Cedara Software Corp. Introduces Time-Saving ImageSnap Technology(TM) at the Annual Meeting of the American Academy of Orthopaedic Surgeons(R) (AAOS) TORONTO, Feb. 17 /PRNewswire-FirstCall/ -- Cedara Software Corp. (NASDAQ:CDSW/TSX:CDE), recently named Fastest Growing Healthcare Company for 2004 by America's foremost market research firm Frost and Sullivan, today announced the introduction of ImageSnap Technology(TM) to its line of digital orthopaedic software solutions, Cedara OrthoWorks(TM) Simply stated, ImageSnap Technology introduces cutting-edge image processing techniques to streamline orthopaedic planning through automatic detection and measurement of anatomical structures. This reduces many of the mundane activities performed by medical specialists during image review and surgical planning. In Cedara OrthoWorks, ImageSnap Technology has been used to implement a variety of time saving features including Automatic Templating and Spine Analysis. The first offering of its kind, Automatic Templating automatically selects and positions digital orthopaedic implant overlays from a specified manufacturer. In traditional orthopaedic implant selection, surgeons use acetate templates, overlaid on x-rays, to determine sizing and positioning for prosthetics. Most digital orthopaedic solutions on the market today similarly attempt to duplicate this work process through electronic means. Both of these approaches can be quite time-consuming. With ImageSnap Technology, laborious tasks such as measurements, implant size selection and placement are automatically performed by the application, allowing surgeons to accept, refine or change the suggestions. In Cedara's OrthoWorks Spine Analyzer(TM), ImageSnap Technology has also been implemented to automatically detect the bone contours of spinal vertebrae in the space of several mouse clicks. This replaces the onerous task of manual vertebral tracing and measurements with rulers and protractors on film. Specific modules exist for cervical, lumbar, postural and frontal analysis. Functional range of motion, mean centers of vertebral rotation, lordosis, and kyphosis are just a few of the 500+ x-ray-based spine parameters that are available in Spine Analyzer's graphical display. ImageSnap Technology can also automatically populate image generated data into OrthoWorks Care Manager(TM) for data management and tracking purposes. OrthoWorks Care Manager features a unique, patent-pending method of collecting, organizing and mining information from multiple sites to quickly help determine outcome statistics. The value of ImageSnap Technology will be seen in the time savings that it brings to Orthopaedic Specialists for planning. Combined with Care Manager, the value will be seen by Implant Manufacturers interested in tracking and analyzing implant usage, pain thresholds, recovery rates, complications, mobility, mortality and other clinical outcome statistics during multi site studies. Cedara Software Corp. will debut this new digital technology at the Annual Meeting of the American Academy of Orthopaedic Surgeons (AAOS) in Washington DC, February 23-27. ImageSnap Technology is part of Cedara's comprehensive software and hardware toolkit for digital orthopaedic planning. The Cedara OrthoWorks product line offers everything from digital image acquisition equipment to leading edge surgical planning applications for prosthetic templating, spine analysis and trauma. Highlights of the OrthoWorks suite include: - Automatic Templating - Automated viewing and planning protocols - Multi modality support - Standalone and remote Web-Based Planning - Digital Template Libraries from orthopaedic manufacturers - Real-time 3D Reconstruction to identify structures and/or remove obscuring tissue - OrthoWorks Care Manager(TM) provides a powerful data solution for patient follow-up, and implant performance tracking - OrthoWorks Spine Analyzer(TM) automatically detects the contours of spinal vertebrae and provides modules for cervical, lumbar, postural and frontal analysis supporting 500+ spine parameters. - Cedara I-Acquire/DR(TM) provides advanced acquisition console features for Digital Radiography - Cedara I-Acquire/FD(TM) allows surgeons to integrate legacy film (hard copy) images into digital Picture Archiving and Communications Systems (PACS) - Cedara I-Store(TM) for image archiving About Cedara Software Corp Cedara Software Corp. is a leading independent provider of medical imaging technologies. Cedara's 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. Approximately 28,000 medical imaging systems and 6,400 Picture Archiving and Communications System (PACS) workstations have been licensed to date. Cedara recently acquired eMed Technologies Corporation, widely known as a provider of innovative PACS and teleradiology solutions that have been installed in over 2,000 hospitals and imaging centers. Cedara is unique in that it has technologies and expertise that 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. Furthermore, the Company's medical imaging offerings are used in all aspects of clinical 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 even the use of imaging in minimally-invasive surgery. On January 18, 2005, Cedara announced that it had signed a definitive agreement to merge with Merge Technologies Incorporated (NASDAQ:MRGE), d.b.a. Merge eFilm, in an all- stock transaction. The merger is subject to shareholder and regulatory approval. Certain statements contained in this news release are forward-looking within the meaning of securities laws and are based on current expectations that are subject to a number of assumptions, uncertainties and risks, and the actual results may differ materially from what is currently expected. In particular, statements relating to the healthcare imaging software market and market share, relating to the Company's expectations concerning its licensed software products, relating to the Company's expectations as to revenues, costs and cash flows, relating to the acquisition of eMed and relating to the proposed merger with Merge eFilm are forward looking statements. The assumptions, uncertainties and risks upon which these forward looking statements are based include, but are not limited to: dependence on key personnel of the Company, dependence on major customers and individual contracts, fluctuations in quarterly financial results, competitive pressures (including price competition), rapid technological change, exchange rate fluctuations, risks associated with international operations, dependence on intellectual property rights, regulatory clearances and approvals for new products, risks relating to product defects and product liability, adverse consequences of financial leverage, ability to service debt, continued acceptance of the Company's products, regulatory changes to the health care industry, seasonality, economic and political conditions, risks relating to the acquisition of eMed and risks relating to the proposed merger with Merge eFilm including risks associated with obtaining regulatory and shareholder approvals without unexpected delays or conditions, timely implementation and execution of merger integration plans, retention of customers and the Company's original employees, successfully leveraging Merge-eFilm's and the Company's comprehensive product offering to the combined customer base and sustaining continued growth at rates approximating recent levels. Further information about these risks and uncertainties can be found in the continuous disclosure documents filed from time to time by Cedara with the securities regulatory authorities, which documents are available at http://www.sedar.com/. For more information, visit the Cedara website at http://www.cedara.com/. "American Academy of Orthopaedic Surgeons" is a registered trademark of the American Academy of Orthopaedic Surgeons. All other trademarks appearing in this release are the property of Cedara Software Corp. DATASOURCE: Cedara Software Corp. CONTACT: Jacques Cornet, VP of Marketing & Operations, Cedara Software Corp., (905) 672-2100 ext. 2564, ; To request a free copy of this organization's annual report, please go to http://www.newswire.ca/ and click on reports@cnw.

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