LAVA Systems Inc. Acquires Australian Software Company

Informatica Software Systems Solutions brings established client base in financial services, transportation and healthcare markets

Toronto, ON - 1998-05-06 - ...LAVA Systems Inc. (TSE:LVA) today announced the acquisition of Informatica Software Systems Solutions Pty. Limited, an established systems integration and software products firm based in Sydney, Australia. A privately-held firm, Informatica's business was acquired in an all share transaction, which will result in the issuance of approximately 1,400,000 common shares of LAVA Systems Inc. The transaction will be accounted for using purchase accounting.

Formed in 1989, Informatica is one of Australia's leading workflow, image and document management consulting and product companies with a client base centred in the Financial Services, Medical and Transportation sectors. Informatica's operations will be fully merged with LAVA Systems Australia Pty. Limited's Sydney based operations and will create sufficient critical mass to meet the increasing sales of LAVA's products in the Australian marketplace.

"Informatica's products and skill sets are very complementary to LAVA's and strengthen our ability to provide our firms' combined customer base and potential clients with advanced knowledge management solutions that seamlessly integrate imaging, workflow, document management and database connectivity," said Peter Hamilton, President and CEO of LAVA Systems Inc.

"We have built our reputation by providing quality solutions and we are confident that this reputation will be maintained and enhanced as part of the LAVA organization. Joining LAVA will ensure the continued longevity and development of our in-house products - as part of LAVA's overall Knowledge Management suite - and will enable us to provide a greater range and depth of products and services, thus continuing our excellent relations with our clients and business partners." said Charles Lattuca, Managing Director, Informatica Software Systems Solutions.

A Decade of Success to Continue

Founded in 1989, Informatica's emphasis on applying disciplined, knowledgeable solution creation and implementation methodologies has minimized risk and delivered maximum results on a variety of projects, on time and on budget. The firm's expertise in combining off-the-shelf products and custom code to deliver turnkey solutions has won it a wide following, specifically in financial services, which is one of the segments on which LAVA is focused. Major companies such as Munich Reinsurance Australia, ANZ Bank and AMP Priority One Banking have come to rely on Informatica as a leading provider of high quality productivity improvement solutions.

"LAVA is achieving success in the Australian marketplace and this acquisition will allow us to further our penetration into our focussed market sectors," commented Ian Halliday, Managing Director, LAVA Systems Australia Pty. Limited.

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