AremisSoft

July 21, 2005 19:29 ET

Cyprus Court Freezes Assets of Lycourgos Kyprianou for Alleged Fraud on AremisSoft Corporation; Victory for AremisSoft Liquidating Trust

NEW YORK--(CCNMatthews - Jul 21, 2005) -

Nicosia, Cyprus, Court issues interim Order to immediately freeze assets worldwide of Lycourgos Kyprianou, and persons and companies affiliated with him, as a result of his role in one of the largest international frauds resulting in losses of over US $500 million to investors who were former shareholders of AremisSoft Corp. The interim Order results from a lawsuit filed today by the Trustees of the AremisSoft Liquidating Trust, Joseph P. LaSala and Fred S. Zeidman, on behalf of the over 6,000 former investors of AremisSoft Corp.

AremisSoft Corporation, which purported to be a multinational software company listed on the United States NASDAQ stock exchange, was the victim of a massive fraud perpetrated by Kyprianou, AremisSoft's former Chairman and Chief Executive Officer, and others who conspired with him. The AremisSoft Liquidating Trust was established in 2002 by Order of the Honorable Joel A. Pisano of the United States District Court for the District of New Jersey to investigate and pursue claims and recoveries for the former shareholders of AremisSoft Corp. In April 2005, the AremisSoft Liquidating Trust received approximately US $200 million as a result of a settlement with another former executive of AremisSoft and persons and companies affiliated with him. Those funds were paid to the AremisSoft Liquidating Trust pursuant to a Coordination Agreement previously entered into by the AremisSoft Liquidating Trust and the United States of America, which cedes to the AremisSoft Liquidating Trust all of the proceeds of all recoveries, wherever located, relating to AremisSoft.

Attached is a copy of the Order signed today in Cyprus by Madame Justice Hadjiyianni in the Cyprus civil action commenced by the Trustees of the AremisSoft Liquidating Trust, as well as an unofficial English translation of the Order. The Order is based, in part, on an Affidavit of a Special Agent of the United States Federal Bureau of Investigation, which was attached as an exhibit to the pleading filed in Cyprus by the AremisSoft Liquidating Trust.

The United States Government indicted Kyprianou in 2002 on criminal charges including securities fraud and money laundering. Further, Kyprianou defaulted in a civil lawsuit brought by the AremisSoft Liquidating Trust against Kyprianou and others in the Isle of Man in 2002. Kyprianou resides in Cyprus, and is and remains a fugitive from justice in the United States, having failed to return to face the charges against him.



STATEMENT OF JOSEPH P. LASALA AND FRED S. ZEIDMAN,
CO-TRUSTEES OF THE AREMISSOFT LIQUIDATING TRUST
C/O GREENBERG TRAURIG LLP
200 PARK AVENUE
NEW YORK, NEW YORK 10166
JULY 21, 2005



We are the attorneys for the Trustees of the AremisSoft Liquidating Trust. We are writing to advise you that as a result of a lawsuit filed today by the Trustees of the AremisSoft Liquidating Trust in Nicosia, Cyprus, the Court in Cyprus issued an interim Order freezing assets world wide of Lycourgos Kyprianou and persons and companies affiliated with him. The Order results from his role in one of the largest international frauds resulting in losses of over US $500,000,000 to over 6000 former investors of AremisSoft Corp. who reside throughout the world. Kyprianou was the former Chairman and Chief Executive Officer of AremisSoft Corp., which purported to be a multinational software company that was listed on the United States NASDAQ stock exchange. The AremisSoft Liquidating Trust was established in 2002 by Order of the Honorable Joel A. Pisano of the United States District Court for the District of New Jersey to investigate and pursue claims and recoveries for the former shareholders of AremisSoft Corp.

Attached is a copy of the Order signed today in Cyprus by Madame Justice Hadjiyianni in the Cyprus civil action commenced by the AremisSoft Liquidating Trust, as well as an unofficial English translation of the Order. The Order is based, in part, on an Affidavit of a Special Agent of the United States Federal Bureau of Investigation, which was attached as an exhibit to the pleading filed in Cyprus by the AremisSoft Liquidating Trust.

The United States Government indicted Kyprianou in 2002 on criminal charges including securities fraud and money laundering. Further, Kyprianou defaulted in a civil lawsuit brought by the AremisSoft Liquidating Trust against Kyprianou and others in the Isle of Man in 2002. Kyprianou resides in Cyprus, and is and remains a fugitive from justice in the United States, having failed to return to face the charges against him.

If you have any questions please immediately contact the undersigned.



Hal M. Hirsch, Esq.
Greenberg Traurig LLP
200 Park Avenue
New York, New York 10166
(212) 801-6868
COUNSEL TO THE TRUST



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