EANS-News: Beta Systems achieves a significant increase in operating cash flow in the first quarter of 2011

--------------------------------------------------------------------------------
Corporate news transmitted by euro adhoc. The issuer/originator is solely
responsible for the content of this announcement.
--------------------------------------------------------------------------------

3-month report

Berlin (euro adhoc) - • Substantial reduction in short-term
debt

• Adjustments to the personnel structure completed in the first quarter
• Decline in revenues and profits anticipated in the wake of realigning
the business model
• Rising cost savings as from 2011 and considerable increase in margins as
from 2012
• Realignment of the portfolio geared to GRC solutions

Berlin, May 12, 2011 - In the first quarter of 2011, Beta Systems Software AG
(BSS, ISIN DE0005224406) raised its operating cash flow significantly to EUR
15.0 million, thereby outperforming the high year-earlier figure (Q1/2010: EUR
11.7 million). This positive development was attributable to the notable
improvement in contractual and receivables management and the associated
substantial liquidity inflow from the reduction of trade receivables in
comparison with December 31, 2010. Moreover, there were the customary effects at
the start of the year from invoicing a major part of the maintenance services
provided in 2011 and the non-recurrence of liquidity out-flow owing to the sale
of the ECM business which took place in 2010. The increase in operating cash
flow enabled the utilization of short-term credit facilities at banks to be
significantly scaled back; the current restructuring of the Group can be
financed by its own cash funds. In the current fiscal year, the Company also
anticipates another cash inflow from the ECM disposal.

The Berlin-based software provider achieved revenues of EUR 8.9
million and earnings before interest and tax (EBIT) of EUR -2.3
million (Q1/2010: EUR -1.6 million) and a result for the period of
EUR -1.5 million (Q1/2010: EUR 0.3 million). In comparison with the
first three months of 2010, the effect on profit from the disposal of
the ECM busi-ness came to EUR 1.6 million with the concurrent
positive impact on the result for the period.

The determining factor in the first quarter of 2011 were the
restructuring measures announced in 2010. As part of the process of
realigning the business model, which also entails waiving
non-recurrent license revenues in favor of recurring, sustainable
software and maintenance income and the termination of less
profitable activi-ties, revenues and the results from continued
operations stood at a lower level in the first quarter of 2011 as
against the year-earlier period, in line with expectations. Another
reason for this development was the scheduled termination at year-end
2010 of the service agreement with the BancTec Group concluded as
part of the ECM disposal. The personnel costs associated with this
agreement were nonetheless incurred up until the end of the first
quarter of 2011 and, in the wake of measures completed in downsizing
jobs, will only have an easing effect on the result in the second
quarter of the year.

As part of cost optimization measures following the sale of the ECM
business, the decision was made to scale back up to 20% of jobs in
general central administration and support functions as well as in
downstream func-tions in sales and development both in Germany and
abroad. The relevant discussions with employee representatives and
employees have meanwhile been concluded. The respective provisioning
of EUR 4.6 million had already been taken account of in the results
of continued operations in 2010 and will lead to the relevant fund
outflow from the second quarter onwards.

With the restructuring measures having been completed, the Company
plans to make growing cost savings groupwide of up to EUR 2.5 million
in operating expenses over the course of the year 2011 measured
against 2010. Cost savings of up to EUR 5.0 million are envisaged
from 2012 onwards. Moreover, Beta Systems antici-pates an increase in
margins as from 2012 through stepping up its services business and
from the lower risk in continued operations, as the focus here will
be on the security and compliance and the GRC solutions increasingly
required by customers.

Statements by the Management Board "A key determinant of future
earnings is the now completed process of cost optimization which has
resulted in lowering our breakeven point by almost EUR 5 million long
term," explained Gernot Sagl, Chief Financial Officer of Beta Systems
Software AG and added: "As far as financing is concerned, Beta
Systems is very well posi-tioned through its pleasingly high
operating cash flow, and we can use our own funds not only to reduce
our short-term debt as planned but also to finance the restructuring
measures. Securing the positive liquidity posi-tion from operations
is our primary goal, and the payments still outstanding from the sale
of the ECM business will be used to finance the upcoming investments
to promote growth".

"I am delighted that we can now look to the future," stated Jürgen
Herbott, Chief Executive Officer of Beta Systems Software AG and
added: "The adjustments to our business model are beginning to take
effect in the cash flow, and we are currently working on a three-year
plan which encompasses our repositioning in the high-growth IT/GRC
market. The greatest challenge and, at the same time, our most
important unique selling propo-sition as against our competitors is
the singular combination of our tried-and-tested solutions for secure
and efficient information management in data centers, the processing
of documents and IT user management with their new functionalities
for the monitoring, control and management of constantly changing,
necessary regula-tions placed on IT operations and resulting in
particular from new regulatory requirements. This applies to both
mid-sized enterprises and large conglomerates."

More information and disclaimer The complete Quarterly Financial
Report as per March 31, 2011 has also been published today and can be
downloaded from the company website at http://www.betasystems.com
under the Investor Rela-tions/Financial Reports heading. This year's
Annual General Meeting of Shareholders will take place on June 7,
2011, in Berlin.

All amounts (e.g. figures in EUR million) cited in this information
by the Company and information derived therefrom (e.g. percentage
figures) are figures fully rounded up to thousands of euros as
presented in the provisional Con-densed Combined Interim Financial
Report as at March 31, 2011.

End of the press release

Beta Systems Software AG Beta Systems Software AG (Prime Standard:
BSS, ISIN DE0005224406) offers large corporations, mid-sized
companies and organizations high-end infrastructure software products
spanning sectors for the cost-effective and secure monitoring of IT
processes in high-performance IT environments. The software and
solutions portfolio comprises Data & Document Processing, secure and
efficient information management in data centers which guarantees
premium efficiency in the processing of documents, and Security &
Compliance which is the secure and efficient user management for the
comprehensive management of statutory provisions. The products in
both areas are developed, marketed and sold as integrated product
suites under the overarching aspect of governance, risk management
and compliance (GRC). The high-quality infrastructure software
products and solutions enhance the performance of a company´s IT in
terms of its availability, scalability and flexibility. Data centers
optimize their job and output management. Moreover, especially
compa-nies with high numbers of users are supported in the automation
of their IT user administration.

Beta Systems was founded in 1983, has been a listed company since
1997, and has a workforce of 325 employees. The company´s principal
place of business is Berlin. Beta Systems operates in Germany and
internationally through 14 subsidi-aries and cooperations with
numerous partner companies. Throughout the world more than 1,300
customers use the prod-ucts and solutions of Beta Systems to improve
their processes and security in more than 3,200 running
installations. At present, Beta Systems generates 50 percent of its
sales from international business.

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

You can also visit Beta Systems at www.twitter.com/BetaSystems and
www.facebook.com/BetaSystems and
www.xing.com/companies/betasystemssoftwareag.

end of announcement euro adhoc
--------------------------------------------------------------------------------

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

Further inquiry note:

Press contacts
Company contact:
Beta Systems Software AG
Stefanie Frey
Investor Relations
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 Janetzko
Tel.: +49 (0)89 99 38 87-32
Fax: +49 (0)89 930 24 45
e-mail: alexandra_janetzko@hbi.de

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