AremisSoft Further Comments on its Bulgarian Healthcare Contract.Business Editors NEW YORK--(BUSINESS WIRE)--May 22, 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 announced further comments on its contract with the Bulgarian National Health Insurance Fund (NHIF NHIF National Health Insurance Fund (various countries) ). The Company is very concerned that recent articles published by TheStreet.com have inaccurately described the nature and character of the Company's Bulgarian Healthcare Contract and have been the source of confusion in the marketplace. The purpose of this release is to issue some final comments on this matter in an attempt to instill in·still v. To pour in drop by drop. in  stil·la tion n. more rationality and objectiveness into the analysis and quell quell tr.v. quelled, quell·ing, quells 1. To put down forcibly; suppress: Police quelled the riot. 2. emotional responses to misinformation mis·in·form tr.v. mis·in·formed, mis·in·form·ing, mis·in·forms To provide with incorrect information. mis . First, the recent press articles have created confusion over the size of our Bulgarian Healthcare Contract. The Company believes the source of this confusion is irresponsible ir·re·spon·si·ble adj. 1. Marked by a lack of responsibility: irresponsible accusations. 2. Lacking a sense of responsibility; unreliable or untrustworthy. 3. journalism aided and abetted by a concerted effort by short sellers to unjustifiably depress de·press v. 1. To lower in spirits; deject. 2. To cause to drop or sink; lower. 3. To press down. 4. To lessen the activity or force of something. the price of the Company's common stock. When the Company announced winning the contract in a December 1999 press release, it described the contract as a $37.5 million contract. This characterization of the contract was based upon the contract as a whole, taking into consideration multiple phases or stages for the project. The Company's public filings made within a few months of the signing of the contract made reference to these phases and other conditions to the overall contract, including third party financing conditions to some phases. The Company's description of the contract is supported by independent legal advice from one of Bulgaria's most prestigious legal firms. TheStreet.com continues to quote sources in Bulgaria that appear to say that the size of the contract is only approximately $3.75 million and not $37.5 million. The Company believes that the journalists who are contacting these persons are asking the wrong questions. In an earlier release, the Company offered a possible explanation for this confusion when it explained that the quoted sources, who are not project managers or officials responsible for the administration of the contract, are referring only to the phase or phases of the contract instead of the contract as a whole. It is extremely dangerous Exteremely Dangerous is a 1999 four part series for ITV starring Sean Bean as an ex-MI5 undercover agent convicted of the brutal murder of his wife and child who goes on the run to try and clear his name. He sets out to follow up a strange clue sent to him in prison. to attempt to apply American business concepts and the meaning of English words used in the interview process when the person being interviewed is from another country, where English is not the native language and where legal concepts and systems differ from the American system The term American System can mean one of the following:
The Company is extremely pleased with the progress that has been made in the design and implementation of the information technology (IT) system for the NHIF. The Company is highly confident in its future prospects both under the contract as well as any future phases of Bulgaria's efforts to automate their country-wide healthcare system. The IT systems the Company has designed for the NHIF is based upon the Company's proprietary technology. The Company's revenue recognition policies for contracts of this type are compliant with U.S. GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). , specifically SOP 97-2, as modified by SOP 98-9. Revenue related to the NHIF contract recognized in 2000 has been less than approximately six percent of total revenue and, revenue the Company anticipates recognizing in 2001 is anticipated to be less than five percent of total revenue. Consequently, the Company does not believe that the contract presents any unusual financial risks to the Company or its shareholders. Furthermore, as previously stated, 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. Wall Street analyst estimates, revenue for 2001 is expected to be in excess of $240 million and the Company remains comfortable with these estimates without giving effect to future revenues recognized under the contract. Bulgaria is currently in the midst Adv. 1. in the midst - the middle or central part or point; "in the midst of the forest"; "could he walk out in the midst of his piece?" midmost of national political elections. The Company is very concerned that the facetious debate over this contract motivated by the self interest of short sellers and their agents to depress the price of the Company's common stock may result in politically motivated statements and positions common in the electoral process in the emerging markets. The Company has no desire to become embroiled em·broil tr.v. em·broiled, em·broil·ing, em·broils 1. To involve in argument, contention, or hostile actions: "Avoid . . . in the political process of the countries in which it does business. Consequently, it is the Company's current intention to no longer comment on the nature and character of its Bulgarian Healthcare contract in response to any future articles published by TheStreet.com. The Company is highly confident that after the national elections on June 17, and regardless of the outcome of the election, the contract will no longer be a source of confusion in Bulgaria. 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 facility in India, with over 325 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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