TORONTO, May 3, 2012 /PRNewswire/ – Davis + Henderson Corporation (“D+H”)
(TSX:DH) today announced that it has acquired Avista Solutions, Inc.
(“Avista”) of Charleston, South Carolina, a leading provider of
Software as a Service (SaaS) mortgage loan origination software to
community banks and credit unions in the United States.

The acquisition adds to D+H’s customer base and expands the range of
integrated technology solutions D+H offers to the North American
financial services industry by complementing the SaaS consumer point of
sale (POS) mortgage origination platform it delivers to more than 1,100
U.S. banks and credit unions through its Mortgagebot subsidiary. Like
Mortgagebot, Avista’s loan origination system (LOS) technology is
delivered via the Internet as a service and revenues are generated on a
subscription-fee basis under long-term contracts.

“This acquisition is fully aligned to D+H’s “follow your customer”
approach – in fact, customers have told us unequivocally that they want
us to extend our offering with an LOS platform,” said Gerrard Schmid,
CEO of D+H. “With Avista, we’ve added an innovative, fast growing LOS
business featuring proven capabilities that are highly synergistic to
those we offer through Mortgagebot. Together, we now support the entire
mortgage origination process for U.S. lenders and provide customers
with a comprehensive suite of products that enable efficient, effective
growth from origination through to closing. We are pleased that
Avista’s team, including Mark Phlieger, its founder and CEO, are
joining D+H to drive future growth.”

Founded in 2001, Avista is a profitable and growing financial technology
business with over 150 financial institution customers and a technology
suite that includes a complete loan origination system with integrated
product and pricing engine, document imaging, workflow capabilities,
and a comprehensive network of seamlessly integrated third party
mortgage service providers.

“We believe that a combination of our innovative LOS technology and
D+H’s industry leading mortgage point of sale solutions will allow us
to jointly reach more customers, more rapidly, and with a more
effective one-stop value proposition,” said Mark Phlieger, CEO of
Avista. “Speaking on behalf of our team at Avista, I am excited by the
prospects of taking our business to the next level.”

Terms

The purchase price is $40 Million (USD) payable in cash, and funded from
D+H’s existing credit facilities. The addition of Avista is expected
to provide accretion for D+H shareholders in 2012, on an Adjusted net
income basis.

About D+H

D+H is a leading solutions provider to the North American financial
services marketplace, providing innovative technology-based programs,
products and business services tailored to our customer’s needs. We
embrace thought leadership and are continuously expanding our
capabilities and expertise to better anticipate the needs of our
customers, build trust and deliver on our promises.

For over 130 years, we have demonstrated a proven track record of
success and a deeply rooted tradition of developing and nurturing
valued customer relationships. Our mission is to provide a unique and
broad set of integrated solutions that help our customers deepen
relationships with their own clients. For more information about D+H
visit www.dhltd.com

D+H’s Mortgagebot operation serves consumer-direct, branch, loan officer
and call center mortgage channels through its award-winning PowerSite
family of integrated point-of-sale solutions. Mortgagebot blends deep
mortgage experience with innovative “cloud computing” technology to
create scalable and affordable websites for more than 1,100 banks and
credit unions. Lenders large and small view PowerSite as a “must-have”
solution because it helps them deliver a superior borrower experience,
increase volume, and compete more effectively. PowerSite is also
flexible and easy to use, with a rapid and proven implementation
process. For more information about Mortgagebot visit www.mortgagebot.com

About Avista Solutions

Avista Solutions is a leader in sophisticated web-based loan origination
systems for the American financial services industry. Founded in 2001,
its suite of mortgage lending software provides complete, end-to-end
solutions incorporating loan origination, product eligibility, pricing
and imaging that can be rapidly implemented across all origination
channels. Avista is considered a Top 50 Mortgage Technology Provider by
Mortgage Technology magazine. For more information, visit www.AvistaSolutions.com.

Forward Looking Statement

This press release contains certain statements that constitute
forward-looking information within the meaning of applicable securities
laws (“forward-looking statements”). Statements concerning D+H’s
objectives, goals, strategies, intentions, plans, beliefs, expectations
and estimates, and the business, operations, financial performance and
condition of D+H are forward-looking statements. The words “believe”,
“expect”, “anticipate”, “estimate”, “intend”, “may”, “will”, “would”
and similar expressions and the negative of such expressions are
intended to identify forward-looking statements, although not all
forward-looking statements contain these identifying words. These
forward-looking statements are subject to important assumptions,
including the following specific assumptions: the ability of D+H to
meet its revenue, EBITDA and Adjusted net income targets; general
industry and economic conditions; changes in D+H’s relationship with
its customers and suppliers; pricing pressures and other competitive
factors; the anticipated effect of acquisitions on the financial
performance of D+H; and the expected benefits arising as a result of
the acquisitions. D+H has also made certain macroeconomic and general
industry assumptions in the preparation of such forward-looking
statements. While D+H considers these factors and assumptions to be
reasonable based on information currently available, there can be no
assurance that actual results will be consistent with these
forward-looking statements.

Forward-looking statements involve known and unknown risks,
uncertainties and other factors that may cause the actual results,
performance or achievements of the Business, or developments in D+H’s
industry, to differ materially from the anticipated results,
performance, achievements or developments expressed or implied by such
forward-looking statements.

Risks related to forward-looking statements include, among other things,
challenges presented by declines in the use of personal and business
cheques; D+H’s dependence on a limited number of large financial
institution customers and dependence on their acceptance of new
programs; strategic initiatives being undertaken to meet the D+H’s
financial objective; stability and growth in the real estate, mortgage
and lending markets; as well as general market conditions, including
economic and interest rate dynamics. Given these uncertainties, readers
are cautioned not to place undue reliance on such forward-looking
statements. The documents incorporated by reference herein also
identify additional factors that could affect the operating results and
performance of D+H. Forward-looking statements are based on
management’s current plans, estimates, projections, beliefs and
opinions, and D+H does not undertake any obligation to update
forward-looking statements should assumptions related to these plans,
estimates, projections, beliefs and opinions change except as required
by applicable securities laws.

All of the forward-looking statements made in this press release are
qualified by these cautionary statements and other cautionary
statements or factors contained herein, and there can be no assurance
that the actual results or developments will be realized or, even if
substantially realized, that they will have the expected consequences
to, or effects on, D+H.

SOURCE Davis + Henderson Corporation