2007

Preliminary results for the year ended 30 April 2007

• Normalised profit from operations* of £6.6 million (2006: £13.3 million)
• Loss from operations of £14.3 million (2006: £338.1 million)
• Cost base excluding exceptional items substantially reduced during the financial year
• Exceptional costs of £21.8 million relating largely to restructuring
• Net debt fell to £67.9 million compared with the half-year position of £73.8 million
• Significant tax credit (and a tax refund relating to the accounts restatement)
• Significant progress made on prior year limitations, reducing the level of audit qualification
• Management strengthened at all levels
• Regeneration Plan launched to strengthen operations and reduce costs
• Product portfolio streamlined and development processes strengthened
• New CSC agreements help to simplify NPfIT delivery and provide cash flow certainty
• LORENZO clinicals delivered to the University Hospital, Aachen in July 2007

* normalised profit from operations is stated before exceptional items, negative goodwill and impairment and profit on disposal of subsidiary.

Commenting, John Weston, Chairman and acting Chief Executive Officer of iSOFT, said: “After the many disappointments that occurred in the first six months of 2006, we have made significant progress restoring iSOFT to a position of solid value, as recognised by the CompuGROUP offer. New management has been brought into the Group; we have renegotiated the terms of our relationship with CSC on the NPfIT and launched a regeneration programme. Whilst revenues and normalised* profit from operations for the year ended 30 April 2007 were lower than in the corresponding period, both normalised* operating profit from operations and the year-end cash position were considerably better than we had budgeted for at the beginning of the year.

“On 20 July 2007 the Board recommended an offer of 66 pence per iSOFT share, in cash, from CompuGROUP Holdings, a German company listed on the Frankfurt stock exchange. Documentation detailing the offer to shareholders will be posted on 1 August 2007 prior to an extraordinary general meeting that is to be held on Friday 31 August 2007. If shareholders approve the offer on that date, the transaction is expected to complete during September. After a complex and painstaking sale process, iSOFT is on the way to becoming part of a well-funded group with growth prospects.”