CHICAGO, Aug. 26, 2013 -- Merge Healthcare Incorporated (Nasdaq:MRGE), a leading provider of clinical systems and innovations that seek to transform healthcare, today announced that its Board of Directors has accepted the resignation of Michael W. Ferro, Jr. as Chairman and a Director of the Company and appointed Dennis Brown as the Company's new Chairman, both effective immediately.

"I have decided to step down from my roles as Chairman and a Director of Merge Healthcare," said Michael W. Ferro, Jr. "Merge is at the heart of a large, growing and dynamic market for healthcare imaging, and, as its largest shareholder, I have a lot riding on its future success. I remain very confident in the Company, its products and its new leadership team, and my decision does not reflect any disagreement with Merge's management or Board. Rather, I have worked with Justin Dearborn and Nancy Koenig for many years and know that they can and will move the Company forward. In addition, all Merge stockholders are extremely fortunate to have an experienced and capable leader like Dennis Brown ready to step in as our next Chairman. I will be available to Justin, Nancy, Dennis and the rest of the Board in the future should they want my input. "

"Although Merge's second quarter results were very disappointing, I do not believe that the current trading price of Merge common stock reflects the Company's inherent strengths, market position or long-term prospects." Mr. Ferro continued, "While I have no immediate plans in this regard, over time, I intend to explore a variety of ways to increase shareholder value, including, possibly, a going-private transaction. Of course, overall industry and market conditions, the Company's business and financial performance and the availability of equity and debt capital and other factors will affect whether a transaction would be advisable. Accordingly, neither Merge nor I can speculate or provide any assurance as to whether, when, or on what terms such a transaction might occur."

Mr. Ferro served as Merge's Chairman and a Director since June, 2008, when Merrick RIS, LLC made a significant investment in the Company.

Merrick RIS and other affiliates of Mr. Ferro own approximately 26.6 million shares of Merge's common stock.

"On behalf of all of Merge's Directors, I want to thank Michael for his leadership, commitment and vision during his five-year tenure as our Chairman," said Justin C. Dearborn, Merge's CEO. "The entire Merge team will remain focused on the goals and plans that he helped establish, and we look forward to his continued support in the years ahead."

Mr. Brown, one of Merge's longest-serving Directors, has been associated with the Company since its initial public offering in 1997.

He brings a wealth of management experience and financial expertise to his new role of Chairman. Mr. Brown spent 20 years in senior management with the Allen-Bradley Company (now Rockwell Automation) in the US and Europe and 10 years as Vice President of Finance, Treasurer and Chief Financial Officer of Sybron International Corporation, a global manufacturer of Life Science products. Mr. Brown currently serves as Chairperson of the Board's Compensation Committee and as a member of the Board's Audit and Nominating and Governance Committees.

"I have been involved with Merge for many years now and am a great believer in the Company, its technology platform and its highly-professional management team," said Mr. Brown. "As Chairman, I will be making myself fully available to work with the management team to achieve our goals of serving our customers, growing our market position and enhancing shareholder value."

About Merge

Merge is a leading provider of clinical systems and innovations that seek to transform healthcare. Merge's enterprise and cloud-based solutions for image intensive specialties provide access to any image, anywhere, any time. Merge also provides health stations, clinical trials software and other health data and analytics solutions that engage consumers in their personal health. With solutions that are used by providers and consumers and include more than 25 years of innovation, Merge is helping to reduce costs and improve the quality of healthcare worldwide. For more information, visit merge.com.