Press Release
June 7, 2001
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, June
1 announced that on May 31, 2001, through a wholly owned subsidiary, it had exercised its initial option to purchase
of 28.535 million shares of GlobalSoft common stock at the agreed upon price of $3.825, for a total consideration
of $109.146 million.
Pursuant to the terms of the agreement, AremisSoft has the option to pay the consideration in cash, in shares of
AremisSoft common stock, or in 3-year term notes of the wholly owned subsidiary, or any combination thereof. AremisSoft
has elected to pay $25.0 million in cash and will issue $84.146 million in 3-year term notes with an interest rate
of 4%. As part of the agreement, there is no accrued interest for the first six months the notes are outstanding
and no prepayment penalty if the notes are retired before maturity. AremisSoft has chosen not to issue stock as
part of its initial GlobalSoft investment, as the Company views its stock as undervalued. With the exercise of
the option, AremisSoft will own 25.0% of GlobalSoft common stock and has voting control over 59.5% of GlobalSoft
shares. GlobalSoft shares remaining under option are sufficient in number to increase AremisSoft's ownership in
GlobalSoft to 59.5% of GlobalSoft's shares.
AremisSoft is looking forward to leveraging its investment in GlobalSoft for the benefit of both businesses and
shareholder bases. AremisSoft has historical strength in building world-class enterprise application software and
has made a substantial resource commitment to research and development. The Company has demonstrated the capability
to expand through internal growth as well as acquisitions and deliver industry leading financial performance, while
building market positions in both emerging markets and more ``developed economies''. GlobalSoft has grown rapidly
and profitably while creating an alternative business model based upon local market penetration through a broad
product line that meets many of the business requirements of a local market. AremisSoft believes the combination
of both strategies can have a beneficial impact on the growth potential of both companies.
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 $123.6 million for the twelve months ended December 31, 2000 and pro forma net income of $29.2 million
for the same period. AremisSoft has approximately 1,300 employees, with sales in over 20 countries and a customer
base in excess of 8,000. The Company also operates a software development and support facility in India, with over
325 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
paul.bloom@aremissoft.com