Artemis Announces Third Quarter 2004 Financial Results; New Major Customers Demonstrate Gaining Momentum of Company's Solutions Offering.

NEWPORT BEACH, Calif. -- Artemis Expects Positive Operating Results for Fourth Quarter of 2004

Artemis International Solutions Corporation (OTCBB:AMSI), the leading provider of Investment Planning and Control(TM) solutions, today reported its financial results for the third quarter ended September 30, 2004.

Artemis reported $11.0 million in total revenue for the third quarter ended September 30, 2004, with software license revenue of $2.4 million, at a level comparable to the third quarter of 2003. Software and support revenue increased to 60.7 percent of total revenue, compared to 50.5 percent in the same quarter of 2003.

The Company reported operating results, excluding amortization expense and restructuring charges, of $(0.8) million, compared to $(1.6) million for the third quarter of 2003. The operating loss for last year excludes the positive impact of $1.0 million in non-Artemis services revenue that had been previously deferred.

On a US GAAP basis the company's net income for the third quarter reported a net loss of $(3.0) million, or $(0.30) per common share, including amortization expense of $1.0 million and restructuring charges of $0.7 million. This compares to a net loss of $(1.4) million, or $(0.14) per common share for the third quarter of 2003.

Patrick Ternier, president and CEO of Artemis International said "Our move toward higher margin revenue sources continues with now more than 60 percent of our sales coming from software and support, and more than one-third of our license sales coming from Artemis 7-based Investment Planning & Control solutions. Executives are looking for better ways to oversee their whole investment mix to improve alignment of business objectives with budgets and execute strategy more effectively. Increasingly we are seeing them choose Artemis to help them achieve these objectives."

Artemis also reports success for its industry optimized solutions approach through the addition of major new customers, including:

--IT Management and Governance: American International Group, AXA, Credit du Nord, Euriware, HSH Nordbank, Promina Insurance Group, GAD, TJX companies, Total.

--New Product Development: Alcatel Business Systems, CSK Japan, McData, Nokia, TDC Norway, Sara Lee Branded Apparel.

--Public Investment Management: Brisbaine City Council, Conseil du Tresor, Italian Ministery of Economy & Finance (SOGEI), Jiangsu Provincial Communication Division.

--Fleet Asset Optimization: Exelon Nuclear, General Electric Oil and Gas

--Aerospace and Defense Program Management: Bath Iron Works, Lockheed Martin Space.

Business Outlook

Artemis expects a positive operating margin for the fourth quarter of 2004 based on the forecasted growth in software revenue coupled with cost savings from recent restructuring actions.

About Artemis International Solutions Corporation

Artemis International Solutions Corporation (OTCBB:AMSI) is the global provider of Investment Planning and Control(TM) solutions that help organizations execute strategy through effective portfolio and project management. Artemis has refined 30 years experience into a suite of industry optimized solutions and packaged consulting services that combine to establish an overall planning and control framework encompassing IT management, new product development, public investment management, program management, fleet asset optimization, and detailed project management. With a global network covering 44 countries, Artemis has helped thousands of companies to improve their business performance through better alignment of strategy, investment planning and project execution.

For more information visit www.aisc.com.

Forward Looking Statements

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: This press release contains or may contain forward-looking statements such as statements regarding the Company's growth and profitability, growth strategy, liquidity and access to public markets, operating expense reduction and trends in the industry in which the Company operates. The forward-looking statements contained in this press release are also subject to other risks and uncertainties, including those more fully described in the Company's filings with the Securities and Exchange Commission. The Company assumes no obligation to update these forward-looking statements to reflect actual results, changes in risks, uncertainties or assumptions underlying or affecting such statements or for prospective events that may have a retroactive effect.

ARTEMIS INTERNATIONAL SOLUTIONS CORPORATION
                  Consolidated Financial Highlights
                             (Unaudited)



                                     Three Months Ended September 30,
                                             Percent          Percent
                                             of Total         of Total
                                     2004    Revenues  2003   Revenues
                                     (in thousands, except per share
                                                   data)
Statement of Operations Data:

Revenue:
 Software                            $2,388    21.7%  $2,473     18.1%
 Support                              4,299    39.0%   4,433     32.4%
 Services                             4,322    39.3%   6,761     49.5%
                                     11,009   100.0%  13,667    100.0%

Cost of revenue:
 Software                                53     0.5%      83      0.6%
 Support                              1,481    13.5%   1,246      9.1%
 Services                             3,814    34.6%   4,534     33.2%
                                      5,348    48.6%   5,863     42.9%

 Gross margin                         5,661    51.4%   7,804     57.1%

Operating expenses:
 Selling and marketing                2,969    27.0%   4,097     30.0%
 Research and development             1,689    15.3%   1,997     14.6%
 General and administrative           1,798    16.3%   2,319     17.0%
 Amortization expense                 1,030     9.4%   1,030      7.5%
 Restructuring charge                   654     5.9%       -      0.0%
                                      8,140    73.9%   9,443     69.1%

     Operating loss                  (2,479)  -22.5%  (1,639)   -12.0%

Net interest expense                    236     2.1%      40      0.3%
Other non-operating expense
 (income), net                           60     0.5%     (44)    -0.3%
Foreign exchange (gain) loss            261     2.4%    (409)    -3.0%
                                        557     5.1%    (413)    -3.0%

Loss before income taxes             (3,036)  -27.6%  (1,226)    -9.0%

Income tax expense (benefit)            (63)   -0.6%     150      1.1%

     Net loss                       $(2,973)  -27.0% $(1,376)   -10.1%

     Basic and diluted loss per
      common share                   $(0.30)          $(0.14)

     Weighted average common shares
      used in computing basic and
      diluted loss per common share   9,965            9,965

Reconciliation of Net loss to
 EBITDA:
Net loss                            $(2,973)         $(1,376)
Depreciation and Amortization         1,179            1,389
Interest                                236               40
Taxes                                   (63)             150
EBITDA (1)                          $(1,621)            $203

Net cash used in operations         $(3,707)         $(2,870)


                                      Nine Months Ended September 30,
                                             Percent          Percent
                                             of Total         of Total
                                     2004    Revenues  2003   Revenues

Statement of Operations Data:

Revenue:
   Software                          $8,513    22.4% $10,146     23.4%
   Support                           12,816    33.7%  12,753     29.4%
   Services                          16,727    44.0%  20,431     47.2%
                                     38,056   100.0%  43,330    100.0%

Cost of revenue:
   Software                             146     0.4%     508      1.2%
   Support                            4,342    11.4%   3,874      8.9%
   Services                          13,362    35.1%  15,306     35.3%
                                     17,850    46.9%  19,688     45.4%

   Gross margin                      20,206    53.1%  23,642     54.6%

Operating expenses:
   Selling and marketing             10,567    27.8%  12,214     28.2%
   Research and development           5,797    15.2%   6,146     14.2%
   General and administrative         6,475    17.0%   8,337     19.2%
   Amortization expense               3,088     8.1%   3,088      7.1%
   Restructuring charge               2,049     5.4%       -      0.0%
                                     27,976    73.5%  29,785     68.7%

     Operating loss                  (7,770)  -20.4%  (6,143)   -14.2%

Net interest expense                    444     1.2%      85      0.2%
Other non-operating expense
 (income), net                         (219)   -0.6%    (158)    -0.4%
Foreign exchange (gain) loss            352     0.9%    (239)    -0.6%
                                        577     1.5%    (312)    -0.7%

Loss before income taxes             (8,347)  -21.9%  (5,831)   -13.5%

Income tax expense (benefit)            318     0.8%     455      1.1%

     Net loss                       $(8,665)  -22.8% $(6,286)   -14.5%

     Basic and diluted loss per
      common share                   $(0.87)          $(0.63)

     Weighted average common shares
      used in computing basic and
      diluted loss per common share   9,965            9,965

Reconciliation of Net loss to
 EBITDA:
Net loss                            $(8,665)         $(6,286)
Depreciation and Amortization         3,598            4,148
Interest                                444               85
Taxes                                   318              455
EBITDA (1)                          $(4,305)         $(1,598)

Net cash used in operations         $(6,344)         $(3,372)

(1) Represents net earnings (loss) before depreciation and
    amortization, interest income and expense and income tax
    expense/benefit.  EBITDA is not indicative of cash provided by or
    used in operating activities and may differ from comparable
    information provided by other companies. EBITDA should not be
    considered in isolation, as an alternative to, or more meaningful
    than measures of financial performance determined in accordance
    with accounting principles generally accepted in the United
    States.  EBITDA is commonly used in the industry and is presented
    because Artemis believes it provides relevant and useful
    information to investors.  Investors would use such a measure to
    analyze and compare companies on the basis of current period
    operating performance.  Artemis utilizes and has disclosed EBITDA
    to provide additional information with respect to its ability to
    meet future capital expenditures and working capital requirements,
    to incur indebtedness if necessary, and to fund continued growth.