SCC Soft Computer Rises Above Unfounded Claims of Fraud by Start-Up Hunter Laboratories

June 2, 2005

PALM HARBOR, Fl. - SCC Soft Computer announces that an American Arbitration Association panel (Panel) recently found that the company did not engage in any intentional fraud in connection with the sale and implementation of its software as alleged by former customer Hunter Laboratories (Hunter) of Campbell, Calif. Hunter sought extensive damages for fraud and punitive damages which were denied by the Panel on May 11, 2005. The Panel did award a lesser amount for the business losses during a four month period in which Hunter used portions of the Soft Computer Laboratory Information System (LIS).

“While we are disappointed that the California arbitration panel disregarded Soft Computer’s rights under its contracts, it will not stop us from continuing to provide the highest level of service to our customers,” said Gilbert Hakim, Soft Computer’s Chief Executive Officer.

The dispute surrounded circumstances relating to Hunter’s demand for a rushed implementation. In February 2003, Hunter Laboratories’ CEO, Chris Riedel contacted Soft Computer to purchase its LIS. The arbitration record reflected that Hunter sought to implement Soft Computer’s LIS within six to eight weeks while attempting to lease space, buy laboratory equipment and be operational within a four month time frame. Conflicts arose and less than 30 days after Hunter went live with Soft Computer’s LIS, the arbitration record showed that Hunter threatened litigation against Soft Computer.

Additionally, the arbitration record showed that in less than 12 months, Hunter contracted with three separate vendors, Soft Computer, Sysware and Seacoast, to implement three different systems. Further, evidence at the arbitration demonstrated that Mr. Riedel entered into an agreement with Sysware while Hunter was still operating Soft Computer’s LIS. Hunter has also recently commenced suit against its second LIS provider, Sysware, with allegations including fraud by Sysware and its CEO.

Soft Computer is a market leader in laboratory software for hospitals and commercial laboratories (including some with 20,000 requisitions a day) in North America. For more information on Soft Computer, go to www.softcomputer.com.

For more information, contact Cari Brunelle at (302) 656-6096 or Ellie Vahman at (727) 789-0100 x4052 or ellie@softcomputer.com.

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