EMERGIS INC.
TSX : EME

October 18, 2006 12:32 ET

Major Canadian Bank Chooses Emergis' Electronic Solution for Completing Mortgage Transactions

MONTREAL, QUEBEC--(CCNMatthews - Oct. 18, 2006) - Emergis Inc. (TSX:EME) today announced a five-year agreement with RBC Financial Group (RBC), whereby RBC will use Emergis' Assyst Real Estate electronic solution for completing residential mortgage transactions with real estate notaries and lawyers across the country. As the country's number one source of financial advice on home ownership, RBC is the largest residential mortgage lender in Canada with more than $105 billion in loans outstanding in 2006 and over 15% of the Canadian mortgage market. RBC will be the first bank to adopt Emergis' electronic mortgage solution nationally. Emergis' solution will be accessible to RBC as well as participating notaries and lawyers progressively starting in the fall of 2006 in Quebec, with the full national roll-out to be completed by the end of 2007.

"This agreement with RBC is a landmark in Emergis' strategy to extend Assyst Real Estate to lawyers and lenders across Canada," said Francois Cote, President and Chief Executive Officer of Emergis. "Our solution has been extremely successful in Quebec since it was launched with two lenders. We are convinced it will build upon and significantly benefit from RBC's strength and reach in the marketplace, and become the industry standard for Canada."

Emergis' bilingual mortgage solution is designed to facilitate instructing, funding and reporting of mortgage loans for lenders and the legal community. With it, lenders can send mortgage instructions electronically to notaries, lawyers and their staff in real time. In turn, these professionals can complete mortgage transactions from end to end online, in a more secure and confidential manner. Assyst Real Estate speeds up the processing of transactions, reduces paperwork, cuts back on costs, and reduces the risk of clerical error.

Emergis manages the enrolment of notaries and lawyers on the mortgage platform and collects fees based on their usage of the solution to complete residential mortgage transactions. As part of its national roll-out, Emergis plans to deploy a region-by-region adoption program in the coming months.

Since Emergis launched its mortgage solution, more than 80% of real estate notaries in Quebec have adopted the solution. In Ontario, Emergis recently signed a five-year agreement with Do Process Software, a provider of software and technology solutions to the legal community which are the most widely used in Ontario. This agreement with Do Process Software will allow Emergis' Assyst Real Estate mortgage solution to be available to approximately 70% of the firms practising real estate law in Ontario. Emergis expects to sign additional similar integration agreements soon to reach real estate lawyers in other parts of the country.

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, Emergis and its subsidiaries deliver solutions to the main insurance companies, top financial institutions, government agencies, hospitals, large corporations, real estate lawyers and notaries, and approximately 40% of all pharmacies. Emergis 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 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 October 18, 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 the Company's solutions by customers and by related electronic trading communities, the non-renewal of major contracts which expire in the near term, complexities and the timing of signing government contracts, customers developing internally the capability to perform the services which the Company performs on their behalf, the Company's response to its industry's rapid rate of change, 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 or privacy breaches, the Company's 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. Some of these may represent 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 MD&A in the Company's 2005 Annual Report 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 AT OCTOBER 18, 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

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