AremisSoft Reports Record Results.

Business Editors

NEW YORK--(BUSINESS WIRE)--March 6, 2000

Fourth Quarter and Full Year Revenue Increased 42.1% and 39.5%,

Respectively; Full Year Net Income Increases 152.0% to $12.1 Million;

Strong Performance Reflects Successful Implementation of Strategic

Initiatives

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 its audited financial results for the year ended and unaudited financial results for the fourth quarter ended December 31, 1999.

Total revenue for the 1999 fourth quarter increased 42.1% to $23.3 million from $16.4 million in the prior year quarter, and had a sequential increase of 14.8% from $20.3 million. Profit from operations in the 1999 fourth quarter increased 187.6% to $6.9 million from $2.4 million before non-recurring items in the fourth quarter of 1998, and 32.7% from $5.2 million in the 1999 third quarter. Net income before non-recurring items increased 223.5% to $5.5 million, or $0.33 per diluted share in the fourth quarter of 1999, compared to $1.7 million or $0.19 per diluted share, in the year-ago fourth quarter. On a sequential basis, net income increased 66.7% from $3.3 million, or $0.23 per diluted share, in the 1999 third quarter.

In the fourth quarter of 1999, the Company realized an after tax gain of $1.2 million, or $0.07 per diluted share, related to a gain on debt forgiveness. In the 1998 fourth quarter, AremisSoft recorded a pretax charge of $1.6 million, or $0.17 per diluted share after tax, related to the write-off of offering costs associated with the postponement of the Company's registration statement filed with the SEC in July of 1998.

Software license revenue increased 45.1% to $11.9 million in the three months ended December 31, 1999, from $8.2 million in the fourth quarter of 1998, and increased sequentially, from $11.0 million in the third quarter. Maintenance and services revenue was $9.1 million, a 42.2% increase from $6.4 million in the year-ago quarter, and a sequential increase from $8.5 million in the previous quarter. Hardware sales increased 35.3% to $2.3 million from $1.7 million in the year ago period.

Revenue for the year ended December 31, 1999 increased 39.5% to $73.4 million from $52.6 million reported in the prior year period. Software license revenue in 1999 was $37.2 million, an increase of 40.9% from $26.4 million for the previous year. 1999 maintenance and services revenue was $30.4 million, a 40.0% increase from $21.7 million in the prior year. Hardware revenue was $5.7 million compared to $ $4.5 million in the prior year period. Full year 1999 profit from operations increased 103.4% to $17.9 million from $8.8 million in 1998 before the write-off of offering costs. Net income before the non-recurring items increased 152.1% to $12.1 million, or $0.90 per diluted share in 1999, from $4.8 million, or $0.52 per diluted share, in the prior period. Including the non-recurring items, 1999 net income was $13.3 million, or $0.99 per diluted share, compared to $3.2 million, or $0.35 per diluted share, in 1998.

Fourth Quarter Highlights

Acquisition of e-nnovations.com. The Company acquired e-nnovations.com, a leading supplier of Internet, workflow and other advanced technology software, applications and services. The acquisition enables AremisSoft to offer a complete line of Internet-based solutions in all four of its divisions by leveraging its traditional application software products on an application service provider (ASP) platform.

$37.5 million contract with Bulgarian Ministry of Health. The company won a $37.5 million contract to automate the entire national healthcare system of Bulgaria using Internet-enabled solutions. AremisSoft's ability to deliver its solutions on an Internet platform was instrumental in the Company's winning the contract.

Appointment of value added reseller (VAR) in the United States. AremisSoft added Bridgelogix Corporation, a provider of ERP solutions, application integrations and bridging technology, as a VAR. This new addition expands the market for AremisSoft's manufacturing software to users in the United States.

$9.2 million contract with Insyst Electronics, Ltd. The company expanded its presence in Eastern Europe by winning a $9.2 million contract with Insyst Electronics, Ltd., one of Bulgaria's largest suppliers of computer and communications technologies that offer a full range of comprehensive IT solutions for large and mid-size customers.

Grand Hinckley Inn, Minnesota, selects AREMIS Property Management System. The first of several installations includes an in-room pay-TV system, point of sales in the casino complex, telephone call costing and a voicemail/messaging system.

Partnership with The Bromley Group and the launching of AREMIS FastMart. AremisSoft formed a partnership with The Bromley Group, developers and marketers of data warehousing and data management software. The Bromley Group and AremisSoft's hospitality division jointly launched the AREMIS FastMart solution, which extracts data from the AREMIS Property Management System to run sophisticated analyses and reports on the information.

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 $73.4 million for the twelve months ended December 31, 1999 and net income of $12.1 million before extraordinary gains for the same period. AremisSoft has a total of 535 employees, with sales in 10 countries and a customer base in excess of 5,000. The Company also operates a software development and support facility in India, with 212 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 the risks discussed under "Risk Factors" in the Company's prospectus included in its registration statement on Form S-1, SEC File No. 333-58351, 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.

                        AremisSoft Corporation
                 Consolidated Statements of Operations
                 (In thousands, except per share data)

                           Three Months Ended     Twelve Months Ended
                              December 31,           December 31,
                              (unaudited)             (audited)
                            1999        1998      1999        1998

Revenues
 Software licenses         $11,903     $8,241     $37,224     $26,416
 Maintenance and services    9,085      6,437      30,435      21,680
 Hardware and other          2,266      1,673       5,727       4,525
Total revenues              23,254     16,351      73,386      52,621

Cost of revenues
 Software licenses           1,318        799       4,468       2,654
 Maintenance and services    1,842      1,543       8,620       5,319
 Hardware and other          1,138        760       3,625       2,817
 Amortization of purchased software
  and capitalized software
  development costs            116        214         298         265
Total cost of revenues       4,414      3,316      17,011      11,055

Gross profit                18,840     13,035      56,375      41,566
Operating expenses:
 Sales and marketing         7,550      7,208      25,518      21,594
 Research and development    2,050      2,043       5,916       6,207
 General and administrative  2,651      1,461       7,108       4,868
 Write-off of offering costs     -      1,592           -       1,592
 Amortization of intangible
  assets                      (264)       (74)          -          74
 Profit on disposition of
  subsidiary                   (42)         -         (42)          -
Total operating expenses    11,945     12,230      38,500      34,335

Profit from operations       6,895        805      17,875       7,231
Other income
 Interest expense, net         477       (615)       -661      -2,030
Income before income taxes   7,370        190      17,214       5,201
Income tax expense           1,850         73       5,097       2,026

Income after taxes before
 extraordinary item          5,522        117      12,117       3,175
Extraordinary item - gain on
 debt forgiveness            1,163          -       1,163           -
Net income                  $6,685       $117     $13,280      $3,175
                           =======       ====     =======      ======

Basic earnings per share before
 extraordinary item          $0.37      $0.01       $0.95       $0.35
Diluted earnings per share before
 extraordinary item          $0.33      $0.01       $0.90       $0.35
Basic earnings per share after
 extraordinary item          $0.44      $0.01       $1.04       $0.35
Diluted earnings per share after
 extraordinary item          $0.40      $0.01       $0.99       $0.35
Basic weighted average shares
 outstanding                15,130      9,120      12,762       9,120
Diluted weighted average shares
 outstanding                16,594      9,135      13,405       9,135

1    Profit from operations in the 1998 fourth quarter before write
     off of offering costs was $2,397.


                        AremisSoft Corporation
                 Consolidated Balance Sheets (audited)
                 (In thousands, except per share data)

                              As of December 31,    As of December 31,
                                     1999                  1998

ASSETS
Current Assets
Cash and cash equivalents           $13,386                  $149
Accounts receivable, less allowances for doubtful
 accounts of $639 and $507 at Dec. 31, 1998
 and 1999, respectively              18,115                16,166
Accounts receivable -
 disposition proceeds                 2,592                     -
Other receivables                       705                   903
Inventory                             1,603                   787
Deposit paid on service and
 maintenance contracts                3,712                 3,531
Prepaid expenses and other assets     2,423                 1,135
Total Current Assets                 42,536                22,671

Loan receivable-related party             -                 1,886
Investments                           1,803                     -
Property and equipment, net           1,847                 1,774
Purchased and developed software,
 net of accumulated amortization of
 $6,075 and $5,893 at Dec. 31, 1998
 and 1999, respectively                 948                 1,284
Intangible assets, net of accumulated
 amortization of  $13,036 and $11,534 at Dec.
 31, 1998 and 1999, respectively     13,810                   337
Total assets                        $60,944               $27,952

LIABILITIES AND SHAREHOLDERS' EQUITY (DEFICIT)
Current liabilities:
Accounts payable                     $6,910                $3,669
Accrued payroll taxes                   574                   586
Accrued value-added taxes             1,055                 1,649
Accrued income taxes                  6,572                 2,059
Current portion of capital
 lease obligations                       24                    55
Other accrued expenses                2,371                 2,946
Bank loans and short term
 demand facility                          -                15,530
Deferred revenue                      7,190                 6,693
Total current liabilities            24,696                33,187

Loan and accrued interest
 payable-related party                    -                 1,781
Capital lease obligations,
 less current portion                     2                    93
Total liabilities                   $24,698               $35,061

Stockholders' equity (deficit):
Series-A convertible preferred stock, par
 value $0.001; authorized 2,100 shares;
 no shares issued and outstanding:
 liquidating preference at par value      -                     -
Series-B convertible preferred stock, par
 value $0.001; authorized 3,500 shares;
 no shares issued and outstanding,
 liquidating preference at par value      -                     -
Common stock, par value $0.001; authorized
 85,000 shares; 10,000 shares and 15,193
 issued and outstanding at Dec 31, 1998
 and 1999, respectively                  15                    10
Additional paid-in capital           57,325                27,107
Accumulated income / (deficit)      (18,921)              (32,201)
Accumulated other comprehensive
 income (loss)                       (2,173)               (2,025)
Total stockholders' equity (deficit) 36,246                (7,109)
Total liabilities and stockholders'
 equity (deficit)                   $60,944               $27,952



                        AremisSoft Corporation
            Consolidated Statements of Cash Flows (audited)
                            (In thousands)
                            As of December 31,       As of December 31,
                                   1999                     1998

CASH FLOWS FROM OPERATING ACTIVITIES:
Net income                          $13,280                $3,175
Adjustments to reconcile net income
 to net cash provided in operating activities:
Depreciation                          1,093                   695
Amortization of capitalized software
 and intangible assets                  298                   339
Gain on disposition of subsidiary       (42)                    -
Extraordinary item                   (1,163)                    -

Changes in assets and liabilities, net of acquisitions and
 dispositions:
Accounts receivable                  (6,477)               (6,602)
Other receivables                      (129)                 (226)
Inventory                              (723)                  295
Deposits paid on service and
 maintenance contracts                 (283)               (3,531)
Prepaid expenses and other assets    (1,210)                1,059
Accounts Payable                      3,867                  (622)
Deferred revenue                        692                   937
Accrued taxes payable                 4,298                  (647)
Other accrued expenses                 (447)               (1,611)

Net cash provided (used) in
 operating activities                13,054                (6,739)

CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment  (1,355)                 (373)
Capitalized software development costs    -                  (325)
Loan from related party (net)        (1,781)               (1,886)
Payment for acquisition, net of
 cash acquired                      (14,537)                    -
Proceeds from disposal of property
 and equipment                           82                     4
Net cash (used) in investing
 activities                         (17,591)               (2,580)

CASH FLOWS FROM FINANCING ACTIVITIES:
Net proceeds from issuance of stock  30,223                 9,341
Principal repayments of long-term
 borrowings                          (9,204)               (2,850)
Long-term borrowing                       -                   511
Loan from related party               1,886                 1,781
Principal payments of capital
 lease obligations                      (61)                  (30)
Short-term demand facility           (4,705)                  372
Net cash provided by financing
 activities                          18,139                 9,125

Net increase (decrease) in cash
  and cash equivalents               13,602                  (194)
Effect of foreign currency exchange rates
 on cash and cash equivalents          (365)                  104
Cash and cash equivalents, at
 beginning of year                      149                   239
Cash and cash equivalents, at
 end of year                        $13,386                  $149

Supplemental disclosure:
Interest paid                        $1,390                $2,188
Assets acquired under capitalizes         -                   $34
Investment acquired in connection with
 disposition of subsidiary           $1,803                     -
Conversion of promissory note and accrued
 interest into 62,759 shares of
 common stock                          $537                     -