AremisSoft Responds to New York Times Article.

Business Editors

NEW YORK--(BUSINESS WIRE)--June 5, 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 commented on an article which appeared in the New York Times which again inaccurately characterized aspects of the Company's business. The purpose of this release is to provide what we believe are the facts related to these items. For convenience, we have listed the assertions in the relative order in which they appear in the article followed by our response to these assertions.

Assertion: AremisSoft employs far fewer software developers in India than it has told investors, based upon contact with an AremisSoft India employee. Fact: The New York Times referenced a director of human resources in our Bangalore India facility which is one of our numerous software development centers. In Bangalore, AremisSoft has a human resource department, which primarily performs a recruiting function but does not have a director position. The personnel breakdown at our India facilities has been publicly available since March 30, 2001 on the AremisSoft web site in a presentation titled "Investors Meet India-Slide 19". AremisSoft has 8 software development locations in India. If the New York Times in fact contacted an employee of ours in Bangalore, a fact which we are not able to confirm since it did not identify its source, the employee was not the "director of human resources" as described in the article nor even a member of management and was apparently not familiar with the Company's various locations spread across 8 development centers throughout India. As a matter of record, AremisSoft has approximately 120 employees in the Bangalore area in four locations, 15 employees in Chennai, 50 employees in Cochin, 10 employees in Trivandrum, 70 employees in NOIDA (a suburb of Delhi) and approximately 50 employees based in India but temporarily assigned overseas in Bulgaria, the UK, the US, Cyprus, Dubai, and elsewhere. AremisSoft has clustered its personnel based upon areas of application or business expertise.

Assertion: Unnamed Indian officials are unaware of any contracts with AremisSoft. Army contracts for supplies are always posted on their Web site while no contract with AremisSoft is posted and unnamed Army officials in Bangalore and Chennai did not know of any contracts with the Company. Fact: The AremisSoft contracts are with the Additional Director General Info Tech, Army Headquarters in Delhi, which as the center of government is the primary geographic location responsible for Army contracts, not Bangalore or Chennai. The reference numbers are B/03607/ACCT/ADG IT (Projects)/2000-2001/52, B/03962/LDBO/ADG IT(PROJECTS), B/03566/FP-SW/ADGIT (PROJECTS), B/03566/MSD/ADGIT(PROJECTS)/2000-2001/28, B/03566/DGMF SYSTEM/ADGIT(PROJECTS), DSSC/COORD/453/4/STD/NWCBT, and DSSC/COORD/453/4/STD/CBT. The Company believes that, as a matter of practice the Army will often not list smaller contracts on their web site. Slide 19 of the Investor Meets India Presentation indicates there are 25 employees in our defense development group, which is targeted at the Indian Military.

As previously announced, these contracts have a value of approximately $500,000. The New York Times has apparently misinterpreted the March 13, 2001, press release. As previously disclosed by the Company, only 300 out of the potential 3,000 site licenses for the Account-21 accounting system have been procured under the existing contract and that the "Indian Army plans to procure" additional licenses in stages in the future and if such procurements are made, then the total value "is expected to be approximately $2.5 million." Likewise, our press release clearly states that only 4-server licenses out of a potential 100 server licenses for the Cascade-Active-File-Cabinet have been procured under the existing contract with additional licenses "expected to be purchased" in the future with "projected revenues" of $3.75 million. With the contract less than two months old, AremisSoft expects to recognize revenue of $70,000 in the second quarter of 2001 from the Account-21 product. The implementation plan is currently on schedule.

Assertion: This is the second time in recent weeks that AremisSoft and its customers have failed to agree on the value of their contracts. Fact: To the Company's knowledge neither the New York Times nor anyone else from the press have spoken with our customer in India. When the New York Times contacted Mr. Roys Poyiadjis, our Co-CEO, just hours before it published its story, Mr. Poyiadjis offered to send it the full details on the contracts in question as well as the details of the number of employees in India. The Company regrets that the New York Times went to press with its article without giving the Company adequate time to respond to its questions, particularly considering at the time of the call, it was in the middle of the night in India.

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 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" 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.