2009 Media Releases

July 8, 2009

Deutsche Bank initiates coverage of iSOFT Limited

Deutsche Bank has initiated coverage of healthcare technology developer iSOFT Limited (ASX: ISF) with a Buy recommendation.

Research analyst Michael Simotas initiated coverage with an AUD0.85 twelve month price target.

Mr Simotas said, ‘iSOFT has a market leading product suite and a global reach, ensuring it is well positioned to leverage a fast growing, defensive market to deliver robust earnings growth. A large proportion of earnings are funded by governments across a geographically diverse footprint, increasing the security of cash flows.’

According to Deutsche Bank, the 2007 acquisition of iSOFT plc, was a company-transforming event, allowing iSOFT to become an integral part of the UK NHS National Programme for IT (NPfIT). NPfIT is a high profile project which provides a substantial low-risk revenue stream with CSC (iSOFT’s implementation partner) bearing the majority of the risk. The company’s involvement in NPfIT may also open the door to opportunities to win additional work following the exit of iSOFT’s major competitor and enhance global awareness of their new product suite.

iSOFT has recently entered the USA, the largest health IT market in the world, where Mr Simotas believes iSOFT has an opportunity to generate sales given the Obama Government has set aside USD19bn for health IT as part of the American Recovery and Reinvestment Act of 2009. In addition, the recent signing of the sixth early adopter of LORENZO – iSOFT’s next generation solution – indicates the support for the new product suite and illustrates the momentum of the company’s core business.

iSOFT develops, implements and supports its range of healthcare technology solutions which are deployed in organisations around the globe across all health sectors. Its product suite automates critical patient and business processes to support workflows across acute hospitals, primary care centres, aged care facilities as well as government organisations.

For further information, please contact:

Michelle Chaperon (02) 8258 1311


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