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Milwaukee, WI - Merge Healthcare (NASDAQ: MRGE), a health IT solutions leader, and MEDRAD, a leading provider of medical devices and services for diagnostic imaging, today announced an expansion of their European Union Distribution Agreement for CADstream, a dedicated CAD system for MRI. The expanded Distribution Agreement now allows MEDRAD to distribute CADstream in France, as well as the United Kingdom, Germany and Italy; some of the fastest-growing markets for CAD in the EU.

"MEDRAD has spearheaded the availability of this important technology in Europe," said Paul Budak, president of Merge CAD (formerly Confirma). "As breast and prostate MRI study volumes increase, physicians are searching for systems that will improve the workflow of time-intensive studies. CADstream has been a market leader in breast MRI CAD in the U.S. for some time, and MEDRAD is a great partner to expand its deployment in the EU."

"CADstream complements the MEDRAD product portfolio and customers in France are requesting the product," said Anthony Cinalli, executive director, radiology marketing, MEDRAD. "We are happy to now offer CADstream - which is reported to be the standard in breast MRI CAD - to the French market."

In the 2008 European Markets for Computer Aided Detection report published by Frost and Sullivan, CAD is considered a must-have in 2010 in many EU countries. The Merge team has been ramping up educational efforts for EU radiologists as a result. Workshops on breast MRI have been held in Germany and the U.K., and a course is scheduled for France in November. Education schedules and online registration can be found at http://www.merge.com/cad/benefits/education.aspx.

"CAD has become an integral part of breast MRI study interpretation," said Dr. Michael Middleton, Assistant Professor, Department of Radiology, University of San Diego, California (UCSD). Dr. Middleton led the Merge-sponsored Practical Breast MRI with CAD workshop in London in September.

MEDRAD, INC. develops, markets and services medical devices used to diagnose and treat disease. Its product offerings include fluid injection systems for radiology and cardiology, endovascular devices for the safe treatment of cardiovascular disease, magnetic resonance-compatible accessories and equipment services. MEDRAD's total 2008 revenues were over $600 million. The company's world headquarters is near Pittsburgh, Pennsylvania, in the United States. MEDRAD is a business of Bayer Medical Care.

Merge CAD (formerly Confirma and now a business unit of Merge Healthcare), provides peace of mind through leadership in innovative technology, customer support and resources for building and expanding an MRI practice. Confirma develops and markets CADstream, an MRI-CAD system that revolutionizes MRI study analysis and reporting.

CADstream automates the analysis and interventional guidance of MRI studies, providing higher quality imaging studies, lower costs for radiology practices and improved communication tools for physicians and patients. Thousands of physicians at more than 1,200 facilities partner with Confirma each day to provide premium patient care.

Merge Healthcare Incorporated develops solutions that automate healthcare data and diagnostic workflow to enable a better electronic record of the patient experience, and to enhance product development for health IT, device and pharmaceutical companies. Merge products, ranging from standards-based development toolkits to sophisticated clinical applications, have been used by healthcare providers, vendors and researchers worldwide for over 20 years. Additional information can be found at www.merge.com.