2006

28 September 2006

Contractual changes relating to iSOFT Group

iSOFT Group plc today announced material changes to its engagements with the UK National Programme for IT (NPfIT).

Background
iSOFT plc currently has two principal contracts to deliver software and services as part of the NPfIT. On 2 April 2004, the Company signed a contract with Accenture (UK) Limited (Accenture) to deliver software and services in the North-East and East & East Midlands regions. On 28 April 2004, the Company signed a contract with Computer Sciences Limited (CSC) to deliver software and services to the North-West & West Midlands region.

On 11 August 2006, iSOFT signed a Memorandum of Understanding with CSC confirming the schedule under which it will provide deliveries to CSC in respect of the existing CSC agreement, with the opportunity to win additional business in future through CSC. Under this agreement, iSOFT made a number of commitments with respect to the future development of its products for the NPfIT. The agreement offers greater certainty of cash flow to iSOFT, with payments tied to the achievement of specific milestones.

New arrangements
NHS Connecting for Health, Accenture and CSC have today announced a change of Local Service Provider for delivery of the NHS National Programme for IT in the North-East and East & East Midlands regions. As a result, the contract between iSOFT and Accenture will be terminated, although iSOFT will provide transitional services until 8 January 2007. Under the termination arrangements, iSOFT and Accenture have agreed that no further payments will be made between the two parties and any potential litigation relating to the period between 2 April 2004 and today’s date will be annulled.

Accenture will transfer responsibility for the delivery of its obligations within the NPfIT to CSC by 8 January 2007 and CSC will continue to fulfil its contractual obligations to provide services to the North West & West Midlands region. The CSC-led alliance will design, deliver and operate an integrated patient care record system, improving the way in which patient information is accessed and shared. The service will provide all NHS patients with an individual lifelong electronic care record, promoting seamless care for patients through physicians, hospitals and community services, while allowing healthcare professionals to focus on delivering quality patient care more effectively.

iSOFT is the principal CSC alliance member and its application suite forms the core of the CSC alliance’s software solution already being implemented in the North-West & West Midlands. iSOFT will retain exclusivity in providing core software solutions in the North-East region and exclusivity for interim solutions in the East & East Midlands region. iSOFT will retain preferred supplier status for future solutions in the East & East Midlands region, subject to a benchmarking review.

iSOFT Chairman and Chief Executive John Weston said, “This is a further demonstration of confidence in iSOFT’s ability to develop and deliver leading healthcare software products.”

For further information, please contact:

Financial Dynamics
Giles Sanderson
James Melville-Ross
Hannah Sloane

Tel: +44 (0)20 7831 3113

John White

Director of Corporate Communications

iSOFT Group plc

Tel: +44 (0) 1925 283 423

Fax: +44 (0) 870 050 8911