Major Canadian bank chooses Emergis' electronic solution for completing mortgage
transactions
Montréal, October 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 Québec, 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
François Côté, President and Chief Executive Officer of
Emergis. "Our solution has been extremely successful in Québec
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 Québec 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.