Merge Healthcare to Delay Filing of Quarterly Report on Form 10-Q for Quarter Ended June 30, 2007

    MILWAUKEE, Aug. 10 /CNW/ -- Merge Technologies Incorporated, doing
business as Merge Healthcare (Nasdaq: MRGE; TSX: MRG), a leading provider of
medical imaging software and services, announces that it will delay the filing
of its Quarterly Report on Form 10-Q for the quarter ended June 30, 2007 and
will be filing a Form 12b-25 with the Securities and Exchange Commission to
report this delay.  The Company is unable to file its Quarterly Report on Form
10-Q for the quarter ended June 30, 2007 at this time because it is examining
whether it has been properly recognizing revenue from certain software
contracts dating back to 2004 and earlier periods. The contracts at issue
include both a license of software and related maintenance and support. 
Specifically, the Company is reviewing, in consultation with its public
accountants, whether the Company should have recognized the entire value of
the bundled contract as revenue over the period for which maintenance and
support may be provided to the customer.  The approach being considered is
different from the Company's historical practice of recognizing the fair value
of the software principally in the initial year of the contract and the fair
value of the maintenance over the maintenance period. This issue involves the
application of very specific accounting literature and does not affect the
total amount of revenue that will ultimately be recognized from these
contracts, but rather the timing of the recognition of the revenues.  The
Company is diligently working with its professional advisors to resolve this
issue and intends to file its Quarterly Report on Form 10-Q for the quarter
ended June 30, 2007 as soon as possible.
    As a result of the matters more fully discussed above, the Company may be
required to restate prior financial results.  However, the Company is not yet
in a position to determine what, if any, restatements will be required or to
quantify any impact on prior reported results.  The Company does not expect
such restatement would have any impact on the total amount of revenue
recognized from the contracts at issue.
    The Company plans to host a conference call for investors promptly after
it announces its operating results for the second quarter of 2007.
    Merge Healthcare is a market leader in the development and delivery of
medical imaging and information management software and services. 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
    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, costs,
risks and effects of the past and any future 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 formal investigation being
conducted by the Securities and Exchange Commission (formerly an informal
investigation) and class action, derivative, and other lawsuits; 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;
risks in product and technology development, market acceptance of new products
and continuing product demand; the impact of competitive products and pricing;
the Company's ability to integrate acquisitions; changing economic conditions;
credit and payment risks associated with end-user sales, the Company's
dependence on major customers; the Company's 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.

For further information:

For further information: Melanie Gretzon, Director, Corporate Services, 
+1-414-977-4000,, or Press, Beth Frost-Johnson, Senior 
Vice President, Marketing, +1-414-977-4254,, 
both of Merge Healthcare Web Site:

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