Cedara Software Pleased to Announce Analogic Corporation's Disposition of Cedara Shares - Cedara recently entered into comprehensive, long-term commercial contract to provide its advanced medical imaging software and development services to Analogic and its subsidiaries TORONTO, Feb. 17 /PRNewswire-FirstCall/ -- CEDARA SOFTWARE CORP. (TSX:CDE/NASDAQ:CDSW), a leading independent provider of medical imaging technologies for the global healthcare market, today announced that Analogic Corporation (NASDAQ:ALOG) sold the 4,580,461 shares it held in Cedara, representing approximately 14.6% of the company's outstanding shares. "I am delighted that Analogic, a leading designer and manufacturer of advanced health and security systems and subsystems sold primarily to Original Equipment Manufacturers (OEMs), was able to realize net proceeds of over USD$50,000,000 from its investment in Cedara", said Cedara President and CEO, Abe Schwartz." "My understanding is that Analogic sold the shares to a Canadian investment dealer who subsequently sold them to a number of institutional investors. I am delighted that there exists a sufficient demand and following in Cedara's shares and obvious confidence in the recently announced merger between Cedara and Merge eFilm for one Canadian investment dealer to have acquired Analogic's entire holding for resale to those institutional investors. Having Analogic's block of Cedara shares being widely-held is of benefit to Cedara." "I will always be grateful to Analogic for saving Cedara. In September 2001, Analogic made a critical USD$7,500,000 investment in Cedara in order to secure access to Cedara's leading-edge medical imaging software. Analogic then proceeded to guarantee Cedara's bank line. Without that assistance Cedara would simply not have been able to survive and subsequently prosper. Analogic was especially supportive of me ever since I arrived as Cedara's new CEO in September 2002." "As a result of the dramatic turnaround in our financial performance, Cedara stopped requiring Analogic's support as of March 2004 when we completed a CDN$50,000,000 share offering." "Cedara recently signed a comprehensive, long-term commercial contract to provide its advanced medical imaging software and development services to Analogic and its subsidiaries. Analogic now feels that it will continue to meet its requirement for medical imaging software without the need to maintain an ownership interest in Cedara. I very much look forward to continuing Cedara's close relationship with Analogic for many years to come," said Schwartz. 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 centres. 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/. DATASOURCE: Cedara Software Corp. CONTACT: Brian Pedlar, Chief Financial Officer, Cedara Software Corp., (905) 672-2100, Extension 2015, ; 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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