Foresight Imaging and Cedara Software Corp. Sign Distribution Agreement for PACS Connectivity.

LOWELL, Mass. -- Foresight Imaging announces today that Cedara Software, a Merge Healthcare Company (NASDAQ: MRGE), has signed a five-year agreement to distribute Foresight's TIMS DICOM System. The TIMS solution will complement Cedara's existing suite of DICOM and HL7 connectivity tools, which include Cedara ExamWorks(TM) and MergePort(TM). In addition to general distribution of the product, Cedara will also become the exclusive sales channel for the TIMS DICOM System in Europe. This arrangement will allow Cedara's growing European install base and extensive sales force to make use of TIMS for non-DICOM to DICOM conversion needs. In all territories other than Europe, Cedara will be selling the TIMS DICOM System on a non-exclusive basis.

The TIMS DICOM System allows healthcare professionals to integrate non-DICOM imaging modalities into a networked Picture Archiving and Communications System (PACS). For healthcare facilities interested in establishing enterprise wide image access while balancing cost containment, TIMS provides a cost effective solution for PACS connectivity. Differing from other connectivity solutions on the market, the TIMS DICOM System includes one of the widest collections of adapters, allowing almost any legacy modality to be integrated into a PACS infrastructure - making it a very dynamic system.

"We are very pleased to be Cedara Software's partner for PACS connectivity. Our new relationship further validates the progress we have made in establishing the TIMS DICOM System as the new standard for non-DICOM to DICOM conversion and PACS connectivity," said Mark Mariotti, CEO of Foresight Imaging.

"We are very pleased to be working with Foresight Imaging. From a business perspective, this relationship will allow us to leverage our sales channels and provide greater access to the market for the TIMS system. As a powerful connectivity solution, TIMS will serve as an excellent complement to our existing DICOM and HL7 tools. I believe that our end user and OEM partners will be very pleased with this offering," said Brian Pedlar, President of Cedara Software.

About the TIMS DICOM System

Hospitals and imaging clinics around the world need to convert their non-DICOM medical modalities to DICOM. Upgrading or replacing these modalities is too expensive, often costing hundreds of thousands of dollars. PACS is a large enough expense in and of itself. Replacing all of the non-DICOM devices for PACS connectivity purposes is simply not cost-effective. The solution is the TIMS DICOM System. TIMS converts any non-DICOM medical modality to DICOM. This includes ultrasound, fluoroscopy, endoscopy, motion X-ray, angiography, nuclear medicine, MR, CT, and more. The resulting digital study can be sent to PACS, recorded to CD/DVD/USB, and printed to film or paper. TIMS is available for a small fraction of the cost of a modality upgrade. TIMS captures both static images and streaming video at 30 frames per second. TIMS also converts to DICOM the JPG, BMP, and AVI images generated in pathology, dermatology, and ophthalmology applications.

About Foresight Imaging

Foresight Imaging is a world leader in the design of high accuracy, high performance video streamers, frame grabbers, and PACS connectivity software for the medical imaging market. For further information, visit www.tims.com or email [e-mail].

About Cedara Software

Cedara Software is a Merge Healthcare company focused on the development of custom engineered software applications and development tools for the medical imaging OEM and International markets. Cedara 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. Cedara technologies and expertise 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. Cedara medical imaging offerings are used in all aspects of clinical imaging 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 the use of imaging in minimally-invasive surgery. For additional information, visit Cedara's website at www.cedara.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: guidance, believes, intends, anticipates, expects, and similar expressions are intended to identify forward-looking statements. Actual results could differ materially from those projected in the forward-looking statements based on a number of factors, including, but not limited to, 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, unexpected outcomes to any pending or future litigation, 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 filings with the Securities and Exchange Commission. The Company undertakes no obligation to publicly release the result of any revisions to these forward-looking statements that may be made to reflect any future events or circumstances.