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AremisSoft Forms Strategic Alliance With INFO-QUEST
INFO-QUEST to Acquire 20% of AremisSoft Shares and Market AremisSoft Products
NEW YORK--(BUSINESS WIRE)--September 15, 1999--AremisSoft Corporation (Nasdaq: AREM), a leading international supplier of software solutions for the manufacturing, hospitality, healthcare and construction industries, today announced the formation of a strategic alliance with INFO-QUEST, a leading Information Technology distribution and systems integration company. The three major elements of the alliance include strategic marketing initiatives, INFO-QUEST's utilization of AremisSoft's Indian software development operations and the companies' joint pursuit of future acquisition opportunities.
INFO-QUEST is the second largest IT company in Greece in terms of 1998 sales of $120 million. INFO-QUEST has a sales force of 100, is a direct distributor of PC hardware, software and services to large national and multinational companies, and is also an indirect distributor through its resellers network to small- and medium-sized enterprises. INFO-QUEST's primary market area is Greece, and it is currently expanding its activities in eastern European countries, including Bulgaria, Romania, Ukraine and Russia.
Through this partnership, INFO-QUEST will market AremisSoft software solutions to complement its information technology, telecom solutions and PC hardware distribution and systems integration. Additionally, INFO-QUEST, as a partner with AremisSoft, will utilize AremisSoft's Indian software development facilities for implementation of all of its software-related technology services. AremisSoft will benefit from a significant increase in sales channels, geographic expansion, increased software revenue and a strengthened position for its acquisition growth strategy.
"Our relationship with INFO-QUEST creates new avenues to market our solutions while increasing our geographic penetration," stated Roys Poyiadjis, President of AremisSoft. "INFO-QUEST will gain access to the resources of our Indian software development centers that will result in substantial cost savings and new business opportunities for their company while contributing to our revenue. We also view this alliance as a valuable enhancement to our acquisition strategy in that it not only translates into a stronger financial position for us, but we expect that our synergistic growth-by-acquisition models will provide opportunities for both companies in the future."
"AremisSoft solutions complement our technology and business solution offerings," said Theodore Fessas, Chairman of INFO- QUEST. "By marketing a comprehensive hardware and software solution, we are strongly positioned to build on our success in marketing our IT distribution and integration services. We are excited about the opportunities that AremisSoft's Indian offshore model presents, as it will result in a significant expansion in numerous vertical industry sectors as well as cost reductions for our company. We are confident that this alliance will be productive and beneficial for both our companies."
Under the terms of the agreement, INFO-QUEST will acquire up to 20% of AremisSoft's issued and outstanding shares. This is expected to be accomplished by the issuance of approximately 1.6 million new restricted shares of the Company's common stock at $11 per share, and by the acquisition of an additional 1.42 million shares from existing shareholders. Approximately 1.2 million of existing shares will be purchased from Dr. Lycourgos Kyprianou, Chairman and CEO of AremisSoft, at $11 per share. The transaction amounts to a total consideration of $17.6 million to AremisSoft. The agreement also provides for INFO-QUEST's representation on AremiSoft's Board of Directors. Completion of the transaction is subject to the pre-closing notification filing provided for under the Hart-Scott-Rodino Act as well as all other customary conditions.
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 $29.9 million for the six months ended June 30, 1999 and net income of $3.3 million for the same period. AremisSoft has a total of 470 employees, with sales in 10 countries and a customer base in excess of 5,000. The Company also operates a software development and support facility in India, with 120 employees, which provides significant organizational efficiencies and cost advantages in software development and support.
About INFO-QUEST
INFO-QUEST (Reuters:1QTr.AT; Bloomberg:QWEST GA) is a leading Information Technology company in Greece dealing with the distribution, integration and services of computer hardware and software. The company, which employs 300 people, is listed on the Athens Stock Exchange (ASE) with a market cap in excess of USD $1 billion.
INFO-QUEST holds substantial stakes in 11 other companies (2 of them also listed on ASE) which are active in most segments of the Information Technology and Communication market in Greece. In 1998, total sales of the "QUEST" companies exceeded USD $500 million, and the number of employees totaled 1000. INFO-QUEST is aggressively expanding its operations into the Balkan Peninsula countries where it aims to duplicate its successful Greek business model.
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," "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 the risks discussed under "Risk Factors" in the Company's prospectus included in its registration statement on Form S-1, SEC File No. 333-58351, all of which are incorporated herein by reference. The Company's actual results 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.
(Conference Call Details to Follow)
NOTICE OF CONFERENCE CALL
FOR
AremisSoft Corporation
(NASDAQ: AREM)
Thursday, September 16, 1999
9:00 a.m. Eastern Time
Management of AremisSoft and INFO-QUEST will conduct a conference call with analysts and institutional investors to discuss the formation of their strategic alliance.
Please contact Kristen Kopay at Morgen-Walke Associates to reserve a line for this call: kkopay@morgenwalke.com or 212-850- 5780.
The direct dial number for domestic callers is 800-340-5809. The password is "AREM."
The direct dial number for international callers is 212-346-7474. The password is "AREM."
If you are unable to participate in the conference call, a replay will be available. To access the replay, please dial (619) 812- 6440 and use the passcode "13164605" from approximately one hour after the end of the call until 11:59 p.m. (Eastern Time) on Friday, September 17, 1999.
Thank you for your interest in AremisSoft.
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Contact:
Roys Poyiadjis
President
AremisSoft Corporation
212-765-7383
roys.poyiadjis@aremissoft.com
or
Michele Katz/Connie Bienfait
Morgen-Walke Associates
Press: Brian Maddox
212-850-5600
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