Response to new IBA offer

On 21 August 2007, IBA announced a revised offer for iSOFT of 69 pence per share in cash with a share alternative of 1.65 new IBA shares per iSOFT share (the “Revised IBA Offer”). IBA stated in its announcement that it intends to seek the recommendation of the board of iSOFT (the “Board”) for the Revised IBA Offer. The Board also notes that IBA has acquired a 25.6 per cent stake in iSOFT.

CompuGROUP announced on 22 August 2007 that it is considering its position in light of the Revised IBA Offer.

In view of the Revised IBA Offer and pending resolution of the competitive situation between CompuGROUP and IBA (as described below), the Board intends to adjourn the Court and shareholder meetings in respect of the CompuGROUP offer. No new date has yet been determined for these meetings.

At this point in time neither offeror has declared its offer final and, as such, either offer may be increased or otherwise revised. Accordingly, a competitive situation continues to exist for the purposes of Rule 32.5 of the City Code on Takeovers and Mergers (the “Code”). In order to provide an orderly framework for the resolution of this competitive situation, and in accordance with Rule 32.5 of the Code, iSOFT is discussing with the Panel on Takeovers and Mergers (the “Panel”) the terms of an auction procedure. If the competitive situation continues to exist, the Board expects the Panel to announce the terms and timing of such a procedure in due course.

The Board will make its views on the CompuGROUP and IBA offers known to shareholders following resolution of the competitive situation between them.