SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 17210 / October 29, 2001

Accounting and Auditing Enforcement Release No. 1473 / October 29, 2001

SEC OBTAINS PRELIMINARY INJUNCTION AGAINST AREMISSOFT CORPORATION AND TWO FORMER OFFICERS FOR FINANCIAL FRAUD, INSIDER TRADING

Securities and Exchange Commission v. Roys Poyiadjis, Lycourgos Kyprianou and AremisSoft Corp., Civil Action No. 01-CV-8903 (S.D.N.Y.)

On October 19, 2001, the Honorable Charles S. Haight, Jr., United States District Judge for the Southern District of New York, issued a preliminary injunction against AremisSoft Corporation, an international software company with offices in New Jersey, London, Cyprus, and India, two of its former officers, Roys Poyiadjis and Lycourgos Kyprianou, and ordered other relief against the defendants and two relief defendants, Olympus Capital Investment, Inc., and Oracle Capital, Inc. The Court's order resulted from the Commission's motion for emergency relief, filed on October 4, 2001, alleging that the defendants overstated the value of the Company's contracts, revenues and recent acquisitions, and that the two former officers engaged in massive insider trading.

Pending resolution of the Commission's action, the Court's order enjoins the three defendants from violations of Section 17(a) of the Securities Act of 1933 [15 U.S.C. § 77q(a)] and Sections 10(b), 13(a) and 16(a) of the Securities Exchange Act of 1934 [15 U.S.C. §§ 78j(b), 78m(a) and 78p(a)] and Rules 10b-5, 12b, 13a-1, 13a-13, 16a-2 and 16a-3] thereunder [17 C.F.R. §§ 240.10b-5, 12b, 13a-1, 13a-13, 16a-2 and 16a-3]. The Court's order also restrains the defendants and the relief defendants from destroying any documents relating to the Commission's allegations in the Complaint. With respect to defendants Poyiadjis and Kyprianou and the relief defendants, the order also:

• freezes any of their funds or assets received from the sale of AremisSoft stock;

• directs them to repatriate all such funds or assets to the United States; and

• requires them to submit a sworn accounting of their assets held at any time since December 1, 1999.

For additional information please see Litigation Release No. 17172 (October 4, 2001).