LAVA Systems Acquires Workflow Implementation Specialist - Automated Process Solutions (Aps)

Acquisition Brings Installed Client Base, New Business Opportunities and Provides Additional Technical Resources to Cope With Growing Demand

Toronto, ON - 1998-08-06 - LAVA Systems Inc. today announced the acquisition of Automated Process Solutions Limited (APS), an established workflow implementation specialist based in the U.K. A privately - held firm, APS' business was acquired in an all share transaction, which will result in the issuance of approximately 2,100,000 common shares of LAVA Systems Inc. The transaction will be accounted for using purchase accounting.

APS are recognized leaders in the deployment of complex customer management systems, having completed large-scale implementations at American Express, BUPA (the UK's largest health insurance company) and Halifax plc (Europe's largest mortgage provider). Their rapid growth has been achieved by an approach to project delivery that focuses on quality as the means of ensuring repeatable success. APS employs 18 staff, the majority of whom are experienced in workflow and document enabled process implementations within the financial services industry. They will complement LAVA's existing implementation team, providing a rich resource pool for the execution of LAVA projects, in addition to continuing to support and build on APS' exiting client base. Steve Salvin, Director of APS, explained why the LAVA offer was so attractive. ``We have a long track record of installing process enablement and workflow systems, primarily with ViewStar from Mosaix, but when we saw LAVA's impressive technology we realized that we could not afford to miss the opportunity of becoming a part of it. The development of Document Enabled Vertical Applications (DEVAs) is key to the future of our business. LAVA have already developed very specific applications that provide proven cost benefit to their customers, while APS have the experience to efficiently implement this type of solution. There is good synergy between the two companies that can be capitalised upon to ensure success in the marketplace.'' APS Director Simon Tomlinson agreed, ``We believe LAVA is a more complete product that will allow us to implement business process solutions with far less custom coding than we are forced to undertake with the products that we currently use. This should speed up our implementation projects, make the systems more easily supportable and provide substantial benefits to our customers.''

``The acquisition of APS will provide LAVA with a ready-made team of experienced staff to complement our existing workforce. Steve and Simon will lead our combined project teams,'' commented Peter Hamilton, President and CEO of LAVA Systems Inc. ``APS have an enviable track record in the implementation of claims and policy administration systems within financial services companies that complement our own client base.''

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