Merge distribution deal in Brazil inked!

Merge Healthcare Signs Distribution Agreement for Health IT Solution in Brazil

New relationship brings industry-leading eFilm Workstation® to the growing Brazilian market

MILWAUKEE--(BUSINESS WIRE)-- Merge Healthcare (NASDAQ: MRGE), a leading health IT solutions provider , today announced a new distribution agreement with Microdata Tecnologia LTDA, a PACS and Medical Imaging Technology manufacturer in Brazil. Under the agreement, Microdata Tecnologia LTDA will have exclusive access to a Portuguese language version of eFilm Workstation, the world’s most downloaded software for viewing medical images. Microdata Tecnologia LTDA will replace the viewing component of their current PACS solution with eFilm Workstation and distribute the solution through their existing sales force, as well as through a customized eCommerce engine based upon Merge’s existing eStore.

“We are happy to partner with Merge Healthcare to bring eFilm Workstation, a highly-regarded and well-known diagnostic workstation within Brazil, to our large customer base,” explains Franco Motta, CEO of Microdata Tecnologia LTDA. “Our ability to leverage eFilm as a solution for institutions of all sizes will also help us to grow our PACS business and expand our product line into other solutions and services. Longer term, we are interested in working together to expand into additional Merge Healthcare solutions, which we believe would be well-received within Brazil.”

Brazil is one of the fastest growing emerging markets in the world, according to global research and growth consulting firm Frost & Sullivan, and currently spends 8% of its GDP on healthcare. The PACS market in Brazil is estimated to grow at a 32.4% CAGR from 2005-2015, driven by overall healthcare technology adoption, and the efficiency and workflow improvements providers gain by using PACS solutions. Frost & Sullivan places Microdata as a top-tier competitor in the Brazilian market, with well over 20% market share.

“Microdata Tecnologia LTDA is an ideal partner for Merge Healthcare in Brazil, as they are an established PACS provider who can integrate with eFilm Workstation,” says Justin Dearborn, Merge CEO. “Microdata realized that a Portuguese-language version of eFilm Workstation can help expand its reach in Brazil at a time when many imaging practices are making the transition to digital imaging. We look forward to expanding the reach and value of eFilm Workstation through this partnership and to exploring similar opportunities across our extensive portfolio of medical imaging and interoperability solutions.”

The new Portuguese-language version of eFilm Workstation that Merge will release to Microdata Tecnologia joins a growing list of translated versions, including Spanish, Japanese, Russian and Polish language versions. In addition, Merge will create a customized eCommerce engine based on Merge’s current eCommerce system, which has generated tens of thousands of downloads and licensed users worldwide.

Merge Healthcare develops and integrates information technology to create a better electronic healthcare experience. 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.

About Microdata Tecnologia LTDA

"Operating since 1999, Microdata has specialized in digital capturing, processing and the distribution of medical images, achieving national recognition and a standard of excellence in medical imaging. Microdata today occupies a leading position in the market, and is the leading Brazil based vendor in the medical imaging informatics industry. Through continued pursuit of our pioneering spirit and commitment to quality, Microdata is able to provide customers with leading technologies and effective tools for information and image management. Microdata is driven by the goal of bringing all hospitals and clinics full access to modern technologies, such as DICOM and digital imaging, at the lowest possible cost. Microdata solutions allow customers a considerable gain in productivity and faster return on investment." Additional information can be found at http://www.microdata.com.br

The matters discussed in this news release may include forward-looking statements, which could 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, such forward-looking statements. 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.