Letter From the Editor: AremisSoft Coverage Is Independent and Fair

Generally we let our stories stand on their own, letting the facts speak for themselves. But recently a series of stories by Senior Columnist Herb Greenberg has come under such scurrilous attack that we feel compelled to address false assertions and almost surreal innuendo put forth by investor Irwin L. Jacobs.

First off, Mr. Jacobs has done some fine things as a civic supporter of many institutions in my home state of Minnesota, such as his onetime support for the Minnesota Vikings. To my mind, however, these good things are severely diminished by his inaccurate and irresponsible assertions related to our coverage of AremisSoft (AREM).

To get people caught up, AremisSoft is a software company that does business in many places, including Bulgaria. Herb Greenberg, in an article first published May 16, 2001, raised questions about certain claims AremisSoft has made about contracts it has won for services provided to an agency of the Bulgarian government. To view that story, and the follow-ups published since, please click here. Other stories were published by The New York Times, ( click here) and Dow Jones News ( click here).

Mr. Jacobs, who holds approximately 9.1% of the stock of AremisSoft, has taken particular issue with Herb Greenberg's stories. He has done so in a way that doesn't explain the unanswered questions about the company's business. Instead he has opted for a gutter approach, personally attacking the reputations of people at the news agencies involved in the reporting of these stories. His attacks are not confined to Herb Greenberg and TheStreet.com, but also include The New York Times and Dow Jones News.

Let me try to address Mr. Jacobs' main points:

Mr. Jacobs asserts that there is some conspiracy involving The New York Times, TheStreet.com and Dow Jones, all coordinated and aimed at hurting AremisSoft.

This is false. Each of these organizations competes viciously with the others for stories. There is no conspiracy and there is no collusion. If Mr. Jacobs has evidence to support his allegation, we'd love to see it.

Mr. Jacobs generally insinuates that Herb Greenberg has historically written negatively about companies that Rocker Partners L.P. is short as the quid pro quo for Rocker Partners having purchased stock in TheStreet.com.

First, the newsgathering operation is independent from the business side of the operation. The business executives do not tell the editors and writers what to publish. Nor do the editors or writers talk to business executives about what they are working on. This independence is at the heart of the news business.

Second, while it is true that, from time to time, Herb Greenberg uses Rocker Partners as a source of information, and has for many years, he discloses it in his stories when he does so. Moreover, the ownership of TheStreet.com stock by Rocker Partners is public information and has been since a Rocker Partners Securities and Exchange Commission filing Nov. 27, 2000, and Herb Greenberg has since that time disclosed their ownership when quoting Rocker Partners in stories. Mr. Jacobs has not uncovered some nefarious coverup. I would also note that Warren Buffett, according to a recent filing, holds about 18% of Washington Post stock, and they've been known to use him as a source of insight from time to time. Reporters at Dow Jones use mutual fund managers who own Dow Jones stock as sources from time to time. Again, if Mr. Jacobs has any facts to support his irresponsible allegations, we invite him to provide them.

Mr. Jacobs asserts that Herb Greenberg has written negatively about AremisSoft at the behest of Rocker Partners, which Mr. Jacobs claims is short the stock of AremisSoft.

Although as a general matter, news organizations are loath to reveal their sources, I will reveal that Rocker Partners was not the source for Herb Greenberg's groundbreaking first story on AremisSoft. Herb Greenberg developed that AremisSoft story without any contact with David Rocker, anyone else at his firm or anyone acting on his behalf. Any suggestion or statement to the contrary is untrue. Again, if Mr. Jacobs has any evidence to support his thesis, we invite him to make it clear, rather than making unfounded insinuations

In conclusion, we continue to stand by our coverage, and we will continue to report fairly and aggressively on companies such as AremisSoft.

Regards,

Dave Kansas
Editor-in-Chief

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