Artemis Reports Fourth Quarter 2005 Financial Results.

NEWPORT BEACH, Calif. -- Artemis International Solutions Corporation (OTCBB: AMSI), the leading provider of Investment Planning and Control(TM) solutions, today reported its financial results for the quarter and fiscal year ended December 31, 2005.

Artemis reported $13.0 million in total revenue for the quarter ended December 31, 2005, up 28.6% from $10.1 million in the third quarter of 2005 and down 10.0% from $14.4 million for the same quarter of 2004.

Software license revenue was $3.7 million, up 116.0% from $1.7 million in the third quarter of 2005 and down 19.2% from $4.5 million in the same quarter of 2004. Software license and support revenue was 60.3% of total revenue compared to 61.9% in the same quarter of 2004.

The Company reported non-GAAP loss of $(0.6) million, or $(0.05) per common share, for the fourth quarter of 2005, compared to a non-GAAP loss of $(1.1) million, or $(0.10) per common share, in the third quarter of 2005 and a non-GAAP income of $1.6 million, or $0.16 per common share, in the fourth quarter of 2004. Non-GAAP loss for the third quarter of 2005 excludes $0.2 million in amortization, while excluding $1.9 million in amortization and impairment charges and $0.7 million in restructuring charges for the fourth quarter of 2004.

On a US GAAP basis, the Company's net loss for the fourth quarter of 2005 was $(0.6) million, or $(0.05) per common share. This compares to a net loss of $(1.3) million, or $(0.12) per common share, in the preceding quarter and $(1.0) million, or $(0.10) per common share, for the fourth quarter of 2004.

"Demand for our flagship product Artemis 7 continues to strengthen world-wide with the addition of 38 new Artemis 7 customers during 2005," said Patrick Ternier, president and CEO of Artemis. "Transforming this demand in actual license sales has been particularly successful in Europe and Japan, where A7 license sales have grown year over year respectively at 55% and 85%. A number of significant steps, including the transaction announced earlier this week, have been taken to allow us to execute similarly in the US, in our continued effort to establish worldwide leadership in the Product Portfolio Management space."

For the full year 2005, Artemis reported $47.4 million in revenue, a non-GAAP loss of $(2.6) million, and a US GAAP net loss of $(4.0) million or $(0.38) per common share. This compares to $52.4 million in revenue, a non-GAAP loss of $(1.9) million, and a US GAAP net loss of $(9.7) million or $(0.97) per common share for the full year 2004. Non-GAAP loss for 2005 and 2004 exclude amortization, impairment and restructuring charges of $1.5 million and $7.8 million, respectively.

The Company reported a cash balance of $4.1 million as of December 31, 2005.

On March 10, 2006, the Company entered into a merger agreement with a wholly-owned subsidiary of Trilogy, Inc., in a transaction valued at approximately $27 million. The agreement provides for the payment of $1.60 per share to holders of Artemis' common stock, and $2.20 per share for the holders of Series A Preferred Stock of Artemis, which represents their liquidation value. The transaction is subject to certain covenants relating to the Company's financial performance and the approval of the stockholders of Artemis, with a meeting of the stockholders expected to be held in May 2006. On completion of the merger, Artemis will become a part of Trilogy's recently announced Versata Group. The Company incurred approximately $0.4 million in acquisition-related expenses during the quarter ended December 31, 2005. Excluding these acquisition-related expenses, the Company's non-GAAP loss and US GAAP net loss for the fourth quarter of 2005 were $(0.1) million, or $(0.01) per common share.

Further highlights of the year were as follows:

Additional sales of Artemis solutions to:

        --  New Product Development: Arcelor, BAE Systems, Beijing
            Mobile Communication Co. Ltd., Bell Aerospace, China
            Telecom Shangai R&D Institute, Cummins Inc., Denso
            Corporation, Fasotec Co., Gambro Renal Products, Genmab,
            KAPL, JATCO Ltd., LG Chemical Ltd., LG Micron, Lockheed
            Martin, Maruho Co., Ltd. (Kyoto), NAVSEA, Northrop
            Grumman, RATP (Paris Metro), Raytheon, and Rockwell.

        --  IT Management and Governance: Banco Espirito Santo,
            CALYON, CEA (French Nuclear Agency), CUMMINS Inc., France
            Telecom DPS, France Telecom SCE Transoac, Generali
            IT-Solutions GmbH, Hitachi (Tokyo), INAIL, IT-AmtBw, LA
            POSTE DIAQ, Landeshauptstadt Munchen, Ministere des
            Transports du Quebec, Pfizer Japan Inc., PT Bank Rakyat
            Indonesia (BRI), Renault, SiNSYS, Sogei - Agenzia del
            Territorio, Somerfield, SSB, System U Est, and The Bank Of
            England

        --  Strategic Asset Optimization: American Electric Power -
            Cook Nuclear Plant, Ergon Energy, PSEG, and RATP
            Engineering Department, SNCF (French Railways)

--Major new release of Artemis 7-based solutions, with Version 6.1 offering advanced project and resource management capabilities including real-time multi-project management, resource management and analysis and performance tracking and reporting.

--Reached a milestone of over 600,000 users world-wide.

--Launched successful International Business Conference on Enterprise Applications of Project Portfolio Management with presentations from Actelion (Pharmaceuticals - Switzerland), BAE Naval Systems (Defense - UK), CIPE - the Ministry of Economy and Finance (Central Government - Italy), Exelon (Energy - USA), HSH NordBank (Financial Services - Germany), Banque La Poste (Financial Services - France), Lundbeck (Pharmaceuticals - Denmark), Nokia Networks (Telecommunications - Finland), Regional Development Agencies (Local Government - UK), Telecom Italia (Telecommunications - Italy), T-Systems (ITC services - Germany), and Vodafone (Telecommunications - Italy).

ARTEMIS INTERNATIONAL SOLUTIONS CORPORATION
                   Consolidated Financial Highlights


                                   Three Months Ended December 31,
                                         Percent              Percent
                                2005     of Total    2004     of Total
                             (Unaudited) Revenues             Revenues

Statement of Operations
 Data:

Revenue:
  Software                       $3,668       28%     $4,542       32%
  Support                         4,144       32%      4,370       30%
  Services                        5,140       40%      5,477       38%
                                 12,952      100%     14,389      100%

Cost of revenue:
  Software                          142        1%         86        1%
  Support                         1,276       10%      1,334        9%
  Services                        3,830       30%      4,220       29%
                                  5,248       41%      5,640       39%

  Gross margin                    7,704       59%      8,749       61%

Operating expenses:
  Selling and marketing           3,680       28%      3,760       26%
  Research and development        2,086       16%      1,913       13%
  General and administrative      2,123       16%      2,226       15%
  Amortization expense                -        0%      1,029        7%
  Impairment charges                  -        0%        913        6%
  Restructuring charges               -        0%        691        5%
                                  7,889       61%     10,532       73%

    Operating loss                 (185)      -1%     (1,783)     -12%

Net interest expense                222        2%         58        0%
Other non-operating (income)
 expense, net                       (34)       0%       (671)      -5%
                                    188        1%       (613)      -4%

Loss before income taxes           (373)      -3%     (1,170)      -8%

Income tax expense (gain)           182        1%       (150)      -1%

    Net loss                      $(555)      -4%    $(1,020)      -7%

    Basic and diluted loss
     per common share            $(0.05)              $(0.10)

    Weighted average common
     shares used in
     computing basic and
     diluted loss per common
     share                       10,861               10,059

Reconciliation of Net loss
 to Non-GAAP income (loss):
Net loss                          $(555)             $(1,020)
Amortization                          -                1,029
Impairment charges                    -                  913
Restructuring charges                 -                  691
Non-GAAP income (loss) (1)        $(555)              $1,613

    Basic Non-GAAP income
     (loss) per common share     $(0.05)               $0.16

    Weighted average common
     shares used in
     computing basic Non-
     GAAP income (loss) per
     common share                10,861               10,059

                                   Twelve Months Ended December 31,
                                         Percent              Percent
                                2005     of Total    2004     of Total
                             (Unaudited) Revenues             Revenues

Statement of Operations
 Data:

Revenue:
  Software                      $11,487       24%    $13,055       25%
  Support                        17,248       36%     17,186       33%
  Services                       18,630       39%     22,204       42%
                                 47,365      100%     52,445      100%

Cost of revenue:
  Software                          447        1%        232        0%
  Support                         4,990       11%      5,676       11%
  Services                       14,973       32%     17,582       34%
                                 20,410       43%     23,490       45%

  Gross margin                   26,955       57%     28,955       55%

Operating expenses:
  Selling and marketing          14,877       31%     14,327       27%
  Research and development        7,862       17%      7,710       15%
  General and administrative      7,375       16%      8,701       17%
  Amortization expense            1,489        3%      4,117        8%
  Impairment charges                  -        0%        913        2%
  Restructuring charges               -        0%      2,740        5%
                                 31,603       67%     38,508       73%

    Operating loss               (4,648)     -10%     (9,553)     -18%

Net interest expense                747        2%        502        1%
Other non-operating (income)
 expense, net                    (2,055)      -4%       (538)      -1%
                                 (1,308)      -3%        (36)       0%

Loss before income taxes         (3,340)      -7%     (9,517)     -18%

Income tax expense (gain)           705        1%        168        0%

    Net loss                    $(4,045)      -9%    $(9,685)     -18%

    Basic and diluted loss
     per common share            $(0.38)              $(0.97)

    Weighted average common
     shares used in
     computing basic and
     diluted loss per common
     share                       10,743                9,988

Reconciliation of Net loss
 to Non-GAAP income (loss):
Net loss                        $(4,045)             $(9,685)
Amortization                      1,489                4,117
Impairment charges                    -                  913
Restructuring charges                 -                2,740
Non-GAAP income (loss) (1)      $(2,556)             $(1,915)

    Basic Non-GAAP income
     (loss) per common share     $(0.24)              $(0.19)

    Weighted average common
     shares used in
     computing basic Non-
     GAAP income (loss) per
     common share                10,743                9,988

(1) Non-GAAP income (loss) represents net earnings (loss) before
    amortization, impairment and restructuring charges. Non-GAAP
    income (loss) is not indicative of cash provided by or used in
    operating activities and may differ from comparable information
    provided by other companies. Non-GAAP income (loss) 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. Non-GAAP income (loss) 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
    Non-GAAP income (loss) 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 growth.

About Artemis International Solutions Corporation

Artemis International Solutions Corporation (OTCBB:AMSI) is one of the world's leading providers of investment planning and control solutions that help organizations execute strategy through effective portfolio and project management. Artemis has refined 30 years' experience into a suite of solutions and packaged consulting services that address the specific needs of both industry and the public sector including new product development, IT management, program management, and strategic asset optimization. With a global network covering 44 countries, Artemis is helping thousands of organizations 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.