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NEWS RELEASE:
FOR IMMEDIATE RELEASE:

Contact:
Jacques Cornet, VP of Business Development & Strategic Marketing
Cedara Software Corp.
905.672.2100 x-2564 jacques.cornet@cedara.com

Media Contact:
Beth Frost-Johnson, Sr. VP of Marketing
Merge Healthcare
(414) 977-4254
bethfj@merge.com

Attention: Business/Financial Editors:

Cedara Software to Introduce OrthoWorks ProPlanner™ at the Annual Meeting of the American Academy of Orthopaedic Surgeons® (AAOS)

  • Cedara to showcase Cedara OrthoWorks ProPlanner a state-of-the-art orthopaedic application designed to provide comprehensive orthopaedic capability on standard and web-enabled PACS workstations
  • OrthoWorks ProPlanner to provide strategic market access to OEMs through state-of-the-art diagnostic and planning functionality for joint arthroplasty, trauma, deformity corrections and more
  • OrthoWorks ProPlanner to join Cedara’s dedicated suite of orthopaedic solutions that include OrthoWorks Planner™, OrthoWorks Web Planner™, OrthoWorks Spine Analyzer™ and OrthoWorks Care Manager™
  • Cedara OrthoWorks suite of solutions to provide upstream and downstream revenue opportunities for PACS vendors, implant manufacturers and other medical device manufacturers in the form of toolkits, plug-in modules, integrated workstations and complete orthopaedic PACS
Toronto, ON, March 16, 2006 – Cedara Software, a Merge Healthcare company (Nasdaq: MRGE; TSX: MRG) and a leading independent developer of medical software technologies for the global healthcare market, today announced plans to introduce Cedara OrthoWorks ProPlanner, the latest edition to its Cedara OrthoWorks™ line of digital orthopaedic software solutions at the 2006 Annual Meeting of the American Academy of Orthopaedic Surgeons (AAOS).

Cedara OrthoWorks ProPlanner is a soon-to-be-released workstation or customizable plug-in clinical application available to OEM companies and healthcare professionals for orthopaedic support on existing PACS and RIS/PACS systems. Designed for rapid implementation, OrthoWorks ProPlanner provides a powerful and efficient means for OEM companies to upgrade current customer bases and to expand into new revenue opportunities.

Extending beyond basic orthopaedic planning, OrthoWorks ProPlanner provides support for deformity corrections, trauma and customized planning methodologies that mimic orthopaedic workflow. In challenging deformity and trauma corrective cases for example, Image Cutting allows surgeons to cut and reposition fractured bone fragments to visualize potential surgical changes. In converse circumstances, Image Stitching allows users to stitch together two or more images using a number of methods to ensure that cases requiring long film X-rays can still be digitally planned without the need for expensive stitching hardware. OrthoWorks ProPlanner also incorporates Cedara’s ImageSnap Technology™, a unique capability that enables automatic measurements with suggested implant selection and placement.

For record keeping purposes and implant inventory control, automatic reporting in OrthoWorks ProPlanner includes all critical information such as patient demographics, technical notes, key images with templates and measurements, and implant ordering information.

Cedara OrthoWorks ProPlanner joins the OrthoWorks family of solutions from Cedara that includes products for image acquisition, surgical planning, templating, archiving, web distribution and data mining. Highlights include OrthoWorks Planner, OrthoWorks Web Planner, OrthoWorks Spine Analyzer, and OrthoWorks Care Manager. The Cedara OrthoWorks suite of applications is available in toolkit form, as plug-in modules, integrated workstations or as a complete orthopaedic PACS solution.

Having struggled with other digital orthopaedic solutions, Veryl Kroon, COO of the Iowa Orthopaedics Center in Des Moines, Iowa has said, “OrthoWorks consistently withstands the pounding that our surgeons, physicians and IT staff place on the system – operating like the Energizer bunny. Unlike our previous solution, OrthoWorks has significantly reduced the number of [file] not founds. Our surgeons are really getting into the ortho tools for their pre-operative planning and like the templates because of the speed and accuracy it affords to their work - not to mention being able to do it remotely which saves them extra trips back to the office.”

“Cedara Software brings a very unique value proposition to medical technology vendors with OrthoWorks,” said Brian Pedlar, President of Cedara Software, “OrthoWorks ProPlanner provides an immediate opportunity for device manufacturers, implant manufacturers, PACS and EMR companies to broaden their product portfolio and to control more of their customers’ software spending in orthopaedics; With one of the largest engineering departments in the industry, Cedara can also leverage OrthoWorks technology to custom engineer solutions for areas such as templating, 3D planning, implant inventory control, image stitching, automation using ImageSnap Technology and more. We are pleased to introduce our latest orthopaedic developments at this year’s AAOS in Chicago.”

Cedara Software will debut this new digital technology during AAOS 2006 from March 22 - 24, at booth 2455 in the South Hall of McCormick Place in Chicago, Illinois.

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 our website at www.cedara.com.

Merge Healthcare
is a market leader in the development and delivery of medical imaging and information management software and services. With over twenty years of leadership in the medical imaging and healthcare information technology markets, Merge Healthcare provides innovative solutions for both OEM and the end-user healthcare markets. We custom engineer clinical and imaging applications and development tools that are on the forefront of medicine and its use of medical imaging for OEM and international customers. We develop innovative medical imaging software solutions that support end-to-end business and clinical workflow for radiology department and specialty practices, imaging centers and hospitals. Our innovative software solutions use leading-edge imaging software technologies that accelerate market delivery for our OEM customers, while our end-user solutions improve our customers' productivity and enhance the quality of patient care they provide. For additional information, visit our website at www.merge.com.

All trademarks appearing in this release are the property of Cedara Software Corp. and/or Merge Healthcare.

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.