AremisSoft Extends Hospitality Business Momentum with New Technology and Contracts

Press Release
October 16, 2000
NEW YORK, NY -- AremisSoft Corporation (Nasdaq:AREM) a leading international supplier of enterprise-wide software and Internet-enabled solutions for the manufacturing, hospitality, healthcare and construction industries, has announced three contracts. Collectively, these developments demonstrate AremisSoft's commitment to delivering key next generation Internet technology, as well as support of existing customers and market presence.

AremisSoft awarded $100,000 contract using its new technology

AremisSoft has been awarded a $100,000 contract with Euro Hostels to install the AREMIS Web Booking Engine at a property in Glasgow, Scotland. The AREMIS solution is the first commercial implementation that enables a hotel to offer real time room availability over the Internet in a protected environment without custom programming. With the AremisSoft Web Booking Engine, hotels can support direct customer interaction with its property management system-based room inventory.

Mike Gadbury, Vice President of AremisSoft 's Hospitality, stated, ``Utilizing the AREMIS Web Booking Engine and AREMIS Property Management System, hotel chains and consortiums are able to accept and automatically process on-line Internet reservations for multiple sites. We are pleased to be working with Euro Hostels as we build our name as a world market leader in providing e-commerce solutions.''

The Glasgow Euro Hostels site is the first of what is planned by Euro Hostels to be a chain of upmarket hostels to fill the void between traditional youth hostels and budget hotels. Additional sites are planned for London, Edinburgh, York and Manchester, with AREMIS being installed into each of these properties. Designed to be able to link Euro Hostels ``front end'' web pages and the AREMIS Property Management System, the Web Booking Engine enables the automatic real time transfer of world-wide reservations without the need for duplication, directly into the AREMIS Property Management System.

Alex Stewart, Operations Director of Euro Hostels, commented, ``Most hostel reservations are made via the Internet by students and backpackers on the go, rendering it essential that reservations are processed automatically and accurately on-line, regardless of time zones. We chose AremisSoft because it seamlessly meets the needs of our online clientele, is the only supplier with a fully integrated solution, and has the sophistication for handling a 386-bedroom hotel.''

AremisSoft wins $450,000 contract to upgrade IT system

AremisSoft announced that Initial Style Conferences, the UK's leading provider of residential training and conference centers, selected AremisSoft's AREMIS solution to upgrade its IT Systems as part of its on-going commitment to quality customer service. The order is in excess of $450,000 and involves replacing the AremisSoft IGS HOTEL system with the latest up to date and flexible AREMIS Property Management and Central Reservations Systems. The rollout will take place in each of the 23 Initial Style centers over the next 12 months.

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Mike Gadbury added, ``We are further pleased that Initial Styles chose to extend its relationship with AremisSoft, validating the quality of our products and our commitment to customer service. Excellent project management, proven support and a great product have all contributed to successfully build our joint partnership at a level we strive for with all of our customers. We're very confident that AREMIS is the right choice for Initial Style because its flexibility allows for adapting to the company's future needs.''

Liz McOwat, Initial Style's Finance Director, commented, ``AREMIS provides us with the state-of-the-art technology and flexibility of approach we need to take Initial Style through its next expansion phase. The net result of this change will be improved service levels for all of our customers. We have worked well with AremisSoft over the past five years and look forward to continuing our technology partnership.''

AremisSoft wins its 175th contract in Ireland

AremisSoft has received an order from The Dundrum Country House Hotel in Ireland for its property management system to replace an outdated system. The contract marks the Company's 175th order for its PMS system in Ireland.

Mike Gadbury further commented, ``Our PMS system completely addresses Dundrum House's property management needs by providing the hotel with business intelligence and marketing tools necessary to effectively maintain its competitive edge. Our Dublin Hospitality office was opened in 1996 when the Company foresaw a great opportunity to expand its presence worldwide. We are proud of our success to date, marked by the 175 customers benefiting from AremisSoft systems in Ireland.''

Joe Kelly, General Manager of Dundrum House, commented, ``We were immediately impressed with the system's demonstration. The scope of the product, the future benefits to the hotel and the enhanced functionality against our existing product convinced us that this was the system we wanted.''

About Euro Hostels

Euro Hostels will offer a radically different experience - Hotel quality at Hostel prices. Catering not only for the backpacker, but also for education and sporting groups, coach tours - in fact anyone looking for excellent, budget en-suite accommodation - Euro Hostels delivers quality, high standards of cleanliness, professional service, security and 24 hour staffing in specifically designed rooms with en-suite facilities for predominantly two to four people, as well as en-suite dormitory accommodation for larger groups. Pricing per person, including continental breakfast, will start at (pound)13.75.

About Initial Style

Established in 1978, Initial Style Conferences is the UK market leaders in the operation of Residential Training and Conference Centres, currently operating 23 Centres. Emphasis is placed on service and working together with customers to achieve their business goals. This has resulted in long term relationships with major UK companies who have relied on Initial Style to provide them with the environment in which their training can flourish.

About Dundrum House

The prestigious Dundrum House hotel and country club, which is located in Dundrum, 10 minutes from Cashel has 90 bedrooms, a health and leisure club, as well as an 18 hole Championship parkland golf course. Austin and Mary Crowe have created a manor house of exceptional style and warmth reflecting the elegance of the period in which it was built.

About AREMIS

AREMIS has been designed for today's global hotel market and provides a state-of-the-art PMS and CRS system, based on Microsoft® Windows with unique features such as full multi-currency, foreign language support, state-of-the-art-graphics, touch screen technology, on-line back-up, and `Walkabout' technology. AREMIS has a centralised Customer Management System (CMS) for hotel chains, providing a Centralised Reservation System (CRS) and Data Warehousing options. AREMIS also supports a centralised Internet/GDS server for remote bookings.

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 $73.4 million for the twelve months ended December 31, 1999 and net income of $12.1 million before extraordinary gains for the same period. AremisSoft has over 475 employees, with sales in 10 countries and a customer base in excess of 4,500. The Company also operates a software development and support facility in India, with 212 employees, which provides significant organizational efficiencies and cost advantages in software development and support.

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,'' ``see,'' ``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 risks discussed under ``Risk Factors'' in the Company's annual report on Form 10-K, SEC File No. 0-25713, all of which are incorporated herein by reference. The Company's actual results and stockholder values 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.


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Contact: 

     AremisSoft Corporation
     Paul Bloom, 856/869-0770
     Executive Vice President of Corporate Development
     paul.bloom@aremissoft.com
        or
     Morgen-Walke Associates
     Michele Katz/Stephanie Prince/Cathy Dawson
     Press: Brian Maddox
     212/850-5600