2005

23 September 2005

Acquisition of Novasoft Sanidad S.A. (‘Novasoft’) for up to Euro 15.6 million

Para leer este artículo de prensa en castellano y conocer más sobre el Grupo iSOFT, visite www.isoftplc.com/es

iSOFT announces that it has reached agreement to acquire 100% of the share capital of Novasoft, a leading provider of healthcare applications in Spain, for an initial consideration of Euro 12.0 million comprising Euro 9.0 million in cash and 470,119 iSOFT ordinary shares. Further consideration may be payable of up to Euro 1.8 million in cash and up to Euro 1.8 million in shares based on the achievement of certain financial performance targets in the period ending 28 February 2006. As part of the transaction iSOFT will assume Euro 3.9m of indebtedness.

Novasoft is based in Malaga and specialises in the provision of hospital information systems and associated services. In the year to 31 December 2004 Novasoft reported revenues of Euro 13.2 million and an operating profit of Euro 1.6 million.

The transaction is expected to complete before the end of October 2005 and is expected to be earnings enhancing in the first full year of ownership.

Commenting on the transaction, Tim Whiston, Chief Executive of iSOFT said:
”We are pleased to have secured this strategic opportunity to enter the Spanish healthcare applications market. Novasoft is the leading independent healthcare applications business in Spain with an established installed customer base, an in-depth knowledge of the local market, and an experienced, skilled and committed workforce. The combination of iSOFT’s international application development credentials and the Novasoft’s local market presence positions us well in the Spanish healthcare economy that is at the start of a significant period of healthcare service reform and associated technology investment.”

For more information, please contact:

Tim Whiston

Chief Executive Officer

iSOFT Group plc

Tel: +44 (0) 161 490 2700

Fax: +44 (0) 161 499 2933

Gavin James

Group Finance Director

iSOFT Group plc

Tel: +44 (0) 1925 283 423

Fax: +44 (0) 870 050 8911

James Melville-Ross

Financial Dynamics

Tel: +44 (0) 20 7831 3113

Fax: +44 (0) 20 7831 6341

Email: james.melville-ross@fd.com