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                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                            ------------------------

                                   FORM 10-K

                 FOR ANNUAL AND TRANSITION REPORTS PURSUANT TO
          SECTIONS 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

(MARK ONE)

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   /X/     ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF
           THE SECURITIES EXCHANGE ACT OF 1934
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                  FOR THE FISCAL YEAR ENDED DECEMBER 31, 2000

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   / /     TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF
           THE SECURITIES EXCHANGE ACT OF 1934
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        FOR THE TRANSITION PERIOD FROM ______________ TO ______________

                         COMMISSION FILE NUMBER 0-30822

                            ------------------------

                                 SYNAVANT INC.

             (Exact name of Registrant as specified in its Charter)

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               DELAWARE                                     22-2940965
       (State of Incorporation)                (I.R.S. Employer Identification No.)
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                        3445 PEACHTREE ROAD, SUITE 1400
                             ATLANTA, GEORGIA 30326
               (Address of principal office, including zip code)

                                 (404) 841-4000
              (Registrant's telephone number, including area code)

        Securities Registered pursuant to Section 12(b) of the Act: None

 Securities Registered pursuant to Section 12(g) of the Act: Common Stock, par
                                   value $.01

    Indicate by check mark whether the registrant: (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
Registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days. YES /X/  NO / /

    Indicate by check mark if disclosure of delinquent filers pursuant to Item
405 of Regulation S-K is not contained herein, and will not be contained, to the
best of Registrant's knowledge, in definitive proxy or information statement
incorporated by reference in Part III of this Form 10-K or any amendment to this
Form 10-K. /X/

    The aggregate market value of the voting stock and non-voting common equity
held by nonaffiliates of the Registrant at March 15, 2001 was approximately
$72,559,871 based on $4.875 per share, the closing price of the common stock as
quoted on the Nasdaq National Market.

    The number of shares of the Registrant's common stock outstanding at
March 15, 2001, was 14,884,076 shares.

                       DOCUMENT INCORPORATED BY REFERENCE

    Portions of the Proxy Statement for the 2001 Annual Meeting of Stockholders
to be filed with the Securities and Exchange Commission within 120 days of the
Registrant's 2000 fiscal year end are incorporated by reference into Part III of
this report.

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                               TABLE OF CONTENTS

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PART I.......................................................................      2
  ITEM 1.        BUSINESS....................................................      2
  ITEM 2.        PROPERTIES..................................................     16
  ITEM 3.        LEGAL PROCEEDINGS...........................................     17
  ITEM 4.        SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.........     18

PART II......................................................................     19
  ITEM 5.        MARKET FOR COMMON EQUITY AND RELATED
                 STOCKHOLDER MATTERS.........................................     19
  ITEM 6.        SELECTED FINANCIAL DATA.....................................     19
  ITEM 7.        MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
                 AND RESULTS OF OPERATIONS...................................     20
  ITEM 7A.       QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT
                 MARKET RISK.................................................     30
  ITEM 8.        FINANCIAL STATEMENTS AND SUPPLEMENTAL DATA..................     31
  ITEM 9.        CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING
                 AND FINANCIAL DISCLOSURE....................................     62

PART III.....................................................................     62
  ITEM 10.       DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT..........     62
  ITEM 11.       EXECUTIVE COMPENSATION......................................     62
  ITEM 12.       SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS
                 AND MANAGEMENT..............................................     62
  ITEM 13.       CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS..............     62

PART IV......................................................................     62
  ITEM 14.       EXHIBITS, FINANCIAL STATEMENT SCHEDULES AND REPORTS ON
                 FORM 8-K....................................................     62

SIGNATURES...................................................................     65
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                                     PART I
                         (DOLLAR AMOUNTS IN THOUSANDS)

ITEM 1.  BUSINESS

    SYNAVANT Inc. (referred to hereafter as "SYNAVANT" or the "Company") serves
the pharmaceutical industry by developing and selling pharmaceutical
relationship management solutions that support sales and marketing
decision-making and program implementation. SYNAVANT was distributed to
shareholders of IMS HEALTH following the conveyance of assets and stock of
entities comprising the SYNAVANT business into SYNAVANT Inc., a newly formed
Delaware corporation. SYNAVANT is composed of the pharmaceutical industry
automated sales and marketing support business of IMS Health Strategic
Technologies, Inc., formerly a wholly-owned subsidiary of IMS HEALTH (formed in
1983) ("ST"); certain other former foreign subsidiaries of IMS HEALTH;
substantially all of IMS HEALTH's interactive and direct marketing business,
including the business of Clark-O'Neill, Inc. ("Clark O'Neill"), formerly a
wholly owned subsidiary of IMS HEALTH; and a 51% interest in Permail Pty., Ltd.

SYNAVANT BUSINESS OPPORTUNITY

    A more competitive environment has been created within the pharmaceutical
industry based upon merger and acquisition activity, regulatory requirements
(including, but not limited to, price controls), accelerated FDA approval
process and high levels of investment in new product introductions. Going
forward, pharmaceutical firms will be looking to improve their selling and
marketing skills to succeed in such an environment. They will be striving to be
more rigorous in segmenting and targeting the healthcare consumer population as
well as varying their level of investment and marketing strategies depending on
consumer needs. Pharmaceutical firms will be evaluating methods to determine the
return they receive from their various sales and marketing efforts. For example,
they will want to fine-tune Direct-To-Consumer ("DTC") marketing expenditures
and determine whether incremental investment should be made in sampling verses
detailing. As pharmaceutical companies look for ways to succeed in such an
environment, they will be seeking business partners to help them increase sales
force effectiveness in concert with marketing and promotion effectiveness.

SYNAVANT'S SOLUTIONS

    SYNAVANT's solutions, technology, interactive marketing offerings and data
management services are designed specifically to unlock blockages in information
flow and create absolute clarity and visibility--pulling together every piece of
information from every interaction the pharmaceutical company has with its
customers into ONEVIEW(SM) that is shared across the entire organization. By
doing this, SYNAVANT also provides clients with one single point of
accountability for all the solutions, services and support we deliver across the
breadth of our client's value chain.

    The ONEVIEW(SM) advantage is unique to SYNAVANT and extremely valuable to
our clients--putting their customers at the center of their organization and
enabling them to transition their customer activities to an e-business platform
that embraces the true value of customer relationship management--or
Pharmaceutical Relationship Management, as we call it.

PHARMACEUTICAL RELATIONSHIP MANAGEMENT

    Over 40,000 pharmaceutical sales and marketing representatives worldwide
rely on SYNAVANT's solutions to make critical decisions on a daily basis.
SYNAVANT offers sales and marketing effectiveness solutions that can be
integrated with all client-critical databases to provide customer and business
insights. SYNAVANT configures solutions for clients' sales and marketing teams,
which include, among other things, supporting desktop, laptop, handheld PC, and
paper systems, linked to

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client companies' databases as required. SYNAVANT's solutions increase
pharmaceutical sales-force performance and productivity by providing access to
up-to-the-minute profiling, targeting, activity reporting, team selling and
sample management information.

    SYNAVANT believes that its solutions address the unique characteristics of
the biopharmaceutical industry that impose specific demands on its customer
relationship management ("CRM") systems. The major differentiating
characteristics of the biopharmaceutical industry are:

    - Consumers (patients) do not place orders directly. Orders (prescriptions)
      are placed by physicians. As a result, the pharmaceutical sales
      representatives focus on influencing and educating the physician to affect
      prescribing behavior.

    - Product use and sample distribution is strictly controlled and regulated.

    - There are complex networks of stakeholders, including managed care
      organizations, payors and consumers, which may influence a physician's
      prescribing behavior.

    - Physicians can be difficult to see, due to time constraints and
      competition from numerous other pharmaceutical sales representatives.

    In response to these unique demands, SYNAVANT created an advanced approach
to CRM adapted specifically for the pharmaceutical industry, which it calls
Pharmaceutical Relationship Management ("PRM"). The features of PRM that make it
unique for SYNAVANT's customers are:

    - The principles of CRM applied with a pharmaceutical focus.

    - Data models that mirror the complex interrelationships of the
      pharmaceutical marketplace.

    - Integration of multiple data sources.

    - Decision support capabilities specific to the pharmaceutical industry.

    - Flexible systems technology to meet local needs internationally.

    - The ability to apply global standards and solutions.

    Through its strategic alliance with Siebel Systems, Inc. ("Siebel"),
SYNAVANT offers the Siebel products as part of the PRM solution offering. While
the sale and support of Cornerstone-TM-, Premiere(SM) and Phastrak products will
continue to be offered (see below), it is the intent of SYNAVANT to ultimately
migrate its current customer base to solutions based on Siebel's technology
platform as appropriate to meet customer needs.

    SYNAVANT also offers an extensive suite of consulting, support, training,
and systems management services as part of the overall PRM solution. SYNAVANT
offers its customers total systems support, becoming an extension of its
customers' own IT support services. These services include help desk,
educational, implementation, PC staging and delivery, repair,
telecommunications, and complete systems outsourcing services.

    SYNAVANT Professional Services serves as an adjunct to the Pharmaceutical
company's field support services for business operations and provides project
management, new hire training, field systems rollout, and analytical and
reporting services based on daily operational data to improve field force
operational efficiency and effectiveness. SYNAVANT also provides data management
services, integrating data from sales and marketing, IMS HEALTH, and client
databases to provide advanced decision support and reporting for its customers.

SIEBEL ALLIANCE

    On July 19, 2000, SYNAVANT announced a strategic alliance (the "Alliance")
with Siebel Systems Inc. ("Siebel"), a leading provider of eBusiness application
software. Through the Alliance, the

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companies intend to jointly develop, market and sell pharmaceutical and
healthcare related versions of Siebel's eBusiness software applications as part
of a joint offering.

    As part of the Alliance, SYNAVANT and Siebel entered into (1) a Value Added
Industry Remarketer Agreement (the "Reseller Agreement"), (2) a Siebel Alliance
Program Master Agreement (the "Alliance Agreement"), and (3) a license of
certain Siebel software for SYNAVANT's internal use. Pursuant to the Reseller
Agreement, Siebel appointed SYNAVANT as a non-exclusive distributor of certain
Siebel licensed software. Under the agreement, SYNAVANT has the right to
distribute Siebel software products to companies in the life sciences industry
(i.e., pharmaceutical, biotechnology and healthcare companies) worldwide in
conjunction with SYNAVANT's own proprietary software and services. As part of
the arrangement, Siebel and SYNAVANT share in the fees generated from the
licensing of the Siebel software when contracted by SYNAVANT as part of a joint
offering.

    The Reseller Agreement limits the extent to which SYNAVANT may develop,
integrate, market, license or distribute products that are directly competitive
with those packaged and promoted in connection with the Alliance. SYNAVANT is
also contractually obligated to discontinue the enhancement and development of
its Cornerstone-TM- and Premiere(SM) products, but may continue to support users
of these products under current and future contracts. The Reseller Agreement
contemplates a five year term for the Alliance, however, the parties may extend
the agreement for an additional two years on the same terms as the existing
agreement.

    The Alliance Agreement complements the Reseller Agreement and establishes a
framework for joint marketing efforts by SYNAVANT and Siebel to life sciences
companies (pharmaceutical, biotechnology and healthcare). Under this agreement,
SYNAVANT will be a Siebel Strategic Software Partner throughout the world to
serve the life sciences market. SYNAVANT will be permitted to use the Siebel
logos and marks as part of the joint marketing effort in its promotional
materials.

    The Alliance Agreement is intended to facilitate the Reseller Agreement and
as long as the Reseller Agreement is in effect, Siebel shall waive any annual
fees that may normally be payable by a Siebel Strategic Software Partner. Upon
expiration of the Reseller Agreement, SYNAVANT becomes responsible for the
applicable annual fee. The initial term of the Alliance Agreement is one year,
renewable for one year terms at the discretion of the parties.

    The Alliance will enable SYNAVANT to sell Siebel's ePharma product as the
eBusiness part of SYNAVANT's total solution offering to the health care market
place around the world.

    As an Alliance partner, Siebel provides SYNAVANT with:

    - eBusiness software applications and technology.

    - An ongoing commitment to significant technology investment and frequent
      technical innovation.

    - A full suite of integrated product offerings.

    - The ability to leverage Siebel's other strategic alliances to provide
      customized solutions to our customers.

    The Alliance is consistent with and helps implement SYNAVANT's stated vision
and mission.

    Through this Alliance, SYNAVANT will be able to deliver new and integrated
web-based applications to the life sciences sector. SYNAVANT will meet the
specific requirements of its customers on the design, development, delivery, and
support of value-added applications, services, and solutions based upon Siebel's
technology platform. SYNAVANT believes this Alliance differentiates it from its
competitors. By concentrating investment funding in the total solution area,
SYNAVANT will further extend its suite of value added, full service offerings
that support its total solution strategy. SYNAVANT has recognized the uniqueness
of the life sciences marketplace and its selling model, and has tailored the
traditional CRM approach to a solutions-based customer service offering known as

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Pharmaceutical Relationship Management ("PRM"). Through this Alliance, SYNAVANT
reaffirms its strategic commitment to customer intimacy and to service and
solution excellence.

PRODUCTS AND SERVICES PORTFOLIO

    Cornerstone-TM- is a flexible, Windows-based, PRM system used by
pharmaceutical field sales representatives, district managers and headquarters
executives to access mission-critical sales and marketing, contact and territory
information via desktop, laptop or handheld PC's. Cornerstone's-TM- applications
include managing business opportunities and projects such as product launch
programs and formulary placement opportunities. Cornerstone-TM- can quickly
generate standard and customized reports, such as weekly activity summary
reports, division reports and product launch reports. It also provides fast
updating of customer activities. Cornerstone's-TM- MarketViews allows access to
pharmaceutical databases, which can be configured to deliver customized sales
summaries by territory, district and physician.

    Premiere(SM) is a Windows-based, PRM system similar to Cornerstone-TM- with
a substantial user base in Europe, Brazil, Canada and Asia/Pacific. Core data
can be drawn from various sources and tailored by country, region, department or
individual user. Its unique application generators and builders are used to
customize and modify the system to a company's specific requirements quickly and
without the need for re-programming. Sales and marketing professionals at every
level of an organization can use Premiere(SM) to develop marketing strategies,
allocate and coordinate sales and marketing resources, track competitive
activity, and plan, monitor and evaluate sales and marketing activity. Up-to-the
minute integration to pharmaceutical sales forces and marketing enables faster
and better informed sales and marketing decisions, enhancing
return-on-investment in pharmaceutical relationship activities.

    Based upon the number of world-wide installations referenced below, SYNAVANT
is a market leader in applications for a variety of hand-held PC ("HPC") devices
that offer greater portability in developed markets and a low-cost entry
strategy into sales-force activity management in emerging markets. Over 10,000
HPC device users are customers of SYNAVANT's applications. SYNAVANT's latest HPC
product, PhasTrak Standalone Handheld Solution, combines the power and
robustness of the Cornerstone-TM- backend system with the speed and agility of a
hand-held device. PhasTrak is a standalone solution that helps sales
representatives improve call quality. Its relational database integrates sales
information with call information, giving representatives a clearer, more
powerful view of each account at the point of contact. PhasTrak also provides
complete electronic sample signature capture as part of a total Prescription
Drug Marketing Act ("PDMA") compliance solution. PhasTrak is powered by Windows
CE and is available for HPC size units.

    SYNAVANT also provides services from Pharbase(SM), the industry-leading
(based upon number of licensed customers) reference medical database used in
pharmaceutical sales and marketing in the following countries: United Kingdom,
France, Italy, the Netherlands, Spain, Canada, Belgium, Luxembourg, Austria,
Australia, Germany and the Philippines. Pharbase(SM) is a syndicated database
which is updated and validated daily by a team of operators in each country,
providing a level of accuracy that cannot be achieved by in-house databases. The
extensive customer and industry information within Pharbase(SM) underpins all
sales and marketing activities and can be integrated with other internal,
external or third-party information (list) to create an information solution
tailored to the individual needs of each customer. Insights from such
information help improve sales and marketing productivity by enhancing sales and
marketing targeting and customer relationship management activities.

    SYNAVANT provides advanced Business Intelligence solutions, Analyzer and
PharmaLyst, that work with integrated PRM databases and prescriber-level data to
give field and head office managers new, actionable insights into their
business. Through the use of these systems, customers can identify trends and
exceptions in call activity, benchmark sales and marketing performance by
product, market,

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or physician specialty, compare territory performance, track call activity and
sales and marketing by prescriber segment, and measure the impact of promotions,
sample activities, or other initiatives.

RESEARCH AND DEVELOPMENT

    Research and development expense totaled $12,556, $13,173, and $6,791 for
the years ended December 31, 2000, December 31, 1999 and November 30, 1998,
respectively. While historical development efforts have focused on legacy and
next generation core proprietary PRM applications, future efforts will be
focused on the development of a broader set of proprietary applications that are
compatible with Siebel's ePharma technology platform. These applications are
expected to expand the focus of the Company's traditional PRM efforts (sales and
marketing) into other areas including call centers, web sites, and clinical
trials.

INTERACTIVE MARKETING SERVICES

    SYNAVANT's interactive marketing services include prescription and OTC
sample distribution to physicians, pharmaceutical field sales force support
services, publication circulation management, direct mail, telemarketing
projects utilizing the Company's staff of physicians and other healthcare
professionals, product recall and return goods services and other customized
promotion programs. In support of its sampling support services, the Company
maintains a 180,000 square foot facility that meets the strict requirements of
the FDA for storage and repackaging of prescription drugs. SYNAVANT also
maintains licenses and registrations where required and distributes patient
starter samples to physicians throughout the United States. Direct mail
marketing services are also provided across Europe and in Canada and Australia.
In the United States, SYNAVANT has been designated as a database licensee by the
American Medical Association ("AMA") for use and sublicensing of the AMA's
physician database.

    Through an arrangement with IMS HEALTH, SYNAVANT has instant access to the
leading (based on the number of sales representatives that use it as a targeting
tool) physician prescribing database, Xponent-TM-. This access enables SYNAVANT
to provide unique services to its clients that set the standard for the
targeting of marketing programs to physicians.

    The major product groups of the interactive marketing business area are
outlined below:

    DIRECT MARKETING.  In the U.S., SYNAVANT provides its customers with a
complete range of customized Direct Marketing Services that support the brand
manager throughout the life-cycle of a product. Based on a belief that the most
effective targeting can only be executed at the prescriber-level, the business
provides services that utilize the Xponent database to enable targeting of the
appropriate physicians for a client's direct marketing campaign. Through its
unique First-Rx-TM- service, physicians can be targeted based on changes in
prescribing behavior that are recorded in the Xponent database just 10 days
earlier. SYNAVANT has unparalleled experience in delivering solutions to help
customers deal with crisis management situations such as the need to undertake a
product recall, or to rapidly distribute a "Dear Doctor" letter (i.e., a mass
distributed communication targeted to client-directed audiences containing
client-provided content). SYNAVANT also provides direct marketing services in
Australia, Canada and selected European countries that leverage the Company's
Pharbase(SM) database and is planning to enter new countries in Europe in 2001.

    SAMPLING SUPPORT SERVICES.  SYNAVANT provides a comprehensive range of
sample distribution capabilities in fully licensed facilities in the U.S.
Services include a multi-manufacturer sampling service called Single Source
Sampling, as well as client specific programs. SYNAVANT also operates
compassionate care programs for a number of manufacturers from the Company's
on-site Mail Order Pharmacy, under the supervision of a fully licensed
pharmacist.

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    PUBLICATIONS/CONTINUING MEDICAL EDUCATION ("CME") SUPPORT.  SYNAVANT
provides support services for publishers of medical journals in the U.S. The
business provides journal circulation management services for over 40 major
medical publishers who together represent 80% of the U.S. medical journal
market. These services allow the Company to maintain a comprehensive listing of
physicians in the U.S. The Company's core competency in acquiring and
maintaining a current and accurate physician mailing list facilitates the
support for pharmaceutical company CME programs to physicians and other indirect
marketing programs.

    SALES FORCE SUPPORT.  Through the Reinforce-TM- services in the U.S.,
SYNAVANT provides services that reinforce the work of the pharmaceutical
representative in building brand loyalty. Cost-effective programs enable a
pharmaceutical product manager to follow a representative's physician visit with
specific messaging targeted at the individual prescriber. Fully integrated with
the client's sales force automation tool, this service provides timely message
delivery. The Company's OpRx-TM- service provides a cost-effective capability
for sample accountability with full Prescription Drug Marketing Act compliance.

    TELECOMMUNICATIONS SERVICES.  Through the Company's telecommunications
programs, SYNAVANT provides a direct and responsive means of maintaining
interactive communications with a target audience. This capability provides both
in-bound and out-bound capabilities to healthcare professionals, sales
representatives, and consumers. Its unique and highly successful Medical
Dialogue-TM- service facilitates interactive discussions related to
pharmaceutical products and disease management between physicians via telephone.
SYNAVANT's own staff of physicians calls a client's targeted physicians using a
peer influence approach.

SYNERGIES

    While SYNAVANT's PRM solutions concentrate on enabling pharmaceutical sales
forces to directly promote to prescribers, SYNAVANT's Interactive Marketing
services provide the means for non-personal promotion to those same prescribers.

    A relatively small number of prescribers, perhaps one hundred and
twenty-five thousand of more than seven hundred thousand physicians, are
responsible for a very high percentage of pharmaceutical prescriptions in the
U.S. The distribution of prescribing behavior is similar outside of the U.S. As
a result, the relationship that any healthcare providing entity has with these
key prescribers is a critical success factor. While SYNAVANT's PRM solutions
allow pharmaceutical companies to maintain and utilize both internal and
external records on most of these prescribers, SYNAVANT, through its Interactive
Marketing services, regularly interacts or enables clients to interact with all
of them. The combination of these capabilities presents the opportunity for
SYNAVANT to provide an integrated solution to allow pharmaceutical companies to
optimize the impact of promotional activity to these critical decision makers.

    This creates four relatively short-term synergistic opportunities:

    1.  Cross sell to those pharmaceutical companies that do not purchase both
       PRM and Interactive Marketing services from SYNAVANT.

    2.  Migrate the Interactive Marketing services of SYNAVANT that are related
       to sales management into a seamless PRM solution interface. These include
       sample accountability, representative triggered mail, vacant territory
       management, and other sales team directed support activities.

    3.  Expand the full suite of U.S. Interactive Marketing services to SYNAVANT
       operations outside of the U.S.

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    4.  Integrate the tools that measure and optimize the impact of various
       promotional mix decisions on prescribing behavior into the PRM solution.

FOREIGN OPERATIONS

    As indicated above, SYNAVANT and its subsidiaries engage in a significant
portion of their business outside of the United States. SYNAVANT's foreign
operations are subject to the usual risks inherent in carrying on business
outside of the United States, including fluctuation in relative currency values,
possible nationalization, expropriation, price controls and other restrictive
government actions. SYNAVANT believes that the risk of nationalization or
expropriation is reduced because its products are software, services and
information, rather than the production of products that require manufacturing
facilities or the use of natural resources.

INTELLECTUAL PROPERTY

    SYNAVANT owns and controls a number of trade secrets, confidential
information, trademarks, trade names, copyrights, and other intellectual
property rights which, in the aggregate, are of material importance to its
business. Management believes that the "SYNAVANT" name and related names, marks
and logos are of material importance to SYNAVANT. SYNAVANT is licensed to use
certain technology and other intellectual property rights owned and controlled
by others, and similarly, other companies are licensed to use certain technology
and other intellectual property rights owned and controlled by SYNAVANT. The
names of SYNAVANT's and its subsidiaries' products and services referred to
herein are trademarks, service marks, registered trademarks or registered
service marks owned by or licensed to SYNAVANT or one of its subsidiaries.

CUSTOMERS

    Sales to the pharmaceutical industry accounted for substantially all of
SYNAVANT's revenue in 2000. Substantially all major pharmaceutical companies are
customers of SYNAVANT, and many of the companies use SYNAVANT's products and
subscribe to its services in several countries. SYNAVANT's customer base is
broad in scope and enables it to avoid dependence on any single customer. None
of SYNAVANT's customers accounted for more than 10% of its gross revenues in
2000, 1999 or 1998.

COMPETITION

    SYNAVANT has competition from other automated sales support technology
companies that offer sales force automation solutions and enterprise-wide
solutions in some of the countries in which it operates, as well as competition
from the in-house capabilities of its customers. SYNAVANT also faces competition
from many vendors that market and sell sales force automation solutions in the
consumer packaged goods industry. In addition, SYNAVANT competes with various
companies that provide support and Interactive Marketing services similar to its
services. Generally, competition has arisen on a country-by-country basis. For
example, in the United States, certain SYNAVANT products and services, including
its Cornerstone-TM- product and Siebel products compete with the products and
services of Dendrite International Inc.("Dendrite"), and in Europe certain
SYNAVANT products and services, including its Premiere(SM) product and Siebel
products, compete with the products and services of Cegedim, as well as
Dendrite. Quality, completeness and speed of delivery of information services
and products are the principal methods of competition in SYNAVANT's market.

EMPLOYEES

    As of December 31, 2000, SYNAVANT had approximately 1,300 employees in 23
countries. Of these, approximately 500 are located in the United States, and
none of these are represented by labor unions. In the Netherlands, Italy,
Belgium and Germany, SYNAVANT has Workers' Councils, which

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are a legal requirement in those countries. SYNAVANT has also established a
European Workers' Council as required under European Union regulations. SYNAVANT
believes that, generally, relations with its employees are good and have been
maintained in a normal and customary manner.

FACTORS THAT MAY AFFECT FUTURE PERFORMANCE

    IN ADDITION TO OTHER INFORMATION IN THIS ANNUAL REPORT ON FORM 10-K, THE
FOLLOWING RISK FACTORS SHOULD BE CAREFULLY CONSIDERED IN EVALUATING US AND OUR
BUSINESS BECAUSE SUCH FACTORS CURRENTLY MAY HAVE A SIGNIFICANT IMPACT ON OUR
BUSINESS, OPERATING RESULTS AND FINANCIAL CONDITION. AS A RESULT OF THE RISK
FACTORS SET FORTH BELOW, ACTUAL RESULTS COULD DIFFER MATERIALLY FROM THOSE
PROJECTED IN ANY FORWARD-LOOKING STATEMENTS.

COMPETITION FROM OTHER PROVIDERS OF PHARMACEUTICAL RELATIONSHIP MANAGEMENT
SOLUTIONS MAY REDUCE DEMAND FOR OUR PRODUCTS AND SERVICES OR CAUSE US TO REDUCE
THE PRICE OF OUR PRODUCTS AND SERVICES.

    We compete with other companies that sell sales force software products and
services and interactive marketing services that specifically target the
pharmaceutical industry. We also face competition from many vendors that market
and sell PRM solutions in the consumer packaged goods industry. In addition, we
compete with various companies that provide support services and interactive
marketing services similar to our services.

    We may not compete effectively in our markets. Competitive pressure may
result in our reducing the price of our products and services, which would
negatively affect our revenues and operating margins. If we are unable to
compete effectively in our markets, our business, results of operations and
financial condition would be materially and adversely affected.

    Increased competition is anticipated based on the growing strategic focus on
Customer Relationship Management ("CRM") and the success of Siebel Systems e
Business solutions. Large established companies such as Oracle and SAP that are
well established providers of ERP software solutions are expected to offer new
CRM solutions that may compete with SYNAVANT solutions based on Siebel products.

    Some of our competitors and potential competitors are part of large
corporate groups and have longer operating histories and significantly greater
financial, sales and marketing, technology and other resources than we have. In
the event that we are unable to compete successfully with these companies, it
could have a material adverse effect on our business, operating results or
financial condition.

IF OUR ALLIANCE WITH SIEBEL IS UNSUCCESSFUL, OUR BUSINESS MAY SUFFER MATERIALLY.

    You should note the following risk factors relating to our Alliance with
Siebel:

    - Customers may choose to purchase software licenses directly from Siebel
      and not as part of a joint solutions offering from SYNAVANT;

    - We have a limited prior history of selling the Siebel products within the
      markets we currently serve;

    - We may not be able to implement successfully the changes to our business
      model necessitated by the Siebel Alliance;

    - Under the terms of the Alliance, we are contractually obligated to
      discontinue the future enhancement and development of our Cornerstone-TM-
      and Premiere(SM) products, but we will continue to support users of these
      products under current and future contracts. Management anticipates that
      we will eventually phase out these products and replace them with a new
      generation of joint solution offerings incorporating Siebel technology. We
      will continue to

                                       9
<PAGE>
      develop add-on applications that will be functional for Siebel,
      Cornerstone-TM- and Premiere(SM) products. We have agreed to a
      revenue-sharing agreement with Siebel for certain new client contracts
      based on our existing Cornerstone-TM- and Premiere(SM) offerings. Existing
      and prospective customers may delay or forego purchases of our
      Cornerstone-TM- and Premiere(SM) products based on the newly formed
      Alliance. Quarterly revenues may decline below expected levels and could
      adversely affect our annual results of operations due to delayed or
      foregone purchase decisions;

    - We may not successfully develop and differentiate our value added services
      and products that represent the joint offering together with Siebel
      software products.

    - Other Siebel partners and/or resellers of Siebel software may effectively
      compete to sell portions of the total solution offering such as
      integration services, help desk support or data services to potential
      customers of SYNAVANT.

    - While we will collaborate with Siebel on future enhancements of Siebel
      software applications tailored for the pharmaceutical industry, we may not
      develop or introduce such enhancements in a timely manner and such
      enhancements may not be successful in the market; and

    - Software products frequently contain errors or failures, especially when
      first introduced or when new versions or enhancements are released. We
      could be forced to delay the commercial release of products compatible
      with Siebel until software problems have been corrected. We could lose
      revenues as a result of software errors or defects. Testing errors may
      also be found in new products, enhancements or releases after commencement
      of commercial shipments, resulting in loss of revenue or delay in market
      acceptance, or increased service and warranty costs, any of which could
      have a material adverse effect on our business, operating results or
      financial condition.

WE MAY NEED ADDITIONAL FINANCING TO MEET OUR FUTURE CAPITAL REQUIREMENTS.

    We invest in research and development as well as in capital projects to
enhance existing products and services and develop new products and services in
response to technological and marketplace changes. We will need to make
significant capital expenditures over the next several years, particularly in
light of the rapid technological changes affecting our business. In addition,
the strategic Alliance with Siebel requires us to make significant investments
during 2001 to launch our joint offering. We are now an independent entity
responsible for financing our own operations, except that, if necessary, IMS
HEALTH will provide certain credit support to us until August 31, 2001. To the
extent that we need additional funding in the future to finance our operations
and capital expenditures, we may not be able to access the capital markets or
otherwise obtain necessary financing, or to obtain such financing in a timely
manner or on commercially favorable terms. In the event that we satisfy our
financing needs through the issuance of additional equity securities, such
issuance would be dilutive to existing stockholders.

THE LOSS OF OUR KEY PERSONNEL COULD NEGATIVELY IMPACT OUR BUSINESS AND RESULTS
OF OPERATIONS.

    Our success depends on our continuing ability to attract, hire, train and
retain a substantial number of highly skilled managerial, technical, sales,
marketing and customer support personnel. In particular, our Chairman and Chief
Executive Officer, Wayne P. Yetter, is integral to our future success and is not
currently bound by an employment agreement. Competition for qualified personnel
is intense, and we may fail to retain our key employees or to attract or retain
other highly qualified personnel. In particular, there is a shortage of, and
significant competition for, research and development and sales personnel. Even
if we are able to attract qualified personnel, new hires frequently require
extensive training before they achieve desired levels of productivity. If we are
unable to hire or fail to retain competent personnel, our business, results of
operations and financial condition could be materially and adversely affected.
None of our key employees is bound by an employment agreement.

                                       10
<PAGE>
OUR FAILURE TO INTRODUCE NEW OR ENHANCED PRODUCTS IN A TIMELY MANNER COULD
RENDER OUR PRODUCTS OBSOLETE AND UNMARKETABLE.

    We compete in businesses that develop and market sophisticated information
systems, software and other technology. We expect that these systems, software
and other technology will be subject to refinements as such systems and
underlying technologies are upgraded and advanced. As various systems and
technologies become outdated, we may not be able to enhance or replace them, to
enhance or replace them as quickly as our competition, or to develop and market
new or enhanced products and services in the future on schedule and on a
cost-effective basis. Our failure to develop and market new or enhanced products
that compete with other available products could materially and adversely affect
our business, results of operations and financial condition.

    Our success will depend in part upon our ability to:

    - continue to provide best-in-class enterprise solutions;

    - continue to develop best-in-class PRM solutions;

    - enter new markets; and

    - develop and/or provide new solutions that satisfy increasingly
      sophisticated customer requirements, that keep pace with technological
      developments (including, in particular, developments related to the
      Internet) and that are accepted in the market.

    We are devoting significant resources to the enhancement of our solutions
offerings.

DEFECTS IN OUR PRODUCTS COULD DELAY MARKET ADOPTION OF OUR SOFTWARE OR CAUSE US
TO COMMIT SIGNIFICANT RESOURCES TO REMEDIAL EFFORTS.

    Software products frequently contain errors or failures, especially when
first introduced or when new versions or enhancements are released. We could be
forced to delay the commercial release of products until software problems have
been corrected. We could lose revenues as a result of software errors or
defects. Our products are intended for use in sales and marketing applications
that may be critical to a customer's business. As a result, we expect that
customers and potential customers will have a greater sensitivity to product
defects than the market for software products generally. Testing errors may also
be found in new products, enhancements or releases after commencement of
commercial shipments, resulting in loss of revenue or delay in market
acceptance, damage to our reputation, or increased service and warranty costs,
any of which could have a material adverse effect on our business, operating
results or financial condition. The foregoing would also be applicable to Siebel
products that we intend to redistribute. With respect to such products, we would
also depend on Siebel for the correction of errors and the delivery of any
required modifications relating to such products.

OUR SUCCESS DEPENDS ON THE STRENGTH OF THE PHARMACEUTICAL INDUSTRY.

    Our products and services are primarily used in connection with the
marketing and sale of prescription-only drugs. The market for prescription-only
drugs is undergoing a number of significant changes, including:

    - consolidations and mergers, which may reduce the number of existing
      customers and the size of their combined sales forces, and could also
      alter implementation and purchase cycles;

    - reclassification of formerly prescription-only drugs to permit
      over-the-counter sales;

    - competitive pressures on our pharmaceutical customers resulting from the
      continuing shift to delivery of healthcare through managed care
      organizations; and

                                       11
<PAGE>
    - changes in law, such as government-mandated price reductions for
      prescription-only drugs, that affect the healthcare systems in the
      countries where our customers and potential customers are located.

    Our failure to respond effectively to any or all of these and other changes
in the marketplace for prescription-only drugs could have a material and adverse
effect on our business, operating results and financial condition.

FORECASTING FUTURE RESULTS MAY BE DIFFICULT SINCE WE HAVE ONLY RECENTLY BEGUN
OPERATIONS AS AN INDEPENDENT COMPANY.

    We have a limited operating history as an independent public company and
have relied on IMS HEALTH for various financial and administrative services in
conducting our operations. As an independent company, we may not continue to
generate cash flow at the same level as we did as a wholly-owned subsidiary of
IMS HEALTH. Additionally, the Company may not be able to establish the financial
and administrative structure necessary to operate successfully as an independent
public company. Finally, the development of such structure may require a
significant amount of management's time and other resources.

SIGNIFICANT FLUCTUATIONS IN OUR QUARTERLY AND ANNUAL OPERATING RESULTS MAY
ADVERSELY AFFECT THE MARKET PRICE OF OUR COMMON STOCK.

    We believe that our quarterly and annual operating results are likely to
fluctuate significantly in the future, and our results of operations may fall
below the expectations of securities analysts and investors. If this occurs or
if market analysts perceive that it will occur, our market value could decrease
substantially. The selection of a PRM software product often entails an extended
decision-making process because of the strategic implications and substantial
costs associated with a customer's license of the software. As a result, the
decision-making process typically takes nine to eighteen months, although in
some cases it may take even longer. Accordingly, we cannot control or predict
the timing of our execution of contracts with customers. In addition, an
implementation process of three to nine months is customary before the software
is rolled out to a customer's sales force. Other factors may cause significant
fluctuations in our quarterly and annual operating results, including:

    - changes in the demand for our products;

    - the timing, composition and size of orders from our customers;

    - customer spending patterns and budgetary resources;

    - lower gross margins as a result of revenue sharing agreements with a fixed
      fee component;

    - our success in obtaining new customers;

    - the timing of introductions of or enhancements to our products;

    - changes in our pricing policies or those of our competitors;

    - our ability to anticipate and adapt effectively to developing markets and
      rapidly changing technologies;

    - our ability to attract, retain and motivate qualified personnel,
      particularly within our sales and marketing and research and development
      organizations;

    - the publication of opinions or reports about us, our products, our
      competitors or their products;

    - changes in general economic conditions;

    - actions taken by our competitors, including new product introductions and
      enhancements; and

                                       12
<PAGE>
    - our ability to control costs. We establish expenditure levels for product
      development, sales and marketing and other operating expenses based in
      large part on expected future revenues and anticipated competitive
      conditions. In particular, we frequently add staff in advance of new
      business to permit adequate time for training. If the new business is
      delayed or cancelled, we will incur expenses without the associated
      revenues. In addition, we may increase sales and marketing expenses if
      competitive pressures become greater than we currently anticipate. Because
      only a small portion of expenses varies directly with actual revenues,
      operating results and profitability are likely to be adversely and
      disproportionately affected if revenues fall below expectations.

AS WE EXPAND OUR INTERNATIONAL SALES AND MARKETING ACTIVITIES, OUR BUSINESS WILL
BE MORE SUSCEPTIBLE TO NUMEROUS RISKS ASSOCIATED WITH INTERNATIONAL OPERATIONS.

    We operate globally, deriving 45% of our revenues in 2000 from foreign
operations. As a result, fluctuations in the value of foreign currencies
relative to the U.S. Dollar may increase the volatility of our operating
results. To be successful, we believe we must expand our operations in emerging
markets such as eastern Europe, Mexico, South America and Asia and hire
additional international personnel. As a result, we expect to commit significant
resources to expand our international sales and marketing activities. If
successful, we will be subject to a number of risks associated with
international business activities. These risks generally include:

    - currency exchange rate fluctuations;

    - seasonal fluctuations in purchasing patterns;

    - unexpected changes in regulatory requirements;

    - tariffs, export controls and other trade barriers;

    - longer accounts receivable payment cycles and difficulties in collecting
      accounts receivable;

    - difficulties in managing and staffing international operations;

    - potentially adverse tax consequences, including restrictions on the
      repatriation of earnings;

    - the burdens of complying with a wide variety of foreign laws; and

    - political instability.

EXPOSURE TO CERTAIN CONTINGENT LIABILITIES MAY MATERIALLY AND ADVERSELY AFFECT
US.

    We are subject to certain material contingent liabilities. As a condition to
our spin-off from IMS HEALTH, we are required to undertake to be jointly and
severally liable to certain corporate predecessors of IMS HEALTH for IMS
HEALTH's obligations under certain agreements with such entities, including
potential liability relating to a complaint filed against such entities alleging
violations of federal antitrust laws and seeking $350,000 in damages. Pursuant
to our agreement with IMS HEALTH, IMS HEALTH will indemnify us for any liability
we incur in connection with such contingent liabilities in excess of $9,000. Any
failure of IMS HEALTH to fulfill its indemnification obligations that resulted
in our obligation to fund a substantial portion of such excess liabilities could
have a material adverse effect on our business, operating results and financial
condition.

POTENTIAL TAXATION

    If the distribution of SYNAVANT shares of common stock to IMS HEALTH
shareholders, pursuant to the spin off, were not to qualify under Section 355 of
the Internal Revenue Code, the

                                       13
<PAGE>
aggregate corporate tax liability could be approximately $100,000 and SYNAVANT
could be severally liable for such tax. In the event that SYNAVANT were
obligated to fund a substantial portion of such liability, it would have a
material adverse effect on SYNAVANT'S financial condition. Moreover, each IMS
HEALTH stockholder that received shares of SYNAVANT common stock in the spin off
would be treated as if such stockholder had received a taxable distribution in
an amount equal to the fair market value of the SYNAVANT common stock received.

GOVERNMENTAL REGULATION MAY MATERIALLY AND ADVERSELY AFFECT OUR ABILITY TO
DISTRIBUTE CONTROLLED SUBSTANCES THROUGH THE MAIL.

    We currently distribute controlled substances to doctors' offices through
the mail as part of certain interactive marketing programs we provide on behalf
of pharmaceutical manufacturers. It is important to our business that this
practice of distributing prescription-only drugs continues. Future legislation
may restrict our ability to provide these types of services. If any such
legislation is enacted, it could have a material and adverse effect on our
business, operating results and financial condition.

WE RELY ON OUR ABILITY TO PROTECT OUR INTELLECTUAL PROPERTY.

    We rely on a combination of trade secret, copyright and trademark laws,
non-disclosure and other contractual agreements, and technical measures to
protect our proprietary technology. The steps we have taken or will take in the
future may not prevent misappropriation of our technology. Further, protective
actions we have taken or will take in the future may not prevent competitors
from developing products with features similar to our products. In addition,
effective copyright and trade secret protection may be unavailable or limited in
certain foreign countries. Despite our efforts to protect our products'
proprietary rights, unauthorized parties may attempt to copy aspects of our
products or to obtain and use information that we regard as proprietary.
Litigation may be necessary to enforce our intellectual property rights, to
protect our trade secrets, to determine the validity and scope of the
proprietary rights of others or to defend against claims of infringement or
invalidity. Such litigation could result in substantial costs and diversion of
resources and could harm our business, operating results and financial
condition.

CLAIMS AGAINST US REGARDING OUR PROPRIETARY TECHNOLOGY COULD REQUIRE US TO PAY
LICENSING OR ROYALTY FEES OR TO MODIFY OR DISCONTINUE OUR PRODUCTS.

    Any claim that our products infringe on the intellectual property rights of
others could materially and adversely affect our business, results of operations
and financial condition. Because knowledge of a third party's patent rights is
not required for a determination of patent infringement and because the United
States Patent and Trademark Office is issuing new patents on an ongoing basis,
infringement claims against us are a continuing risk.

    Infringement claims against us could cause product release delays, require
us to redesign our products or require us to enter into royalty or license
agreements. These agreements may be unavailable on acceptable terms. Litigation,
regardless of the outcome, could result in substantial cost, divert management
attention and delay or reduce customer purchases. Claims of infringement are
becoming increasingly common as the software industry matures and as courts
apply expanded legal protections to software products. Third parties may assert
infringement claims against us regarding our proprietary technology and
intellectual property licensed from others. Generally, third-party software
licensors indemnify us from claims of infringement. However, licensors may be
unable to indemnify us fully for such claims, if at all.

                                       14
<PAGE>
    If a court determines that one of our products violates a third party's
patent or other intellectual property rights, there is a material risk that the
revenue from the sale of the infringing product will be significantly reduced or
eliminated, as we may have to:

    - pay licensing fees or royalties to continue selling the product;

    - incur substantial expense to modify the product so that the third party's
      patent or other intellectual property rights no longer apply to the
      product; or

    - stop selling the product.

    In addition, if a court finds that one of our products infringes a third
party's patent or other intellectual property rights, then we may be liable to
that third party for actual damages and attorneys' fees. If a court finds that
we willfully infringed on a third party's patent, the third party may be able to
recover treble damages, plus attorneys' fees and costs.

OUR CERTIFICATE OF INCORPORATION, OUR BYLAWS AND OUR AGREEMENT WITH IMS HEALTH
CONTAIN PROVISIONS THAT MAY DISCOURAGE A TAKEOVER.

    Our Amended and Restated Certificate of Incorporation and Amended and
Restated By-Laws contain provisions that may have the effect of discouraging an
acquisition of control of the Company not approved by our Board of Directors.
Such provisions may also have the effect of discouraging third parties from
making proposals involving an acquisition or change of control of the Company,
although such proposals, if made, might be considered desirable by a majority of
our stockholders. Such provisions could further have the effect of making it
more difficult for third parties to cause the replacement of our Board of
Directors. These provisions include:

    - the availability of capital stock for issuance from time to time at the
      discretion of our Board of Directors;

    - prohibitions against stockholders calling a special meeting of
      stockholders or acting by written consent in lieu of a meeting;

    - requirements for advance notice for raising business or making nominations
      at stockholders' meetings;

    - the ability of our Board of Directors to increase the size of the board
      and to appoint directors to newly created directorships;

    - a classified Board of Directors; and

    - higher than majority requirements to make certain amendments to our
      By-Laws and Certificate of Incorporation.

    These provisions have been designed to enable us to develop our businesses
and foster our long-term growth without disruptions caused by the threat of a
takeover not deemed by our Board of Directors to be in the best interests of us
and our stockholders. In addition, under the Distribution Agreement we entered
into with IMS HEALTH, we agree that until August 31, 2002 we will not, among
other things, merge or consolidate with another corporation, sell or transfer
all or substantially all of our assets, or take any other action which would
result in one or more persons acquiring a 50 percent or greater interest in us,
unless, before taking such action, we obtain a written opinion of a law firm or
a ruling from the Internal Revenue Service that such action will not affect the
tax-free treatment of the distribution. Such provisions may have the effect of
discouraging third parties from making proposals involving an acquisition or
change of control of the Company.

    We have a stockholder rights plan that is designed to protect our
stockholders in the event of an unsolicited offer and other takeover tactics
that, in the opinion of our Board of Directors, could impair

                                       15
<PAGE>
the Board's ability to represent stockholder interests. The provisions of our
stockholder rights plan may render an unsolicited takeover of the Company more
difficult or less likely to occur or might prevent such a takeover.

    Pursuant to the Distribution Agreement with IMS HEALTH, we are each subject
to certain non-competition arrangements that restrict our respective business
activities for a specified period after the distribution. Pursuant to the terms
of the Distribution Agreement, the restrictions would generally be binding on an
entity that acquires us or is the survivor in a business combination with the
Company. Such restrictions may have the effect of discouraging third parties
from making proposals involving an acquisition or change of control of the
Company. We are also subject to the provisions of Delaware corporate law, which
may restrict certain business combination transactions.

WHERE YOU CAN FIND MORE INFORMATION

    At your request, we will provide you, without charge, a copy of any exhibits
to this annual report on Form 10-K. If you want an exhibit or more information,
call, write or e-mail us at:

               SYNAVANT Inc.
               Attn: Investor Relations
               3445 Peachtree Road NE, Suite 1400
               Atlanta, Georgia 33026
               Telephone: (404) 841-4000
               e-mail: www.SYNAVANT.com

    Our fiscal year ends on December 31. We file annual, quarterly, and special
reports, proxy statements and other information with the Securities and Exchange
Commission. You may read and copy any reports, statements, or other information
we file at the SEC's public reference rooms in Washington, D.C., New York, New
York, and Chicago, Illinois. Please call the SEC at 1-800-SEC-0330 for further
information on the public reference rooms. Our SEC filings are also available to
the public from commercial document retrieval services and at the Web site
maintained by the SEC at http://www.sec.gov.

ITEM 2.  PROPERTIES

    SYNAVANT's real property is geographically distributed to meet sales and
operating requirements worldwide. Most of SYNAVANT's properties are leased from
third parties. SYNAVANT also subleases certain properties from IMS HEALTH.
SYNAVANT owns only one piece of real property, which represents less than 2% of
the aggregate space utilized by SYNAVANT. SYNAVANT's properties are generally
considered to be both suitable and adequate to meet current operating
requirements and

                                       16
<PAGE>
virtually all space is being utilized. Set forth below is a summary of the
properties that SYNAVANT leases from third parties:

<TABLE>
<CAPTION>
                                      APPROX. AREA
LOCATION                              (IN SQ. FEET)               USE               EXPIRATION DATE
--------                              -------------               ---               ----------------
<S>                                   <C>             <C>                           <C>
Atlanta, Georgia....................       75,484     Corporate Headquarters/                6/24/07
                                                      Distribution/Sales/
                                                      Support/Development
New South Wales, Australia..........        6,969     Sales/Support                          1/31/01
Waterloo, Belgium...................        6,760     Development                            6/30/09
Sao Paulo, Brazil...................        6,415     Sales/Support                          6/30/02
Toronto, Ontario, Canada............       27,364     Sales/Support                          6/30/02
Ismaning, Germany...................        9,567     Sales/Support                          2/28/02
Athens, Greece......................        4,138     Sales/Support                          3/14/03
Naarden, Netherlands................        3,467     Sales/Support                          6/30/03
Singapore, Singapore................          700     Sales/Support                          7/14/02
Madrid, Spain.......................        8,022     Sales/Support                          6/30/03
Barcelona, Spain....................        4,376     Sales/Support                          8/15/05
Leatherhead, Surrey, United                 7,100     Sales/Support                          5/12/02
  Kingdom...........................
Rugby, Warwickshire, United                30,000     Sales/Support                         11/30/02
  Kingdom...........................
Norcross, Georgia...................       65,451     Sales/Support                          2/29/08
Fairview, New Jersey................      195,184     Sales/Support/Distribition             4/30/03
Totowa, New Jersey..................      136,855     Distribution                           1/31/11
Seoul, Korea........................          485     Sales/Support                          3/15/01
Tokyo, Japan........................        2,640     Sales/Support                         12/31/02
Istanbul, Turkey....................          377     Sales/Support                          6/30/01
New South Wales, Australia..........       33,044     Sales/Support                          6/30/02
Viroflay, France....................       13,885     Sales/Support                          9/15/04
Bannockburn, Illinois...............          300     Sales/Support                          1/29/02
</TABLE>

    Set forth below is a summary of the properties that SYNAVANT subleases from
IMS HEALTH:

<TABLE>
<CAPTION>
                                         APPROX. AREA
LOCATION                                 (IN SQ. FEET)             USE             EXPIRATION DATE
--------                                 -------------             ---             ----------------
<S>                                      <C>             <C>                       <C>
Wein, Austria..........................        2,492     Sales/Support             6 months' notice
Brussels, Belgium......................        3,694     Sales/Support                      6/30/01
Brussels, Belgium......................        4,457     Sales/Support                      6/30/01
Frankfurt, Germany.....................        1,634     Sales/Support                      3/31/02
Milan, Italy...........................       12,164     Sales/Support                      8/31/05
Arrendamento Urbano, Italy.............        3,267     Sales/Support                     10/15/00
Lisbon, Portugal.......................          900     Sales/Support                      6/30/01
</TABLE>

ITEM 3.  LEGAL PROCEEDINGS

    SYNAVANT has from time to time been involved in legal proceedings and
litigation arising in the ordinary course of business. In the opinion of
management, the outcome of all current proceedings, claims and litigation will
not materially affect SYNAVANT's consolidated financial position.

    In addition, as discussed below, SYNAVANT is subject to certain other
contingencies of which it is jointly and severally liable with IMS HEALTH.
However, IMS HEALTH and SYNAVANT have agreed that SYNAVANT's share of such
liabilities will not exceed $9,000, and IMS HEALTH has agreed to indemnify
SYNAVANT for any liability it incurs in connection with such contingent
liabilities in excess of such amount. In the event that IMS HEALTH does not
fulfill such indemnification obligations,

                                       17
<PAGE>
SYNAVANT could be liable for an amount in excess of $9,000 in connection with
such contingent liabilities. While it is highly unlikely, in the event that
SYNAVANT were obligated to fund a substantial portion of such liabilities, it
would have a material adverse effect on SYNAVANT's financial condition and
results of operations. In addition, SYNAVANT and IMS HEALTH have agreed that
SYNAVANT will not be required to make any payment in connection with such
commitments until at least January 1, 2003.

    Under the terms of the distribution agreements relating to the 1996 spin-off
of IMS HEALTH's predecessor, Cognizant Corporation ("Cognizant"), from The
Dun & Bradstreet Corporation ("D&B") and relating to the 1998 spin of IMS HEALTH
from Cognizant, as a condition to the distribution, IMS HEALTH and any company
that it spins off, including SYNAVANT, are required to undertake to be jointly
and severally liable to D&B, A.C. Nielsen Company and Cognizant for IMS HEALTH's
obligations under the 1996 Distribution Agreement and the 1998 Distribution
Agreement. Such obligations include potential tax liability relating to the
aforementioned spin-offs and relating to certain global tax planning initiatives
entered into by Cognizant, D&B and IMS HEALTH, and potential liability relating
to the IRI Action.

    Set forth below is a description of the IRI Action:

    On July 29, 1996, Information Resources, Inc. ("IRI") filed a complaint in
the United States District Court for the Southern District of New York, naming
as defendants D&B, A.C. Nielsen Company and I.M.S. International Inc. (a
predecessor of IMS HEALTH) (the "IRI Action"). The complaint alleges various
violations of the United States antitrust laws, including alleged violations of
Sections 1 and 2 of the Sherman Act. The complaint also alleges a claim of
tortious interference with a contract and a claim of tortious interference with
a prospective business relationship. These latter claims relate to the
acquisition by defendants of Survey Research Group Limited ("SRG"). IRI alleges
that SRG violated an alleged agreement with IRI when it agreed to be acquired by
defendants and that the defendants induced SRG to breach that agreement. IRI's
complaint alleges damages in excess of $350,000, which amount IRI has asked to
be trebled under the antitrust laws. IRI also seeks punitive damages in an
unspecified amount. On October 15, 1996, defendants moved for an order
dismissing all claims in the complaint. On May 6, 1997, the United States
District Court for the Southern District of New York issued a decision
dismissing IRI's claim of attempted monopolization in the United States, with
leave to replead within sixty days. The Court denied defendants' motion with
respect to the remaining claims in the complaint. On June 3, 1997, defendants
filed an answer denying the material allegations in IRI's complaint, and A.C.
Nielsen Company filed a counterclaim alleging that IRI has made false and
misleading statements about its services and commercial activities. On July 7,
1997, IRI filed an amended and restated complaint repleading its alleged claim
of attempted monopolization in the United States and realleging its other
claims. On August 18, 1997, defendants moved for an order dismissing the amended
claims. On December 1, 1997, the court denied the motion and, on December 16,
1997, defendants filed a supplemental answer denying the remaining material
allegations of the amended complaint. On December 22, 1999, defendants filed a
motion for partial summary judgment seeking to dismiss IRI's non-U.S. antitrust
claims. On July 12, 2000, the court granted the motion dismissing claims of
injury suffered from activities in foreign markets where IRI operated through
subsidiaries or companies owned by joint ventures or "relationships" with local
companies. Discovery is continuing in this matter.

ITEM 4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITY

    None.

                                       18
<PAGE>
                                    PART II

ITEM 5.  MARKET FOR COMMON EQUITY AND RELATED STOCKHOLDER MATTERS

    Our common stock has been listed on the Nasdaq National Market since
September 1, 2000, when it began regular way trading on the effective date of
our spin-off. Our Nasdaq National Market symbol is "SNVT." Except for when
issued trading, which began on August 30, 2000, prior to September 1, 2000,
there was no established trading market for our common stock. The following
table sets forth, for the indicated periods, the high and low closing sales
prices for our common stock as reported by the Nasdaq National Market for all
quarters since September 1, 2000.

<TABLE>
<CAPTION>
                                                              CLOSING SALES PRICE
                                                              -------------------
                                                                HIGH       LOW
                                                              --------   --------
<S>                                                           <C>        <C>
Calendar Year 2000
  Third Quarter (beginning September 1, 2000)...............  $9.6875    $6.4375
  Fourth Quarter............................................  $6.1875    $3.3750

Calendar Year 2001
  First Quarter (through March 15, 2001)....................  $6.2500    $4.4375
</TABLE>

STOCKHOLDERS

    As of March 15, 2001, there were 4,875 holders of record of our common
stock.

DIVIDENDS

    We currently anticipate that we will retain all future earnings for use in
our business and do not anticipate that we will pay any cash dividends in the
foreseeable future. The payment of any future dividends will be at the
discretion of our Board of Directors and will depend upon, among other things,
our results of operations, capital requirements, general business conditions,
contractual restrictions on payment of dividends, if any, legal and regulatory
restrictions on the payment of dividends, and other factors our Board of
Directors deems relevant. In addition our line of credit prohibits the payment
of dividends without prior lender approval.

ITEM 6.  SELECTED FINANCIAL DATA

    The following data are qualified in their entirety by the audited financial
statements of SYNAVANT and other information contained elsewhere in this report.
The financial data as of December 31, 2000, December 31, 1999, November 30,
1998, and for the years ended December 31, 2000, December 31, 1999,
November 30, 1998 and November 30, 1997 and for the one month period ended
December 31, 1998 have been derived from the audited financial statements of
SYNAVANT. The financial data for the year ended November 30, 1996 are unaudited.
The historical financial information of SYNAVANT contained in this report are
presented as if SYNAVANT were a separate entity for all periods presented. The
following financial data should also be read in conjunction with, and is
qualified in its entirety by, the information set forth under "SYNAVANT
Management's

                                       19
<PAGE>
Discussion and Analysis of Financial Condition and Results of Operations" and
SYNAVANT's Consolidated Financial Statements and Notes thereto appearing
elsewhere in this report.

<TABLE>
<CAPTION>
                                                  YEARS ENDED
                                                   AND AS OF          MONTH ENDED
                                                  DECEMBER 31,         AND AS OF     YEARS ENDED AND AS OF NOVEMBER 30,
                                              --------------------   DECEMBER 31,    -----------------------------------
                                                2000        1999       1998 (1)      1998 (2)      1997         1996
                                              ---------   --------   -------------   ---------   ---------   -----------
                                                                                                             (UNAUDITED)
                                                           ($ AMOUNTS IN THOUSANDS, EXCEPT PER SHARE DATA)
<S>                                           <C>         <C>        <C>             <C>         <C>         <C>
INCOME STATEMENT DATA:
Total Revenue...............................  $ 181,439   $200,557     $ 13,649      $149,005    $106,650      $79,144
Net Income (Loss)...........................  $(138,648)  $ (3,192)    $ (1,415)     $(25,217)   $  5,380      $(1,219)
Earnings (Loss) Per Share of Common Stock--
  Basic and Diluted (3).....................  $   (9.32)  $  (0.20)    $  (0.09)     $  (1.55)   $   0.33           --

BALANCE SHEET DATA:
Total Assets................................  $ 156,499   $268,299     $290,686      $285,389    $ 85,021      $74,503
Long-Term Debt..............................         --         --           --            --          --           --
</TABLE>

------------------------------

(1) Effective in 1999, the operating units of SYNAVANT that had previously
    reported on a fiscal year ended November 30, revised their reporting period
    to conform with IMS HEALTH's fiscal year end of December 31. This revision
    of year end was made to reflect the results of operations and financial
    position of operating units on a more timely basis, consistent with business
    performance, and to increase operating efficiency for consolidations and
    overall IMS HEALTH management purposes. The Company improved its internal
    financial systems and work processes so that it could more rapidly collect,
    consolidate and report worldwide information.

(2) On June 24, 1998, Cognizant Corporation, the accounting predecessor of IMS
    HEALTH, acquired Walsh International, Inc. ("Walsh"). The acquisition was
    accounted for using the purchase method of accounting and, accordingly,
    operating results for Walsh are included in the combined financial
    statements of SYNAVANT from the date of acquisition.

(3) Basic earnings per share are calculated by dividing net income (loss) by the
    weighted average common shares of SYNAVANT. Diluted earnings per share are
    calculated by dividing net income by dilutive potential common shares and
    weighted average common shares of SYNAVANT. Dilutive potential common shares
    are calculated in accordance with the treasury stock method, which assumes
    that proceeds from the exercise of all SYNAVANT employee options are used to
    repurchase SYNAVANT Common Stock at market value. The amount of shares
    remaining after the proceeds are exhausted represents the potentially
    dilutive effect of the options. Where the Company has recorded a loss,
    dilutive potential common shares are not included in the calculation of
    dilutive loss per share as to do so would be anti-dilutive.

ITEM 7.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
         OF OPERATIONS (DOLLAR AMOUNTS IN THOUSANDS)

    The following "Management's Discussion and Analysis of Financial Condition
and Results of Operations" includes forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995. All statements
other than statements of historical fact made in this Form 10-K are
forward-looking, which can be identified by the use of forward-looking
terminology such as "may," "will," "expect," "anticipate," "estimate,"
"believe," "continue" or other similar words. Such forward-looking statements
are based on management's current plans and expectations and are subject to
risks and uncertainties that could cause actual results to differ materially
from those described in the forward-looking statements. Factors that could cause
or contribute to such differences include, but are not limited to: risks
associated with operating on a global basis; the ability to identify, consummate
and integrate acquisitions, alliances and ventures on satisfactory terms; the
ability to develop new or advanced technologies, systems or products; the
ability to successfully maintain historic effective tax rates; regulatory,
legislative and enforcement initiatives; the ability to obtain future financing
on satisfactory terms; and consolidation in the pharmaceutical industry. These
risks and uncertainties are not intended to be exhaustive and should be read in
conjunction with other cautionary statements made herein including, but not
limited to, the material set forth herein under the heading "Factors That May
Affect Future Performance." The Company assumes no obligation to update any such
forward-looking statements.

                                       20
<PAGE>
OVERVIEW

    On August 31, 2000, SYNAVANT was spun off from IMS HEALTH, a provider of
information solutions to the pharmaceutical and healthcare industries. SYNAVANT
serves the pharmaceutical industry by developing and selling pharmaceutical
relationship management solutions that support sales and marketing decision
making. Simultaneous with the spin-off, Clark-O'Neill, Inc. ("Clark-O'Neill"),
another wholly-owned subsidiary of IMS HEALTH, merged into SYNAVANT.

    Pursuant to the spin-off, shares of SYNAVANT common stock were distributed
to the shareholders of IMS HEALTH. This transaction was structured as a tax-free
dividend to the stockholders of IMS HEALTH, who received one share of SYNAVANT
Common Stock (together with the associated preferred share purchase right) for
every 20 shares of IMS HEALTH Common Stock held as of the record date for the
Distribution. Prior to August 31, 2000, these businesses and products were
managed as part of the core IMS segment of IMS HEALTH.

    This discussion and analysis should be read in conjunction with the
accompanying consolidated financial statements and related notes.

SIEBEL ALLIANCE

    On July 19, 2000, SYNAVANT announced a five-year strategic Alliance with
Siebel Systems, Inc. ("Siebel"), a leading provider of eBusiness application
software, to develop, market, and sell an integrated eBusiness software and
service solution featuring Siebel ePharma, a pharmaceutical version of Siebel
eBusiness Applications, and the Company's global implementation and support
capabilities. Through the Alliance, SYNAVANT delivers eBusiness solutions to
customers worldwide in the pharmaceutical, biotechnology and healthcare
industries. See "Business"--Siebel Alliance for further explanation.

    SYNAVANT expects the Alliance to generate incremental revenue from new
products and services and expanded market opportunities. As part of the
Alliance, SYNAVANT has agreed with Siebel to a revenue-sharing agreement for
certain new client contracts that incorporate a joint solution offering as well
as for certain new client contracts based on SYNAVANT's existing Cornerstone-TM-
and Premiere(SM) software product offerings.

    Under the terms of the Alliance, SYNAVANT is contractually obligated to
discontinue enhancement and development of its Cornerstone-TM- and Premiere(SM)
products, but will continue to support users of these products under current and
future contracts.

ACQUISITION

    On June 24, 1998, Cognizant Corporation (the accounting predecessor company
to IMS HEALTH) ("Cognizant") acquired Walsh International, Inc. ("Walsh") for an
original purchase price of $193,748 consisting of $167,148 of Cognizant common
stock, $9,521 of Cognizant stock options and direct acquisition and integration
costs in the amount of $17,079. Walsh was contributed to the SYNAVANT business
by IMS HEALTH. Shares issued in the acquisition were registered under the
Securities Act of 1933, as amended. The Walsh acquisition was accounted for as a
purchase and accordingly, Walsh's results of operations are included in the
results of operations of SYNAVANT from June 1998. Walsh, formed in 1988,
provided SYNAVANT with a strong international market presence to serve its
customers on a global scale. SYNAVANT recognized approximately $152,267 of
goodwill related to the acquisition, which historically was being amortized on a
straight-line basis over 15 years. The original estimate of direct acquisition
and integration costs of $17,079 consisted of severance ($4,876), lease
terminations ($2,569) and other direct acquisition and integration costs
($9,634). Other direct costs include primarily the professional fees of
investment bankers, attorneys and accountants, and change in control and other
transaction-related bonuses paid to Walsh personnel. The direct acquisition and

                                       21
<PAGE>
integration costs were incremental and were incurred as a direct result of the
acquisition and the formal plan to exit certain activities as part of the
overall integration effort (such as severance costs related to Walsh employees)
and certain contractual costs (such as Walsh leases that were to be terminated).
At December 31, 1999, the program of integrating Walsh into SYNAVANT had been
completed. In completing the program, SYNAVANT incurred higher than anticipated
severance costs, related to the termination of Walsh employees, and terminated
acquired Walsh leases at a cost lower than originally anticipated at the date of
the acquisition. In addition, a certain lease scheduled for termination was
subsequently retained by SYNAVANT. To reflect the net reduction in direct
integration costs, the original liability estimate, the original purchase price
and goodwill have been reduced by $890. The following table provides the
activities since the acquisition with respect to these liabilities:

<TABLE>
<CAPTION>
                                             ORIGINAL                                           DECEMBER 31,
                                             LIABILITY   EXPENDITURES TO   RECLASSIFICATIONS/       1999
                                             ESTIMATE         DATE            ADJUSTMENTS         BALANCE
                                             ---------   ---------------   ------------------   ------------
<S>                                          <C>         <C>               <C>                  <C>
Employee Separation........................   $ 4,876       $ (6,154)            $ 1,278          $      --
Lease Terminations.........................     2,569           (401)             (2,168)                --
Other Direct Costs.........................     9,634         (9,634)                  0                 --
                                              -------       --------             -------          ---------
  Total....................................   $17,079       $(16,189)            $  (890)         $      --
                                              =======       ========             =======          =========
</TABLE>

PURCHASE PRICE ALLOCATION

    The allocation of SYNAVANT's aggregate purchase price to the tangible and
identifiable intangible assets acquired and liabilities assumed in connection
with the Walsh acquisition was based primarily on estimates of fair values by an
independent appraisal firm. The final purchase price allocation is summarized
below:

<TABLE>
<S>                                                           <C>
Acquired in process R&D write-off...........................  $ 21,900
Net liabilities assumed.....................................    (1,609)
Computer software...........................................    29,000
Deferred taxes..............................................    (8,700)
Goodwill....................................................   152,267
                                                              --------
Final purchase price........................................  $192,858
                                                              ========
</TABLE>

ACQUIRED IN-PROCESS RESEARCH AND DEVELOPMENT

    SYNAVANT made allocations of the aggregate purchase price to acquired
in-process research and development ("IPR&D") amounting to $21,900 in 1998
related to the Walsh acquisition.

    The Securities and Exchange Commission issued revised guidance in 1998 with
respect to allocations of IPR&D projects in connection with acquisitions. In
accordance with this guidance, the amount allocated to IPR&D reflects the
relative value and contribution of the acquired IPR&D. Consideration was given
to the projects' then stage of completion, the complexity of the work completed
to date, the difficulty of completing the remaining development, costs already
incurred and the projected costs to complete the projects.

    At the date of the Walsh acquisition, the development of the IPR&D projects
had not yet reached technological feasibility and had no alternative future use.
Accordingly, these costs were expensed as of the acquisition date.

    The projects identified as IPR&D at Walsh at the date of acquisition (and
the resulting charge) included enhancement of Walsh's Windows-based sales
management information system ($4,000), enhancement of its pharmaceutical
marketing database ($3,800), and development of a next-stage

                                       22
<PAGE>
integrated and enhanced sales management information system ($14,100). These
projects were identified as underway at Walsh and, at the date of acquisition,
would require additional effort to establish technological feasibility.

    The discount rates utilized to value the IPR&D projects ranged from 17% to
25%. Such discount rates took into account the industry risk for the Walsh
business acquired (as evidenced by the calculated weighted average cost of
capital), technological development risk associated with completing the
in-process projects, and market and commercial risk associated with introducing
the new products/ technology. The implied weighted average cost of capital for
the different Walsh projects was 15%.

    The degree of completion represented the extent to which the different
in-process projects were complete, as of the acquisition date. The completion
percentage ranged from 53% to 87%. Since the acquisition date, both the
enhancement of the Windows-based sales management information system and the
enhancement of its pharmaceutical marketing database products reached
technological feasibility at the level of costs anticipated in the original
valuations. The enhancement of the Windows-based sales management information
system was released to customers in January 1999 and the enhancement of the
pharmaceutical marketing database products was released to customers in
November 1999. Revenues and profitability of these products subsequent to their
release have been in line with the original expectations incorporated within the
calculation of the IPR&D charges.

    In connection with the Siebel Alliance, SYNAVANT has significantly modified
its development priorities and as a result has discontinued the one remaining
Walsh project. As a result of the Siebel Alliance and the Distribution, the
Company assessed the value of Computer software assets during the third quarter
of 2000 and, as a result, accelerated amortization of $14,553 was recorded in
period ended September 30, 2000. The remaining value of Computer software assets
is being amortized over 3 years. In addition, SYNAVANT assessed the value of
Goodwill (which included the Goodwill from the Walsh Acquisition) during the
third quarter of 2000. Based on this assessment, an impairment charge of
$100,900 was recorded in the period ended September 31, 2000. The Company
reduced the remaining period of amortization of goodwill to its revised
estimated useful life of 5 years, which corresponds to the remaining term of the
agreement with Siebel.

YEAR ENDED DECEMBER 31, 2000 COMPARED WITH THE YEAR ENDED DECEMBER 31, 1999

REVENUE

    Total revenues for the year ended December 31, 2000 declined by 10% to
$181,439 from $200,557 for the year ended December 31, 1999. This decline was
primarily due to lower Interactive Marketing revenues, lower Software Fees, and
the impact of currency. Excluding the impact of a stronger U.S. Dollar, revenues
declined by 5%.

    SOFTWARE FEES.  Software Fees declined to $7,746 for the year ended
December 31, 2000 from $12,628 for the year ended December 31, 1999, a decline
of $4,882 and 39%. The decline in Software Fees is primarily due to delays in
customer purchase decisions during the first half of the year and the impact of
the transition to the SYNAVANT/Siebel solution offerings during the second half
of the year. Excluding the impact of a stronger U.S. Dollar, Software Fees
revenue declined 34%.

    SOFTWARE SERVICES.  Software Services revenue declined to $87,474 for the
year ended December 31, 2000 from $91,308 for the year ended December 31, 1999,
a decline of $3,834 and 4%. The decline in revenue from Software Services is
principally due to the impact of currency, lower implementation fees that were
driven by lower license sales and the conversion of certain term contracts to
license contracts in Europe during the fourth quarter 1999, which resulted in
lower ongoing revenues, offset by growth in maintenance and other support
services revenue. Software Services revenue was essentially unchanged after
excluding the impact of a stronger U.S. Dollar.

                                       23
<PAGE>
    INTERACTIVE MARKETING.  Interactive Marketing revenue declined to $86,219
for the year ended December 31, 2000 from $96,621 for the year ended
December 31, 1999, a decline of $10,402 and 11%. The decline in revenue from
Interactive Marketing is primarily due to lower volumes in the U.S. and
Australia where overall promotional activity slowed in 2000 and the impact of a
stronger U.S. Dollar. Excluding the impact of a stronger U.S. Dollar,
Interactive Marketing revenue declined by 6%.

OPERATING COSTS

    COST OF SOFTWARE FEES.  Cost of Software Fees increased to $8,766 for the
year ended December 31, 2000, from $3,107 for the year ended December 31, 1999,
an increase of $5,659. Of this 182% increase, $5,385 relates to the accelerated
amortization of impaired software (SEE discussion of Siebel in "Overview" and
Note 2). Excluding the accelerated amortization, the increase in Cost of
Software Fees is principally due to increases in certain third party royalty
costs. The Company expects these costs to increase in the future as a result of
the Reseller Agreement with Siebel.

    COST OF SOFTWARE SERVICES.  Cost of Software Services increased to $61,122
for the year ended December 31, 2000, from $39,258 for the year ended
December 31, 1999, an increase of $21,864. The increase in Cost of Software
Services is primarily due to spending in the U.S. and Europe to improve customer
support levels, spending in Europe and Japan to position the Company for future
growth in selected markets, and costs associated with mobilizing the
organization to begin implementing and supporting the new SYNAVANT solution with
technology from Siebel. The Company expects these costs to increase in the
future as a result of the Reseller Agreement.

    COST OF INTERACTIVE MARKETING.  Cost of Interactive Marketing revenue
declined 8% to $72,879 for the year ended December 31, 2000, from $79,304 for
the year ended December 31, 1999. The decline in the Cost of Interactive
Marketing is primarily driven by the decline in Interactive Marketing revenue
which declined by 11%.

OPERATING EXPENSES

    RESEARCH AND DEVELOPMENT.  Research and Development expenses declined by 5%
to $12,556 for the year ended December 31, 2000 from $13,173 for the year ended
December 31, 1999. The decline in research and development costs is principally
attributable to a change in development priorities that were driven by the
Siebel Alliance. Development resource levels have been reduced and priorities
have been realigned since the Company entered into the Siebel Alliance in
July 2000. These reductions were partially offset by higher spending during the
first half of the year on a new generation of Software products that were to
have replaced the existing Premiere(SM) and Cornerstone-TM- products.
Development efforts in the future will be focused on the development of
applications that are proprietary to SYNAVANT but that are compatible with the
Siebel technology. The Company expects the overall expenditures in this area to
decline during 2001 as we no longer will be developing the core systems, but
focusing on value added applications.

    SELLING AND ADMINISTRATIVE.  Selling and Administrative expenses declined by
3% to $32,667 for the year ended December 31, 2000 from $33,570 for the year
ended December 31, 1999. The decline in Selling and Administrative expenses is
principally due to general cost containment actions and the impact of actions
that were taken during 1999 to minimize overhead from the acquisition of Walsh.

    DEPRECIATION AND AMORTIZATION.  Depreciation and amortization for the year
ended December 31, 2000 was $135,041, which included an impairment charge of
$110,000 (SEE discussion of Siebel in "Overview" and Note 2). Excluding this
charge, depreciation and amortization declined slightly compared to the year
ended December 31, 1999.

                                       24
<PAGE>
OPERATING LOSS

    OPERATING LOSS.  Operating loss increased to $143,753 for the year ended
December 31, 2000 compared with Operating Income of $3,550 for the year ended
December 31, 1999. The $147,303 decrease in operating profit is primarily due to
$115,453 of one-time Software and Goodwill charges, lower revenues, higher
operating costs, and $2,161 of spin-off related costs.

TAXES

    The Company's consolidated tax provision, calculated on a separate-company
basis, was a benefit of $6,410 for the year ended December 31, 2000, compared
with a provision of $6,472 for the year ended December 31, 1999. The Company's
effective tax rate is different than the U.S. federal statutory tax rate,
principally due to the goodwill amortization resulting from the acquisition of
Walsh and certain foreign losses, which are not deductible for tax purposes. The
Company recorded a tax benefit in 2000 as a result of generating domestic
deferred tax assets in 2000 that offset existing domestic deferred tax
liabilities. As of December 31, 2000, the Company ended up with a net deferred
tax asset position (primarily as a result of net operating losses). The Company
has recorded a valuation allowance against the entire amount of this net
deferred tax asset.

RESULTS BY SEGMENT:

    THE AMERICAS.  Revenue for the year ended December 31, 2000 was $105,873
compared with $111,522 for the year ended December 31, 1999. The decline was
largely due to lower volumes in Interactive Marketing and lower license sales as
a result of the Siebel Alliance. The operating loss for the year ended
December 31, 2000 was $139,559 compared to an operating loss of $13,200 for the
year ended December 31, 1999 due primarily to the impact of the accelerated
amortization on Computer Software and the Goodwill impairment recorded in the
third quarter of 2000 associated with the Siebel Alliance and the Distribution,
lower Interactive Marketing and Software License revenues, and higher Cost of
Software Services.

    EUROPE.  Revenue for the year ended December 31, 2000 was $57,171 compared
with $67,321 for the year ended December 31, 1999. The decline was largely
driven by lower license sales as a result of the Siebel Alliance, the conversion
of certain term contracts to license contracts during the fourth quarter 1999,
which resulted in lower ongoing revenues and the impact of a stronger U.S.
Dollar. The operating loss for the year ended December 31, 2000 was $4,299
compared to operating income of $15,799 for the year ended December 31, 1999 due
to lower revenues and higher operating and selling and administrative expenses
incurred due to the impact of the Siebel Alliance, increased competition and
market pressures.

    ASIA PACIFIC.  Revenue for the year ended December 31, 2000 declined to
$18,395 compared to $21,714 for the year ended December 31, 1999. The $3,319
decline was attributable to the decline in Australia in Interactive Marketing,
partially offset by revenue growth in Japan. Operating income declined to $105
from $951 for the year ended December 31, 1999.

MONTH ENDED DECEMBER 31, 1998

    Effective in 1999, the operating units of SYNAVANT that had previously
reported on a fiscal year ended November 30, revised their reporting period to
conform with IMS HEALTH's fiscal year end of December 31. This revision of
year-end was made to reflect the results of operations and financial position of
operating units on a more timely basis, consistent with business performance,
and to increase operating efficiency for consolidations and overall IMS HEALTH
management purposes. The Company improved its internal financial systems and
work processes so that it could more rapidly collect, consolidate and report
worldwide information. As a result, SYNAVANT presents separately the results of
the month ended December 31, 1998. The month of December 31, 1998 reported
revenues

                                       25
<PAGE>
were $13,649 (split as 2% software fees, 53% software services and the remaining
45% as interactive marketing revenues). The net loss was $1,415. December 1998
revenue and operating results were in line with management's expectations.

YEAR ENDED DECEMBER 31, 1999 (CALENDAR) COMPARED WITH THE YEAR ENDED
  NOVEMBER 30, 1998 (FISCAL)

    Total revenues for the year ended December 31, 1999 increased by 35% to
$200,557 from $149,005 in 1998. Revenue growth in 1999 was principally due to
the full-year benefit of the acquisition of Walsh in June 1998. Software fees
were $12,628 in 1999, an increase of 48% compared with the prior year, due to
increased European software licenses. Software service revenues grew 34% to
$91,308 in 1999, primarily due to the full-year benefit of the Walsh
acquisition. Interactive marketing revenues grew 34% to $96,621, driven by the
full-year benefit of the Walsh acquisition.

    Operating costs for the year ended December 31, 1999 were $121,669 compared
with $96,391 in the year ended November 30, 1998, an increase of 26%. The
increase was primarily due to the full-year impact of the Walsh acquisition,
higher production costs associated with growth in interactive marketing services
and higher labor costs associated with new sales force automation system users
in Europe and the U.S. Operating costs associated with software fees were $3,107
in 1999, down from $3,695 in the prior year due to lower amortization expense
arising from certain software assets completing amortization. Software services
operating costs grew 37% to $39,258 due to the full-year impact of the Walsh
acquisition and higher labor costs associated with new sales force automation
system users in Europe and the U.S. Interactive marketing operating costs of
$79,304 were up 24% due to the full-year impact of the Walsh acquisition.

    Research and development costs were $13,173, up from $6,791 in the prior
year due primarily to the full-year impact of a European development center
acquired as part of Walsh in June 1998.

    Selling and administrative expenses for the year ended December 31, 1999
increased to $33,570 from $32,364 for the year ended November 30, 1998. Costs
associated with geographic expansion in Europe and Latin America were offset by
cost savings realized from the integration of the Walsh acquisition.

    Depreciation and amortization increased to $25,826 in the year ended
December 31, 1999 compared with $14,068 for the year ended November 30, 1998,
primarily due to the full year impact of goodwill and acquired intangible
amortization (computer software) associated with the Walsh acquisition.

    During the year ended December 31, 1999, SYNAVANT incurred approximately
$2,769 of Year 2000 remediation costs (no corresponding amount in 1998). These
costs were expensed as incurred. No further costs are anticipated.

    Operating income for the year ended December 31, 1999 was $3,550 compared
with an operating loss of $22,509 in 1998, an increase of $26,059. The increase
is primarily due to the 1998 write-off of IPR&D ($21,900) costs and one-time
charges related to the realignment of certain SYNAVANT operations as a result of
the Walsh acquisition.

    Other expense for the period was $270 compared with other income of $572 in
1998. These amounts reflect third party interest income and expense and realized
foreign exchange gains and losses.

    SYNAVANT's consolidated tax provision, calculated on a separate company
basis, was $6,472 for 1999 compared with $3,280 for 1998. The effective tax rate
of SYNAVANT is higher than the U.S. federal statutory tax rate, primarily
because goodwill amortization arising principally from the Walsh acquisition is
not deductible for tax purposes.

                                       26
<PAGE>
    The net loss for the year ended December 31, 1999 was $3,192, compared with
a net loss of $25,217 in 1998. The decrease in the loss is primarily due to the
after-tax impact of the operating income improvements discussed above.

RESULTS BY GEOGRAPHIC SEGMENT:

    THE AMERICAS.  Revenue for the year ended December 31, 1999 increased to
$111,522 ($104,051 in the U.S.) from $107,052 ($104,713 in the U.S.) for the
year ended November 30, 1998. The increase was primarily driven by higher
services revenue, principally interactive marketing services, partially offset
by lower sales force automation system license revenues. Operating loss for the
year ended December 31, 1999 decreased by $14,475 from a loss of $27,675 for the
year ended November 30, 1998 to a loss of $13,200 for the year ended 1999. The
lower loss was primarily due to the IPR&D charge in 1998 and one-time charges
related to the realignment of certain SYNAVANT operations at the time of
acquisition. All goodwill amortization resulting from the Walsh acquisition is
reflected in the U.S. results.

    EUROPE.  Revenue for the year ended December 31, 1999 increased to $67,321
($28,670 in the U.K.) from $29,792 ($12,605 in the U.K.) for the year ended
November 30, 1998. The increase in 1999 was principally from the inclusion of
Walsh for a full year in 1999 and also benefited from new sales force automation
system license revenue. Operating income for the year ended December 31, 1999
grew to $15,799 from $5,340 in the year ended November 30, 1998, due to the
revenue increases partially offset by higher costs to support a larger installed
customer base.

    ASIA PACIFIC.  Revenue for the year ended December 31, 1999 grew to $21,714
($20,669 in Australia) from $12,161 ($11,642 in Australia) for the year ended
November 30, 1998, primarily due to the inclusion of Walsh for a full year,
partially offset by weak economic conditions in emerging markets. Operating
income for the year ended December 31, 1999 was $951, compared with a loss of
$174 for the year ended November 30, 1998 due to the revenue increases.

YEAR ENDED NOVEMBER 30, 1998 (FISCAL) COMPARED WITH THE YEAR ENDED NOVEMBER 30,
  1997 (FISCAL)

    Revenue increased by 40% to $149,005 from $106,650 in 1997. Revenue growth
in 1998 principally resulted from the partial year benefit of the acquisition of
Walsh in June 1998. Software fees revenues decreased 31% to $8,556 due to lower
client sales of Cornerstone-TM- in the U.S. Software services revenues were
$68,332, an increase of 48% over the prior year, due to the partial-year benefit
of the Walsh acquisition. Interactive marketing revenue grew 50% to $72,117
primarily due to the partial-year benefit of the Walsh acquisition.

    Operating costs for the year ended November 30, 1998 were $96,391 compared
with $71,216 for the year ended November 30, 1997, an increase of 35%. Operating
costs associated with software fees declined to $3,695 in 1998, compared with
$5,361 in the prior year, due to lower amortization expense resulting from
certain software products completing amortization in 1997. Software services
operating costs grew 37% to $28,708 due to the partial-year impact of the Walsh
acquisition and higher labor costs associated with new sales force automation
system users. Interactive marketing operating costs grew 42% to $63,988 in 1998,
as a result of the growth in interactive marketing services primarily from the
acquisition of Walsh.

    Research and development costs were $6,791 in 1998, compared with $3,333 in
1997 due primarily to the partial-year impact of a European development center
acquired as part of the Walsh acquisition.

    Selling and administrative expenses for the year ended November 30, 1998
increased to $32,364 from $15,766 in the previous year, primarily due to the
partial year inclusion of Walsh in 1998 and costs associated with geographic
expansion in Europe and Latin America.

                                       27
<PAGE>
    Depreciation and amortization increased to $14,068 in 1998 from $6,268 in
the previous year, primarily due to the inclusion of goodwill and acquired
intangible amortization (computer software) associated with the acquisition of
Walsh in June 1998.

    The operating loss was $22,509 in 1998 compared with operating income of
$10,067 in the previous year. The decrease of $32,576 was primarily due to the
1998 write-off of IPR&D costs, one-time charges related to the realignment of
certain SYNAVANT operations at the time of the acquisition, and the increased
costs discussed above offset by increased revenue.

    Other income, net for the period was $572 compared with other expense, net
of $109 in 1997. The change was due to realized foreign exchange gains.

    SYNAVANT's consolidated tax provision, calculated on a separate company
basis, was $3,280 in 1998 compared with $4,578 in 1997. The effective tax rate
of SYNAVANT is higher than the U.S. federal statutory tax rate, primarily
because goodwill amortization and IPR&D charge from the Walsh acquisition are
not deductible for tax purposes (SEE Note 7 to the Combined Financial
Statements).

    The net loss for 1998 was $25,217, compared with net income of $5,380 in
1997. The decrease is due to the after-tax impact of the items discussed above.

RESULTS BY GEOGRAPHIC SEGMENT:

    THE AMERICAS.  Revenue for the year ended November 30, 1998 increased to
$107,052 from $91,272 for the year ended November 30, 1997. The increase was
primarily driven by increases in sales force automation system revenue as well
as higher interactive marketing services. U.S. revenue increased to $104,713 in
1998 from $91,272 in 1997. Operating income for the year ended November 30, 1998
decreased by $35,072 from income of $7,397 in the year ended November 30, 1997
to a loss of $27,675 in the year ended 1998, principally related to IPR&D charge
and one-time charges related to the realignment of certain SYNAVANT operations
at the time of the acquisition.

    EUROPE.  Revenue for the year ended November 30, 1998 grew to $29,792 from
$8,559 for the year ended November 30, 1997. The increase was primarily driven
by the partial year inclusion of Walsh in 1998, and by new sales force
automation system revenue. Revenue in the U.K. was $12,605, up from $3,145 in
the prior year. Operating income for the year ended November 30, 1998 increased
to $5,340 from $2,731 in the prior year due to the revenue growth, partially
offset by higher labor costs associated with new sales force automation system
users.

    ASIA PACIFIC.  Revenue for the year ended November 30, 1998 grew to $12,161
(Australia $11,642) from $6,819 (all in Australia) for the year ended
November 30, 1997 due to the partial year inclusion of Walsh in 1998, and by new
sales force automation system revenue. Operating loss was $174 for the partial
year ended November 30, 1998, compared with an operating loss of $61 in the
prior year.

SELECTED QUARTERLY RESULTS OF OPERATIONS

    The following tables present certain unaudited quarterly statements of
operations data for each of the last eight quarters. The information has been
derived from our unaudited financial statements, which have been prepared on
substantially the same basis as the audited financial statements contained

                                       28
<PAGE>
in this 10-K. The results of operations for any quarter are not necessarily
indicative of the results to be expected for any future period.

<TABLE>
<CAPTION>
                                                         FIRST      SECOND      THIRD      FOURTH
                                                        QUARTER    QUARTER     QUARTER    QUARTER
                                                        --------   --------   ---------   --------
                                                          (IN THOUSANDS, EXCEPT PER SHARE DATA)
                                                                       (UNAUDITED)
<S>                                                     <C>        <C>        <C>         <C>
2000
Revenues..............................................  $46,188    $47,020    $  42,697   $45,534
Gross margin..........................................   11,960     12,794        3,602    10,316
Net loss..............................................   (8,584)    (1,935)    (118,834)   (9,295)
Basic earnings per share..............................    (0.57)     (0.13)       (8.02)    (0.63)
Diluted earnings per share............................    (0.57)     (0.13)       (8.02)    (0.63)

1999
Revenues..............................................  $46,857    $48,606    $  44,527   $60,567
Gross margin..........................................   16,976     19,572       11,288    31,052
Net income (loss).....................................      824     (1,210)       2,751    (5,557)
Basic earnings per share..............................     0.05      (0.08)        0.18     (0.36)
Diluted earnings per share............................     0.05      (0.08)        0.18     (0.36)
</TABLE>

LIQUIDITY AND CAPITAL RESOURCES

    The Company operated as an entity wholly-owned by IMS HEALTH prior to the
distribution date and, as such, was dependent on IMS HEALTH for cash management,
credit and financial resources on an as needed basis to fund operations and to
fund seasonal cash needs. The Company has a credit support letter from IMS
HEALTH that provides certain credit support through August 31, 2001.

    On March 6, 2001, the Company entered into a revolving credit facility (the
"Facility") with ABN AMRO that is guaranteed by IMS HEALTH. The amount borrowed
under the Facility cannot exceed $20,000 at any one time and the Facility will
terminate on May 15, 2001. Interest is payable at the higher of the prime rate
or the federal funds rate plus 50 basis points for U.S. Dollar loans and the
Libor plus 100 basis points for Euro based loans. Currently, the Company has not
required the use of the credit facility.

    We currently estimate that our cash and working capital needs for the next
twelve months can be met by cash on hand, available working capital, amounts
available under our credit facility, the IMS HEALTH credit support letter, and
cash flow from operations. If our expectations change regarding our capital
needs due to market conditions, strategic opportunities or otherwise, then our
capital requirements may vary materially from those currently anticipated. The
Company is currently in discussions with financial institutions to obtain a
long-term credit facility. If we are unable to obtain additional financing, we
may be required to reduce the scope of our planned product development and
marketing efforts, as well as revise certain operational strategies.

SIEBEL ALLIANCE

    The Alliance has had a negative impact on the Company's operating results
and cash flow in 2000 as a result of increased expenditures for training and
product development, non-cash charges related to Goodwill and Computer software,
and the impact of delayed client purchase decisions. New clients delayed
installation of software solutions during 2000 until evaluations were completed
on the SYNAVANT/Siebel joint solution offering. While the Company believes that
this evaluation period is nearing an end, any extended delays could adversely
impact 2001 operating results and cash flows.

                                       29
<PAGE>
CASH FLOWS

    Net cash provided by operating activities totaled $6,212 for the year ended
December 31, 2000 compared with net cash provided by operating activities of
$10,022 for the year ended December 31, 1999. The decline of $3,810 primarily
reflects the decline in operating income offset by favorable working capital
movements.

    Net cash used in investing activities totaled $9,595 for the year ended
December 31, 2000 compared with $15,762 for the year ended December 31, 1999.
The decline in cash usage of $6,167 was primarily due to the absence of
acquisition payments associated with the acquisition of Logix, Inc. and lower
spending on software development as a result of the Siebel Alliance. Addition to
software associated with the Siebel Alliance partially offset these reductions.

    Net cash provided by financing activities totaled $19,413 for the year ended
December 31, 2000 compared with net cash provided of $6,855 for the year ended
December 31, 1999. The increase was primarily due to the cash contribution
received from IMS HEALTH through the Distribution Agreement as well as the
increased funding from IMS HEALTH of working capital needs during the first half
of 2000.

ITEM 7A.  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

NON-U.S. OPERATING AND MONETARY ASSETS

    SYNAVANT operates globally, deriving 45% of its revenues in 2000 from
non-U.S. operations. As a result, fluctuations in the value of foreign
currencies relative to the U.S. Dollar may increase the volatility of U.S.
Dollar operating results.

    Non-U.S. monetary assets are maintained in currencies other than the U.S.
Dollar, principally those of the Euro, the Pound Sterling and the Australian
Dollar. Changes in the value of these currencies relative to the U.S. Dollar are
charged or credited to stockholders' equity. The effect of exchange rate changes
during the year ended December 31, 2000 increased the U.S. Dollar amount of cash
and cash equivalents by $274.

MARKET RISK

    SYNAVANT's primary market risk is the impact of foreign exchange
fluctuations on non-functional currency assets and liabilities.

    SYNAVANT engages in limited hedging arrangements to protect against currency
fluctuations for specific transactions it intends to convert to U.S. Dollars.

    It is the Company's policy to enter into foreign currency transactions only
to the extent necessary to meet its objectives as stated above. Foreign currency
transactions are not entered into for investment or speculative purposes.

    The fair value of SYNAVANT's hedging instruments was $0 at December 31,
2000. While SYNAVANT was a part of IMS HEALTH, SYNAVANT engaged in hedging. The
fair value of IMS HEALTH's hedging instruments related to SYNAVANT was $4,800 at
December 31, 1999. Prior to the spin, the Company assessed its market risk based
on changes in foreign exchange rates utilizing a sensitivity analysis. The
sensitivity analysis measured the potential loss in fair values based on a
hypothetical 10% change in currency rates. The potential loss in fair value for
foreign exchange rate-sensitive instruments, all of which were forward foreign
currency contracts, based on a hypothetical 10% decrease in the value of the
U.S. Dollar or, in the case of nondollar-related instruments, the currency being
purchased, was $221 at December 31, 1999. The estimated fair values of the
foreign exchange risk management contracts were determined based on quoted
market prices.

                                       30
<PAGE>
ITEM 8.  FINANCIAL STATEMENTS AND SUPPLEMENTAL DATA

                                 SYNAVANT INC.
                         INDEX TO FINANCIAL STATEMENTS

<TABLE>
<CAPTION>
                                                                PAGE
                                                              --------
<S>                                                           <C>
Report of PricewaterhouseCoopers LLP, Independent Public
  Accountants...............................................     32

Consolidated Balance Sheets.................................     33

Consolidated Statements of Operations.......................     34

Consolidated Statements of Cash Flows.......................     35

Consolidated Statements of Stockholders Equity..............     36

Notes to Consolidated Financial Statements..................     37
</TABLE>

                                       31
<PAGE>
                    REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS

To The Board of Directors of SYNAVANT Inc.:

    In our opinion, the consolidated balance sheets and the related consolidated
statements of operations, changes in stockholders' equity and cash flows present
fairly, in all material respects, the financial position of SYNAVANT Inc. (the
"Company") at December 31, 2000 and 1999, and the results of its operations and
its cash flows for the years ended December 31, 2000 and 1999 and November 30,
1998 and for the month ended December 31, 1998 in conformity with accounting
principles generally accepted in the United States of America. In addition, in
our opinion, the financial statement schedule listed in the index appearing
under Item 14(b) presents fairly, in all material respects, the information set
forth therein when read in conjunction with the related consolidated financial
statements. These financial statements and financial statement schedule are the
responsibility of the Company's management; our responsibility is to express an
opinion on these financial statements and financial statement schedule based on
our audits. We conducted our audits of these statements in accordance with
auditing standards generally accepted in the United States of America, which
require that we plan and perform the audit to obtain reasonable assurance about
whether the financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements, assessing the accounting principles
used and significant estimates made by management, and evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.

PricewaterhouseCoopers LLP
Atlanta, Georgia
February 26, 2001

                                       32
<PAGE>
                                 SYNAVANT INC.

                          CONSOLIDATED BALANCE SHEETS

          DOLLAR AMOUNTS IN THOUSANDS, EXCEPT SHARE AND PER SHARE DATA

<TABLE>
<CAPTION>
                                                              DECEMBER 31,   DECEMBER 31,
                                                                  2000           1999
                                                              ------------   ------------
<S>                                                           <C>            <C>
                                         ASSETS:
CURRENT ASSETS:
  Cash and cash equivalents.................................    $ 19,768       $  3,464
  Accounts receivable--net..................................      44,376         46,124
  Other receivables.........................................       2,467            467
  Other current assets......................................       6,008          3,664
                                                                --------       --------
TOTAL CURRENT ASSETS........................................      72,619         53,719
                                                                --------       --------
  Property, plant and equipment--net........................      13,633         15,633
  Computer software--net....................................      13,030         30,429
  Goodwill--net.............................................      52,891        167,363
  Long term notes receivable................................       2,500             --
  Other assets..............................................       1,826          1,155
                                                                --------       --------
TOTAL LONG TERM ASSETS......................................      83,880        214,580
                                                                --------       --------
TOTAL ASSETS................................................    $156,499       $268,299
                                                                ========       ========
                          LIABILITIES AND STOCKHOLDERS' EQUITY:
CURRENT LIABILITIES:
  Accounts payable..........................................    $ 11,580       $  8,596
  Accrued and other current liabilities.....................      15,852         18,913
  Accrued income taxes......................................       3,970          4,158
  Deferred revenue..........................................      13,182          6,202
                                                                --------       --------
TOTAL CURRENT LIABILITIES...................................      44,584         37,869
                                                                --------       --------
  Deferred taxes............................................         428          7,986
  Accrued contingent liability due to former parent.........       9,000             --
  Other liabilities.........................................         282            910
                                                                --------       --------
TOTAL LIABILITIES...........................................      54,294         46,765
                                                                --------       --------
  Commitments and contingencies
  Minority interest.........................................         613            690

STOCKHOLDERS' EQUITY:
  Divisional equity.........................................          --        221,800
  Common stock, par value $.01, authorized 41,000,000
    shares; 14,861,599 shares outstanding at December 31,
    2000....................................................         148             --
  Additional paid-in-capital................................     112,751             --
  Retained deficit..........................................      (9,674)            --
  Accumulated other comprehensive income (loss).............      (1,633)          (956)
                                                                --------       --------
TOTAL STOCKHOLDERS' EQUITY..................................     101,592        220,844
                                                                --------       --------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY..................    $156,499       $268,299
                                                                ========       ========
</TABLE>

        See accompanying Notes to the Consolidated Financial Statements.

                                       33
<PAGE>
                                 SYNAVANT INC.

                     CONSOLIDATED STATEMENTS OF OPERATIONS

          DOLLAR AMOUNTS IN THOUSANDS, EXCEPT SHARE AND PER SHARE DATA

<TABLE>
<CAPTION>
                                                      YEARS ENDED              MONTH
                                              ---------------------------      ENDED        YEAR ENDED
                                              DECEMBER 31,   DECEMBER 31,   DECEMBER 31,   NOVEMBER 30,
                                                  2000           1999           1998           1998
                                              ------------   ------------   ------------   ------------
<S>                                           <C>            <C>            <C>            <C>
REVENUES
  Software fees.............................   $    7,746     $   12,628     $      206     $    8,556
  Software services.........................       87,474         91,308          7,280         68,332
  Interactive marketing.....................       86,219         96,621          6,163         72,117
                                               ----------     ----------     ----------     ----------
TOTAL REVENUES..............................      181,439        200,557         13,649        149,005
                                               ----------     ----------     ----------     ----------
OPERATING COSTS
  Software fees.............................        8,766          3,107            182          3,695
  Software services.........................       61,122         39,258          4,394         28,708
  Interactive marketing.....................       72,879         79,304          5,635         63,988
                                               ----------     ----------     ----------     ----------
TOTAL OPERATING COSTS.......................      142,767        121,669         10,211         96,391
                                               ----------     ----------     ----------     ----------
Research and development....................       12,556         13,173          1,587          6,791
Selling and administrative expenses.........       32,667         33,570          2,371         32,364
Depreciation and amortization...............      135,041         25,826          1,977         14,068
Year 2000 costs.............................           --          2,769             --             --
Acquired in process research and
  development...............................           --             --             --         21,900
Spin related costs..........................        2,161             --             --             --
                                               ----------     ----------     ----------     ----------
OPERATING INCOME (LOSS).....................     (143,753)         3,550         (2,497)       (22,509)
                                               ----------     ----------     ----------     ----------
Other income (expense) net..................       (1,305)          (270)          (122)           572
                                               ----------     ----------     ----------     ----------
INCOME (LOSS) BEFORE PROVISION FOR INCOME
  TAXES.....................................     (145,058)         3,280         (2,619)       (21,937)
                                               ----------     ----------     ----------     ----------
Income tax (provision) benefit..............        6,410         (6,472)         1,204         (3,280)
                                               ----------     ----------     ----------     ----------
NET LOSS....................................   $ (138,648)    $   (3,192)    $   (1,415)    $  (25,217)
                                               ==========     ==========     ==========     ==========
Net loss per share of common stock: basic
  and diluted...............................   $    (9.32)    $    (0.20)    $    (0.09)    $    (1.55)
Weighted average shares outstanding: basic
  and diluted...............................   14,875,675     15,599,650     15,570,500     16,287,950
</TABLE>

        See accompanying Notes to the Consolidated Financial Statements.

                                       34
<PAGE>
                                 SYNAVANT INC.

                     CONSOLIDATED STATEMENTS OF CASH FLOWS

                          DOLLAR AMOUNTS IN THOUSANDS

<TABLE>
<CAPTION>
                                                                 YEARS ENDED              MONTH
                                                         ---------------------------      ENDED        YEAR ENDED
                                                         DECEMBER 31,   DECEMBER 31,   DECEMBER 31,   NOVEMBER 30,
                                                             2000           1999           1998           1998
                                                         ------------   ------------   ------------   ------------
<S>                                                      <C>            <C>            <C>            <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
    Net Loss...........................................   $(138,648)      $ (3,192)      $(1,415)       $(25,217)
Adjustments to reconcile net loss to net cash provided
  by operating activities:
    Depreciation and amortization......................     135,041         25,826         1,977          14,068
    Amortization of capitalized computer software......       7,364          2,014           177           2,411
    Deferred income taxes..............................      (6,148)          (870)         (217)           (491)
    Write-off of acquired in-process research and
      development......................................          --             --            --          21,900
Changes in operating assets and liabilities:
    Accounts receivable................................       1,599          4,031        (3,598)         (2,467)
    Accounts payable...................................       2,904            266          (594)         (6,425)
    Accrued and other liabilities......................      (1,139)        (5,484)           29           8,358
    Accrued income taxes...............................         174            512          (103)          3,394
    Deferred revenue...................................       7,013        (12,920)        9,529            (778)
    Other..............................................      (1,948)          (161)         (527)             11
                                                          ---------       --------       -------        --------
NET CASH PROVIDED BY OPERATING ACTIVITIES..............       6,212         10,022         5,258          14,764
                                                          ---------       --------       -------        --------
CASH FLOWS FROM INVESTING ACTIVITIES:
    Capital expenditures...............................      (4,240)        (5,371)         (278)         (2,894)
    Additions to computer software.....................      (6,496)        (6,130)         (128)         (2,467)
    Payments for acquisition of business, net of cash
      Acquired.........................................          --           (312)       (4,000)             --
    Acquisition and integration payments...............          --         (4,123)           --         (12,066)
    Other..............................................       1,141            174            50            (296)
                                                          ---------       --------       -------        --------
NET CASH USED IN INVESTING ACTIVITIES..................      (9,595)       (15,762)       (4,356)        (17,723)
                                                          ---------       --------       -------        --------
CASH FLOWS FROM FINANCING ACTIVITIES:
    Payments under leasing obligations.................        (660)          (578)         (151)         (1,305)
    Proceeds from issuance to Stock Purchase Plan......         128             --            --              --
    Net transfers from/(to) IMS HEALTH.................      19,945          7,433        (1,156)          6,544
                                                          ---------       --------       -------        --------
NET CASH PROVIDED BY / (USED IN) FINANCING
  ACTIVITIES...........................................      19,413          6,855        (1,307)          5,239
                                                          ---------       --------       -------        --------
    Effect of exchange rate changes on cash and cash
      equivalents......................................         274            (57)          (15)             86
    Increase in cash and cash equivalents..............      16,304          1,058          (420)          2,366
    Cash and cash equivalents, beginning of period.....       3,464          2,406         2,826             460
                                                          ---------       --------       -------        --------
    Cash and cash equivalents, end of period...........   $  19,768       $  3,464       $ 2,406        $  2,826
                                                          =========       ========       =======        ========
</TABLE>

Supplemental disclosure of cash flow information:

    Excluded from the 2000 Consolidated Statements of Cash Flows are certain
    non-cash asset and liability transfers in accordance with the distribution
    agreement totaling approximately $15,341 which are recorded in Additional
    paid-in capital (SEE Note 14).

    Non-cash investing activities in 1999 include the acquisition of Walsh
    International, Inc. for Cognizant common stock and options (SEE Note 3 to
    the Consolidated Financial Statements).

    Cash payments for foreign, state and local income taxes were $4,289, $4,725,
    and $300 for the years ended December 31, 2000 and 1999 and November 30,
    1998, respectively.

        See accompanying Notes to the Consolidated Financial Statements.

                                       35
<PAGE>
                                 SYNAVANT INC.

           CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY

                          DOLLAR AMOUNTS IN THOUSANDS

<TABLE>
<CAPTION>
                                                     COMMON STOCK
                                                 --------------------   ADDITIONAL              ACCUMULATED OTHER       TOTAL
                                    DIVISIONAL   NUMBER OF               PAID IN     RETAINED     COMPREHENSIVE     STOCKHOLDERS'
                                      EQUITY      SHARES      AMOUNT     CAPITAL     DEFICIT      INCOME (LOSS)        EQUITY
                                    ----------   ---------   --------   ----------   --------   -----------------   -------------
<S>                                 <C>          <C>         <C>        <C>          <C>        <C>                 <C>
BALANCE, NOVEMBER 30, 1997........  $  62,134         --       $ --      $     --    $    --         $    26          $  62,160

Net loss..........................    (25,217)                                                                          (25,217)
Cognizant equity issued for
  acquisition.....................    176,669                                                                           176,669
Net transfer from IMS HEALTH......      6,544                                                                             6,544
Effect of foreign currency
  translation.....................                                                                       368                368
                                    ---------     ------       ----      --------    -------         -------          ---------
BALANCE, NOVEMBER 30, 1998........    220,130         --         --            --         --             394            220,524

Net loss..........................     (1,415)                                                                           (1,415)
Net transfer to IMS HEALTH........     (1,156)                                                                           (1,156)
Effect of foreign currency
  translation.....................                                                                       327                327
                                    ---------     ------       ----      --------    -------         -------          ---------
BALANCE, DECEMBER 31, 1998........    217,559         --         --            --         --             721            218,280

Net Loss..........................     (3,192)                                                                           (3,192)
Net Transfer from IMS HEALTH......      7,433                                                                             7,433
Effect of foreign currency
  translation.....................                                                                    (1,677)            (1,677)
                                    ---------     ------       ----      --------    -------         -------          ---------
BALANCE, DECEMBER 31, 1999........    221,800         --         --            --         --            (956)           220,844

Net transfer from IMS HEALTH......     19,945                                                                            19,945
Net loss prior to Spin............   (128,974)                                                                         (128,974)
Effect of Spin from IMS HEALTH....   (112,771)    14,832        148       112,623         --              --                 --
Effect of foreign currency
  translation.....................                                                                     1,260              1,260
Unrealized loss on securities
  available for sale..............                                                                    (1,937)            (1,937)
Issuance of common stock to Stock
  Purchase Plan...................                    30         --           128                                           128
Net Loss subsequent to Spin.......                                                    (9,674)                            (9,674)
                                    ---------     ------       ----      --------    -------         -------          ---------
BALANCE, DECEMBER 31, 2000........  $      --     14,862       $148      $112,751    $(9,674)        $(1,633)         $ 101,592
                                    =========     ======       ====      ========    =======         =======          =========
</TABLE>

        See accompanying Notes to the Consolidated Financial Statements.

                                       36
<PAGE>
                                 SYNAVANT INC.

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                 (DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA)

NOTE 1.  ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

    ORGANIZATION.  On August 31, 2000, IMS HEALTH INCORPORATED ("IMS HEALTH")
completed the spin off of SYNAVANT Inc. ("SYNAVANT" or the "Company") to its
stockholders (the "Distribution" or "Spin"). As a result of the Spin, SYNAVANT
became a separate legal entity. SYNAVANT serves the pharmaceutical industry by
developing and selling pharmaceutical relationship management solutions that
support sales and marketing decision-making and program implementation. The
SYNAVANT business is composed of the pharmaceutical industry automated sales and
marketing support business of the former IMS HEALTH Strategic
Technologies, Inc., certain other former foreign subsidiaries of IMS HEALTH;
substantially all of IMS HEALTH's former interactive and direct marketing
businesses, including the business of Clark-O'Neill, Inc. ("Clark O'Neill"); and
Permail Pty., Ltd. ("Permail"), in which SYNAVANT owns 51%. These businesses
prior to the Spin were managed by IMS HEALTH and reported within IMS HEALTH's
consolidated financial statements. In connection with the Spin, the Company and
IMS HEALTH entered into a Distribution Agreement dated August 31, 2000 which
described certain matters related to the transaction (SEE Note 14).

    The Company operated as a business unit of IMS HEALTH through the eight
months ended August 31, 2000, the year ended December 31, 1999, the one month
ended December 31, 1998 and the year ended November 30, 1998 ("Respective
Periods"). The financial statements during the Respective Periods have been
prepared using IMS HEALTH's historical basis in the assets and liabilities and
historical results of operations related to the Company's business, which were
all under the common control of IMS HEALTH. The financial statements generally
reflect the financial position, results of operations, and cash flows of the
Company as if it were a separate entity for all periods presented.

    The financial statements include allocations of certain IMS HEALTH corporate
and other expenses (including cash management, legal, accounting, tax, employee
benefits, insurance services, data services and other corporate overhead)
relating to the Company's business for the Respective Periods. Management
believes the methods used to allocate these costs are reasonable. The financial
statements exclude allocations of revenues and costs for related party
transactions with IMS HEALTH as it relates to the licensing of data, except for
the periods post Spin which include costs consistent with agreements executed in
connection with the Spin. The financial information for the Respective Periods
included herein may not necessarily reflect the financial position, results of
operations, and cash flows of the Company in the future or what they would have
been if the Company had been a separate entity during the periods presented.

    RECLASSIFICATIONS.  Certain prior period amounts have been reclassified to
conform with current year-end presentation.

    CONSOLIDATION.  The consolidated financial statements of the Company include
the accounts of the Company, after elimination of all material intercompany
accounts and transactions within the SYNAVANT consolidated group.

    CASH AND CASH EQUIVALENTS.  The Company considers all highly liquid
investments with a maturity of 90 days or less at the time of purchase to be
cash equivalents.

    PROPERTY AND EQUIPMENT.  Buildings and equipment are depreciated over their
estimated useful lives of 40 and 3 to 5 years, respectively, using the
straight-line method. Leasehold improvements are amortized on a straight-line
basis over the shorter of the term of the lease or the estimated useful life

                                       37
<PAGE>
                                 SYNAVANT INC.

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

                 (DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA)

NOTE 1.  ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
of the improvement. Maintenance and repairs are charged to expense as incurred.
Upon retirement or sale, the costs of the assets disposed and the related
accumulated depreciation are removed from the accounts and any resulting gain or
loss is included in the determination of operating results.

    COMPUTER SOFTWARE.  Direct costs incurred in the development of computer
software are capitalized in accordance with Statement of Financial Accounting
Standards ("SFAS") No. 86, "Accounting for the Costs of Computer Software to be
Sold, Leased or Otherwise Marketed". Research and development costs incurred to
establish technological feasibility of a computer software product are expensed
in the periods in which they are incurred and are included in Research and
Development in the consolidated Statements of Operations. Research and
development expense totaled $12,556, $13,173, and $6,791 for the years ended
December 31, 2000 and 1999 and November 30, 1998, respectively. Capitalization
ceases and amortization starts when the product is available for general release
to customers. Computer Software costs for developed software are being
amortized, on a product-by-product basis, over three years. Annual amortization
is equal to capitalized computer software costs times the greater of (a) the
ratio of a product's current gross revenues to the total of current and expected
gross revenues or (b) one-third.

    GOODWILL.  Goodwill represents the excess of purchase price over the fair
value of identifiable net assets of businesses acquired and is amortized on a
straight-line basis over five years (subsequent to the Spin). Prior to the Spin,
Goodwill was being amortized over 5 to 40 years (SEE Note 2). At each balance
sheet date, the Company reviews the recoverability of goodwill, not identified
with impaired long-lived assets, based on estimated undiscounted future cash
flows from operating activities compared with the carrying value of goodwill and
recognizes any impairment on the basis of such comparison. The impairment loss,
if applicable, is then calculated based on the sum of the discounted cash flows
compared to the carrying value. The recognition and measurement of goodwill
impairment is assessed at the business unit level or on an enterprise-wide
basis, as applicable.

    OTHER LONG-LIVED ASSETS.  In accordance with the provisions of SFAS
No. 121, "Accounting for the Impairment of Long-Lived Assets and for Long-Lived
Assets to Be Disposed of", the Company reviews long-lived assets and certain
identifiable intangibles held and used for impairment whenever events or changes
in circumstances indicate that the carrying amount of an asset may not be
recoverable. In general, this statement requires recognition of an impairment
loss when the sum of undiscounted expected future cash flow is less than the
carrying amount of such assets. The impairment loss, if applicable, is then
calculated based on the sum of the discounted cash flows compared to the
carrying value. Accordingly, the Company recognizes impairment losses on
long-lived assets as a result of its review.

    REVENUE RECOGNITION.  The Company recognizes software license fee revenue in
accordance with AICPA Statement of Position No. 97-2 "Software Revenue
Recognition" ("SOP 97-2"). The Company generally sells its software licenses
under multiple element arrangements together with services. These arrangements
include instances where services are essential to the functionality of the
software and instances where they are not. In cases where services to be
provided are not essential to the functionality of the software, the Company has
sufficient vendor specific objective evidence of fair value ("VSOE") of the
elements to recognize the revenue separately. The Company has determined the

                                       38
<PAGE>
                                 SYNAVANT INC.

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

                 (DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA)

NOTE 1.  ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
VSOE of its software license fee based on the consistent per user license fee
charged to its customers. The VSOE of the software service element is based on
the price of the software services when sold separately. The Company accounts
for the maintenance and support element separately using VSOE, which is
determined based on the customer renewal fees for such services. The Company
recognizes the software license fees under this type of arrangement upon
delivery. Additionally, software license revenue is recognized upon delivery
when a customer purchases additional licenses and the Company's system has been
installed at the customer's site. The Company does not recognize any license
fees unless the product has been delivered, persuasive evidence of an
arrangement exists, the license fee amount is fixed and determinable and
collectability is probable. Where services are considered essential to the
functionality of the software, the Company recognizes software license fee and
services revenue over the service period using the percentage of completion
method based on labor inputs. The service period commences subsequent to
execution of a license agreement and ends when the product configuration is
complete and implemented in the field. Costs of software license fees consist
primarily of amortization of development costs capitalized under SFAS No. 86 and
third-party royalties.

    Revenues from software services, maintenance and other services including
the Pharbase(SM) products, are recognized as the services are performed. The
Company provides certain consulting and post-implementation customization
services which are under short-term arrangements. Revenues related to fixed fee
consulting arrangements are recognized as the service is performed using the
percentage of completion method of accounting based on labor input measures. The
Company's customers typically purchase maintenance and support services
concurrently with software. Revenues from customer maintenance, support
services, and data server rental agreements are recognized on a straight-line
basis over the term of the agreement. In the event that hardware is part of the
customer solution, the Company configures the hardware by installing its
applications and recognizes the related hardware revenue and costs upon delivery
to the customer. Hardware amounts are not significant and are included in
software services costs. The Company also sells certain software under term
license arrangements (primarily outside the U.S.) combined with post contract
support and related data server/ network management and other services. The
Company recognizes all fees for these arrangements ratably over the term of the
agreement, typically three years with annual renewal provisions. Revenue
recognized under these arrangements does not exceed amounts billed and due
within one year. Costs of software services, maintenance and other services
consists primarily of salaries, benefits and allocated overhead costs related to
implementation, technical support, development, training, and customer support
personnel.

    Revenue from interactive marketing services is recognized on delivery of the
product or when the services are rendered. In connection with the Company's
interactive marketing services, the Company recognizes postage, handling and
other direct third party costs charged separately to its customers as revenue
with the related expenses included in operating costs in the accompanying
financial statements. Interactive marketing revenues and operating costs include
revenue and costs from postage, handling and other third party costs totaling
$25,310, $28,030, and $21,918 for the years ended December 31, 2000 and 1999,
and November 30, 1998, respectively.

    Deferred revenues arise primarily as a result of annual billings of software
maintenance fees at the beginning of maintenance terms and billings of software
license fees in accordance with contractual

                                       39
<PAGE>
                                 SYNAVANT INC.

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

                 (DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA)

NOTE 1.  ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
terms that may not correlate directly with the delivery of software, products or
services. The amount of deferred revenue will increase and decrease based on the
timing of billings and related recognition of software license revenues.
Unbilled accounts receivable arise as a result of revenues earned under
contractual arrangements for products delivered prior to the related billings to
the customer. The Company generally bills the customer for these amounts within
90 days.

    FOREIGN CURRENCY TRANSLATION.  The Company has significant operations in
non-U.S. countries. Therefore, changes in the value of foreign currencies affect
the Company's combined financial statements when translated into U.S. Dollars.

    For all operations outside the United States where the Company has
designated the local currency as the functional currency, assets and liabilities
are translated using end-of-period exchange rates; revenues and expenses are
translated using average rates of exchanges. For these countries, currency
translation adjustments are accumulated in a separate component of stockholders
equity, whereas realized transaction gains and losses are recognized in other
income (expense)--net. For operations in countries that are considered to be
highly inflationary, or where the U.S. Dollar is designated as the functional
currency, monetary assets and liabilities are translated using end-of-period
exchange rates, whereas non-monetary accounts are translated using historical
exchange rates, and all translation and transaction adjustments are recognized
in other (expense)--net.

    INCOME TAXES.  The results of the Company have been included in the
consolidated Federal and certain state and non-U.S. income tax returns of IMS
HEALTH and Cognizant for the Respective Periods. The provision for income taxes
in the Company's consolidated financial statements has been determined as if
SYNAVANT was a separate company during the Respective Periods. Income taxes
deemed paid on behalf of the Company by IMS HEALTH and Cognizant for the
Respective Periods are included in Divisional Equity. Effective after the
Distribution, the Company now files separate income tax returns.

    Income taxes are provided using the asset and liability method in accordance
with SFAS No. 109, "Accounting for Income Taxes". Deferred tax assets and
liabilities are recognized based on the estimated realizable differences between
the book and tax bases of assets and liabilities using presently enacted tax
rates. The provision for income taxes is the sum of the amount of income tax
paid or payable for the year as determined by applying the provisions of enacted
tax laws to taxable income for that year and the net changes during the year in
the Company's deferred tax assets and liabilities.

    We have recorded valuation allowances of $8,196 as of December 31, 2000 and
$4,147 as of December 31, 1999 related to the Company's deferred tax assets
because we believe that it is unlikely that such assets will be realized,
however, ultimate realization could be impacted by market conditions or other
variables not known at this time. We will continue to assess the valuation
allowance and to the extent it is determined that such allowance is no longer
required, the tax benefit of the remaining net deferred tax asset may be
recognized in the future.

    DIVISIONAL EQUITY.  Divisional Equity includes historical loans and advances
to/from IMS HEALTH, including net transfers to/from IMS HEALTH, third-party
liabilities paid by IMS HEALTH on behalf of the Company and amounts due to/from
IMS HEALTH for services and other charges, periodic net

                                       40
<PAGE>
                                 SYNAVANT INC.

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

                 (DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA)

NOTE 1.  ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
income (loss) and foreign currency translation adjustments through the
Respective Periods up to the distribution date.

    ESTIMATES.  The preparation of financial statements in conformity with
generally accepted accounting principles requires management to make estimates
and assumptions that affect the reported amounts of assets, liabilities,
revenues and expenses and the disclosure of contingent assets and liabilities.
Actual results could differ from those estimates. Estimates are used for, but
not limited to, the accounting for: allowance for uncollectible accounts
receivable, depreciation and amortization periods, capitalized software costs,
employee benefit plans, income taxes, acquired in-process research and
development, purchase price allocations, and allocation of IMS HEALTH corporate
and other costs.

    EARNINGS PER SHARE.  Basic earnings per share are calculated by dividing net
income (loss) by the weighted average common shares of SYNAVANT. Diluted
earnings per share are calculated by dividing net income (loss) by dilutive
potential common shares and weighted average common shares of SYNAVANT. Dilutive
potential common shares are calculated in accordance with the treasury stock
method, which assumes that proceeds from the exercise of all SYNAVANT employee
options are used to repurchase SYNAVANT common stock at market value. The amount
of shares remaining after the proceeds are exhausted represent the potentially
dilutive effect of the options. Where the company has recorded a loss, dilutive
potential common shares are not included in the calculation of diluted loss as
to do so would be antidilutive.

    RECENTLY ISSUED ACCOUNTING STANDARDS.  In March 2000, the Financial
Accounting Standards Board issued Interpretation No. 44 "Accounting for Certain
Transactions Involving Stock Compensation, an interpretation of APB Opinion
No. 25" ("FIN No. 44"). The interpretation provides guidance for certain issues
relating to stock compensation, involving employees that arose in applying APB
Opinion 25. The provisions of FIN No. 44 are effective July 1, 2000. Adoption of
FIN No. 44 has not had an effect on the Company's consolidated financial
statements.

    In December 1999, the Securities and Exchange Commission ("SEC") issued
Staff Accounting Bulletin No. 101 "Revenue Recognition in Financial Statements"
("SAB No. 101"). SAB No. 101 summarizes certain of the SEC staff's views in
applying generally accepted accounting principles to revenue recognition in
financial statements. SAB No. 101 is effective in fiscal 2000. The adoption of
SAB No. 101 has not had a material impact on the Company's consolidated
financial statements.

    In June 1998, the Financial Accounting Standards Board ("FASB") issued SFAS
No. 133, "Accounting for Derivative Instruments and Hedging Activities." SFAS
No. 133 requires that all derivative instruments be recorded on the balance
sheet at their fair value. In July 1999, the FASB issued SFAS No. 137,
"Accounting for Derivative Instruments and Hedging Activities--Deferral of the
Effective Date of SFAS No. 133--an amendment of FASB Statement No. 133". Citing
concerns about companies' ability to modify their information systems in time to
apply SFAS No. 133, the FASB delayed its effective date for one year, to fiscal
years beginning after June 15, 2000 (January 1, 2001 for the Company).
Management does not believe that adoption of the statement will have a material
impact on the Company's consolidated financial statements.

                                       41
<PAGE>
                                 SYNAVANT INC.

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

                 (DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA)

NOTE 2.  SIEBEL ALLIANCE AND ASSET IMPAIRMENT

    On July 19, 2000, the Company announced a five-year strategic alliance (the
"Alliance") with Siebel Systems, Inc. ("Siebel"), a leading provider of
eBusiness application software, to develop, market, and sell an integrated
eBusiness software and service solution featuring Siebel ePharma, a
pharmaceutical version of Siebel eBusiness Applications, and the Company's
global implementation and support capabilities. Through the Alliance, the
Company will deliver eBusiness solutions to customers worldwide in the
pharmaceutical, biotechnology and healthcare industries.

    As part of the Alliance, SYNAVANT and Siebel entered into (1) a Value Added
Industry Remarketer Agreement (the "Reseller Agreement"), (2) a Siebel Alliance
Program Master Agreement (the "Alliance Agreement"), and (3) a license of
certain Siebel software for SYNAVANT's internal use. Pursuant to the Reseller
Agreement, Siebel appointed SYNAVANT as a non-exclusive distributor of certain
Siebel Licensed software. Under this arrangement, SYNAVANT has the right to
distribute and sublicense Siebel software products to companies in the life
sciences industry (pharmaceutical, biotechnology and healthcare) worldwide in
conjunction with SYNAVANT's own proprietary software and services. As part of
the arrangement, Siebel and SYNAVANT share in the sublicensing and maintenance
fees generated from the licensing of the Siebel software.

    Additionally, the Reseller Agreement limits the extent to which SYNAVANT may
independently develop, integrate, market, license or distribute products that
are directly competitive with those packaged and promoted by Siebel. SYNAVANT
may, however, continue to license and support its existing Cornerstone-TM- and
Premiere(SM) customers. The Company believes that the Alliance with Siebel
significantly alters the Company's product offerings and product development
opportunities in the future. The agreement between the Company and Siebel may be
terminated unilaterally by either party at the end of the 5-year term.

    Under the terms of the Alliance, SYNAVANT is contractually obligated to
discontinue the future enhancement and development of the Cornerstone-TM- and
Premiere(SM) products, but may continue to support users of these products under
current and future contracts. Management anticipates that these products will
eventually be phased out and replaced by a new generation of joint solution
offerings incorporating Siebel technology.

    As a result of this transaction and the Distribution, the Company believes
that a significant portion of its computer software (including acquired
technology) and enterprise-wide goodwill is not recoverable. The Company has
completed its assessments of the financial impact of the Siebel Alliance and the
Distribution with respect to determining the amount of the accelerated
amortization of capitalized software and the impairment of enterprise-wide
goodwill. The Company performed a net realizable value analysis to determine the
recoverability of its capitalized software assets (including acquired
technology). Based on this analysis, the Company recorded $14,553 of accelerated
amortization, in the period ended September 30, 2000 related to costs determined
to be unrecoverable. The analysis took into consideration the impact of the
Siebel Alliance and the Distribution on the in-process technology and core
technology resulting from the Walsh acquisition in 1998. As a result of the
Alliance, the remaining Walsh In-Process Research and Development project has
been discontinued and the core technology has been incorporated into the net
realizable value analysis. This non-cash charge of $14,553 is included in the
Consolidated Statements of Operations in Software Fee Operating Costs ($5,385)
and Depreciation and Amortization ($9,168) for the year ended December 31, 2000.
The Company will continue to amortize the remaining costs over the period of
expected benefit and will

                                       42
<PAGE>
                                 SYNAVANT INC.

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

                 (DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA)

NOTE 2.  SIEBEL ALLIANCE AND ASSET IMPAIRMENT (CONTINUED)
continue to assess the recoverability of its capitalized software in accordance
with its accounting policies. The remaining value of its Computer software
assets is being amortized over 3 years. Under its accounting policy for goodwill
impairment, the Company completed a discounted cash flow analysis on an
enterprise-wide basis, resulting in an impairment charge of $100,900 for the
year ended December 31, 2000. In addition, the Company has reduced its remaining
period of amortization of goodwill to 5 years, which represents its revised
estimated useful life and is also consistent with the remaining term of the
agreement with Siebel. The Company will continue to assess the recoverability of
its goodwill balance in accordance with its accounting policies.

NOTE 3.  ACQUISITIONS

WALSH INTERNATIONAL, INC.

    On June 24, 1998, Cognizant Corporation (the accounting predecessor company
to IMS HEALTH) ("Cognizant") acquired Walsh International, Inc. ("Walsh") for an
original purchase price of $193,748 consisting of $167,148 of Cognizant common
stock, $9,521 of Cognizant stock options and direct acquisition and integration
costs in the amount of $17,079. Walsh was contributed to the SYNAVANT business
by IMS HEALTH as part of the Distribution.

    Under the terms of the Walsh acquisition agreement, Walsh shareholders
received 6,454,600 shares of Cognizant common stock (on a post- 2 for 1 split
basis), issued from Cognizant treasury stock, for a total consideration of
approximately $167,148 based on a Cognizant share price of $25.896. The original
estimate of direct acquisition and integration costs of $17,079 consisted of
severance ($4,876), lease terminations ($2,569) and other direct acquisition and
integration costs ($9,634). These direct acquisition and integration costs were
incremental and were incurred as a direct result of the acquisition and the
formal plan to exit certain activities as part of the overall integration effort
(such as severance costs related to Walsh employees) and certain contractual
costs (such as Walsh leases that were to be terminated). Direct acquisition and
integration costs primarily include the professional fees of investment bankers,
attorneys and accountants, and change in control and other transaction-related
bonuses paid to Walsh personnel. At December 31, 1999, the program for
integrating Walsh had been completed. In completing the program, the Company
incurred higher-than-anticipated severance costs for Walsh employees, and
terminated acquired Walsh leases at a cost lower than originally anticipated. In
addition, a certain lease scheduled for termination was subsequently retained by
the Company. As a result, the remaining liability for direct acquisition and
integration costs, and goodwill were reduced by $890.

    The allocation of the Company's aggregate purchase price to the tangible and
identifiable intangible assets acquired and liabilities assumed in connection
with the acquisition was based primarily on estimates of fair values by an
independent appraisal firm.

    In connection with the Walsh acquisition, the Company allocated a portion of
the purchase price to acquired in-process research and development costs
("IPR&D") amounting to $21,900 in 1998 relating to three projects. At the date
of acquisition, the development of the IPR&D projects had not reached
technological feasibility and had no alternative future uses. Accordingly, these
costs were expensed as of the acquisition date. In accordance with the SEC
guidance issued in 1998 with respect to the allocation of purchase price to
IPR&D in connection with an acquisition, the amounts allocated

                                       43
<PAGE>
                                 SYNAVANT INC.

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

                 (DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA)

NOTE 3.  ACQUISITIONS (CONTINUED)
to IPR&D reflect the relative value and contribution of the acquired IPR&D.
Consideration was given to the projects' then stage of completion, the
complexity of the work completed to date, the difficulty of completing the
remaining development, the costs already incurred and the projected costs to
complete the projects. The Company completed two of the three IPR&D projects and
released the related products in 1999. The third project was discontinued in
connection with the Company's reprioritization of development activities in 2000
after the completion of the Siebel alliance.

    In addition, the Company allocated $29,000 to existing core technology,
representing software that, at the date of acquisition, was currently in use and
available for sale. The final purchase price allocation is summarized below:

<TABLE>
<S>                                                           <C>
IPR&D charge................................................  $ 21,900
Net liabilities assumed.....................................    (1,609)
Computer software...........................................    29,000
Deferred taxes..............................................    (8,700)
Goodwill....................................................   152,267
                                                              --------
Final Purchase Price........................................  $192,858
                                                              ========
</TABLE>

    The following unaudited pro forma financial information presents the
combined results of operations of the Company and Walsh as if the acquisition
had occurred as of the beginning of 1998, after giving effect to certain
adjustments, including amortization of goodwill and related income tax effects.
The pro forma financial information does not necessarily reflect the results of
operations that would have occurred had the entities constituted a single entity
and is exclusive of the IPR&D charge.

<TABLE>
<CAPTION>
                                                               YEAR ENDED
                                                              NOVEMBER 30,
                                                                  1998
                                                              ------------
                                                              (UNAUDITED)
<S>                                                           <C>
Revenues....................................................    $180,163
Net loss....................................................    $ (7,032)
</TABLE>

    As discussed in Note 2, the Company recorded impairment charges related to
its acquired computer software and goodwill amounts.

LOGIX, INC.

    In December 1998, the Company acquired Logix, Inc. ("Logix") for $4,312 in
cash. The acquisition was accounted for as a purchase. The Company allocated
$500 to existing core technology, which is being amortized on a straight-line
basis over three years and the remainder, $3,812, to goodwill, which is being
amortized over five years. The impact of the Logix acquisition on the results of
operations had the acquisition occurred on January 1, 1998 would not have been
material.

                                       44
<PAGE>
                                 SYNAVANT INC.

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

                 (DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA)

NOTE 4.  FINANCIAL INSTRUMENTS

FOREIGN EXCHANGE RISK MANAGEMENT

    The Company transacts business in many countries and is subject to risks
associated with changing foreign exchange rates. The Company's objective is to
reduce earnings and cash flow volatility associated with foreign exchange rate
changes to allow management to focus its attention on its core business
activities. During the Respective Periods, through IMS HEALTH, the Company
entered into various contracts which change in value as foreign exchange rates
change to protect the value of non-functional currency assets and liabilities.
IMS HEALTH allocated contracts to the Company relating to specific balance sheet
exposures at each balance sheet date during the Respective Periods. The
Company's policy is to maintain hedge coverage between minimum and maximum
percentages of its anticipated foreign exchange exposures over the subsequent
year. The gains and losses on these hedges offset changes in the value of the
related exposures. Total foreign exchange gains (losses), including gains
(losses) on these hedges, were $(884), ($161), and $596 for the years ended
December 31, 2000 and 1999, and November 30, 1998, respectively. Gains and
losses on contracts hedging non-functional currency assets and liabilities are
included in operating results in other income (expense).

    It is the Company's policy to enter into foreign currency transactions only
to the extent necessary to meet its objectives as stated above. The Company does
not enter into foreign currency transactions for investment or speculative
purposes.

    The Company uses forward contracts to hedge non-functional currency assets
and liabilities. At December 31, 2000, the Company had $0 in foreign exchange
forward contracts. At December 31, 1999, the Company had approximately $4,800 in
foreign exchange forward contracts outstanding with various expiration dates
through January 2000 hedging non-functional currency assets and liabilities. The
estimated fair values of the foreign exchange risk management contracts were
determined based on quoted market prices.

FAIR VALUE OF FINANCIAL INSTRUMENTS

    At December 31, 2000, the Company's financial instruments included cash,
cash equivalents, and accounts receivable. At December 31, 2000, the fair values
of cash, cash equivalents, and accounts receivable approximated carrying values
due to the short-term nature of these instruments.

CREDIT CONCENTRATIONS

    The Company continually monitors its positions with, and the credit quality
of, the financial institutions which are counterparties to its financial
instruments and does not anticipate non-performance by the counterparties. The
Company enters into transactions only with financial institution counterparties
which have a credit rating of A or better. In addition, the Company limits the
amounts of credit exposure with any one institution.

    The Company maintains accounts receivable balances principally from
customers in the pharmaceutical industry. Management believes the Company's
trade receivables do not represent significant concentrations of credit risk at
December 31, 2000 due to the high quality of its customers and their dispersion
across many geographic areas. These receivable balances are unsecured. The

                                       45
<PAGE>
                                 SYNAVANT INC.

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

                 (DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA)

NOTE 4.  FINANCIAL INSTRUMENTS (CONTINUED)
Company believes its allowance for uncollectible accounts is sufficient to
provide for any risk of credit losses.

NOTE 5.  EMPLOYEE BENEFIT PLANS

U.S. BENEFIT PLANS

    For the Respective Periods, certain domestic employees of SYNAVANT
participated in IMS HEALTH's defined benefit pension plan. The plan was a cash
balance pension plan under which 6% of creditable compensation plus interest was
credited to eligible employee's retirement accounts on a monthly basis. At the
time of retirement, the vested employee's account balance is actuarially
converted into an annuity. The Company accounted for the plan as a
multi-employer plan. The Company recorded pension expense related to its
employees participation in the IMS HEALTH plan, as allocated totaling $250,
$490, and $420, for the period ended August 31, 2000, the years ended
December 31, 1999 and November 30, 1998, respectively.

    In addition, certain U.S. based employees of the Company were eligible to
participate in IMS HEALTH's various healthcare and life insurance plans for
retired employees. Employees based in the United States become eligible for
benefits or participation under these plans if they work for the Company for
10 years after attaining age 45. The Company accounted for the plans as
multi-employer plans. Accordingly, the cost of the post-retirement benefit plans
as allocated by IMS HEALTH during the period ended August 31, 2000, and the
years ended December 31, 1999 and November 30, 1998 were $156, $247 and $215,
respectively. These plans have provided healthcare and life insurance coverage
to the SYNAVANT employees up through the Distribution whereafter SYNAVANT has
provided similar coverage.

    Substantially all U.S. based employees were eligible to participate in IMS
HEALTH-sponsored defined contribution plans during the Respective Periods. In
the plans, the sponsoring employer makes a matching contribution of up to 50% of
the employee's contribution based on specified limits of the employee's salary.
The Company's expense related to these plans was $472, $770 and $750, for the
period ended August 31, 2000 and the years ended December 31, 1999 and
November 30, 1998, respectively.

    Immediately following the Spin of the Company, employee participation in the
IMS HEALTH defined benefit plan, various healthcare and life insurance plans for
retired employees and the defined contribution plan were discontinued. The
Company formed the SYNAVANT 401(k) Retirement Savings Plan and various
healthcare and life insurance plans.

    In August 2000, the Company formed the SYNAVANT 401(k) Retirement Savings
Plan (401(k) Plan) in which eligible employees can participate. The Company
matches 50% of the first 6% of salary contributed by the participant. In
addition and at the discretion of the Company, SYNAVANT may also make a
contribution to the 401(k) Plan equal to 3% of the employee's annual
compensation. Also, for participants who meet certain other criteria, the
Company may make an additional contribution of 2% of the employee's annual
compensation. The Company provides retiree medical coverage to eligible
employees who were covered under the IMS HEALTH plans. The Company's
contribution on behalf of participating employees in the 401(k) Plan is $390 for
the year ended December 31, 2000.

                                       46
<PAGE>
                                 SYNAVANT INC.

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

                 (DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA)

NOTE 5.  EMPLOYEE BENEFIT PLANS (CONTINUED)
NON-U.S. BENEFIT PLANS

    The Company's foreign operations provide for retirement benefits in line
with local statutory requirements.

NOTE 6.  EMPLOYEE STOCK PLANS

    Prior to the Spin, the SYNAVANT employees participated in the IMS HEALTH
Stock Incentive Plans. At the time of the Spin, stock options held by SYNAVANT
employees were adjusted to reflect an equity interest in SYNAVANT. An adjustment
factor was applied to all existing IMS HEALTH stock options to preserve the
economic value of such options. A total of 3,573,789 IMS HEALTH stock options
were adjusted to reflect an equity interest in 7,352,518 options of SYNAVANT.
Additionally, 833,000 stock options were granted by SYNAVANT after the spin off
in fiscal year 2000.

    Some options granted under IMS HEALTH carried a prepayment provision whereby
optionees paid 10% of the exercise price, with the remaining payment due when
the options are exercised. On January 3, 2000, IMS HEALTH reduced the vesting
period on substantially all options previously granted with a six-year vesting
period to four years. As a result, 373,064 previously unvested options with
exercise prices ranging from $15.79 to $27.15 became vested.

    Immediately following the Spin of the Company, outstanding awards under the
IMS HEALTH Stock Incentive Plans and other option plans related to key employees
of the Company were cancelled and replaced by substitute awards under SYNAVANT
option plans. The terms of the new plans are similar to the IMS HEALTH plans.

SYNAVANT PLANS

    The Company has two stock incentive plans in which employees can
participate, (a) the Stock Incentive Plan; and (b) the Employee Stock Purchase
Plan.

STOCK INCENTIVE PLAN

    In August 2000, SYNAVANT adopted the 2000 Stock Incentive Plan ("SIP"). The
SIP provides for grants of stock options, stock appreciation rights, and other
stock-based awards, such as restricted stock and restricted stock units.
Shareholders have authorized the Company to grant up to 1,600,000 shares under
the Plan. As of December 31, 2000, 833,000 options have been granted and are
outstanding with 767,000 shares remaining available for future grants. Stock
options granted under the SIP were granted with an exercise price not less than
fair market value on the date of grant based on our closing stock price as
reported on the NASDAQ national securities exchange. Further, options expire
after 10 years from the date of grant, and generally vest pro rata over three
years.

    Restricted stock units may be granted to select executives under the SIP.
Restricted stock units are granted upon achievement of specific performance
goals and the fair market value of such restricted stock units is calculated at
the time of the grant and amortized over the vesting period of the award. The
Company has recognized compensation expense related to the issuance of
restricted stock units of $149, $185, and $58 for the years ended December 31,
2000 and 1999 and November 30, 1998, respectively.

                                       47
<PAGE>
                                 SYNAVANT INC.

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

                 (DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA)

NOTE 6.  EMPLOYEE STOCK PLANS (CONTINUED)
EMPLOYEE STOCK PURCHASE PLAN

    In August 2000, the Company adopted the 2000 SYNAVANT Incorporated Employee
Stock Purchase Plan ("ESPP"). The ESPP allows eligible employees to purchase a
limited amount of Company stock at the end of a three-month period at a fixed
price. Employees may contribute between 1% and 20% of their compensation, up to
a total of $25,000 per year. The purchase price is the lesser of 85% of fair
market value on (a) the first trading day of the offering period, or (b) the
last trading day of the offering period. Fair market value is defined as the
average of the high and low traded stock prices on the relevant day. Under the
ESPP, the Company sold 29,302 shares to employees in 2000.

    SFAS No. 123, "Accounting for Stock-Based Compensation", requires that
companies with stock-based compensation plans either recognize compensation
expense based on the fair value of options granted or continue to apply the
existing accounting rules and disclose pro forma net income and earnings per
share assuming the fair value method had been applied. The Company has chosen to
continue applying Accounting Principles Board Opinion No. 25 ("APB No. 25") and
related interpretations in accounting for its stock incentive plans. No
compensation cost has been recognized for the fixed stock option plans in 2000,
1999, and 1998, respectively. Had compensation cost for the SYNAVANT stock
incentive plans been determined based on the fair value at the grant dates for
awards under those plans, consistent with the method of SFAS No. 123, the
Company's net loss and loss per share would have been increased to the pro forma
amounts indicated below:

<TABLE>
<CAPTION>
                                                                         YEARS ENDED
                                                          ------------------------------------------
                                                          DECEMBER 31,   DECEMBER 31,   NOVEMBER 30,
                                                              2000           1999           1998
                                                          ------------   ------------   ------------
<S>                                                       <C>            <C>            <C>
Net Loss:
  As reported...........................................    $(138,648)      $(3,192)      $(25,217)
  Pro forma.............................................    $(150,720)      $(7,476)      $(26,797)
Loss Per Share--Basic and Diluted:
  As reported...........................................    $   (9.32)      $ (0.20)      $  (1.55)
  Pro forma.............................................    $  (10.13)      $ (0.48)      $  (1.65)
</TABLE>

    The impact of the change in vesting mentioned above accelerated the pro
forma fair value charge for previously vested options reflected in the pro forma
EPS disclosures required by SFAS No. 123, thereby significantly increasing the
2000 pro forma SFAS No. 123 earnings charge when compared to the actual reported
amount in prior periods. Under APB No. 25, there is no charge to the
Consolidated Statement of Operations for this change.

    The fair value of the IMS HEALTH stock options used to compute pro forma net
income and earnings per share disclosures is the estimated present value at
grant date using the Black-Scholes option pricing model. The following
weighted-average assumptions were used for options issued subsequent to
August 31, 2000: dividend yield of 0.0%; expected volatility of 65%; a risk-free
interest rate of 5.8%; and an expected term of 3 years. The following
weighted-average assumptions were used for options issued from January 1 to
August 31, 2000; dividend yield 0.3%; expected volatility of 40%; a risk-free
interest rate of 5.9%; and an expected term of 3 years. The weighted-average
fair value (per stock option) of the SYNAVANT stock options granted in 2000
prior to the Spin is $20.56 and options granted subsequent to the spin is $5.52.
The following weighted-average assumptions were used for

                                       48
<PAGE>
                                 SYNAVANT INC.

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

                 (DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA)

NOTE 6.  EMPLOYEE STOCK PLANS (CONTINUED)
1999: dividend yield of 0.3%; expected volatility of 35%; a risk-free interest
rate of 4.8%; and an expected term of 3 years. The following weighted average
assumptions were used for 1998: dividend yield of 0.3%; expected volatility of
25%; a risk-free interest rate of 5.4%; and an expected term of 3.7 years. The
weighted average fair value (per stock option), of the SYNAVANT stock options
granted in the 1999 and 1998 are $9.68 and $8.55, respectively. The assumptions
used for the periods prior to the Spin are based on circumstances and factors
associated with IMS HEALTH, particularly expected volatility. They may not be
indicative of those which SYNAVANT may have as an independent company.

    At December 31, 2000, outstanding options for SYNAVANT common stock held by
Company employees, totaled 7,989,165, of which 3,301,824 had vested and were
exercisable. The option exercise prices range from $4.44 to $15.14 per SYNAVANT
share and are exercisable over periods ending no later than 2010. At
December 31, 1999, outstanding options for IMS HEALTH common stock held by
Company employees, including the substitute awards mentioned above, totaled
3,532,448, of which 1,024,226 had vested and were exercisable. The option
exercise prices range from $9.89 to $31.15 per IMS HEALTH share and are
exercisable over periods ending no later than 2009. At December 31, 1998,
outstanding options for IMS HEALTH common stock (pre-Gartner conversion) held by
Company employees totaled 3,232,712, of which 1,009,450 had vested and were
exercisable. The option exercise prices ranged from $3.69 to $34.25 per IMS
HEALTH share. Unless otherwise noted, the disclosure above and described in the
tables below are reflected as IMS HEALTH shares and have not been restated to
reflect the 1 for 20 distribution ratio.

                                       49
<PAGE>
                                 SYNAVANT INC.

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

                 (DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA)

NOTE 6.  EMPLOYEE STOCK PLANS (CONTINUED)
    Option activity related to Company employees follows:

<TABLE>
<CAPTION>
                                                              IMS HEALTH    WEIGHTED AVERAGE
                                                                SHARES       EXERCISE PRICE
                                                              -----------   ----------------
<S>                                                           <C>           <C>
IMS HEALTH Options Outstanding, December 31, 1997...........   1,949,436         $17.34
Conversion Adjustment.......................................    (169,866)            --
Granted (1).................................................   1,844,302         $23.84
Exercised...................................................    (271,948)        $16.73
Expired/Terminated..........................................    (119,212)        $29.91
                                                              ----------         ------

IMS HEALTH Options Outstanding, December 31, 1998...........   3,232,712         $21.55
Conversion Adjustment.......................................     473,932             --
Granted.....................................................   1,274,696         $33.58
Exercised...................................................    (330,485)        $15.18
Expired/Terminated..........................................  (1,118,407)        $24.72
                                                              ----------         ------

IMS HEALTH Options Outstanding, December 31, 1999...........   3,532,448         $22.59
Employees retained by IMS HEALTH............................    (922,283)            --
Granted.....................................................     987,700         $20.56
Exercised...................................................     (23,205)        $15.03
Expired/Terminated..........................................        (871)        $24.23
                                                              ----------         ------

IMS HEALTH Options Outstanding, August 31, 2000 (2).........   3,573,789         $22.31
Conversion Adjustment.......................................   3,778,729             --
Granted.....................................................     833,000         $ 5.52
                                                              ----------         ------
Exercised...................................................          --             --
Expired/Terminated..........................................    (196,353)        $ 9.92
                                                              ----------         ------

SYNAVANT Options Outstanding, December 31, 2000 (2).........   7,989,165         $10.26
                                                              ==========         ======
</TABLE>

------------------------

(1) Includes 1,292,024 options granted in connection with the Walsh acquisition
    (SEE Note 3).

(2) Option activity during the periods prior to the Spin as of August 31,
    reflect option activity of IMS HEALTH shares and have not been restated to
    reflect the 1 for 20 distribution ratio. This option activity was derived
    from IMS HEALTH's records.

                                       50
<PAGE>
                                 SYNAVANT INC.

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

                 (DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA)

NOTE 6.  EMPLOYEE STOCK PLANS (CONTINUED)

<TABLE>
<CAPTION>
                                                                                         WEIGHTED-AVERAGE
                                      DECEMBER 31, 2000                               OPTION EXERCISE PRICES
                               --------------------------------                      -------------------------
                                                      NUMBER         REMAINING
RANGE OF EXERCISE PRICES       NUMBER OUTSTANDING   EXERCISABLE   CONTRACTUAL LIFE   OUTSTANDING   EXERCISABLE
------------------------       ------------------   -----------   ----------------   -----------   -----------
<S>                            <C>                  <C>           <C>                <C>           <C>
$ 4.44 - $ 7.00..............        967,632           134,137        9.0 years        $ 5.57         $ 6.43
$ 7.01 - $10.00..............      2,356,075         2,133,175        6.2 years        $ 7.75         $ 7.71
$10.01 - $13.00..............      2,500,386           394,379        8.7 years        $10.48         $10.91
$13.01 - $15.14..............      2,165,072           640,133        8.0 years        $14.80         $14.62
                                   ---------         ---------                         ------         ------
Total........................      7,989,165         3,301,824                         $10.25         $ 9.38
                                   =========         =========
</TABLE>

NOTE 7.  INCOME TAXES

    Income (Loss) before provision for income taxes consisted of:

<TABLE>
<CAPTION>
                                                                2000        1999       1998
                                                              ---------   --------   --------
<S>                                                           <C>         <C>        <C>
U.S.........................................................  $(149,137)  $(14,475)  $(23,405)
Non-U.S.....................................................      4,079     17,755      1,468
                                                              ---------   --------   --------
                                                              $(145,058)  $  3,280   $(21,937)
                                                              =========   ========   ========
</TABLE>

    Income tax provision (benefit) for income taxes consisted of:

<TABLE>
<CAPTION>
                                                                2000        1999       1998
                                                              ---------   --------   --------
<S>                                                           <C>         <C>        <C>
U.S. Federal and State:
Current.....................................................  $  (3,596)  $ (2,036)  $  2,196
Deferred....................................................     (6,834)     1,576       (265)
                                                              ---------   --------   --------
                                                              $ (10,430)  $   (460)  $  1,931
                                                              ---------   --------   --------
Non-U.S.:
Current.....................................................  $   4,020   $  6,885   $  1,424
Deferred....................................................         --         47        (75)
                                                              ---------   --------   --------
                                                              $   4,020   $  6,932   $  1,349
                                                              ---------   --------   --------
Total.......................................................  $  (6,410)  $  6,472   $  3,280
                                                              =========   ========   ========
</TABLE>

                                       51
<PAGE>
                                 SYNAVANT INC.

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

                 (DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA)

NOTE 7.  INCOME TAXES (CONTINUED)

    The following table summarizes the significant differences between applying
the U.S. Federal statutory income tax rate to the Company's income (loss) before
provision for income taxes and the Company's reported provision for income
taxes.

<TABLE>
<CAPTION>
                                                                2000        1999       1998
                                                              ---------   --------   --------
<S>                                                           <C>         <C>        <C>
Tax provision applying the federal statutory rate...........  $ (50,770)  $  1,148   $ (7,678)
State and local income taxes, net of federal tax benefit....     (5,331)       (33)       192
Impact of non-U.S. tax rates and credits....................      1,538        294        835
Non-deductible IPR&D........................................         --         --      7,665
Non-deductible goodwill amortization........................     43,881      4,445      2,131
Other, net..................................................        223        195        135
U.S. valuation allowance....................................      1,436         --         --
Foreign valuation allowance.................................      2,613        423         --
                                                              ---------   --------   --------
Provision for income taxes..................................  $  (6,410)  $  6,472   $  3,280
                                                              =========   ========   ========
</TABLE>

    The Company's deferred tax assets (liabilities) are comprised of the
following:

<TABLE>
<CAPTION>
                                                                2000       1999
                                                              --------   --------
<S>                                                           <C>        <C>
Deferred Tax Assets:
  U.S. operating losses.....................................  $ 4,310    $    --
  Foreign operating losses..................................    6,710      4,147
  Accrued liabilities.......................................      287        876
  Depreciation..............................................      343        321
  Bad debt reserve..........................................      491        288
                                                              -------    -------
                                                               12,141      5,632
Valuation allowance on operating losses.....................   (8,196)    (4,147)
                                                              -------    -------
                                                                3,945      1,485
                                                              -------    -------
Deferred Tax Liabilities:
  Computer software.........................................   (3,867)    (9,325)
  Other.....................................................      (78)      (146)
                                                              -------    -------
                                                               (3,945)    (9,471)
                                                              -------    -------
Net deferred tax liability..................................  $    --    $(7,986)
                                                              =======    =======
</TABLE>

    The Company has established a valuation allowance attributable to deferred
tax assets, primarily net operating losses where, based on available evidence,
it is more likely than not that such assets will not be realized. If realized,
utilization of Walsh pre-acquisition net operating losses, in the amount of
approximately $2,400, will be reflected as a reduction of the associated
goodwill and not as a tax benefit in the Consolidated Statement of Operations.

    Undistributed earnings of non-U.S. subsidiaries aggregated approximately
$26,000 at December 31, 2000. Deferred tax liabilities have not been recognized
for these undistributed earnings because the Company considers these earnings to
be indefinitely reinvested. If such earnings are repatriated in the future, or
are no longer deemed to be indefinitely reinvested, applicable taxes will be
provided for such amounts. It is not currently practicable to determine the
amount of such taxes.

                                       52
<PAGE>
                                 SYNAVANT INC.

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

                 (DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA)

NOTE 8.  COMMITMENTS

    Certain of the Company's operations are conducted from leased facilities
under operating leases. Rental expense under real estate operating leases for
the years ended December 31, 2000 and 1999 and November 30, 1998 was $6,911,
$5,418, and $4,501, respectively. The minimum annual rental expense for real
estate operating leases that have initial or remaining noncancelable lease terms
in excess of one year, at December 31, 2000 was: 2001--$6,982; 2002--$5,943;
2003--$4,544; 2004--$4,100; 2005--$3,952; and an aggregate of $6,195 thereafter.

    The Company also leases or participates in leases of certain computer and
other equipment under operating leases. These leases are frequently renegotiated
or otherwise changed as advancements in computer technology produce
opportunities to lower costs and improve performance. Rental expense under
computer and other equipment leases was $1,600, $3,006, and $2,895 for the years
ended December 31, 2000 and 1999 and November 30, 1998, respectively. At
December 31, 2000, the minimum annual rental expense for computer and other
equipment under operating leases that have remaining noncancelable lease terms
in excess of one year was: 2001--$975; 2002--$629; 2003--$340; 2004--$182;
2005--$22; and $4 thereafter.

    On December 10, 1999, the Company sold its 49% interest in Permail Pty
Limited ("Permail") for its approximate net book value. Prior to this
transaction, the Company owned a 100% interest in Permail. Subsequent to the
transaction, the Company continues to maintain a majority voting interest and
control in Permail. Under the terms of the shareholders' deed entered into as
part of the sale, the Company and the minority interest holder are committed to
seek a buyer of Permail under certain circumstances in five years. This
commitment does not prohibit the Company from retaining its ownership stake in
Permail and buying the shares held by the minority shareholder. As of
December 31, 2000, Permail's net assets totaled $2,590 and revenues for the year
ended December 31, 2000 totaled $8,000.

NOTE 9.  RELATIONSHIPS WITH IMS HEALTH

    Prior to the Distribution, IMS HEALTH provided certain centralized services
to the Company. Expenses related to these services were allocated to the Company
based on utilization of specific services or, where not estimable, based on
revenue of the Company in proportion to IMS HEALTH's consolidated revenue.
Management believes these allocation methods are reasonable. These allocations
were $5,585, $8,378, and $5,332 for the Respective Periods, respectively, and
are included in operating costs and selling and administrative expenses in the
Combined Statements of Operations. Amounts due to IMS HEALTH for these allocated
expenses have been contributed by IMS HEALTH to the Company and are included in
Divisional Equity.

    As part of the Distribution SYNAVANT and IMS HEALTH entered into a Corporate
Services agreement whereby IMS HEALTH provides certain tax, treasury and
transaction processing services to the Company in exchange for a fee for such
services and which is reflected in the financial results of the Company in the
period following the Distribution.

    The Company contracts for information technology consulting services from
Cognizant Technology Solutions ("CTS"), a subsidiary of IMS HEALTH. Expense
recognized for services rendered by CTS was $2,785, $2,225, and $151 for the
years ended December 31, 2000 and 1999 and November 30, 1998, respectively.

                                       53
<PAGE>
                                 SYNAVANT INC.

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

                 (DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA)

NOTE 9.  RELATIONSHIPS WITH IMS HEALTH (CONTINUED)
    Net transfers to or from IMS HEALTH are included in Divisional Equity and
include advances and loans from affiliates, net cash transfers to or from IMS
HEALTH, third-party liabilities paid by IMS HEALTH on behalf of the Company,
amounts due to or from IMS HEALTH for services and other charges, and U.S.
income taxes paid on behalf of the Company by IMS HEALTH during the Respective
Periods. No interest cost was charged on these transactions or the net balance.

    The activity in the net transfers to IMS HEALTH account for all Respective
Periods presented in Divisional Equity in the Consolidated Statements of Changes
in Stockholders' Equity is summarized as follows:

<TABLE>
<CAPTION>
                                  PERIOD ENDED        YEAR ENDED          MONTH ENDED         YEAR ENDED
                                 AUGUST 31, 2000   DECEMBER 31, 1999   DECEMBER 31, 1998   NOVEMBER 30, 1998
                                 ---------------   -----------------   -----------------   -----------------
<S>                              <C>               <C>                 <C>                 <C>
IMS HEALTH Services and
  Other Charges................      $ 5,585            $ 8,378             $   434             $ 5,332
Loans and Advances--Net........           --              2,613                  58              (2,483)
U.S. Income Taxes..............       (3,596)               460                  --               1,931
Cash Transfers--Net............       17,956             (4,018)             (1,648)              1,764
                                     -------            -------             -------             -------
Net Transfers (to) / from
  IMS HEALTH...................      $19,945            $ 7,433             $(1,156)            $ 6,544
                                     =======            =======             =======             =======
</TABLE>

    The Company and IMS HEALTH share the use of certain information databases.
The databases Xponent (owned by IMS HEALTH) and Pharbase(SM) (owned by the
Company) contain information related to prescription drug trends and physicians,
respectively. The companies sell information from these databases to their
customers. Prior to the Distribution, the Company and IMS HEALTH have not
charged one another for the use of these databases. The Company and IMS HEALTH
have entered into an agreement as part of the Distribution whereby each of the
companies charge one another an annual negotiated fee for the use of the
databases. (SEE Note 14--The Distribution).

NOTE 10.  GOODWILL AND COMPUTER SOFTWARE:

<TABLE>
<CAPTION>
                                                              COMPUTER
                                                              SOFTWARE   GOODWILL
                                                              --------   ---------
<S>                                                           <C>        <C>
December 31, 1998...........................................  $ 32,460   $ 181,365
Additions at Cost...........................................     6,130          --
Acquisitions (See Note 3)...................................       500        (188)
Amortization................................................    (7,983)    (13,046)
Other deductions and reclassifications......................      (678)       (768)
                                                              --------   ---------
December 31, 1999...........................................  $ 30,429   $ 167,363
Additions at Cost...........................................     6,496          --
Aquisitions (See Note 3)....................................        --          --
Amortization................................................    (8,583)    (12,270)
Accelerated amortization and goodwill impairment (See
  Note2)....................................................   (14,553)   (100,900)
Other deductions and reclassifications......................      (759)     (1,302)
                                                              --------   ---------
December 31, 2000...........................................  $ 13,030   $  52,891
                                                              ========   =========
</TABLE>

                                       54
<PAGE>
                                 SYNAVANT INC.

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

                 (DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA)

NOTE 10.  GOODWILL AND COMPUTER SOFTWARE: (CONTINUED)
    Accumulated amortization of computer software was $51,420 and $27,525 at
December 31, 2000 and 1999, respectively. The amortization of internally
developed software has been recorded in the Consolidated Statement of Operations
within the cost of Software Fees (2000--$7,364; and 1999--$2,014), whereas
amortization of acquired softwares is included in Depreciation and Amortization
(2000--$15,752; 1999--$5,989).

    Accumulated amortization of goodwill was $149,007 and $34,535 at
December 31, 2000 and 1999, respectively. The goodwill impairment charge of
$100,900 is included within Depreciation and Amortization in the Consolidated
Statement of Operations.

NOTE 11.  CONTINGENCIES

    SYNAVANT has from time to time been involved in legal proceedings and
litigation arising in the ordinary course of business. In the opinion of
management, the outcome of all current proceedings, claims and litigation will
not materially affect SYNAVANT's consolidated financial position.

    In addition, the Company is subject to certain other contingencies discussed
below.

    In connection with the Distribution, SYNAVANT is jointly and severally
liable to other parties in connection with prior IMS HEALTH Distribution
Agreements for the liabilities relating to certain tax matters as well as a
legal matter as set forth below. Under the Distribution Agreement, IMS HEALTH
and SYNAVANT agreed that SYNAVANT would have a maximum liability of $9,000 for
these liabilities. Management believes it is probable that at least one of these
matters will have an unfavorable outcome and as a result the Company has
recorded a $9,000 liability associated with these matters as part of the
Distribution. If an unfavorable outcome occurs, the amount due up to $9,000 is
due and payable in 2003. Under the Distribution Agreement, SYNAVANT would be
liable for amounts in excess of $9,000, related to these contingent liabilities,
only to the extent that all of the parties involved do not have sufficient
combined assets to settle such contingencies.

DUN & BRADSTREET SPIN-OFF

    Under the terms of the distribution agreements relating to the 1996 spin-off
of IMS HEALTH's predecessor, Cognizant, from D&B and relating to the 1998
spin-off of IMS HEALTH from Cognizant, as a condition to the distribution, IMS
HEALTH and any company that it spins off, including SYNAVANT, are required to
undertake to be jointly and severally liable to D&B, A.C. Nielsen Company and
Cognizant for IMS HEALTH obligations under the 1996 Distribution Agreement and
the 1998 Distribution Agreement. In the event that SYNAVANT were obligated to
fund a substantial portion of such liabilities, it would have a material adverse
effect on SYNAVANT's financial condition and results of operations. Certain of
such liabilities are discussed below:

INFORMATION RESOURCES LITIGATION

    On July 29, 1996, Information Resources, Inc. ("IRI") filed a complaint in
the United States District Court for the Southern District of New York, naming
as defendants D&B, A.C. Nielsen and I.M.S. International Inc. (a predecessor of
IMS HEALTH) (the "IRI Action"). The complaint alleges various violations of the
United States antitrust laws, including alleged violations of Sections 1 and 2
of the Sherman Act. The complaint also alleges a claim of tortious interference
with a contract and a claim of tortious interference with a prospective business
relationship. These latter claims relate to the acquisition by defendants of
Survey Research Group Limited ("SRG"). IRI alleges that SRG violated

                                       55
<PAGE>
                                 SYNAVANT INC.

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

                 (DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA)

NOTE 11.  CONTINGENCIES (CONTINUED)
an alleged agreement with IRI when it agreed to be acquired by defendants and
that the defendants induced SRG to breach that agreement. IRI's complaint
alleges damages in excess of $350,000, which amount IRI has asked to be trebled
under the antitrust laws. IRI also seeks punitive damages in an unspecified
amount. On October 15, 1996, defendants moved for an order dismissing all claims
in the complaint. On May 6, 1997, the United States District Court for the
Southern District of New York issued a decision dismissing IRI's claim of
attempted monopolization in the United States, with leave to replead within
sixty days. The Court denied defendants' motion with respect to the remaining
claims in the complaint. On June 3, 1997, defendants filed an answer denying the
material allegations in IRI's complaint, and A.C. Nielsen Company filed a
counterclaim alleging that IRI has made false and misleading statements about
its services and commercial activities. On July 7, 1997, IRI filed an amended
and restated complaint repleading its alleged claim of attempted monopolization
in the United States and realleging its other claims. On August 18, 1997,
defendants moved for an order dismissing the amended claims. On December 1,
1997, the court denied the motion and, on December 16, 1997, defendants filed a
supplemental answer denying the remaining material allegations of the amended
complaint. On December 1, 1997, the court denied the motion and, on
December 16, 1997, defendants filed a supplemental answer denying the remaining
material allegations of the amended complaint. On December 22, 1999, defendants
filed a motion for partial summary judgment seeking to dismiss IRI's non-U.S.
antitrust claims. On July 12, 2000, the court granted the motion dismissing
claims of injury suffered from activities in foreign markets where IRI operated
through subsidiaries or companies owned by joint ventures or "relationships"
with local companies. Discovery is continuing in this matter.

    In light of the potentially significant liabilities which could arise from
the IRI Action and in order to facilitate the distribution by D&B of shares of
Cognizant and A.C. Nielsen Company in 1996 (the "1996 Spin-Off"), D&B, AC
Nielsen (the parent company of A.C. Nielsen Company) and Cognizant entered into
an Indemnity and Joint Defense Agreement pursuant to which they agreed (i) to
certain arrangements allocating liabilities that may arise out of or in
connection with the IRI Action, and (ii) to conduct a joint defense of such
action. In particular, the Indemnity and Joint Defense Agreement provides that
AC Nielsen will assume exclusive liability for liabilities up to a maximum
amount to be calculated at the time such liabilities, if any, become payable
(the "ACN Maximum Amount") and that Cognizant and D&B will share liability
equally for any amounts in excess of the ACN Maximum Amount. The ACN Maximum
Amount will be determined by an investment banking firm as the maximum amount
which AC Nielsen will be able to pay after giving effect to (i) any plan
submitted by such investment bank which is designed to maximize the claims
paying ability of AC Nielsen without impairing the investment banking firm's
ability to deliver a viability opinion (but which will not require any action
requiring shareholder approval), and (ii) payment of related fees and expenses.
For these purposes, financial viability means the ability of AC Nielsen, after
giving effect to such plan, the payment of related fees and expenses and the
payment of the ACN Maximum Amount, to pay its debts as they become due and to
finance the current and anticipated operating and capital requirements of its
business, as reconstituted by such plan, for two years from the date any such
plan is expected to be implemented.

    In 1998, IMS HEALTH was spun-off from Cognizant (the "1998 Spin-Off") which
then changed its name to Nielsen Media Research, Inc. ("NMR"). IMS HEALTH and
NMR are jointly and severally liable to D&B and AC Nielsen for Cognizant's
obligations under the terms of the Distribution Agreement dated October 28, 1996
among D&B, Cognizant and AC Nielsen (the "1996 Distribution

                                       56
<PAGE>
                                 SYNAVANT INC.

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

                 (DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA)

NOTE 11.  CONTINGENCIES (CONTINUED)
Agreement"). In connection with the 1998 Spin-Off, IMS HEALTH and NMR agreed
that, as between themselves, IMS HEALTH will assume 75%, and NMR will assume
25%, of any payments to be made in respect of the IRI Action under the Indemnity
and Joint Defense Agreement or otherwise, including any legal fees and expenses
related thereto incurred in 1999 or thereafter. IMS HEALTH has agreed to be
fully responsible for any legal fees and expenses incurred during 1998. NMR's
aggregate liability to IMS HEALTH for payments in respect of the IRI Action and
certain other contingent liabilities shall not exceed $125,000. SYNAVANT
management is unable to predict at this time the final outcome of this matter.

OTHER CONTINGENCIES

    IMS HEALTH, Cognizant and D&B have entered, and IMS HEALTH continues to
enter, into global tax planning initiatives in the normal course of their
business. These activities are subject to review by tax authorities. As a result
of the review process, uncertainties exist and it is possible that some of these
matters could be resolved adversely to IMS HEALTH, Cognizant, D&B or SYNAVANT.

    IMS HEALTH has been informed by D&B that the IRS is currently reviewing
D&B's utilization of certain capital losses during 1989 and 1990. D&B has
advised IMS HEALTH that during the second quarter of 2000 it filed an amended
tax return for these periods which reflects $561,600 of tax and interest due.
Under the terms of the 1996 Distribution Agreement, IMS HEALTH is liable to pay
half of such taxes and interest owed to the IRS to the extent that D&B total
liabilities exceed $137,000. D&B paid approximately $349,300 of this amount in
early May 2000, and IMS HEALTH paid approximately $212,300 in May 2000 (the
"May 2000 Payment"). A portion of IMS HEALTH's liability will in turn be shared
with NMR under the Distribution Agreement between those companies dated
June 30, 1998 (the "1998 Distribution Agreement"). The payments are being made
to the IRS to stop further interest from accruing. D&B expects a formal
assessment for the additional tax to be issued by the IRS during the second
quarter of 2000. D&B has advised IMS HEALTH that, notwithstanding the filing and
payment, it intends to contest the assessment of additional tax. IMS HEALTH
estimates that its share of the liability, were the IRS to prevail, would be
approximately $140,000 net of income tax benefit on interest (approximately
$31,300) and NMR's contribution obligations (approximately $41,000). Although
the Company is jointly and severally liable for this obligation, it is not
currently estimable what portion of this obligation, if any, will be borne by
the Company.

NOTE 12.  SUPPLEMENTAL FINANCIAL DATA

ACCOUNTS RECEIVABLE--NET:

<TABLE>
<CAPTION>
                                                              2000       1999
                                                            --------   --------
<S>                                                         <C>        <C>
Trade.....................................................  $41,647    $41,380
Unbilled receivables......................................    4,523      5,658
Other.....................................................    2,503        565
Less: Allowance for doubtful accounts.....................   (1,830)    (1,012)
                                                            -------    -------
                                                            $46,843    $46,591
                                                            =======    =======
</TABLE>

                                       57
<PAGE>
                                 SYNAVANT INC.

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

                 (DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA)

NOTE 12.  SUPPLEMENTAL FINANCIAL DATA (CONTINUED)
OTHER CURRENT ASSETS:

<TABLE>
<CAPTION>
                                                                2000       1999
                                                              --------   --------
<S>                                                           <C>        <C>
Inventory...................................................   $2,085     $1,454
Prepaid expenses............................................    3,495      2,210
Deferred taxes..............................................      428         --
                                                               ------     ------
                                                               $6,008     $3,664
                                                               ======     ======
</TABLE>

PROPERTY, PLANT AND EQUIPMENT--NET:

<TABLE>
<CAPTION>
                                                              2000       1999
                                                            --------   --------
<S>                                                         <C>        <C>
Property..................................................  $ 1,095    $   850
Plant and equipment.......................................   46,399     43,870
Less: Accumulated depreciation............................  (36,634)   (32,502)
Leasehold improvements, less: accumulated amortization of
  $4,049 and $3,256, respectively.........................    2,773      3,415
                                                            -------    -------
                                                            $13,633    $15,633
                                                            =======    =======
</TABLE>

ACCRUED AND OTHER CURRENT LIABILITIES:

<TABLE>
<CAPTION>
                                                              2000       1999
                                                            --------   --------
<S>                                                         <C>        <C>
Salaries, wages, bonuses and other compensation...........  $ 4,643    $ 6,045
Other.....................................................   11,209     12,868
                                                            -------    -------
                                                            $15,852    $18,913
                                                            =======    =======
</TABLE>

NOTE 13.  OPERATIONS BY GEOGRAPHIC SEGMENT

    The Company delivers pharmaceutical relationship management and interactive
marketing solutions globally in 23 countries. Prior to the Distribution, the
SYNAVANT businesses, as defined in Note 1, were managed as part of the IMS
segment of IMS HEALTH. The Company's chief operating decision-makers evaluate
the business on a global basis with consideration of resource allocation on a
geographic basis. The Americas Segment principally consists of operations for
the United States, the Company's country of domicile. The Europe Segment
includes the operations of the United Kingdom, which is the largest country in
this segment. The Asia Pacific Segment consists principally of the operations of
Australia. For further information on material individual countries see the
additional disclosure in the second table of this note.

                                       58
<PAGE>
                                 SYNAVANT INC.

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

                 (DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA)

NOTE 13.  OPERATIONS BY GEOGRAPHIC SEGMENT (CONTINUED)
                          DOLLAR AMOUNTS IN THOUSANDS

<TABLE>
<CAPTION>
                                                    AMERICAS (1)    EUROPE    ASIA PACIFIC     TOTAL
                                                    ------------   --------   ------------   ---------
<S>                                                 <C>            <C>        <C>            <C>
YEAR-ENDED DECEMBER 31, 2000
Operating revenues................................     105,873      57,171       18,395        181,439
Segment operating income (loss)...................    (139,559)     (4,299)         105       (143,753)
Non-operating income (loss).......................        (159)     (1,155)           9         (1,305)
Income before income taxes........................                                            (145,058)
Provision for income taxes........................                                               6,410
Net loss..........................................                                            (138,648)
Segment total depreciation and amortization.......    (134,861)     (6,819)        (710)      (142,390)
Segment capital expenditures......................       4,559       1,746          364          6,669
Identifiable assets at December 31, 2000..........     109,349      39,506        7,644        156,499

YEAR-ENDED DECEMBER 31, 1999
Operating revenues................................    $111,522     $67,321      $21,714      $ 200,557
Year 2000 costs...................................       2,769           0            0          2,769
Segment operating income (loss)...................     (13,200)     15,799          951          3,550
Non-operating income (loss).......................          23        (308)          15           (270)
Income before income taxes........................                                               3,280
Provision for income taxes........................                                              (6,472)
Net loss..........................................                                              (3,192)
Segment total depreciation and amortization.......      25,763       1,275          802         27,840
Segment capital expenditures......................       2,732       2,129          510          5,371
Identifiable assets at December 31, 1999..........     227,291      32,916        8,092        268,299

MONTH-ENDED DECEMBER 31, 1998
Operating revenues................................       8,307       4,135        1,207         13,649
Segment operating loss............................      (2,207)       (169)        (121)        (2,497)
Non-operating income (loss).......................        (134)         30          (18)          (122)
Loss before income taxes..........................                                              (2,619)
Benefit from income taxes.........................                                               1,204
Net loss..........................................                                              (1,415)
Segment total depreciation and amortization.......       1,980          97           77          2,154
Segment capital expenditures......................         250          20            8            278
Identifiable assets at December 31, 1998..........     251,819      27,954       10,913        290,686

YEAR-ENDED NOVEMBER 30, 1998
Operating revenues................................     107,052      29,792       12,161        149,005
Acquired in-process research and development......      21,900           0            0         21,900
Segment operating income (loss)...................     (27,675)      5,340         (174)       (22,509)
Non-operating income (expense)....................         787        (115)        (100)           572
Loss before income taxes..........................                                             (21,937)
Provision for income taxes........................                                              (3,280)
Net loss..........................................                                             (25,217)
Segment total depreciation and amortization.......      15,044         667          768         16,479
Segment capital expenditures......................       2,397         283          214          2,894
Identifiable assets at November 30, 1998..........     247,210      26,733       11,446        285,389
</TABLE>

                                       59
<PAGE>
                                 SYNAVANT INC.

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

                 (DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA)

NOTE 13.  OPERATIONS BY GEOGRAPHIC SEGMENT (CONTINUED)
    Information about the Company's operations and long-lived assets by
geography are as follows:

<TABLE>
<CAPTION>
                                               U.S.       U.K.     AUSTRALIA   REST OF WORLD (3)    TOTAL
                                             --------   --------   ---------   -----------------   --------
<S>                                          <C>        <C>        <C>         <C>                 <C>
YEAR ENDED DECEMBER 31, 2000
Operating revenue (2)......................   99,363     25,055     16,655           40,366        181,439
Long-lived assets (1)......................   74,009      3,990        985            3,070         82,054

YEAR ENDED DECEMBER 31, 1999
Operating revenue (2)......................  104,051     28,670     20,669           47,167        200,557
Long-lived assets (1)......................  199,439     10,154      1,531            2,301        213,425

MONTH ENDED DECEMBER 31, 1998
Operating revenue (2)......................    7,749      1,634      1,077            3,189         13,649
Long-lived assets (1)......................  214,222      9,996      5,049            2,418        231,685

YEAR ENDED NOVEMBER 30, 1998
Operating revenue (2)......................  104,713     12,605     11,642           20,045        149,005
Long-lived assets (1)......................  211,932     10,148      5,247            2,157        229,484
</TABLE>

------------------------

(1) Long-lived assets in the U.S. and the U.K. are comprised predominantly of
    goodwill associated with the acquisition of Walsh International Inc. in
    June 1998 (SEE Note 3).

(2) Operations outside the U.S. are primarily comprised of the operations of the
    former Walsh.

(3) Rest of World is primarily comprised of operations in Europe.

NOTE 14.  THE DISTRIBUTION

    In accordance with the Distribution Agreement, as of the Spin, IMS HEALTH
conveyed title to certain assets and transferred certain liabilities. The net
assets recorded by SYNAVANT on the Spin date to reflect this capital
contribution totaled approximately $15,341. The net assets received included
$10,707 of cash, which is subject to adjustment in accordance with the
Distribution Agreement. The amount of the adjustment could result in a payable
to IMS HEALTH of as much as $1,500. The Company also assumed a liability of up
to $9,000 in connection with the Distribution Agreement whereby SYNAVANT will
bear 50% of IMS HEALTH's share of certain of the liabilities as discussed in
Note 11.

    In addition, pursuant to the Distribution Agreement, the Company is
contractually entitled to receive shares of Gartner Group common stock with a
fair value of $4,000 as of the close of business on the spin date and a note
receivable from a third party with a carrying value of $2,500. The Gartner Group
shares are subject to certain contractual restrictions on transfer and voting
that were agreed to as part of the Gartner Group distribution. Title to these
assets have not been conveyed to the Company as of December 31, 2000. The
Company has classified the value of the Gartner Group shares on the balance
sheet as a distribution receivable (included in current assets) and has
accounted for them in accordance with the underlying securities to be received.
The Company has classified the note receivable from a third party as a long term
note receivable and is accounting for it in accordance with the underlying asset
to be received. In addition, the value of the Gartner shares declined to $2,063
as of December 31, 2000. This decline in value has been recorded as an other
comprehensive loss during

                                       60
<PAGE>
                                 SYNAVANT INC.

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

                 (DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA)

NOTE 14.  THE DISTRIBUTION (CONTINUED)
2000. To facilitate the Distribution, IMS HEALTH has committed to certain credit
support arrangements with SYNAVANT. The IMS HEALTH credit support letter will,
if necessary, provide certain credit support sufficient to meet the working
capital needs of SYNAVANT up to the one year anniversary of the Distribution.

    In the opinion of McDermott, Will & Emery, special tax counsel to IMS
HEALTH, the Distribution should qualify under Section 355 of the Internal
Revenue Code, and be tax-free to IMS HEALTH and to IMS HEALTH stockholders for
U.S. federal income tax purposes, except for any tax payable because of any cash
IMS HEALTH stockholders may receive in lieu of a fractional share of SYNAVANT
Common Stock.

    The opinion of special tax counsel is based on certain factual
representations made by IMS HEALTH and SYNAVANT. If such factual representations
were incorrect in a material respect, such opinion could become moot. SYNAVANT
is not aware of any facts or circumstances that would cause such representations
to be incorrect in a material respect. IMS HEALTH and SYNAVANT will agree in the
Distribution Agreement to certain restrictions on future actions to provide
further assurances that Section 355 of the Internal Revenue Code will apply to
the Distribution.

    If the Distribution were not to qualify under Section 355 of the Internal
Revenue Code, then, in general, a corporate tax (which would be substantial)
would be payable by the consolidated group, of which IMS HEALTH is the common
parent and SYNAVANT is a member. In addition, under the consolidated return
rules, each member of the consolidated group would be severally liable for such
tax liability. If the Distribution occurred and it were not to qualify under
Section 355 of the Internal Revenue Code, SYNAVANT estimates that the aggregate
tax liability in this regard would be approximately $100,000. In the event that
SYNAVANT were obligated to fund a substantial portion of such liabilities, it
would have a material adverse effect on SYNAVANT's financial condition.

    Moreover, if the Distribution were not to qualify under Section 355 of the
Internal Revenue Code, each IMS HEALTH stockholder receiving shares of SYNAVANT
Common Stock in the Distribution would be treated as if such stockholder had
received a taxable distribution in an amount equal to the fair market value of
the SYNAVANT Common Stock received.

                                       61
<PAGE>
ITEM 9.  CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND
         FINANCIAL DISCLOSURE

    None.

                                    PART III

ITEM 10.  DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT

    The information set forth under the caption "Election of Directors" in the
Proxy Statement used in connection with our 2001 Annual Stockholders Meeting, is
incorporated herein by reference.

ITEM 11.  EXECUTIVE COMPENSATION

    The information set forth under the caption "Executive Compensation" in the
Proxy Statement used in connection with our 2001 Annual Stockholders Meeting, is
incorporated herein by reference.

ITEM 12.  SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT

    The information set forth under the caption "Security Ownership of Principal
Stockholders and Management" in the Proxy Statement used in connection with our
2001 Annual Stockholders' Meeting is incorporated herein by reference.

ITEM 13.  CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS

    The information set forth under the caption "Certain Transactions" in the
Proxy Statement used in connection with our 2001 Annual Stockholders' Meeting is
incorporated herein by reference.

                                    PART IV

ITEM 14.  EXHIBITS, FINANCIAL STATEMENT SCHEDULES AND REPORTS ON FORM 8-K

    Financial Statements, Financial Statement Schedules and Exhibits

    (a) Exhibits

<TABLE>
<CAPTION>
       EXHIBIT
       NUMBER           EXHIBIT
---------------------   -------
<S>                     <C>
         3.1            Amended and Restated Certificate of Incorporation of
                        SYNAVANT Inc. (Incorporated by reference from Exhibit 3.1 to
                        the Company's Form 10 Registration Statement (File No.
                        0-30822)).

         3.2            Amended and Restated By-Laws of SYNAVANT (Incorporated by
                        reference from Exhibit 3.2 to the Company's Form 10
                        Registration Statement (File No. 0-30822)).

         4.1            Specimen Common Stock Certificate (Incorporated by reference
                        from Exhibit 4.1 to the Company's Form 10 Registration
                        Statement (File No. 0-30822)).

         4.2            Rights Agreement, dated as of August 29, 2000, between
                        SYNAVANT Inc. and EquiServe Trust Company, as Rights Agent
                        (Incorporated by reference from Exhibit 4.2 to the Company's
                        Form 10 Registration Statement (File No. 0-30822)).

        10.1            Distribution Agreement between IMS HEALTH Incorporated and
                        SYNAVANT Inc. (Incorporated by reference from Exhibit 10.1
                        to the Company's Form 10 Registration Statement (File No.
                        0-30822)).

        10.2            Form of Xponent Data License Agreement between IMS HEALTH
                        Incorporated and SYNAVANT (Incorporated by reference from
                        Exhibit 10.2 to the Company's Form 10 Registration Statement
                        (File No. 0-30822)).
</TABLE>

                                       62
<PAGE>

<TABLE>
<CAPTION>
       EXHIBIT
       NUMBER           EXHIBIT
---------------------   -------
<S>                     <C>
        10.3            Form of Cross License Agreement between IMS HEALTH
                        Incorporated and SYNAVANT Inc. (Incorporated by reference
                        from Exhibit 10.3 to the Company's Form 10 Registration
                        Statement (File No. 0-30822).

        10.4            Form of Tax Allocation Agreement between IMS HEALTH
                        Incorporated and SYNAVANT Inc. (Incorporated by reference
                        from Exhibit 10.4 to the Company's Form 10 Registration
                        Statement (File No. 0-30822).

        10.5            Form of Employee Benefits Agreement between IMS HEALTH
                        Incorporated and SYNAVANT Inc. (Incorporated by reference
                        from Exhibit 10.5 to the Company's Form 10 Registration
                        Statement (File No. 0-30822)).

        10.6            Form of Data and Telecommunications Services Agreement
                        between IMS HEALTH Incorporated and SYNAVANT (Incorporated
                        by reference from Exhibit 10.6 to the Company's Form 10
                        Registration Statement (File No. 0-30822).

        10.7            Form of Sublease Agreement between IMS HEALTH Incorporated
                        and SYNAVANT Inc. (Incorporated by reference from Exhibit
                        10.7 to the Company's Form 10 Registration Statement (File
                        No. 0-30822)).

        10.8            Form of Corporate Services Agreement between IMS HEALTH
                        Incorporated and SYNAVANT Inc. (Incorporated by reference
                        from Exhibit 10.8 to the Company's Form 10 Registration
                        Statement (File No. 0-30822)).

        10.9            Form of Shared Transaction Services Agreement between IMS
                        HEALTH Incorporated and SYNAVANT Inc. (Incorporated by
                        reference from Exhibit 10.9 to the Company's Form 10
                        Registration Statement (File No. 0-30822)).

        10.10           Form of Shared Transaction Services Agreement between IMS AG
                        and certain subsidiaries of SYNAVANT Inc. (Incorporated by
                        reference from Exhibit 10.10 to the Company's Form 10
                        Registration Statement (File No. 0-30822)).

        10.11           SYNAVANT Inc. 2000 Stock Incentive Plan (Incorporated by
                        reference from Exhibit 10.11 to the Company's Form 10
                        Registration Statement (File No. 0-30822)).

        10.12           SYNAVANT Inc. 2000 Replacement Plan for IMS HEALTH
                        Incorporated Equity-Based Awards (Incorporated by reference
                        from Exhibit 10.12 to the Company's Form 10 Registration
                        Statement (File No. 0-30822)).

        10.13           SYNAVANT Inc. 2000 Annual Incentive Plan (Incorporated by
                        reference from Exhibit 10.13 to the Company's Form 10
                        Registration Statement (File No. 0-30822)).

        10.14           SYNAVANT Inc. 2000 Non-Employee Directors' Deferred
                        Compensation Program (Incorporated by reference from Exhibit
                        10.14 to the Company's Form 10 Registration Statement (File
                        No. 0-30822)).

        10.15           SYNAVANT Inc. 2000 Savings Equalization Plan (Incorporated
                        by reference from Exhibit 10.15 to the Company's Form 10
                        Registration Statement (File No. 0-30822)).

        10.16           SYNAVANT Inc. 2000 Employee Protection Plan (Incorporated by
                        reference from Exhibit 10.16 to the Company's Form 10
                        Registration Statement (File No. 0-30822)).

        10.17           Form of Tier 1 Change-in-Control Agreement for Certain
                        Executives of SYNAVANT Inc. (Incorporated by reference from
                        Exhibit 10.17 to the Company's Form 10 Registration
                        Statement (File No. 0-30822)).
</TABLE>

                                       63
<PAGE>

<TABLE>
<CAPTION>
       EXHIBIT
       NUMBER           EXHIBIT
---------------------   -------
<S>                     <C>
        10.18           Form of Tier 2 Change-in-Control Agreement for Certain
                        Executives of SYNAVANT Inc. (Incorporated by reference from
                        Exhibit 10.18 to the Company's Form 10 Registration
                        Statement (File No. 0-30822)).

        10.19           Form of Stock Option Agreement for Certain Executives of
                        SYNAVANT Inc. (Incorporated by reference from Exhibit 10.19
                        to the Company's Form 10 Registration Statement (File No.
                        0-30822)).

        10.20           Siebel Alliance Program Master Agreement, dated July 14,
                        2000, between Siebel Systems, Inc. and IMS Health Strategic
                        Technologies, Inc. (Incorporated by reference from Exhibit
                        10.20 to the Company's Form 10 Registration Statement (File
                        No. 0-30822)).

        10.21           Value Added Industry Remarketer Agreement, dated July 14,
                        2000, between Siebel Systems, Inc. and IMS Health Strategic
                        Technologies, Inc. (Incorporated by reference from Exhibit
                        10.21 to the Company's Form 10 Registration Statement (File
                        No. 0-30822)).*

        10.22           Software License and Services Agreement, dated July 14,
                        2000, between Siebel Systems, Inc. and IMS Health Strategic
                        Technologies, Inc. (Incorporated by reference from Exhibit
                        10.22 to the Company's Form 10 Registration Statement (File
                        No. 0-30822)).

        10.23           Credit facility, dated August 11, 2000, between SunTrust
                        Bank and SYNAVANT Inc. (Incorporated by reference from
                        Exhibit 10.23 to the Company's Form 10 Registration
                        Statement (File No. 0-30822)).

        10.24           Credit support letter, dated July 25, 2000, between IMS
                        HEALTH Incorporated and SYNAVANT Inc. (Incorporated by
                        reference from Exhibit 10.24 to the Company's Form 10
                        Registration Statement (File No. 0-30822)).

        10.25           Form of Australian letter of credit support letter between
                        IMS HEALTH Incorporated and SYNAVANT Inc. (Incorporated by
                        reference from Exhibit 10.25 to the Company's Form 10
                        Registration Statement (File No. 0-30822)).

        10.26           Form of Information Services Agreement between IMS HEALTH
                        Incorporated and SYNAVANT Inc. (Incorporated by reference
                        from Exhibit 10.26 to the Company's Form 10 Registration
                        Statement (File No. 0-30822)).

        10.27           Revolving Credit Facility, dated March 6, 2001, between
                        SYNAVANT Inc. and ABN AMRO.

        21.1            List of Subsidiaries.

        23.1            Consent of PricewaterhouseCoopers LLP.
</TABLE>

------------------------

*   Portions of Exhibit 10.21 have been omitted pursuant to a request for
    confidential treatment and have been filed separately with the Securities
    and Exchange Commission.

    (b) Financial Statement Schedule

    Schedule II Valuation and Qualifying Accounts

REPORTS ON FORM 8-K FILED IN THE THIRD QUARTER OF 2000.

    On September 8, 2000, the Company filed a current report on Form 8-K dated
September 5, 2000 to disclose that as a result of the Spin, we converted our
employee option and awards relating to IMS HEALTH common stock into SYNAVANT
common stock resulting in SYNAVANT employees and directors holding options and
other awards equaling approximately 52.4% of its outstanding common stock.

                                       64
<PAGE>
                                   SIGNATURES

    Pursuant to the requirements of Section 13 or 15(d) of the Securities
Exchange Act of 1934, the Company has duly caused this report to be signed on
its behalf by the undersigned, thereunto duly authorized.

<TABLE>
<S>                                                    <C>  <C>
                                                       SYNAVANT INC.

                                                       By:             /s/ WAYNE P. YETTER
                                                            -----------------------------------------
                                                               Wayne P. Yetter, Chairman and Chief
                                                                        Executive Officer
</TABLE>

Date: March 26, 2001

<TABLE>
<CAPTION>
                      SIGNATURE                                    TITLE                    DATE
                      ---------                                    -----                    ----
<C>                                                    <S>                             <C>
                 /s/ WAYNE P. YETTER                   Chairman and Chief Executive
     -------------------------------------------         Officer (Principal Executive  March 26, 2001
                   Wayne P. Yetter                       Officer)

                /s/ CRAIG S. KUSSMAN                   Chief Financial Officer
     -------------------------------------------         (Principal Financial          March 26, 2001
                  Craig S. Kussman                       Officer)

             /s/ CLIFFORD A. FARREN, JR.               Vice President, Finance and
     -------------------------------------------         Controller (Principal         March 26, 2001
               Clifford A. Farren, Jr.                   Accounting Officer)

                 /s/ PETER H. FUCHS
     -------------------------------------------       Director                        March 26, 2001
                   Peter H. Fuchs

              /s/ ROBERT J. KAMERSCHEN
     -------------------------------------------       Director                        March 26, 2001
                Robert J. Kamerschen

               /s/ EUGENE H. LOCKHART
     -------------------------------------------       Director                        March 26, 2001
                 Eugene H. Lockhart

                 /s/ MARY A. MADDEN
     -------------------------------------------       Director                        March 26, 2001
                   Mary A. Madden

                /s/ BARRY L. WILLIAMS
     -------------------------------------------       Director                        March 26, 2001
                  Barry L. Williams
</TABLE>

                                       65
<PAGE>
                                 EXHIBIT INDEX

<TABLE>
<CAPTION>
       EXHIBIT
       NUMBER           EXHIBIT
---------------------   -------
<C>                     <S>
         3.3            Amended and Restated Certificate of Incorporation of
                        SYNAVANT Inc. (Incorporated by reference from Exhibit 3.1 to
                        the Company's Form 10 Registration Statement (File No.
                        0-30822)).

         3.4            Amended and Restated By-Laws of SYNAVANT (Incorporated by
                        reference from Exhibit 3.2 to the Company's Form 10
                        Registration Statement (File No. 0-30822)).

         4.3            Specimen Common Stock Certificate (Incorporated by reference
                        from Exhibit 4.1 to the Company's Form 10 Registration
                        Statement (File No. 0-30822)).

         4.4            Rights Agreement, dated as of August 29, 2000, between
                        SYNAVANT Inc. and EquiServe Trust Company, as Rights Agent
                        (Incorporated by reference from Exhibit 4.2 to the Company's
                        Form 10 Registration Statement (File No. 0-30822)).

        10.1            Distribution Agreement between IMS HEALTH Incorporated and
                        SYNAVANT Inc. (Incorporated by reference from Exhibit 10.1
                        to the Company's Form 10 Registration Statement (File No.
                        0-30822)).

        10.2            Form of Xponent Data License Agreement between IMS HEALTH
                        Incorporated and SYNAVANT (Incorporated by reference from
                        Exhibit 10.2 to the Company's Form 10 Registration Statement
                        (File No. 0-30822)).

        10.3            Form of Cross License Agreement between IMS HEALTH
                        Incorporated and SYNAVANT Inc. (Incorporated by reference
                        from Exhibit 10.3 to the Company's Form 10 Registration
                        Statement ((File No. 0-30822)).

        10.4            Form of Tax Allocation Agreement between IMS HEALTH
                        Incorporated and SYNAVANT Inc. (Incorporated by reference
                        from Exhibit 10.4 to the Company's Form 10 Registration
                        Statement ((File No. 0-30822)).

        10.5            Form of Employee Benefits Agreement between IMS HEALTH
                        Incorporated and SYNAVANT Inc. (Incorporated by reference
                        from Exhibit 10.5 to the Company's Form 10 Registration
                        Statement ((File No. 0-30822)).

        10.6            Form of Data and Telecommunications Services Agreement
                        between IMS HEALTH Incorporated and SYNAVANT (Incorporated
                        by reference from Exhibit 10.6 to the Company's Form 10
                        Registration Statement (File No. 0-30822)).

        10.7            Form of Sublease Agreement between IMS HEALTH Incorporated
                        and SYNAVANT Inc. (Incorporated by reference from Exhibit
                        10.7 to the Company's Form 10 Registration Statement (File
                        No. 0-30822)).

        10.8            Form of Corporate Services Agreement between IMS HEALTH
                        Incorporated and SYNAVANT Inc. (Incorporated by reference
                        from Exhibit 10.8 to the Company's Form 10 Registration
                        Statement (File No. 0-30822)).

        10.9            Form of Shared Transaction Services Agreement between IMS
                        HEALTH Incorporated and SYNAVANT Inc. (Incorporated by
                        reference from Exhibit 10.9 to the Company's Form 10
                        Registration Statement (File No. 0-30822)).

        10.10           Form of Shared Transaction Services Agreement between IMS AG
                        and certain subsidiaries of SYNAVANT Inc. (Incorporated by
                        reference from Exhibit 10.10 to the Company's Form 10
                        Registration Statement (File No. 0-30822)).
</TABLE>

                                       66
<PAGE>

<TABLE>
<CAPTION>
       EXHIBIT
       NUMBER           EXHIBIT
---------------------   -------
<C>                     <S>
        10.11           SYNAVANT Inc. 2000 Stock Incentive Plan (Incorporated by
                        reference from Exhibit 10.11 to the Company's Form 10
                        Registration Statement (File No. 0-30822)).

        10.12           SYNAVANT Inc. 2000 Replacement Plan for IMS HEALTH
                        Incorporated Equity-Based Awards (Incorporated by reference
                        from Exhibit 10.12 to the Company's Form 10 Registration
                        Statement (File No. 0-30822)).

        10.13           SYNAVANT Inc. 2000 Annual Incentive Plan (Incorporated by
                        reference from Exhibit 10.13 to the Company's Form 10
                        Registration Statement (File No. 0-30822)).

        10.14           SYNAVANT Inc. 2000 Non-Employee Directors' Deferred
                        Compensation Program (Incorporated by reference from Exhibit
                        10.14 to the Company's Form 10 Registration Statement (File
                        No. 0-30822)).

        10.15           SYNAVANT Inc. 2000 Savings Equalization Plan (Incorporated
                        by reference from Exhibit 10.15 to the Company's Form 10
                        Registration Statement (File No. 0-30822)).

        10.16           SYNAVANT Inc. 2000 Employee Protection Plan (Incorporated by
                        reference from Exhibit 10.16 to the Company's Form 10
                        Registration Statement (File No. 0-30822)).

        10.17           Form of Tier 1 Change-in-Control Agreement for Certain
                        Executives of SYNAVANT Inc. (Incorporated by reference from
                        Exhibit 10.17 to the Company's Form 10 Registration
                        Statement (File No. 0-30822)).

        10.18           Form of Tier 2 Change-in-Control Agreement for Certain
                        Executives of SYNAVANT Inc. (Incorporated by reference from
                        Exhibit 10.18 to the Company's Form 10 Registration
                        Statement (File No. 0-30822)).

        10.19           Form of Stock Option Agreement for Certain Executives of
                        SYNAVANT Inc. (Incorporated by reference from Exhibit 10.19
                        to the Company's Form 10 Registration Statement (File No.
                        0-30822)).

        10.20           Siebel Alliance Program Master Agreement, dated July 14,
                        2000, between Siebel Systems, Inc. and IMS Health Strategic
                        Technologies, Inc. (Incorporated by reference from Exhibit
                        10.20 to the Company's Form 10 Registration Statement (File
                        No. 0-30822)).

        10.21           Value Added Industry Remarketer Agreement, dated July 14,
                        2000, between Siebel Systems, Inc. and IMS Health Strategic
                        Technologies, Inc. (Incorporated by reference from Exhibit
                        10.21 to the Company's Form 10 Registration Statement (File
                        No. 0-30822)).*

        10.22           Software License and Services Agreement, dated July 14,
                        2000, between Siebel Systems, Inc. and IMS Health Strategic
                        Technologies, Inc. (Incorporated by reference from Exhibit
                        10.22 to the Company's Form 10 Registration Statement (File
                        No. 0-30822)).

        10.23           Credit facility, dated August 11, 2000, between SunTrust
                        Bank and SYNAVANT Inc. (Incorporated by reference from
                        Exhibit 10.23 to the Company's Form 10 Registration
                        Statement (File No. 0-30822)).

        10.24           Credit support letter, dated July 25, 2000, between IMS
                        HEALTH Incorporated and SYNAVANT Inc. (Incorporated by
                        reference from Exhibit 10.24 to the Company's Form 10
                        Registration Statement (File No. 0-30822)).

        10.25           Form of Australian letter of credit support letter between
                        IMS HEALTH Incorporated and SYNAVANT Inc. (Incorporated by
                        reference from Exhibit 10.25 to the Company's Form 10
                        Registration Statement (File No. 0-30822)).
</TABLE>

                                       67
<PAGE>

<TABLE>
<CAPTION>
       EXHIBIT
       NUMBER           EXHIBIT
---------------------   -------
<C>                     <S>
        10.26           Form of Information Services Agreement between IMS HEALTH
                        Incorporated and SYNAVANT Inc. (Incorporated by reference
                        from Exhibit 10.26 to the Company's Form 10 Registration
                        Statement (File No. 0-30822)).

        10.27           Revolving Credit Facility, dated March 6, 2001, between
                        SYNAVANT Inc. and ABN AMRO.

        21.1            List of Subsidiaries.

        23.1            Consent of PricewaterhouseCoopers LLP.
</TABLE>

------------------------

*Portions of Exhibit 10.21 have been omitted pursuant to a request for
confidential treatment and have been filed separately with the Securities and
Exchange Commission.

                                       68
<PAGE>
                                  SCHEDULE II

                                 SYNAVANT INC.
                       VALUATION AND QUALIFYING ACCOUNTS
            FOR THE YEAR ENDED DECEMBER 31, 2000, DECEMBER 31, 1999;
            NOVEMBER 30, 1998; AND THE MONTH ENDED DECEMBER 31, 1998
                             (DOLLARS IN THOUSANDS)

<TABLE>
<CAPTION>
               COL. A                     COL. B                 COL. C                 COL. D        COL. E
               ------                     ------                 ------                 ------        ------
                                                      ADDITIONS
                                        BALANCE AT    CHARGED TO      ADDITIONS
                                       BEGINNING OF   COSTS AND    CHARGED TO OTHER                 BALANCE AT
DESCRIPTION                               PERIOD       EXPENSES        ACCOUNTS       DEDUCTIONS   END OF PERIOD
-----------                            ------------   ----------   ----------------   ----------   -------------
<S>                                    <C>            <C>          <C>                <C>          <C>
ALLOWANCE FOR DOUBTFUL ACCOUNTS:
For the Year Ended December 31,
  2000...............................     $1,012        $  175          $  643          $   --         $1,830
For the Year Ended December 31,
  1999...............................     $1,587        $  108          $   92          $  775         $1,012
For the Month Ended December 31,
  1998...............................     $1,294        $  225          $   68          $   --         $1,587
For the Year Ended November 30,
  1998...............................     $  490        $  257          $  547(1)       $   --         $1,294

TAX VALUATION ALLOWANCES:
For the Year Ended December 31,
  2000...............................     $4,147        $4,049          $   --          $   --         $8,196
For the Year Ended December 31,
  1999...............................     $3,756        $  941          $    0          $  550         $4,147
For the Month Ended December 31,
  1998...............................     $3,724        $  112          $    0          $   80         $3,756
For the Year Ended November 30,
  1998...............................     $3,554        $   42          $2,381(2)       $2,253         $3,724
</TABLE>

--------------------------

(1) Primarily arising from the Walsh acquisition.

(2) Primarily relating to net operating losses acquired in the Walsh
    acquisition.

                                       69