ARTEMIS REPORTS $15.8M IN REVENUES FOR THIRD QUARTER

Software revenues increase 18% over prior year’s quarter

NEWPORT BEACH, Calif. -- (BUSINESS WIRE)-November 13, 2002 - Artemis International Solutions Corporation (OTCBB: AISC), one of the leading providers of enterprise portfolio and project management applications, today reported financial results for the third quarter 2002.

Artemis reported revenue of $15.8 million for the third quarter of 2002 versus the $15.9 million generated for the quarter ended September 30, 2001. Software revenue increased by 18%, totaling $3.2 million in the third quarter of this year compared to $2.7 million in software revenue in the third quarter a year ago. Net income for the quarter excluding the amortization of intangible assets was $(0.7) million, compared to $(3.8) million for the prior year period. Net cash provided by operating activities during the quarter was $0.4 million versus $(2.2) million for the third quarter in 2001.

US GAAP reported net loss for the quarter ended September 30, 2002 was $1.8 million, or $(0.01) per share, an improvement of $5.9 million from the net loss of $7.7 million, or $(0.03) per share, for the comparable 2001 period. Lower amortization expense, organizational realignment measures and improved operational efficiency contributed to decreased cost of revenue and operating expenses compared to the same period a year ago. Total revenue for the third quarter of 2002 was broadly distributed across Artemis’s geographic regions, with Europe, the U.S., and Asia Pacific generating 47%, 41% and 12% of total revenues, respectively. Selected customers of note who purchased new or additional software licenses or services for the third quarter 2002 include Household International, Siemens, Telecom Italia, La Poste, Telesoft, Lockheed Martin, and BAE.

CONSOLIDATED STATEMENTS OF OPERATIONS
	Three Months Ended		Nine Months Ended
	September 30,		September 30,
	2002	2001	2002	2001
	(in thousands except, per share amounts)
	(unaudited)
Revenue:
Software	$ 3,228	$ 2,731	$ 9,537	$ 10,757
Support	3,850	4,382	11,942	12,246
Services	8,712	8,802	27,639	27,373
	15,790	15,915	49,118	50,376
Cost of revenue:
Software	460	546	1,385	1,423
Support	1,569	1,848	4,764	5,547
Services	5,988	5,968	17,983	18,349
	8,017	8,362	24,132	25,319

Gross margin	7,773	7,553	24,986	25,057

Operating expenses:
Selling and marketing	2,984	4,357	8,708	12,910
Research and development	1,919	3,223	5,961	8,225
General and administrative	3,607	3,202	10,942	7,036
Amortization expense	1,051	3,858	3,137	12,154
Management fees	-	-	-	806
Acquisition costs	-	363	-	363
	9,561	15,003	28,748	41,494

Operating loss	(1,788)	(7,450)	(3,762)	(16,437)

Net interest (income) expense	(74)	201	7	537
Equity in loss of unconsolidated affiliates	203	55	274	169
Other (income) expense	(339)	11	(196)	(54)
Foreign exchange loss	77	-	154	-
	(133)	267	239	652

Loss before income taxes	(1,655)	(7,717)	(4,001)	(17,089)

Income tax expense (benefit)	131	(15)	501	135

Loss before minority interest	(1,786)	(7,702)	(4,502)	(17,224)

Minority interest in (earnings) losses of unconsolidated subsidiary	-	-	-	(95)

Net loss	$ (1,786)	$ (7,702)	$ (4,502)	$ (17,129)

Basic and diluted net loss per share	$ (0.01)	$ (0.03)	$ (0.02)	$ (0.08)

Weighted average common shares used in computing basic and diluted net loss per share	249,125	232,638	249,125	210,505

C0NSOLIDATED BALANCE SHEETS

September 30, 2002 December 31, 2001

(Unaudited) (Audited)

(in thousands, except share amounts)

Current assets:

Cash $ 4,352 $ 5,081

Accounts receivable, net of allowance for doubtful accounts of $287 at September 30, 2002 and $223 at December 31, 2001 12,532 13,088

Other accounts receivable 609 952

Prepaid expenses 2,102 2,528

Other current assets 329 268

   Total current assets 19,924 21,917

Property and equipment, net of accumulated depreciation of $6,670 at September 30, 2002 and $5,194 at December 31, 2001 1,694 2,725

Intangible assets, net of amortization and writeoffs of $3,088 at September 30, 2002 and 25,286 at December 31, 2001 11,667 14,755

Investment in affiliates and other assets 348 796

   Total assets $ 33,633 $ 40,193

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities:

   Accounts payable $ 4,404 $ 5,292

   Accrued liabilities 5,753 5,954

   Accrued payroll and taxes 5,512 6,678

   Deferred revenue 8,115 7,471

   Line of credit 2,193 1,062

   Current portion of long-term debt 1,053 1,245

      Total current liabilities 27,030 27,702

   Accrued pension and other liabilities 729 941

   Deferred taxes 547 547

   Long-term debt, less current portion 418 1,421

      Total liabilities 28,724 30,611

Stockholders’ equity:
   Preferred shares, $0.001 par value, 25,000,000 shares authorized - -

   Common stock, $0.001 par value, 500,000,000 shares authorized, 249,124,566 issued and outstanding 249 249

   Additional paid-in capital 80,248 79,948

   Accumulated deficit (75,654) (71,152)

   Accumulated other comprehensive income 66 537

      Total stockholders’ equity 4,909 9,582

      Total liabilities and stockholders’ equity $ 33,633 $ 40,193

CONSOLIDATED STATEMENT OF CASH FLOWS

Nine Months Ended

September 30,

2002 2001

(Unaudited)

(in thousands)

Cash flow from operating activities:

Net loss $ (4,502) $ (17,129)

Adjustments to reconcile net loss to net cash provided by operating activities:

Depreciation and amortization 4,656 12,906

Equity in loss of unconsolidated subsidiaries 275 169

Deferred income taxes and other - (452)

Changes in operating assets and liabilities

Decrease in trade accounts receivable 899 4,117

Decrease (increase) in prepaid expenses and other assets 538 (2,246)

Increase (decrease) in deferred revenues 644 (1,843)

Decrease in accounts payable (888) (2,070)

(Decrease) increase in accrued expense, other liabilities and equity (1,895) 493

Net cash used in operating activities (273) (6,055)

Cash flow from investing activities:

Capital expenditures, net (537) (552)

Cash provided by former parent contribution of subsidiaries - 848

Cash provided from acquisitions - 13,554

Net cash (used in) provided by investing activities (537) 13,850

Cash flow from financing activities:

Funding from debt and lines of credit, net of repayments 1,131 2,747

Parent company dividends - (2,056)

Payments of debt and capital leases (1,195) (5,360)

Net cash used in financing activities (64) (4,669)

Effect of exchange rate changes on cash 145 (73)

Net (decrease) increase in cash (729) 3,053

Cash at the beginning of the period 5,081 3,200

Cash at the end of the period $ 4,352 $ 6,253

About Artemis International Solutions Corporation
Artemis International Solutions Corporation is one of the world’s leading providers of enterprise portfolio, project and resource management software solutions for all levels of the enterprise -- from the executive to the knowledge worker. Artemis’ solutions are supported by industry-leading consulting services and an international distribution network of 50 offices in 43 countries. Artemis has over 530,000 users around the world, and services key industries such as Aerospace and Defense, Energy & Telecom, High Technology, Pharmaceutical, Government, Automotive and Financial Services. The common stock of the company trades under the symbol "AMSI" on the OTCBB.
Forward Looking Statements
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: This press release contains or may contain forward-looking statements such as statements regarding the Company’s growth and profitability, growth strategy, liquidity and access to public markets, operating expense reduction and trends in the industry in which the Company operates. These forward-looking statements are based on current expectations and are subject to a number of risks, uncertainties and assumptions. Important factors that could cause actual results to differ materially from those expressed or implied by these forward-looking statements are detailed in the documents filed by the Company with the Securities and Exchange Commission including but not limited to those contained under the Risk Factors section of Form 10-K for the year ended December 31, 2001. The Company assumes no obligation to update these forward-looking statements to reflect actual results, changes in risks, uncertainties or assumptions underlying or affecting such statements or for prospective events that may have a retroactive effect.