EMERGIS INC.
TSX : EME

May 29, 2006 15:17 ET

Emergis to Add Multi-Benefit Claims Management to its Solution Offering to Insurance Companies

MONTREAL, QUEBEC--(CCNMatthews - May 29, 2006) - Emergis Inc. (TSX:EME) announced today that it is developing an integrated multi-benefit claims management solution that it plans to offer to insurance companies. With this new solution, Emergis will add electronic dental and extended health claims adjudication to its current dental and drug claims transport and drug claims adjudication services. The dental claims component will be available in the first quarter of 2007, and the extended health claims and health spending accounts components will be available in early 2008. Emergis' next-generation drug claims component is planned for 2009.

"This leading-edge multi-benefit solution will strengthen our health benefits management offering to our current customers, and position us favourably with potential customers," said Marc Filion, Executive Vice-President, Sales and Marketing, Health Claims Management of Emergis. "Working closely with our customers, we have identified the need for a comprehensive, integrated solution to manage their overall claims benefit activities. This solution will help insurers further reduce their costs by allowing them to move away from their aging legacy systems. With this solution, we will also help them improve their efficiency and the services they offer to their customers and their plan members by adding features that make their plan designs easily customizable. Our multi-benefit solution is also being developed with the larger view of accommodating future electronic health record-related systems."

The new solution will enhance Emergis' capabilities and complement its already extensive experience and expertise in managing health benefits on behalf of major insurance companies across the country. Emergis' team includes many types of benefits specialists, such as claims examiners, dental consultants, pharmacists, anti-fraud specialists, group plan designers, who offer a full suite of value-added services.

The core of the solution will be a rules-based engine, and will leverage a 3-tier Unix platform based on J2EE and Oracle products to allow Emergis' customers to react and adapt quickly to industry changes and to those requested by plan sponsors. For example, changes could be made to plan designs and adjudication rules in a matter of minutes, facilitating processes that can otherwise be cumbersome.

The solution will also leverage Emergis' recent upgrades to its administrative system for drug claims to become fully web-based, in order to make it more easily accessible by insurers. It will allow insurers to view and modify online parameters of the plan sponsors' or members' eligibility, no matter whether insurers choose to retain the management of the data or outsource it to Emergis.

The integrated solution will also build on Emergis' new system put in service in 2005 for the transport and formatting of electronic claims. The system now handles dental and extended health claims using the latest CDAnet and NeCST message formats and standards. Emergis was first to process NeCST-based claims and pioneered the development and the first implementation of the HL7v3 standard in North America, and it will continue to quickly adapt to message standards as they evolve.

The multi-benefit solution will also be delivered with tools that permit the electronic conversion of data from in-house systems to the new solution, thus reducing the time and resources needed to migrate from system to system.

About Emergis

Emergis is an IT leader in Canada that focuses on the health and financial services sectors. It develops and manages solutions that automate transactions and the exchange of information to increase the process efficiency and quality of service of its customers. Emergis has expertise in electronic health-related claims processing, health record systems, pharmacy management solutions, cash management and loan document processing and registration. In Canada, it delivers its solutions to the main insurance companies, top financial institutions, government agencies, large corporations, real estate lawyers and notaries, and approximately 40% of all pharmacies. It also processes and enables transactions for the world's leading payment associations. The Company's shares (TSX: EME) are included in the S&P/TSX Composite Index.

Certain information in this news release, in our annual report, in various filings with Canadian regulators, in reports to shareholders and in other communications, is forward-looking within the meaning of certain securities laws, and is subject to important risks, uncertainties and assumptions. This forward-looking information includes, among others, information with respect to our objectives and the strategies to achieve those objectives, as well as information with respect to our beliefs, plans, expectations, anticipations, estimates and intentions. The words "may", "could", "should", "would", "suspect", "outlook", "believe", "anticipate", "estimate", "expect", "intend", "plan", "target" and similar words and expressions are used to identify forward-looking information. The forward-looking information in this news release describes our expectations as at May 29, 2006.

The results or events predicted in such forward-looking information may differ materially from actual results or events. Material factors which could cause actual results or events to differ materially from a conclusion, forecast or projection in such forward-looking information include, among others: general economic factors, adverse industry events, the adoption rate of our solutions by customers and by related electronic trading communities, the non-renewal of major contracts which expire in the near term, complexities and timing of signing government contracts, customers developing internally the capability to perform the services which we perform on their behalf, our response to our industry's rapid rate of change, competition, pricing pressures, fluctuations in our operating results, our ability to make and integrate strategic acquisitions, failures or material changes in our strategic relationships, exposure under contract indemnities, defects in software or failures in the processing of transactions, security or privacy breaches, our ability to attract and retain key personnel, our ability to protect our intellectual property, intellectual property infringement claims, and industry and government regulation.

We caution that the foregoing list of material factors is not exhaustive. When relying on our forward-looking information to make decisions, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. In making the forward-looking information contained in this news release, we do not assume any significant acquisitions, dispositions or one-time items. We do assume, however, the renewal of certain customer contracts. Every year, Emergis has major customer contracts that it needs to renew. Some of these may represent slightly more than 10% of Emergis' annual revenue. In addition, we also assume the signature of contracts in new markets in the public health sector. In this regard, Emergis is pursuing large opportunities that present a very long and complex sales cycle which substantially affect our forecasting abilities. We have assumed a certain timing for the realization of these opportunities which we think is reasonable but which may not be achieved. Furthermore, the pursuit of these larger opportunities does not ensure a linear progression of our revenue and earnings since they may involve significant up-front fees followed by reduced ongoing payments. We have assumed a certain progression which may not be realized. We have also assumed that the material factors referred to in the previous paragraph will not result in such forward-looking information to differ materially from actual results or events. However, each of these factors is subject to change and there can be no assurance that such assumptions will reflect the actual outcome of such items or factors. For additional information with respect to certain of these and other factors, please refer to our annual information form (risks and uncertainties) filed with the Canadian securities commissions.

THE FORWARD-LOOKING INFORMATION CONTAINED IN THIS NEWS RELEASE REPRESENTS THE EXPECTATIONS OF EMERGIS AS AT MAY 29, 2006 AND, ACCORDINGLY, IS SUBJECT TO CHANGE AFTER SUCH DATE. HOWEVER, EMERGIS EXPRESSLY DISCLAIMS ANY INTENTION OR OBLIGATION TO UPDATE OR REVISE ANY FORWARD-LOOKING INFORMATION, WHETHER AS A RESULT OF NEW INFORMATION, FUTURE EVENTS OR OTHERWISE, EXCEPT AS REQUIRED BY APPLICABLE LAW.

Contact Information

  • Media:
    Emergis Inc.
    Ann-Marie Gagne
    (450) 928-6361
    or
    Investors:
    Emergis Inc.
    John Gutpell
    (450) 928-6856