Rio Systems acquired by AremisSoft

(Atlanta, GA — February 26, 2001) AremisSoft Corporation (Nasdaq:AREM), an international supplier of enterprise-wide software and Internet-enabled solutions for the manufacturing, hospitality, healthcare and construction industries, today announced the acquisition of Rio Systems International, a supplier of an integrated hospitality suite of applications that serve the spa, resort, and premium hotel markets. This acquisition reflects AremisSoft's plan to serve the entire hospitality market with leading edge enterprise applications.

With this acquisition, AremisSoft intends to further broaden its enterprise product offering to include comprehensive spa management, retail point of sale (POS), restaurant, fine dining, golf/tennis scheduling and other hospitality related applications. The acquisition brings to AremisSoft over 100 customers, primarily located in the U.S. The Rio system has been proven in such prestigious properties as the Boca Raton Club and Resort and numerous Ritz Carlton Hotels. Rio Systems International has approximately 33 employees located in the Atlanta, Georgia area, which is in close proximity to AremisSoft's U.S. Hospitality headquarters. AremisSoft has plans in place to fully integrate the company into its hospitality operation.

Roys Poyiadjis, Co-CEO and President of the US Group of AremisSoft, stated, 'The acquisition of Rio Systems International represents a further step in advancing AremisSoft's strategy to create the premier supplier of enterprise class hospitality systems worldwide. Rio Systems International will enable us to add substantially to our product portfolio with proven applications that have already been well received in major resorts and high end hotels. Commencing immediately, our worldwide hospitality sales teams will be able to benefit from the opportunity to cross sell the AREMIS and Rio Hospitality Suite of products to our growing customer base.'

Under terms of the agreement, AremisSoft acquired the assets and certain liabilities of Rio Systems International for $2.44 million in an all cash transaction. In addition, Rio Systems International shareholders could earn additional cash consideration based upon an earn-out formula, over the next 15 months. The Company projects the acquisition will add approximately $4 million in revenue and $0.01 to pro forma earnings per share in 2001. Pro forma net income and earnings per share for 2001 excludes amortization of goodwill and purchased intangible assets, and non recurring operating expenses related to recent acquisitions.

Dr. Lycourgos Kyrpianou, Founder, Chairman of the Board and Co-CEO of AremisSoft, commented, 'Rio has a unique product offering that can materially enhance both AremisSoft's presence in the spa, resort and high-end hotel market segments and our longer term business potential. Rio has built a fully integrated system that can support all of a hotel's venues and activities in a single integrated solution. Many resorts and luxury hotels need a system that offers full retail-restaurant POS system support along with sophisticated spa/health club and other activity scheduling and management.

'Rio Systems will give AremisSoft a beach head in many major chains, giving us the opportunity to show our proven next generation AREMIS Hospitality solutions. Rio can also help AremisSoft target some of the major resort hotels, which are dramatically expanding the number of retail shops, sports, and fitness amenities. The Rio system has been demonstrated to be highly scalable, supporting over 300 devices at the Boca Raton Resort and Club as well as multiple properties from the same database. We believe that hoteliers around the world will be increasingly looking for proven solutions from suppliers such as AremisSoft that can address all of their enterprise information technology requirements. AremisSoft intends to cross sell to its 3100 hotel customers the Rio suite of products.'

About Rio Systems International

Rio Systems is a leading supplier of resort and retail management systems for the hospitality industry. Rio has developed one of the most comprehensive systems for management of large hotel/resort activities including spa, retail, food and beverage POS, golf and tennis scheduling, club membership management, etc. The Company has many well-known properties as clients including the Boca Raton Resort and Club, Ritz Carlton Hotels and Raffles. The Rio Systems International products are installed in over 100 premium properties, primarily in the US. The Rio Hospitality Suite has demonstrated a unique capability to provide a hotel/spa/resort with a comprehensive single view of all guest activity and appointments, via an Oracle database. Besides sophisticated scheduling routines for management of activities, the Rio Hospitality Suite has a full retail POS capability, and a central reservation system oriented toward resort stay packages.

Rio Systems International has a team of approximately 33 people, including direct sales, support and research and development. The Company is headquartered in Roswell, Georgia. The Company grew at a 38% rate in 2000 to $2.6 million in revenue.

About AremisSoft Corporation

AremisSoft develops, markets, implements and supports enterprise-wide applications software targeted at mid-sized organizations in the manufacturing, hospitality, healthcare, 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 835 employees, with sales in over 20 countries and a customer base in excess of 7,200. 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.

Contact: Paul Bloom
AremisSoft Corporation
Executive Vice President of Corporate Development
Tel: (856) 869-0770 Email: [email protected]
Morgen-Walke Associates
Stephanie Prince/Cathy Hay
Press: Brian Maddox
Tel: (212) 850-5600