"I am very pleased that Cedara is working with Molecular Therapeutics, and
such renowned researchers as Brian Ross and his team," said Brian Pedlar,
Cedara's President and Senior Vice-President, Merge Healthcare.

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Located in Milpitas, CA, Fairchild
Imaging is a privately held corporation whose major investors include
The Carlyle Group, BAE Systems, and management.

Cedara to Provide Revolutionary New Technology for Cancer Assessment and Treatment

("Cedara"), a Merge Healthcare company (Nasdaq: MRGE; TSX: MRG) and a
leading independent developer of medical software technologies for the global
healthcare market , today announced an exclusive relationship with Molecular
Therapeutics of Ann Arbor, Michigan, in which Cedara will market and sell
products based on new ground-breaking techniques in cancer assessment .
"Armed with this kind of advanced early warning and response information,
doctors, such as Radiation Therapy physicians, may be able to make more
frequent and guided changes in the course of cancer treatment," said Chris
Barlow, Cedara's Director of Business Development, "We hope that these changes
will lead to better treatment and patient care.

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I don't think that any patient wants to endure seven weeks of
treatment only to find two months later that it had no effect.

Names of companies who manage, test, and handle the imaging services.

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Dr. Using functional diffusion mapping, tumour response
may be evaluated at a pixel or voxel level, rather than on a lesion as a
whole, allowing further advancements in targeted treatment planning.

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(Logo: http://www.

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Ross' research has examined
the ability of Magnetic Resonance Imaging (MRI) to capture changes in
physiological activity.

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Dr.com .

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"Working with Cedara is an important step in making this critical
technology available to the public."

Cedara is a Merge Healthcare company focused on the development of custom
engineered software applications and development tools for the medical imaging
OEM and International markets.com .

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As part of its commitment to develop
advanced CCD and CMOS imaging products for multiple markets and
applications, Fairchild Imaging continues to assemble world class
design and management talent in all fields relating to electronic
imaging. We have always
been known for our advanced CCDs, but we are quickly moving to
establish our credentials in CMOS technology as well. Fowler earned his BS degree in Engineering from California
State University Northridge, and completed his MSEE and Ph.

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Fowler will report directly to Mr. He was the
inventor of the revolutionary Active Reset CMOS imager technology that
is just now being introduced to industrial imaging. He has several refereed journal publications,
conference publications and patent awards. In a
landmark study published in the Proceedings of the National Academy of
Sciences, March 2005, early research indicated that functional diffusion
mapping may allow researchers to evaluate tumour response at a significantly
earlier stage than is currently possible. With over
twenty years of leadership in the medical imaging and healthcare information
technology markets, Merge Healthcare provides innovative solutions for both
OEM and the end-user healthcare markets.

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D.cedara.

All trademarks appearing in this release are the property of Cedara
Software Corp.

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Business Editors

MILPITAS, Calif .----Fairchild
Imaging, a leading developer and manufacturer of high performance
electronic imaging components and cameras, announces the appointment
of Dr. Using MRI tumor
diffusion values to accurately predict the treatment response early on could
allow some patients to switch to a more beneficial therapy and avoid the side
effects of a prolonged and ineffective treatment.

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com

Cedara has superb connections with medical
companies, as well as having their own direct channels," said Brian Ross,
Ph. Cedara medical imaging offerings are used in
all aspects of clinical imaging workflow including the capture of a patient's
digital image; the archiving, communication and manipulation of digital
images; sophisticated clinical applications to analyze digital images; and the
use of imaging in minimally-invasive surgery. For
additional information, visit our website at http: //www.

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Boyd Fowler to the position of Vice President and Chief
Technology Officer."
Dr.fairchildimaging ."
Cedara will also pursue opportunities for using this technology to help
speed-up drug discovery for pharmaceutical companies.

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"It is
rewarding to be part of this innovative project that could bring tremendous
benefits to so many people's lives. We custom engineer clinical and
imaging applications and development tools that are on the forefront of
medicine and its use of medical imaging for OEM and international customers.

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While current methods evaluate tumour response based on changes
in size , shape and anatomical characteristics, Dr. Cedara software is deployed in hospitals and
clinics worldwide and is licensed by many of the world's leading medical
device and healthcare information technology companies.

Merge Healthcare is a market leader in the development and delivery of
medical imaging and information management software and services.

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com/cgi-bin/prnh/20030430/MRGELOGO )
Differing from standard techniques used to evaluate cancer treatment,
functional diffusion mapping has the potential to evaluate the impact of anti-
cancer drugs and radiation therapy on certain tumours through changes in water
diffusion and Brownian motion., professor of radiology and biological chemistry at the University of
Michigan Medical School and a member of the University of Michigan
Comprehensive Cancer Center, "We are keen to make positive changes to people's
quality of life .

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D. Current pre-clinical
trials suffer similar problems of delay in understanding whether or not a new
compound has had an affect on tumours.

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Arduini says, "Dr."
In collaboration with Cedara , researchers will investigate how outcomes
and treatments can be affected by this novel technique , and how functional
diffusion mapping may be applied to treatment for other cancer areas, such as
breast, liver or head/neck cancer.
Molecular Therapeutics is associated with Cedara through its Technology
Partnership Program, a program designed to offer assistance to medical
technology innovators through productization, commercialization and channel
sales support. For additional information ,
visit our website at http://www.

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Upon the
acquisition of PDI by Agilent Technologies, Boyd joined their sensor
solutions division as an image sensor scientist and subsequently
managed the advance camera development group. - Collaboration with Molecular Therapeutics in developing new treatment
evaluation options for people suffering from brain cancer

- Proprietary imaging technique provides early detection of treatment
response - a potentially tremendous benefit to treatment planning and
drug discovery

- Cedara to offer clinical solutions to cancer centers and hospitals as
well as manufacturers in medical imaging, oncology therapy , and
pharmaceutical industries

- Collaborative work underway to develop innovative products for a broad
range of cancers

TORONTO, Cedara Software
Corp. Using a
novel imaging process known as functional diffusion mapping, this technology
will be integrated into software solutions for early detection of treatment
response in cancer care.

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Boyd will be a
key participant as we continue to development our next generation of
novel devices and technologies . EE from
Stanford University. Merge eMed, a Merge Healthcare
company that focuses on the end-user market, will bring this technology and
other Cedara clinical applications to hospitals, imaging centers and specialty
clinics.
We develop innovative medical imaging software solutions that support end -to-
end business and clinical workflow for radiology department and specialty
practices, imaging centers and hospitals.merge.

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About Fairchild Imaging

Fairchild Imaging is a manufacturer and developer of electronic
imaging components and systems. Information about
Fairchild Imaging is available on the worldwide web at
www.newscom.
Functional diffusion mapping was developed through original research, led
by Brian Ross at the University of Michigan, and licensed to Molecular
Therapeutics.

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Fowler's addition to our team will accelerate
our development of advanced imaging devices and systems. Fowler is a recognized pioneer in the field of CMOS imaging
and brings years of CMOS image sensor design and analysis experience. By giving radiologists a sophisticated tool to
study tumour activity at both the molecular and anatomical level, it is hoped
that this technology may provide the foundation on which fast, efficient and
personalized treatment planning can develop . This technology is also expected
to bring about significant advances in pharmaceutical research and evaluation. Cedara will focus on developing commercial
products, seeking regulatory clearance , establishing further partnerships and
marketing the products and technology to OEMs.

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Fairchild Imaging Announces the Appointment of Dr. Boyd Fowler as VP + CTO

Boyd was a Founder and the VP of Engineering at Pixel Devices
International (PDI), a Sunnyvale based start-up Company that
specialized in the area of high performance CMOS devices. Cedara technologies
and expertise span all the major digital imaging modalities including computed
tomography (CT), magnetic resonance imaging (MRI), digital X-ray, mammography,
ultrasound, echo-cardiology, angiography, nuclear medicine, positron emission
tomography (PET) and fluoroscopy.

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Charles
Arduini, President and CEO. 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.