2007

IBA Health

On 16 February 2007, IBA Health Limited (“IBA”), a healthcare information technology company listed on the Australian Securities Exchange (“ASX”), confirmed that it was in discussions with iSOFT, which might or might not lead to an all-share recommended offer for the Company.

IBA has today sought a halt in the trading of its shares on the ASX. The purpose of this halt in trading is to enable IBA to hold meetings with certain institutional investors with a view to raising new IBA equity capital in order to facilitate a possible combination of IBA and iSOFT, to be executed by means of a recommended all-share offer by IBA to acquire iSOFT. The iSOFT management team is participating in these meetings.

The material which IBA is presenting to institutional investors includes certain details of the contemplated offer terms, equity raising and financing arrangements as follows:

• iSOFT shareholders would receive 1.1 new IBA shares for each iSOFT share, valuing iSOFT at 56.9 pence per share based on the last trading price of IBA shares on the ASX and a £:AUD exchange rate of 0.4121.
• IBA is seeking to raise approximately A$200 million (£82 million) of new equity capital through a placing and rights issue. Both the placing and rights issue would be fully underwritten by ABN AMRO Rothschild.
• New debt facilities of £130 million (A$315 million) for the combined entity to be arranged and underwritten by ABN AMRO Bank N.V. These would be subject to completion of a number of conditions precedent including the completion of the equity placement / issuance.
• Full run-rate annual cost synergies from the combination of the two companies are expected by IBA to be approximately A$27 million (£11 million) in IBA’s financial year ended 30 June 2009.

There can be no certainty that an offer by IBA to acquire iSOFT will be made.

This announcement is made with the consent of IBA.