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Beta Systems achieves turnaround in the first half-year of 2007

Geschrieben am 06-08-2007

For the first time since its IPO, the company generates positive
half-yearly earnings before interest and tax (EBIT)


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ots.CorporateNews transmitted by euro adhoc. The issuer is responsible for
the content of this announcement.
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finances/Half-yearly Financial Report

Berlin (euro adhoc) - Berlin, August 6, 2007 - After a successful
start to the year 2007, Beta Systems continued its uptrend in the
second quarter as well. The Berlin-based software provider had thus
already raised its result considerably by the end of the first
half-year, achieving a significant improvement in the result which
rose from EUR -19.0 to EUR 0.2 million and which marks the
turnaround. Accordingly, Beta Systems posted a positive half-yearly
EBIT, for the first time since its IPO. This success is all the more
remarkable as revenue in the second half of the year is usually the
strongest and, up until now, profit is generally generated towards
the end of the year. This positive trend in the first half of 2007
was attributable to the growth of around 14% in the profitable
license business and of almost 30% in the services segment, as well
the optimization of the cost structure. The trend will be supported
in future by ´Beta 4Agility´, the new product and sales strategy,
which enables a more agile IT for large companies and providers of IT
and financial services.

Key Financial Data in the First Half of 2007 - EBIT improves
significantly to EUR 0.2 million (Q1-Q2/2006: EUR -19.0 million) -
License revenues advances by 13.9% to EUR 11.3 million (Q1-Q2/2006:
EUR 9.9 million) - Services revenues grows 29.3% to EUR 7.6 million
(Q1-Q2/2006: EUR 5.9 million) - Great changes to the product and
services mix with deliberate foregoing of the low-margin hardware
business has led to the level of total revenue falling, as planned,
to EUR 41.9 million (Q1-Q2/2006: EUR 45.3 million). - Cash flow of
EUR 5.3 million from operating activities remains at a high level
(Q1-Q2/2006: EUR 1.7 million) - Quarterly result increases to EUR 0.0
million / EUR 0.00 per share (Q1-Q2/2006: EUR -10.9 million / EUR
-1.25 per share)

Key Financial Data in the Second Quarter of 2007 - EBIT climbs to EUR
0.9 million (Q2/2006: EUR -15.4 million) - License revenues remains
stable at EUR 5.4 million (Q2/2006: EUR 5.5 million) and services
revenue posts an increase of 39.8% EUR 4.0 million (Q2/2006: EUR 2.8
million) -Due to the scaling back of the low-margin hardware business
(-85.1% year on year to EUR 0.5 million), total revenue has declined
to EUR 20.9 million (Q2/2006: EUR 23.5 million) - Quarterly result
increases to EUR 0.9 million/EUR 0.10 per share (Q2/2006: EUR -9.4
million/EUR -1.08 per share)

Statement by the Chief Executive Officer "Also in the second quarter
of 2007 our company has delivered impressive proof of its successful
new strategy. In the second quarter we achieved double-digit growth
rates in sales in our profitable license and services business and
have put our turnaround on a firm footing. Numerous medium-size
orders and a number of major projects underscore the positive
response to and greater confidence of our customers in our focused
offer of comprehensive solutions for data and document processing and
IT security and compliance", commented Kamyar Niroumand, Chief
Executive Officer of Beta Systems Software AG.

He added the following statement: "In tandem with this enormous
restructuring success, we are looking to our future and have recently
announced an initiative called ´Beta 4Agility´ to our customers and
shareholders. This initiative is intended to bolster our positive
development in future. Gernot Sagl, Chief Financial Officer of Beta
Systems Software AG, added the following: "In passing the breakeven
threshold as early as the first half of 2007 we have reached an
important commercial and financial milestone. We are confident that,
with the optimized cost structure and our ´Beta 4Agility´ growth
program, we have paved the way for future profitable growth by
leveraging our own strength."

Outlook for the financial year 2007 reaffirmed Breakeven attained in
the first half-year affirms the forecast released at the start of
2007 for a significant improvement in profit, with a single-digit
EBIT margin for the financial year as a whole. The steady
implementation of measures in the company´s sales operations in
conjunction with the optimized cost structure affirms the Management
Board's assumption that sales will rise slightly and profit improve
significantly in the current financial year. In this context,
management expects growth to persist in the software license and
services business and the share of revenue from hardware to decline
further.

More information on the first half-year of financial 2007 Our
Investor Relations Team are at your disposal for any questions you
may have on the results of the first half-year of 2007. They can be
contacted under the telephone number +49 (30) 726 118-171 or by
e-mail ir@betasystems.com.

The complete Half-yearly Financial Report 2007 has been posted on the
company´s web site at www.betasystems.de under the "Investor
Relations" heading.

End of the press release

Beta Systems Software AG - Agility Integrated Beta Systems Software
AG Berlin (Prime Standard: BSS, ISIN DE0005224406) develops
high-profile software products and solutions for the secure and
efficient processing of large data volumes. The core businesses of
Beta Systems comprise document processing as well as IT user
management data processing in data centers and compliance solutions.
In addition, the Beta 4Agility suite offers large companies new
integration products to enhance their agility in IT and business
processes. The products serve to simplify the automation of data and
document processing and improve on the security and performance of
IT.

Beta Systems, which has been a listed company since 1997, was founded
in 1983 and has a workforce of more than 600 employees. The company´s
principal place of business is Berlin. Beta Systems has Centers of
Competence in Augsburg, Cologne and Calgary, as well as 17
subsidiaries worldwide and cooperations with numerous partner
companies. With more than 3,000 running installations, it has a
customer base of more than 1,300 major companies from the sectors of
financial services and IT service providers and industry at large in
Germany, Europe and the USA.

More information on the company and its products can be found under
www.betasystems.com.

Contacts:

Company contact:
Beta Systems Software AG
Stefanie Frey
Tel.: +49 (0)30 726 118-171
Fax: +49 (0)30 726 118-800
e-mail: stefanie.frey@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


end of announcement euro adhoc 06.08.2007 09:02:58
--------------------------------------------------------------------------------


ots Originaltext: Beta Systems Software AG
Im Internet recherchierbar: http://www.presseportal.de

Further inquiry note:
Stefanie Frey
Telefon: +49 (0)30 726-118 171
E-Mail: stefanie.frey@betasystems.com

Branche: Software
ISIN: DE0005224406
WKN: 522440
Index: CDAX, Prime All Share, Technologie All Share
Börsen: Börse Frankfurt / regulated dealing/prime standard
Börse Berlin / free trade
Börse Hamburg / free trade
Börse Stuttgart / free trade
Börse Düsseldorf / free trade
Börse Hannover / free trade


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