LAVA Systems Injects Experienced Business Consultancy And Implementation Skills With Acquisition Of Imago Consultants Limited

Additional resources welcomed to accommodate growing market acceptance of LAVA vertical solutions

Toronto, ON - 1998-08-04 - LAVA Systems Inc. (TSE:LVA) today announced the acquisition of Imago Consultants Limited, a highly regarded information technology business consultancy based in London, UK. A privately held firm, Imago s business was acquired in an all share transaction, which will result in the issuance of approximately 1,800,000 common shares of LAVA Systems Inc. The transaction will be accounted for using purchase accounting.

Formed in 1991, Imago quickly established an enviable reputation for delivering a broad range of services designed to make firms, specifically in the financial services market, more efficient and effective. Imago has designed and overseen the implementation of numerous groupware, workflow, document management and forms processing solutions across its broad client base, which includes Independent Insurance, Barclays Bank, Legal & General, Lloyds Bank and the Royal Bank of Scotland. Imago s operations will be fully merged with LAVA Systems European operations, and will be instrumental in supporting LAVA s rapidly growing client list, ensuring the continued success of LAVA s business process enablement and vertical application solutions installations.

Providing clients with a real return on investment is a top priority and the acquisition of Imago to assist with the installation and support of our document-enabled vertical applications (DEVAs ) strengthens an already strong team, said Peter Hamilton, President and CEO of LAVA Systems Inc. Imago s expertise is very complementary to LAVA s and, in fact, we have worked with them on several prior projects, which bodes well for our ability to provide our growing customer base, and potential clients, with solutions that solve their business problems.

Imago s main strength is its ability to look at all aspects of a firm s business, identify their most pressing issues and suggests improvements to their operations, said David Moore, Managing Director, Imago Consultants. By combining these skills with LAVA s vertical applications and technology, we will be able to deliver more rounded solutions to our clients, said Moore.

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