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                                                                    Exhibit 2(e)

                             AMENDED PROMISSORY NOTE
                              DATED AUGUST 11, 1999


1.       FOR VALUE RECEIVED, the undersigned AFP Imaging Corporation, a New York
         corporation, (hereinafter referred to as "Maker"), promises to pay to
         the order of ACG Nystromgruppen AB (reg. No 556030-0914), a Swedish
         corporation, or any successor Holder(s) hereof from time to time,
         (being hereinafter referred to as "Holder"), the principal sum of USD
         $800,000 with interest thereon, or on so much thereof as is from time
         to time outstanding and unpaid, at the rate hereinafter set forth, such
         principal and interest to be paid as follows:

2.       From and after the date hereof interest on the unpaid balance shall be
         at a rate per annum (rounded downwards to the nearest 1/16 of 1%)
         appearing on Reuters Screen LIBO Page as the London interbank offered
         rate for one year deposits in US dollars at approximately 11:00 am
         (London Time) (the "Libor Rate") on April 17, 1999 plus two percent,
         payable quarterly, beginning on the following date of September 30,
         1999. The interest shall be calculated on the basis of a 365 day year
         and the actual number of days elapsed. The interest rate shall be reset
         annually in accordance with the above using the Labor Rate on April 17,
         2000 and each April 17th thereafter for the following 360 day period.

3.       The principal sum shall be repaid in 36 equal monthly installments
         beginning on May 17, 2003 and the final payment on April 17, 2006.

4.       Each payment by Maker under this Promissory Note shall be made by 4:00
         pm Swedish time on the date that payment is due, to the Holder by
         deposit to such bank account as the Holder have designated by notice to
         Maker. Each payment under this Promissory Note shall be made in USD.

5.       This Promissory Note may be prepaid in whole or in part at any time or
         from time to time without penalty or premium.

6.       Payments due on Saturdays, Sundays or legal holidays shall be due on
         the next business day.

7.       Holder shall have the right to terminate this Promissory Note
         immediately and demand payment of principal sum and interest if Maker
         should not perform its obligations under this Promissory Note.

8.       Protest and notice of demand, notice of dishonor and notice of
         non-payment and all other notices are hereby waived by Maker, provided,
         however, that Maker shall be entitled to have all payments made under
         this Promissory Note noted on the original of the Promissory Note and
         provided further that Maker shall be entitled to receive the canceled
         original Promissory Note upon payment in full of all amounts due
         hereunder.

9.       No failure to accelerate the debt evidenced hereby by reason of default
         hereunder, nor indulgences granted from time to time, shall be
         construed as a novation of this Promissory Note or as a reinstatement
         of the indebtedness evidenced hereby or as a waiver of such right of
         acceleration or of the right of Holder thereafter to insist upon strict
         compliance with the terms of this Promissory Note.

10.      This Promissory Note may not be changed orally, but only by an
         agreement in writing signed by the party against whom enforcement of
         any waiver, change, modification or discharge is sought.

11.      As used herein, the term "Holder" shall be deemed to include its
         respective heirs, successors, legal representatives and assigns,
         whether by voluntary action of the parties or by operation of law.

12.      The Maker hereby agrees to reimburse the Holder for all expenses
         (including reasonable attorney's fees) incurred by the Holder in
         enforcing this Promissory Note.

13.      Maker's obligations under this Promissory Note are no longer subject to
         set off or deduction in accordance with Section 9 of Stock Purchase
         Agreement, dated April 17, 1997, between the Maker and the Holder.



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14.      The indebtedness evidenced by this instrument is subordinated to any
         and all obligations of Maker, both secured and unsecured, including but
         not limited to unsecured cash flow-based loans from a bank or other
         institutional lender ("Senior Debt").

         Holder shall execute and deliver such further instruments and shall
         take such further action as may from time to time be necessary in order
         to carry out the provisions and intent of this subordination, and
         Holder shall not act or permit any action prejudicial or inconsistent
         with the priority position of Senior Debt over the indebtedness created
         by this instrument.

15.      This Promissory Note shall be governed by, construed and interpreted as
         to validity, enforcement and in all other respects in accordance with
         the laws of Sweden. Any dispute, controversy or claim arising out of or
         relating to this Promissory Note shall be referred to and finally
         settled by arbitration in accordance with the rules of the Swedish Act
         of Arbitration (1929:145) as the law shall from time to time be in
         effect; provided, however, that the Beneficiary shall always be free to
         commence proceedings and actions against us before the courts of any
         other country having or claiming jurisdiction in respect of the
         Guarantee. The Beneficiary may claim execution of any judgment, award
         or order in any court or appropriate authority of any country where we
         have any assets.

16.      THE MAKER HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY
         APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY JURY OR RIGHT TO REQUEST
         A TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO
         THIS PROMISSORY NOTE.

17.      This Note shall replace in its entirety the Maker's original Promissory
         Note dated April 17, 1997 which shall be returned forthwith by the
         Holder to the Maker and said Note shall be marked canceled by the
         Holder and Maker.

IN WITNESS WHEREOF, Maker has executed this Note on August 11, 1999.

AFP IMAGING CORPORATION



____________________________

By:_________________________

Title:______________________