AremisSoft Announces Confirmation of Plan of Reorganization By the United States District Court.

Business Editors

AremisSoft Corporation today announced that the Honorable Joel Pisano of the United States District Court for the District of New Jersey has completed the confirmation hearing for the company's plan of reorganization under Chapter 11 of the United States Bankruptcy Code.

Judge Pisano said in court that he found all the requirements for confirmation fulfilled and invited counsel to submit formal papers for his signature. Judge Pisano also announced his intention to approve a settlement of the class action litigation brought against AremisSoft on behalf of security holders. Formal papers approving this settlement and the effective date of the plan are expected in the coming weeks, which will result in AremisSoft's wholly owned subsidiary, SoftBrands, Inc., becoming an independent company.

Highlights of the plan include:

-- All secured and unsecured claims approved by the Court will be paid in full;

-- AremisSoft will contribute its litigation claims and certain other assets to a liquidating trust that will pursue those claims and liquidate the assets primarily for the benefit of securities class action plaintiffs;

-- Holders of AremisSoft common stock as of June 28, 2002 will receive 39.5 percent and securities class action plaintiffs will receive 60.5 percent, respectively, of the common stock of SoftBrands; and

-- All existing equity interests in AremisSoft will be cancelled.

The distribution of SoftBrands' common stock will take place after the effective date. Shareholders of record as of June 28, 2002 will receive notification of the distribution from the disbursing agent and will be asked to provide their AremisSoft stock certificates and to submit an affidavit regarding their ownership to effect this change.

George Ellis, chairman and CEO of AremisSoft and SoftBrands, who was brought in to lead the restructuring effort, stated, "We are very pleased that the Court, the Plaintiffs and our shareholders all supported this effort to preserve the underlying value of the business. The confirmation of the plan settles the class-action litigation against AremisSoft and represents the culmination of months of hard work by a very dedicated team. We at SoftBrands welcome this new beginning and look forward to focusing full-time on our primary mission--building a world-class software company."