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Jaime Saeger
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Pegasus Imaging Corporation
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Tampa, FL 33603 USA
www.pegasusimaging.com


MERGE TECHNOLOGIES AND PEGASUS IMAGING CORPORATION ANNOUNCE TECHNOLOGY CROSS-LICENSING AGREEMENT

MILWAUKEE, WI, November 24, 2000 - Merge Technologies Incorporated (NASDAQ: MRGE) and Pegasus Imaging Corporation announced today that they have reached an agreement to cross license Medical Image Compression and DICOM technologies to be included in products and services offered by both companies. Merge will integrate Pegasus JPEG and Wavelet data compression technologies into the Merge product line, including its leading MergeCOM-3 DICOM medical image communication software. In turn, Pegasus will integrate Merge's DICOM technologies into its medical image manipulation software.

According to Merge's President and CEO Richard Linden, "Combining the world leading technologies of our two companies brings enhanced value to our respective customers. Merge is creating unique capabilities with Pegasus' cutting edge compression technology to enable our healthcare OEM and end-user system clients to deliver DICOM images rapidly, even when bandwidth is limited, such as on the internet."

Added Jack Berlin, President of Pegasus Imaging Corporation, "Merge is the 'Gold Standard' in DICOM technologies. Pegasus' compression and image manipulation software tool customers will now have access to Merge's DICOM in an integrated software development environment."

The first products from each company utilizing the cross licensed technologies will be released in Q1 2001. The agreement also calls for exploring future cross development and licensing opportunities for medical image compression and DICOM technologies and products.

About Merge Technologies
Merge Technologies Incorporated is a global leader in the drive toward an integrated healthcare enterprise. The Company's unique, phased solutions represent a customer friendly blend of innovative technologies, professional consulting services and an intimate knowledge of the healthcare and diagnostic imaging enterprise. With more than 350 clinical networks and products in thousands of healthcare facilities worldwide, Merge partners with its customers to offer customized solutions that improve radiology workflow efficiencies, reduce operational costs and improve clinical decision making.

For more information please visit our website at www.merge.com.

Contact: David Noshay, VP Strategic Marketing or Richard Linden, President & CEO (414) 977-4000.

About Pegasus Imaging
Founded in 1991 and headquartered in Tampa, Florida, Pegasus Imaging Corporation delivers digital imaging software development components, image compression and image editing technologies. The company exceeds speed and quality requirements for document imaging, forms processing, medical imaging, color/photo imaging, video applications and more. Technology is delivered as Microsoft .NET controls, COM controls, VCLs, DLLs and applications. Multiple platforms are supported, including Windows, Linux, Solaris, IBM AIX and Mac. Visit www.pegasusimaging.com for more information.

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