UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC

Litigation Release No. 17641 / July 31, 2002

ACCOUNTING AND AUDITING ENFORCEMENT
Release No. 1606 / July 31, 2002

SECURITIES AND EXCHANGE COMMISSION V. ROYS POYIADJIS, LYCOURGOS KYPRIANOU
AND AREMISSOFT CORP., et al, CIVIL ACTION NO. 01-CV-8903 (CSH) (S.D.N.Y.)

SEC SETTLES FINANCIAL FRAUD CLAIMS AGAINST AREMISSOFT CORPORATION

   On July 22, 2002, the Hon. Charles L. Brieant of the United States
   District Court for the Southern District of New York signed a Final
   Judgment of Permanent Injunction and Other Relief as to Defendant
   AremisSoft Corporation, which was a software company with offices in
   New Jersey, London, Cyprus, and India. The judgment, to which
   AremisSoft consented without admitting or denying the allegations in
   the Commission's complaint, prohibits AremisSoft and its successor
   entity, Softbrands, Inc., from violating the antifraud and reporting
   provisions of the federal securities laws (Section 17(a) of the
   Securities Act of 1933 ("Securities Act") and Sections 10(b) and 13(a)
   of the Securities Exchange Act of 1934 ("Exchange Act") and Rules
   10b-5, 12b-20, 13a-1 and 13a-13 thereunder).

   The Commission's complaint alleged, among other things, that
   AremisSoft and two of its former officers, Roys Poyiadjis and
   Lycourgos Kyprianou, overstated the Company's revenues in its annual
   report for 2000 and inflated the value of acquisitions made in 1999
   and 2000 and that the two former officers engaged in massive insider
   trading during the period of the reporting fraud. AremisSoft
   previously consented to a preliminary injunction that was entered by
   the Hon. Charles S. Haight, Jr., U.S. District Judge, on October 19,
   2001.

   AremisSoft filed a petition for relief under Chapter 11 of the
   Bankruptcy Code on March 15, 2002. On July 15, 2002, the Hon. Joel A.
   Pisano, U.S. District Judge, entered an order confirming AremisSoft's
   Chapter 11 Plan and authorizing AremisSoft to enter into the
   settlement with the Commission.

   In connection with the resolution of the Commission's civil injunctive
   action, AremisSoft also consented to the issuance of a Commission
   Order, pursuant to Section 12(j) of the Exchange Act, revoking the
   registration of AremisSoft's common stock, without admitting or
   denying the findings in the Commission's Order. For further
   information on this proceeding, Exchange Act Release No. 34-46285.

UNITED STATES OF AMERICA
Before the
SECURITIES AND EXCHANGE COMMISSION

SECURITIES EXCHANGE ACT OF 1934
RELEASE NO. 46285 / July 31, 2002

ADMINISTRATIVE PROCEEDING
FILE NO. 3-10854
     _________________________________________________________________

   In the Matter of

   AREMISSOFT CORPORATION,

                                                              Respondent.
     _________________________________________________________________

   ORDER INSTITUTING PUBLIC ADMINISTRATIVE PROCEEDINGS, MAKING FINDINGS
   AND REVOKING REGISTRATION PURSUANT TO SECTION 12(j) OF THE SECURITIES
   EXCHANGE ACT OF 1934

                                     I.

   The Securities and Exchange Commission ("Commission") deems it
   necessary and appropriate for the protection of investors that public
   administrative proceedings be instituted against Respondent AremisSoft
   Corporation ("AremisSoft"), pursuant to Section 12(j) of the
   Securities Exchange Act of 1934 ("Exchange Act") (15 U.S.C. §78(j).

   In anticipation of the institution of these administrative
   proceedings, AremisSoft has submitted an Offer of Settlement ("Offer")
   that the Commission has determined to accept. Solely for the purpose
   of these proceedings, and any other proceedings brought by or on
   behalf of the Commission or to which the Commission is a party,
   without admitting or denying the findings set forth below, except as
   to the Commission's finding of jurisdiction over AremisSoft and the
   subject matter of these proceedings as set forth in Part III.A, which
   AremisSoft admits, AremisSoft consents to the entry of this Order
   Instituting Public Administrative Proceedings, Making Findings and
   Revoking Registration Pursuant to Section 12(j) of the Securities
   Exchange Act of 1934 ("Order") set forth below.

                                    II.

   Accordingly, IT IS HEREBY ORDERED that proceedings pursuant to Section
   12(j) of the Exchange Act are instituted.

SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 17210 / October 29, 2001

   Accounting and Auditing Enforcement Release No. 1473 / October 29,
   2001

   SEC OBTAINS PRELIMINARY INJUNCTION AGAINST AREMISSOFT CORPORATION AND
          TWO FORMER OFFICERS FOR FINANCIAL FRAUD, INSIDER TRADING

   Securities and Exchange Commission v. Roys Poyiadjis, Lycourgos
   Kyprianou and AremisSoft Corp., Civil Action No. 01-CV-8903 (S.D.N.Y.)

   On October 19, 2001, the Honorable Charles S. Haight, Jr., United
   States District Judge for the Southern District of New York, issued a
   preliminary injunction against AremisSoft Corporation, an
   international software company with offices in New Jersey, London,
   Cyprus, and India, two of its former officers, Roys Poyiadjis and
   Lycourgos Kyprianou, and ordered other relief against the defendants
   and two relief defendants, Olympus Capital Investment, Inc., and
   Oracle Capital, Inc. The Court's order resulted from the Commission's
   motion for emergency relief, filed on October 4, 2001, alleging that
   the defendants overstated the value of the Company's contracts,
   revenues and recent acquisitions, and that the two former officers
   engaged in massive insider trading.

   Pending resolution of the Commission's action, the Court's order
   enjoins the three defendants from violations of Section 17(a) of the
   Securities Act of 1933 (15 U.S.C. § 77q(a)) and Sections 10(b), 13(a)
   and 16(a) of the Securities Exchange Act of 1934 (15 U.S.C. §§ 78j(b),
   78m(a) and 78p(a)) and Rules 10b-5, 12b, 13a-1, 13a-13, 16a-2 and
   16a-3) thereunder (17 C.F.R. §§ 240.10b-5, 12b, 13a-1, 13a-13, 16a-2
   and 16a-3). The Court's order also restrains the defendants and the
   relief defendants from destroying any documents relating to the
   Commission's allegations in the Complaint. With respect to defendants
   Poyiadjis and Kyprianou and the relief defendants, the order also
     * freezes any of their funds or assets received from the sale of
       AremisSoft stock;
     * directs them to repatriate all such funds or assets to the United
       States; and
     * requires them to submit a sworn accounting of their assets held at
       any time since December 1, 1999.

   For additional information please see Litigation Release No. (October
   4, 2001).
     _________________________________________________________________

Modified 10/30/2001

Securities and Exchange Commission

Litigation Release No. 17172 / October 4, 2001

Accounting and Auditing Enforcement Release No. 1465 / October 4, 2001

SEC Obtains Emergency Relief against Aremissoft Corporation and Two Former
Officers for Financial Fraud, Insider Trading

Securities and Exchange Commission v. Roys Poyiadjis, Lycourgos Kyprianou
and AremisSoft Corp., Civil Action No. 01-CV-8903 (S.D.N.Y.)

   On October 4, 2001, the Commission filed a civil injunctive action
   against AremisSoft Corporation, an international software company with
   offices in New Jersey, London, Cyprus, and India, and two former
   officers, Roys Poyiadjis and Lycourgos Kyprianou, alleging that they
   overstated the value of the Company's contracts, revenues and recent
   acquisitions, and that the two former officers engaged in massive
   insider trading during the period of the reporting fraud. On the same
   day, the Honorable Charles S. Haight, Jr., United States District
   Judge for the Southern District of New York, granted the Commission's
   motion for emergency relief against AremisSoft, Poyiadjis and
   Kyprianou.

   Based on evidence that all three defendants engaged in financial fraud
   and Poyiadjis and Kyprianou, both former chairmen and CEO's of the
   Company, also engaged in insider trading, the Court's Order restrains
   the defendants from violations of the anti-fraud, reporting and other
   provisions of the federal securities laws pending a hearing on the
   Commission's motion for a preliminary injunction. The Court's Order
   freezes the assets of Poyiadjis and Kyprianou, and directs them to
   repatriate to the United States the proceeds of their sales of
   AremisSoft stock. The Order also grants the Commission's request for
   expedited discovery.

   According to the Commission's complaint
     * On December 17, 1999, AremisSoft announced "the signing of a $37.5
       million agreement to automate the nationwide healthcare system of
       Bulgaria." Poyiadjis and Kyprianou publicly touted the Bulgarian
       contract as of major significance for the Company's business
       prospects. The Company recognized approximately $7.1 million in
       revenue from this contract during 2000 and $1 million more in the
       first quarter of 2001. In fact, the value of the Bulgarian
       contract is no more than $3.7 million, and the Company can
       presently substantiate only about $1.7 million of the revenue
       recognized on it.

     * AremisSoft's "Emerging Markets Group," headquartered in Cyprus,

UNITED STATES DISTRICT COURT
SOUTHERN DISTRICT OF NEW YORK



SECURITIES AND EXCHANGE COMMISSION,

                                              Plaintiff,
                                                             :
                          v.                                 :
                                                             : Civil Action No.
ANTHONY CHRYSIKOS and                                        :
MICHAEL MARTELLO,                                            : 02 Civ. _____________
                                                             :
                                           Defendants,  :
                                                             :
MARIE MARTELLO,

                                      Relief Defendant.




                                         COMPLAINT

Plaintiff Securities and Exchange Commission ("SEC" or the "Commission") alleges:

                                  NATURE OF THE ACTION

1. This case involves tipping and insider trading in advance of the July 30, 2001, initial
public announcement of a tender offer by General Electric Capital Corp ("GE Capital")
for the outstanding common stock of Heller Financial, Inc. ("Heller Financial"). Anthony
Chrysikos ("Chrysikos"), a Vice President of GE Capital, tipped Michael Martello, an
American Kung-Fu instructor and Web page designer, who then purchased Heller
Financial call options on the American Stock Exchange.

                                  JURISDICTION AND VENUE

2. This Court has jurisdiction over this action pursuant to Sections 21(d), 21(e), 21A, and
27 of the Securities Exchange Act of 1934 ("Exchange Act") [15 U.S.C. §§ 78u(d),
78u(e), 78u-1 and 78aa].

3. Defendants Chrysikos and Michael Martello, directly or indirectly, have made use of
the means or instrumentalities of interstate commerce, or of the mails, or the facilities of
a national securities exchange in connection with the transactions, acts, practices and
courses of business alleged herein.


4. Heller Financial call options were traded on the American Stock Exchange, located in