NEW YORK,(BUSINESS WIRE)-June 30, 2001-AremisSoft Corporation (NASDAQ:AREM), a leading nternational supplier of enterprise-wide software and Internet-enabled solutions for the manufacturing, hospitality, healthcare and construction industries, today commented on a recent news story published by Bulgarian daily 24 Hours reporting an investigation into the procedures followed by Bulgarian Health Minister Ilko Semerdjiev relating to the Company`s Bulgarian healthcare contract with the National Health Insurance Fund (NHIF). Specifically, the investigation centers around the requirements of Article 5 of the Public Procurement Act, which provides, among other things, that a vendor under a government contract may be either a Bulgarian corporation or a foreign corporation, and should be registered as such in good standing in the jurisdiction of incorporation. While the language of Article 5 is ambiguous, the Company believes that Dr. Semerdjiev was not in violation when he signed the Company`s Bulgarian Healthcare contract and that the Company met all of the legal requirements under Article 5 when the contract was signed. AremisSoft also has a fully registered Bulgarian subsidiary created shortly after the contract was signed, which employs the Company`s employees working on the NHIF contract. Furthermore, the Company is aware of several other international companies that have been awarded Bulgarian government contracts without violation of Article 5 of the Public Procurement Act. The Company is not aware of any allegations of corruption relating to the NHIF contract. Furthermore, the Company is receiving continuous legal advice from competent Bulgarian lawyers and does not believe that the investigation will have an overall material adverse affect on its contract with the NHIF. According to press accounts, the investigation was initiated at the insistence of Kuncho Marangozov, a former member of the Bulgarian Parliament and a member of the communist party who is an outspoken critic of Bulgaria`s health reforms and the NHIF. Mr. Marangozov lost his seat in Parliament during the recent national election. The Company has also learned that, in the past, Dr. Semerdjiev had initiated legal action against Mr. Marangozov, alleging that Mr. Marangozov had slandered Dr. Semerdjiev in the past. Although Bulgaria has recently had a national election, the new government has not yet been formed and will not likely be formed for several more weeks. Prior to the national elections, the overall Bulgarian healthcare reform was the subject of national debate and the Company`s contract with the NHIF was audited by the Bulgarian Court of Auditors under the Bulgarian agency for State Financial Control. The audit did not find any irregularities in the procedures under the Public Procurement Act and the Company believes that the investigation will ultimately result in the same conclusion. The Public Procurement Act was substantially amended in 1999, just before the Company`s contract with the NHIF was entered into. Like many former communist-based economies, the transition to democracy has resulted in substantial legislation, which at times may be less than clear as written. In its `Dialogue 2001: Public debate on fulfillment of the government program Bulgaria` www.government.bg/eng/qna/index.html), the former government stated the following: `We realize that our legislation and normative documents are not perfect, that in one or other situation we have done things which do no correspond to our declared policy. We understand this and will try to remove the reasons.`The Company would like all investors to keep this statement in mind when considering what is happening in Bulgaria and to be patient with the system. The Company continues to support the Bulgarian government and its people in healthcare reform and believes that its contract to automate the Bulgarian healthcare system will ignificantly contribute to the quality of life and improved healthcare services to all eight million Bulgarian citizens.