X0201 4 2004-03-16 0 0000944765 MERGE TECHNOLOGIES INC MRGE 0001079071 MORTIMORE WILLIAM C 1126 SOUTH 70TH STREET MILWAUKEE WI 53214 1 1 0 0 Chairman & Chief Strategist Common Stock 2004-03-16 5 J 0 E 400000.0000 0 D 170419.0000 D Wrongful and unauthorized share conversion by lender to whom shares were pledged as collateral. This total reflects a reduction of 400,000 shares in the reporting person's holdings. This reduction is attributable to Mr. Mortimore recently having learned that 400,000 shares of his Company common stock that were pledged by him as security on a loan were fraudulently converted by the lender sometime during 2003, and likely are not recoverable. /s/ Julie Ann Schumitsch, by Power for William C. Mortimore 2004-03-17