AremisSoft to Acquire Eltrax' lodging and international hospitality business; becomes world's second-largest vendor of hospitality systems.

Business Editors/High Tech Writers

NEW YORK--(BUSINESS WIRE)--Sept. 29, 2000

Company doubles customer base

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 the signing of an agreement to acquire assets and assume liabilities of Atlanta-based Eltrax' lodging and international hospitality business (Eltrax hospitality), a leading supplier of property management systems to the hospitality industry, for $10 million in cash.

AremisSoft plans immediate integration of the two companies. Eltrax hospitality is a division of Eltrax Systems, Inc. (Nasdaq: ELTX), a full service application services provider.

With this acquisition, AremisSoft becomes the world's second-largest vendor of hospitality systems, with more than 3100 customers and a revenue run rate of approximately $50 million in hospitality products and services. AremisSoft anticipates that the acquired business will have 2000 revenue of approximately $20 million, including $10 million of annual maintenance revenue. The acquisition expands AremisSoft's customer base, market coverage, and sales presence in the US and other key markets. The acquisition brings to AremisSoft approximately 1600 property management system customers throughout the world and business relationships with major hotel groups, including Bass Hotels & Resorts (Holiday Inns), Choice Hotels International, Fairmont Hotels, Accor, Hawthorne Suites, and Kimpton Hotels and Suites.

"The Eltrax hospitality acquisition marks a huge step forward for AremisSoft as we continue to leverage our array of technologies, knowledge of the hospitality market, and development resources to become a dominant force in the market," stated AremisSoft's founder, Chairman and CTO, Dr. Lycourgos Kyprianou. "We want to provide our customers with totally integrated enterprise solutions that incorporate e-business initiatives so they can benefit from the Internet. Our development resources in India are unequalled in the hospitality industry.

"We plan to bring together the best of AREMIS Hotel and Eltrax hospitality's new Windows-based Medallion(TM) product. AremisSoft will not abandon Eltrax hospitality customers and products, including Medallion(TM). As a world leader in application rejuvenation, we will be examining product and technology strategies that could lead to enhancement options for our customers while continuing to provide maintenance and support."

AremisSoft expects the acquisition to be slightly accretive to 2000 pro forma earnings per share. The Company projects that the acquisition will add $0.05 to $0.10 to pro forma earnings per share in 2001 before amortization of intangibles. AremisSoft anticipates assigning approximately $8.5 million of the purchase price to goodwill and other intangible assets. The goodwill and other intangible assets are expected to be amortized over a period of three years, equal to a non-cash charge of approximately $2.8 million per year. Closing of the transaction is conditioned upon the consent of Eltrax' lenders and other conditions.

AremisSoft President and CEO Roys Poyiadjis commented, "This acquisition dramatically expands our presence in the US. We are looking forward to working with the approximately 210 Eltrax hospitality people in the US and throughout the world. We were attracted to Eltrax hospitality by their well-established worldwide sales infrastructure and highly effective support facility in Wichita, Kansas, which can provide the cornerstone for further expansion in the US. We have been working closely with these organizations for the past several months, developing a plan targeted at delivering value to customers and shareholders. We are encouraged that the whole Eltrax hospitality management team is excited about the opportunities presented by AremisSoft.

"The market for hospitality systems has changed dramatically during the past year as major groups have shifted spending to Internet and other projects. We see many of the new Windows based property management systems experiencing growing pains. These circumstances have created a unique opportunity to maximize the market reach of our powerful technology base and proven applications. We are already delivering a next generation Windows based property management system to the market along with a highly configurable central reservation system and data warehouse. We can now bring these market leading capabilities to a wider audience through Eltrax hospitality and save 1-2 years in market development effort.

"As hotels look to their vendors for technology to create business value, AremisSoft has many of the components to create a powerful next generation enterprise wide solution, including:

-- Proven N-Tier distributed object technology based feature-rich core applications

-- Integrated retail applications such as POS

-- Integrated highly configurable Central Reservation System

-- Internet Booking Engine

-- Capability to offer 3 Dimensional viewing of hotel facilities

over the Internet

-- Data Warehouse Analytics

-- Application Server Provider (ASP) based Property Management System

-- Application expertise to serve the specific needs of the Americas, European, and Asia/Pacific markets."

"AremisSoft's position as a strong enterprise application systems supplier, coupled with the Eltrax hospitality acquisition, will give us the opportunity to acquire additional hospitality software companies at favorable valuations," stated Paul Bloom, Executive Vice President of Corporate Development. "Software development resources are getting increasingly hard to find and retain in the US. With the worldwide base of operations we have established by combining Eltrax hospitality with our organization, we are in an excellent position to accelerate our consolidation activity."

About Eltrax hospitality

Eltrax hospitality group, headquartered in Atlanta, Georgia is a leading supplier of hospitality information systems worldwide. Eltrax hospitality has approximately 210 employees and sales offices throughout the US, Europe, and

Asia/Pacific with major support centers in Wichita Kansas, Brussels Belgium, Sydney Australia, Beijing China, and Singapore. Eltrax hospitality has approximately 1600 property management system customers and over 2400 total customers. Key customers include Bass Hotels & Resorts (Holiday Inns), Choice Hotels International, Fairmont Hotels, Accor, Hawthorne Suites, and Kimpton Hotels and Suites. Major products include legacy systems LANmark(R), Performer(TM), the new Windows based Medallion Property Management System, and the InnDemand(R) Internet ASP Property Management Solution.

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 $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 over 500 employees, with sales in 10 countries and a customer base in excess of 4,500. The Company also operates a software development and support facility in India, with over 200 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.

Notice of Conference Call:

Management of AremisSoft will be hosting a conference call to discuss the acquisition of Eltrax' hospitality group on Friday, September 29, 2000 at 9:00 a.m. EST. To participate in the call, international callers can dial 415.537.1845. Callers from the United States and Canada can dial 888.343.7139. A replay of the call is available through Tuesday, October 3, 2000 and can be accessed by dialing 858.812.6440, passcode: 16509857. The conference call will also be available via the Internet by accessing the AremisSoft web site at www.aremissoft.com. Follow the directions on the main page to link to the Broadcast.com audio. Please go to the web site at least fifteen minutes prior to the call to register, download and install any necessary audio software.