Infomedia Expands Business Systems Business with Local Acquisition.

Business Editors

NARRABEEN, Sydney--(BUSINESS WIRE)--March 31, 2003

International automotive software developer, Infomedia Ltd (IFM) announced the acquisition of the business and assets of automotive Dealer Management System (DMS) provider VM Computer Services Pty Ltd (VMCS), a company based in Queensland.

VMCS is the maker of the popular MISS(TM) (Motor Industry Software System) DMS, which is used by nearly 200 dealerships across Australia. MISS is a popular choice with regional automobile and agricultural equipment dealerships that seek good functionality and ease of use without the burden of expensive equipment.

Infomedia Business Development Manager, Mike Reece, explains, "a DMS is the central information technology system used by an automotive dealership to control its financial transactions and operational processes."

"The MISS DMS is targeted toward smaller dealerships and vehicle outlets, which makes it complimentary to the Infomedia's higher-end AutoLedgers DMS," he continued. "Smaller sized dealerships are also more the norm in Europe and Asia, so MISS provides us with the potential of having the right scale of product if we were to pursue penetration into the region."

Infomedia's wholly owned subsidiary, AutoConsulting Pty Ltd is the acquiring entity and will continue to operate the business from VMCS' Queensland facilities. "The acquisition is projected initially to be modestly 'earnings-positive' on the basis of a 'no-growth' scenario," said Infomedia CFO Peter Adams. "However, management is expecting to continue expanding the business. For example, recently the hire car company Hertz Australia selected the MISS DMS system for their vehicle sales operations. That's a great testimonial."

Referring to the growth potential of the new business, Mr. Reece pointed out that The John Deere Company has accredited MISS for use by its Australian agricultural equipment dealerships, "extending Infomedia's scope into this new genre of vehicle supplier."

Infomedia is the developer of the high-level DMS called AutoLedgers(R), which is used by many notable dealers across the country. Infomedia anticipates that this acquisition will add critical mass to its Australian business systems offerings, making the Company the second largest DMS supplier in the country as measured by client users. The acquisition is also anticipated to provide an outlet for a number of its new integrated DMS data products such as its Datateck Superservice Menus(R) and Microcat Fresh(R).

MISS has a full GUI (graphical user interface) and can be installed on a low-cost Windows/Intel platform.

The new business has both initial and recurring revenue aspects, and is generally compatible with the Company's historical financial model.

Infomedia Ltd is a publicly listed company, which specializes in the development and licensing of information technology solutions for automotive dealerships around the world. Its flagship electronic parts catalogue (EPC) product, Microcat(R), is used in 144 countries and 25 languages. Its Business Systems Division provides sophisticated online automotive accounting and customer process systems for large and multi-franchised dealers in Australia. Datateck Publishing Pty Ltd, a wholly owned subsidiary of Infomedia, provides specialized OEM analytical work for parts catalogues and service documentation. Its Retail Products Group are the creators of 'eziMerchant(TM) Professional' the leading off-the-shelf e-commerce enabling suite for small to medium enterprises. The company is listed on the Australian Stock Exchange and its trading code is IFM.

Note to Editors: Microcat, Datateck, AutoConsulting, Microcat FRESH, Infomedia, Datateck Superservice Menus and eziMerchant are either registered or unregistered trademarks of Infomedia Ltd. All other registered and unregistered trademarks referenced herein are the property of their respective owners and no trademark rights to the same are claimed.