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 COLUMBIA, S.C., Aug. 17 /PRNewswire/ -- Policy Management Systems Corporation (NYSE: PMS) announced that it has engaged Coopers & Lybrand as its independent public accountants upon recommendation of the audit committee and approval by the board of directors.
 The action to engage Coopers followed the company's decision to dismiss Arthur Andersen & Co. which had audited the company's financial statements for the year-ended Dec. 31, 1992. The accuracy of those 1992 financial statements were cited as an issue in a class action lawsuit against the company and certain of its officers and directors which was filed in Federal Court in Columbia in April 1993. The board concluded that there exists the potential for conflicts between the company and Arthur Andersen.
 Coopers & Lybrand will audit the company's financial statements as of and for the six months ended June 30, 1993. If there are adjustments which could impact prior periods, Coopers & Lybrand will work with the company's previous independent accountants to resolve such adjustments. "We feel this is an important step," said G. Larry Wilson, chief executive officer and chairman of the board," in ensuring that our financial records, accounting practices, and internal controls will be without question. Although this process will take several months and will cause some additional delay in the release of the company's financial statements for this period, we are committed to complete resolution as soon as possible," said Mr. Wilson.
 On Aug. 13, Ernst & Young notified the company that its Feb. 20, 1992 report should no longer be associated with the company's financial statements for the years ended Dec. 31, 1990 and 1991, citing significant uncertainty arising out of the ongoing investigation of the company's business and accounting practices. Ernst & Young subsequently advised the company that their review reports on interim financial statements during the years ended Dec. 31, 1992, 1991 and 1990, should no longer be associated with those interim financial statements. The company indicated that this action by Ernst & Young was not unexpected as a result of the previously announced withdrawal by Arthur Andersen of its audit opinion on the company's financial statements for the year- ended Dec. 31, 1992.
 Policy Management Systems Corporation is a leading provider of automation and information products and services to the worldwide insurance industry.
 -0- 8/17/93
 /CONTACT: James M. O'Brien or Manning, Selvage & Lee, 212-213-7005/

CO: Policy Management Systems Corporation ST: South Carolina IN: SU:

LG-SH -- NY020 -- 3750 08/17/93 17:17 EDT
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Publication:PR Newswire
Date:Aug 17, 1993

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