various centers through a secure e-mail system. Thereby, it allows exchange of information and the centralization of data in case of multi-center studies. Furthermore, OrthoWorks Care Manager, which represents a confluence of imaging capabilities and data mining techniques, saves surgeons valuable time and vastly accelerates the data compilation process. Additionally, it features an exclusive repository where a surgeon can access key orthopedic and image data.

Cedara is currently engaged in linking its OrthoWorks Care Manager with various advanced image-based planning functionalities to enhance spine, hip, and knee analysis. For instance, this system has automated links with OrthoWorks Spine Analyzer, a system to help spine surgeons, orthopedists, and chiropractors analyze cervical, thoracic, and lumbar spine mobility, alignment and deformities.

In addition to orthopedic surgeons, implant device manufacturers can also employ this tool. For implant devices, manufacturers can conduct outcome studies by deploying devices at several sites and compiling rigorous patient follow-up data for months. OrthoWorks Care Manager provides a real-time, intelligent feedback on the implant and facilitates efficient data mining and data management.

For designing and developing an innovative tool that links advanced image processing with data mining, Cedara is the worthy recipient of the 2005 Frost & Sullivan Award for Product Innovation.

About Cedara Software Corp.

Cedara Software Corp. is a leading independent provider of medical imaging technologies. Cedara's software is deployed in hospitals and clinics worldwide and is licensed by many of the world's leading medical device and healthcare information technology companies. Approximately 28,000 medical imaging systems and 6,400 Picture Archiving and Communications System (PACS) workstations have been licensed to date. Cedara recently acquired eMed Technologies Corporation, widely known as a provider of innovative PACS and teleradiology solutions that have been installed in over 2,000 hospitals and imaging centres. Cedara is unique in that it has technologies and expertise that span all the major digital imaging modalities including computed tomography (CT), magnetic resonance imaging (MRI), digital X-ray, mammography, ultrasound, echo-cardiology, angiography, nuclear medicine, positron emission tomography (PET) and fluoroscopy. Furthermore, the Company's medical imaging offerings are used in all aspects of clinical workflow including the capture of a patient's digital image; the archiving, communication and manipulation of digital images; sophisticated clinical applications to analyze digital images; and even the use of imaging in minimally-invasive surgery. On January 18, 2005, Cedara announced that it had signed a definitive agreement to merge with Merge Technologies Incorporated (NASDAQ:MRGE), d.b.a. Merge eFilm, in an all-stock transaction. The merger is subject to court approval and is expected to close on or about June 1, 2005.

About Frost & Sullivan

Frost & Sullivan, a global growth consulting company, has been partnering with clients to support the development of innovative strategies for more than 40 years. The company's industry expertise integrates growth consulting, growth partnership services, and corporate management training to identify and develop opportunities. Frost & Sullivan serves an extensive clientele that includes Global 1000 companies, emerging companies, and the investment community by providing comprehensive industry coverage that reflects a unique global perspective and combines ongoing analysis of markets, technologies, econometrics, and demographics. For more information, visit www.frost.com.