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Investor Contact:
Melanie Gretzon
Director, Corporate Services
414.977.4000
ir@mergehealthcare.com

NEWS RELEASE:
FOR IMMEDIATE RELEASE:


 

MERGE HEALTHCARE ANNOUNCES REDEMPTION OF RIGHTS UNDER
SHAREHOLDER RIGHTS PLAN


Milwaukee , WI , June 12, 2008 - Merge Healthcare Incorporated (NASDAQ: MRGE; TSX: MRG), a medical imaging software and services company, announced that its Board of Directors has
approved the redemption of all preferred share purchase rights (the "Rights") outstanding on each share of the Company’s common stock and on each exchangeable share issued by Merge Cedara ExchangeCo Limited, an indirect majority-owned subsidiary of the Company. The Rights were previously issued pursuant to the terms of a Rights Agreement, dated as of September 6, 2006, as amended, by and between the Company and American Stock Transfer & Trust Co. as rights agent. One Right is outstanding on each outstanding share of Company common stock and on each exchangeable share of Merge Cedara ExchangeCo Limited. Pursuant to the Rights Agreement, the redemption price is $0.001 per Right.

Shareholders of record on June 23, 2008 will receive payment of the redemption price on July 7, 2008. However, pursuant to the terms of the Rights Agreement, the right to exercise the Rights terminated effective immediately upon the action of the Board of Directors.

 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 leadingedge 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.mergehealthcare.com.

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

This announcement may include forward-looking statements within the meaning and subject to the protections of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. When used in this announcement, the words "will," "anticipates," "expects" and similar expressions of the future are intended to assist you in identifying such forward-looking statements. Any number of factors could cause the actual results to differ from the results contemplated by such forwardlooking statements, including, but not limited to: the Company’s ability to generate sufficient cash from operations to meet future operating, financing and capital requirements; 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; market acceptance of the Company’s delivery model and continuing product demand; and other risk factors detailed in the Company’s filings with the Securities and Exchange Commission. You should not place undue reliance on forward-looking statements, since the statements speak only as of the date that they are made. We do not have, or undertake any obligation to, publicly update, revise or correct any of the forward-looking statements after the date of this announcement, or after the respective dates on which such statements otherwise are made, whether as a result of new information, future events or otherwise. This announcement should be read in conjunction with the risk factors, financial information and other information contained in the filings that the Company makes and previously has made with the Securities and Exchange Commission.

Press Contact

Attn: Melanie Gretzon
Merge Healthcare
6737 West Washington St.
Suite 2250
Milwaukee, WI 53214

Phone:
1-(414) 977-4000

Email Address: marketing@merge.com