AremisSoft Comments On Recent News In Bulgaria.Business Editors NEW YORK--(BUSINESS WIRE)--June 29, 2001 AremisSoft Corporation (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :AREM AREM All-Random Easy Mode (gaming, Dota Allstars) AREM Avian Richness Evaluation Method ), a leading international supplier of enterprise-wide software and Internet-enabled solutions for the manufacturing, hospitality, healthcare and construction industries, today commented on a recent news story published by Bulgarian daily 24 Hours reporting an investigation into the procedures followed by Bulgarian Health Minister Ilko Semerdjiev relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the Company's Bulgarian healthcare contract with the National Health Insurance Fund (NHIF NHIF National Health Insurance Fund (various countries) ). Specifically, the investigation centers around the requirements of Article 5 of the Public Procurement The fancy word for "purchasing." The procurement department within an organization manages all the major purchases. Act, which provides, among other things, that a vendor under a government contract may be either a Bulgarian corporation or a foreign corporation, and should be registered as such in good standing in the jurisdiction of incorporation. While the language of Article 5 is ambiguous, the Company believes that Dr. Semerdjiev was not in violation when he signed the Company's Bulgarian Healthcare contract and that the Company met all of the legal requirements under Article 5 when the contract was signed. AremisSoft also has a fully registered Bulgarian subsidiary created shortly after the contract was signed, which employs the Company's employees working on the NHIF contract. Furthermore, the Company is aware of several other international companies that have been awarded Bulgarian government contracts without violation of Article 5 of the Public Procurement Act. The Company is not aware of any allegations of corruption relating to the NHIF contract. Furthermore, the Company is receiving continuous legal advice from competent Bulgarian lawyers and does not believe that the investigation will have an overall material adverse affect on its contract with the NHIF. According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. press accounts, the investigation was initiated at the insistence of Kuncho Marangozov, a former member of the Bulgarian Parliament and a member of the communist party Communist party, in China Communist party, in China, ruling party of the world's most populous nation since 1949 and most important Communist party in the world since the disintegration of the USSR in 1991. who is an outspoken critic of Bulgaria's health reforms and the NHIF. Mr. Marangozov lost his seat in Parliament during the recent national election. The Company has also learned that, in the past, Dr. Semerdjiev had initiated legal action against Mr. Marangozov, alleging that Mr. Marangozov had slandered Dr. Semerdjiev in the past. Although Bulgaria has recently had a national election, the new government has not yet been formed and will not likely be formed for several more weeks. Prior to the national elections, the overall Bulgarian healthcare reform was the subject of national debate and the Company's contract with the NHIF was audited by the Bulgarian Court of Auditors AUDITORS, practice. Persons lawfully appointed to examine and digest accounts referred to them, take down the evidence in writing, which may be lawfully offered in relation to such accounts, and prepare materials on which a decree or judgment may be made; and to report the whole, together under the Bulgarian agency for State Financial Control. The audit did not find any irregularities in the procedures under the Public Procurement Act and the Company believes that the investigation will ultimately result in the same conclusion. The Public Procurement Act was substantially amended a·mend v. a·mend·ed, a·mend·ing, a·mends v.tr. 1. To change for the better; improve: amended the earlier proposal so as to make it more comprehensive. 2. in 1999, just before the Company's contract with the NHIF was entered into. Like many former communist-based economies, the transition to democracy has resulted in substantial legislation, which at times may be less than clear as written. In its "Dialogue 2001: Public debate on fulfillment ful·fill also ful·fil tr.v. ful·filled, ful·fill·ing, ful·fills also ful·fils 1. To bring into actuality; effect: fulfilled their promises. 2. of the government program Bulgaria" (www.government.bg/eng/qna/index.html), the former government stated the following: "We realize that our legislation and normative nor·ma·tive adj. Of, relating to, or prescribing a norm or standard: normative grammar. nor documents are not perfect, that in one or other situation we have done things which do no correspond to our declared policy. We understand this and will try to remove the reasons." The Company would like all investors to keep this statement in mind when considering what is happening in Bulgaria and to be patient with the system. The Company continues to support the Bulgarian government and its people in healthcare reform and believes that its contract to automate To turn a set of manual steps into an operation that goes by itself. See automation. the Bulgarian healthcare system will significantly contribute to the quality of life and improved healthcare services to all eight million Bulgarian citizens. About AremisSoft Corporation AremisSoft develops, markets, implements and supports enterprise-wide applications software targeted at mid-sized organizations in the manufacturing, healthcare, hospitality and construction industries. The Company's software products help streamline and enhance an organization's ability to manage and execute mission-critical functions such as accounting, purchasing, manufacturing, customer service and sales and marketing. AremisSoft reported total revenue of $123.6 million for the twelve months ended December 31, 2000 and pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma net income of $29.2 million for the same period. AremisSoft has approximately 1,300 employees, with sales in over 20 countries and a customer base in excess of 8,000. The Company also operates a software development and support facilities in India, with approximately 300 employees, which provides significant organizational efficiencies and cost advantages in software development and support. Cautionary Statement for Purposes of the "Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. " Provisions of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995: All statements, other than historical facts, included in the foregoing press release regarding the Company's financial position, business strategy, and plans of management for future operations are "forward looking statements." These statements are based on management's beliefs and assumptions, and on information currently available to management. Forward looking statements include, but are not limited to, statements in which words such as "expect," "see," "anticipate," "intend," "plan," "believe," "estimate," "consider," or similar expressions are used. Forward looking statements are not guarantees of future performance. They involve risks, uncertainties, and assumptions, including risks discussed under "Risk Factors" in the Company's annual report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. , SEC File No. 0-25713, all of which are incorporated herein by reference. The Company's actual results and stockholder values may differ materially from those anticipated or expressed in these forward looking statements. Many of the factors that will determine these results and values are beyond the Company's ability to control or predict. Readers of this press release are cautioned not to put undue reliance on any forward looking statement. The Company undertakes no obligation to publicly update these forward looking statements, whether as a result of new information, future events or otherwise. |
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