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Merge Healthcare Provides Update on the Restatement of Its Financial Statements
Date:10/29/2007

0, 2007 was approximately $22 million. The Company currently anticipates that its earnings before interest, taxes, depreciation, and amortization (EBITDA) after adjusting for stock-based compensation costs and legal fees associated with the class action and other prior restatement related lawsuits will not be positive until the latter half of calendar 2008, at the earliest.

The Company currently plans to hold its next earnings conference call shortly following the filing of its financial results for the quarter ended September 30, 2007, which is expected to be on or before December 31, 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 http://www.mergehealthcare.com.

Cautionary Notice Regarding Forward-Looking Statements

This announcement may include forward-looking statements within the meaning and subject to the protections of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, as amended. When used in this announcement, the words "will," "believes," "intends," "anticipates," "expects" and similar expressions of the future are intended to assist you in identifying such forward-looking statements. Such forward-looking statements include, among others, statements regarding: our future business prospects, our ability to execute on our strategies to grow our business, increased use of digital modalities and the adoption of RIS-PACS and workflow technologies, the timing of our completion of our restatements and filings of related SEC reports, the expecte
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