AremisSoft Discontinues Plans For Its Strategic Investment in GlobalSoft; AremisSoft Board To Meet Tomorrow to Consider Substantial Increase in Share Repurchase Program.

Business Editors/High Tech Writers

NEW YORK--(BUSINESS WIRE)--June 14, 2001

AremisSoft Corporation (NASDAQ: AREM), a leading international supplier of enterprise-wide software and Internet-enabled solutions for the manufacturing, hospitality, healthcare and construction industries, today announced that its plans to make a strategic investment in LK Globalsoft.com, a Cyprus corporation, have been terminated by mutual agreement.

On April 30, 2001, AremisSoft announced that it had entered into an option agreement coupled with a voting agreement which could result in an increase in AremisSoft's ownership of LK Globalsoft.com from the current level of 7.1% to 59.5% as the option was exercised. Then again on June 1, 2001, AremisSoft announced that it had exercised the initial option to increase its ownership in GlobalSoft from 7.1% to 25% and disclosed its intention to pay $25 million in cash and issue, through its wholly owned subsidiary, $84.146 million in three year term notes. Prior to entering into the transaction, AremisSoft made application to the Cyprus Stock Exchange and Cyprus Securities Exchange Commission (SEC) for an exemption from the its "public offer" rules. In a statement released by the Cyprus SEC on May 4, 2001, the Cyprus SEC confirmed that an exemption was granted after finding that "the agreement does not negatively effect the interests of minority shareholders of LK Globalsoft.com."

After issuing its notice of exercise of the initial option on May 31, 2001, AremisSoft received notice that the Cyprus Committee For The Protection of Competition would be seeking information on the anti-competitive effects of the proposed acquisition as it relates to the Cyprus market which could have delayed the satisfaction of closing conditions for an extended period of time. Prior to the closing of the transaction and while the consideration and the shares were still in an escrow awaiting the satisfaction of customary closing conditions, AremisSoft and the GlobalSoft selling shareholders mutually agreed to terminate the option agreement without penalties.

At the same time, due to recent activity by short sellers, AremisSoft's senior management has found it necessary to expend time allaying the concerns created by what appears to be a relentless effort at harassing both AremisSoft's customers and employees. Consequently, AremisSoft believes that it would be extremely difficult to fully integrate the businesses of AremisSoft and GlobalSoft in the time period contemplated when the intention to make the strategic investment was originally announced. AremisSoft continues to believe in the long term benefits of a strategic investment in GlobalSoft and has confidence in GlobalSoft's future business and prospects. However, due to limited management resources and the risk that the integration of the businesses of AremisSoft and Globalsoft could be delayed, AremisSoft now believes that it is in the best interest of its shareholders to discontinue the transaction by mutual agreement.

Notwithstanding the fact that the transaction as originally contemplated will not proceed at this time, AremisSoft is continuing its preliminary discussions with GlobalSoft exploring possible ways for GlobalSoft to market AremisSoft products.

By discontinuing its plans for the GlobalSoft investment, AremisSoft will not be expending the $109 million allocated for the exercise of the initial option making its cash position stronger. AremisSoft's Board of Directors is scheduled to meet tomorrow to consider substantially increasing its share repurchase program on the basis of its belief that its shares are substantially undervalued.

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 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" Provisions of the Private Securities Litigation Reform Act 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, 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.