EMERGIS INC.
TSX : EME

February 21, 2007 23:00 ET

Emergis Announces Third Normal Course Issuer Bid

MONTREAL, QUEBEC--(CCNMatthews - Feb. 21, 2007) - Emergis Inc. (TSX:EME) today announced its intention to initiate a normal course issuer bid through the facilities of the Toronto Stock Exchange, subject to regulatory approval. Purchases made pursuant to the bid will not exceed 5,560,000 common shares, representing approximately 10% of the public float as of February 21, 2007. The common shares acquired pursuant to the bid will be cancelled. All purchases under the bid will be made during the period from March 2, 2007 to February 29, 2008.

This bid follows one announced in February 2006 and which will expire on March 1, 2007, through which 4.4 million common shares have been repurchased to date at an average price of $5.09 per share for an aggregate cost, including related expenses, of $22.6 million. The Company also carried out both a substantial and a normal course issuer bid in 2005, through which 10.1 million common shares were repurchased for an aggregate cost, including related expenses, of $35.9 million. Since the end of 2004, the company has reduced its common shares outstanding by approximately 13% to the current level of 89.6 million.

Emergis believes that the purchase of its common shares represents an appropriate use of a portion of its available funds in light of the current trading price of its common shares.

At year-end 2006, Emergis had cash, cash equivalents and temporary investments of approximately $100 million. The Company believes its strong cash position and cash flows will provide sufficient investment capital to achieve its organic and external growth objectives, while at the same time allowing the Company to invest in repurchases at attractive valuations. The Company believes both of these actions will create value for its shareholders.

In 2007, Emergis will continue to invest in technology to increase the scope and functionality of its solutions and the value it offers to its customers. It will expand its reach in its chosen markets in health and financial services through adoption programs and new contract wins. Finally, the Company will capitalize on its proven expertise to generate new revenue streams from existing customers through services that will increase their process efficiency or enhance their service offering. In addition to its efforts to increase organic growth, Emergis will continue to seek complementary acquisitions to extend its reach and its solutions offering, particularly in the health sector. It will also continue to review its solutions to ensure they meet, or demonstrate the potential to meet, growth and strategic objectives.

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 secure 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, Emergis delivers solutions to the main insurance companies, top financial institutions, government agencies, hospitals, large corporations, real estate lawyers and notaries and 2,900 pharmacies. Its electronic health record solutions are also delivered in the U.S. and Australia. The Company's shares (TSX:EME) are included in the S&P/TSX Composite Index.

Certain information in this news release, 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 the Company's objectives and the strategies to achieve those objectives, as well as information with respect to the Company's 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 the Company's expectations as of February 21, 2007.

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 the Company's solutions by customers and by related electronic trading communities, its ability to deliver development and implementation projects in a timely manner, the non-renewal of major contracts which expire in the near term, complexities and timing of signing large customer contracts, customers developing internally the capability to perform the services which the Company performs on their behalf, its response to its industry's rapid pace of change, the limited time to capitalize on market opportunities, competition, pricing pressures, fluctuations in its operating results, its ability to make and integrate acquisitions, failures or material changes in its strategic relationships, exposure under contract indemnities, defects in software or failures in the processing of transactions, security and privacy breaches, its ability to attract and retain key personnel, its ability to protect its intellectual property, intellectual property infringement claims, and industry and government regulation.

Emergis cautions that the foregoing list of material factors is not exhaustive. When relying on the Company's 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, the Company does not assume any significant acquisitions, dispositions or one-time items. It does assume, however, the renewal of certain customer contracts. Every year, Emergis has major customer contracts that it needs to renew. One of these represents slightly more than 10% of its annual revenue. In addition, the Company also assumes 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 the Company's forecasting abilities. The Company has made certain assumptions regarding the timing of the realization of these opportunities which it thinks is reasonable but which may not be achieved. Furthermore, the pursuit of these larger opportunities does not ensure a linear progression of the Company's revenue and earnings, since they may involve significant up-front fees followed by reduced ongoing payments. The Company has assumed a certain progression, which may not be realized. It has 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, the list of these factors is not exhaustive and 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, refer to the risks and uncertainties section of the Company's 2006 MD&A and to its 2005 Annual Information Form (risks and uncertainties) filed with Canadian regulators.

THE FORWARD-LOOKING INFORMATION CONTAINED IN THIS NEWS RELEASE REPRESENTS THE EXPECTATIONS OF EMERGIS AS OF FEBRUARY 21, 2007 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

  • Emergis Inc.
    John Gutpell
    450-928-6856