Beta Systems shows positive business performance in third quarter of 2006

Berlin (ots) - Beta Systems Software AG (BSS, ISIN DE 0005224406)
achieved a significant year-on-year increase in earnings in the third
quarter 2006, while also raising sales revenue by around 3%.

Financial Highlights for third quarter 2006

* Revenue increases by 3.4% to Euro 22.4 million (Q3 2005: Euro
21.7 million)
* Growth in the area of software licenses (5.9% year-on-year) and
services (37.1% year-on-year)
* Operating result (from continuing operations) up by Euro 3.4
million to Euro -0.3 million (Q3 2005: Euro -3.7 million)
* Net income for the quarter increases to Euro 0.1 million / Euro
0.02 per share (Q3 2005: Euro -1.7 million / Euro -0.21 per
share)

Comments by the CEO

"Having begun the second half of 2006 with noticeably streamlined
cost structures, our main focus is on stepping up our sales
activities and delivering a sustainable improvement in bottom-line
results. The feedback received from our key accounts operating in the
financial and industrial sectors in response to our focus on this
service portfolio has been particularly encouraging, Therefore, I am
delighted with third-quarter growth achieved in the all-important
license business for the first time this year, buoyed by several
major contracts. Our operating result has also developed well and is
considerably higher than during the same quarter a year ago," said
Kamyar Niroumand, CEO of Beta Systems Software AG, commenting on the
results. He added: "We have yet again invested in positioning and
enhancing our sales activities in favor of the key account category,
in addition to expanding our partner business. Indeed, we are
confident that this will deliver fresh impetus for our particularly
important year-end business, the aim being to further increase
license and services revenues."

Financial Highlights for first nine months 2006

* Revenue grows by 4.3% to Euro 67.7 million (9M 2005: Euro 64.9
million)
* Comparable (adjusted) operating result increases to Euro -6.3
million (9M 2005: Euro -9.4 million)
* Exceptional charges in first nine months of 2006: operating
result affected by non-recurring expenses amounting to Euro 13.0
million for cost-reduction measures as well as latest assessment
of current risk situation
* Operating result, including exceptional charges, declines to
Euro -19.3 million (9M 2005: Euro -11.3 million)
* Net result for first nine months, including exceptional charges,
declines to Euro -10.8 million / Euro -1.23 per share (9M 2005:
Euro 0.3 million / Euro 0.03 per share)

Key Operational Highlights

* Gernot Sagl appointed as Chief Financial Officer: In a meeting
convened on October 26, 2006, the Supervisory Board of Beta
Systems Software AG appointed Gernot Sagl (37) as Chief
Financial Officer (CFO) with immediate effect.
* New Augsburg office officially opened: New office of the
Enterprise Content Management (ECM) business segment underlines
Beta Systems' commitment to this location.
* Beta Systems User Conference successfully concluded: Beta
Systems hosted a special information and communication event,
which was attended by 220 customers, industry experts and other
interested groups
* Second round of "Qualifications Initiative" launched: Beta
Systems continued to invest in its "Qualifications Initiative"
launched in June 2006. Alongside the internal apprenticeship
program, Beta Systems also plans to take part in the Girls' Day
staged in Berlin on April 27, 2007.
* Technological innovations brought to market: Input Management
solution FrontCollect integrated into the next generation of
Microsoft technologies.

Hotline for Investors, Analysts, and Journalists

If you have any questions relating to the results of Q3 2006,
please feel free to contact Beta Systems' Investor Relations team:
phone +49 30 726 118 -170 and -171 or e-mail ir@betasystems.com.

The complete quarterly report is published on the internet at
www.betasystems.com.

End of announcement

About Beta Systems Software AG, Berlin, Germany

Beta Systems Software AG (Prime Standard: BSS) develops
high-quality software products and solutions for the secure and
efficient processing of large quantities of data, and is one of the
leading medium-sized, independent, European software solution
providers in its market segment. Its software products and solutions
support customers in the automation, safeguarding and traceability
of their business processes within the three core areas of document
management (Enterprise Content Management business area), user
management (Identity Management business area) and information
management in data processing centres (Data Centre Infrastructure
business area).

The company has been listed on the stock exchange since 1997, and
currently employs around 700 staff, mainly in the competence centres
of Berlin (company headquarters), Cologne, Augsburg and Calgary. In
addition to this, Beta Systems is internationally active with 17
wholly-owned subsidiaries and numerous partner companies. Among its
worldwide total in excess of 1,300 customers with over 3,000 running
installations are major businesses in the fields of financial
services, industry, commerce, logistics and IT services, in Germany,
Europe and the USA. For more information, please visit
www.betasystems.com.

Originaltext: Beta Systems Software AG
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ISIN: DE0005224406

Company Contact:
Beta Systems Software AG
Arne Baßler
Corporate Communication
Tel.: +49 (0)30 726 118-170
Fax: +49 (0)30 726 118-881
E-mail: arne.bassler@betasystems.com

Agency Contact:
HBI PR&MarCom GmbH
Alexandra Osmani,
Alexandra Janetzko
Tel.: +49 (0)89 99 38 87-0
Fax: +49 (0)89 930 24 45
E-Mail: alexandra_osmani@hbi.de; Alexandra_Janetzko@hbi.de


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