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

d impact of the restatement on our financial results, our expected revenues for our first and second quarters of 2007, our bookings for periods noted above and our expectation relating to our ability to (and the potential timing of) generate positive earnings before interest, taxes, depreciation, and amortization (EBITDA) after adjusting for Financial Accounting Standards Board No.123R costs and legal fees associated with the class action and other prior restatement related lawsuits. Although the Company presently believes that the expectations reflected in such forward-looking statements are based on reasonable assumptions, the Company does not give, and cannot give, any assurance that those expectations will be achieved.

Any number of factors could cause the actual results to differ from the results contemplated by such forward-looking statements, including, but not limited to: risks and effects of the past and current restatement of financial statements of the Company and other actions that may be taken or required as a result of such restatement; the expected financial impact of the restatement and the financial results included herein are preliminary and are subject to change following further internal review and review by the Company's independent accountants; the restatement may take longer to complete than expected; 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 inquiry) and class action, derivative, and other lawsuits; the uncertainty created by and the adverse impact on relationships with customers, potential customers, suppliers and investors potentially resulting from, and other
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