EANS-Adhoc: Beta Systems achieves breakeven in its quarterly result despite the decline in revenues in Q3/2009

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ad-hoc disclosure pursuant to section 15 of the WpHG transmitted by euro
adhoc with the aim of a Europe-wide distribution. The issuer is solely
responsible for the content of this announcement.
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29.10.2009

- Good performance in the infrastructure business (DCI/IdM segment)
with revenue and profit growth at the end of the first nine months of
2009 - Persistent weakness in new orders in the solutions business
(ECM segment) causes revenues and profits to decline - Active cost
management cushions the effect on profit at Group level: Nine-monthly
result (EBIT) of EUR -0.8 million (Q1-Q3/2008: EUR 0.8 million)
slightly negative - Measures package planned, including hiving off of
the ECM solutions business - Adjusting of the outlook for 2009:
positive annual result remains feasible

Berlin, October 29, 2009 - At the end of the first nine months of
2009, the business segments of Beta Systems Software AG (BSS, ISIN
DE0005224406) had been impacted to a greatly varying extent by the
global financial crisis: For instance, Beta Systems achieved
gratifying growth in revenues and profits in its infrastructure
business (Data Center Infrastructure (DCI) and Identity Management
(IdM) lines of business (LoB)). By contrast, however, the ECM
solutions business for banks and insurance companies (Enterprise
Content Management (ECM) LoB) suffered a significant decline in
revenues and profit due to the persistently low level of new orders
caused by investment decisions either being postponed or not made at
all by a number of major customers. The sum total of these counter
effects caused consolidated revenues at Group level to fall to EUR
59.5 million at the end of the nine-month period (Q1-Q3/2008: EUR
62.1 million) and consolidated earnings before interest and tax
(EBIT) to EUR -0.8 million (Q1-Q3/2008: EUR 0.8 million). Active cost
management at Group level cushioned the associated effect on profit,
bringing the result (after tax) for the nine-month period to EUR -0.8
million and earnings per share to EUR -0.06 (Q1-Q3/2008: EUR 0.7
million and EUR 0.06 per share). Despite the decline in revenues, the
result of the third quarter 2009 was only marginally below breakeven
(Q3/2008: EUR 0.4 million and EUR 0.03 per share).

Against this background, a package of measures was agreed the focus
of which is the realigning of the solutions business, along with
short-term cost savings. To achieve the greatest scope for the
selection of suitable options, the plan is to hive off the ECM LoB in
organizational terms and under company law and set operations up as
an independent subsidiary.

With these developments in mind, the Management Board has adjusted
its outlook. The Company´s management no longer assumes that raising
revenues and profits at Group level in 2009 as against the previous
year will be possible. Management still anticipates, however, that,
at Group level, the customarily strong year-end business will make it
possible to achieve positive annual result in fiscal 2009.

end of ad-hoc-announcement ==========================================
====================================== Information and explanations
on this ad-hoc release by the issuer: The successfully integrated
acquisitions and additions to the portfolio (DETEC, SI and Proginet)
in the last two fiscal years have had a sustained and positive impact
in the infrastructure business (DCI/IdM). Revenues in the IdM
segment, for instance, rose by € 2.4 million, the equivalent of
40.2%, from € 5.9 to € 8.2 million in the first nine months of 2009
and, in the third quarter of 2009 alone, posted € 3.0 million
(+96.3%), thus almost doubling (Q3/2008: € 1.5 million). The DCI
segment raised its revenues by € 3.3 million, which is 12.9%,
advancing from € 25.4 million to € 28.7 million over the nine-month
period. At the end of the first nine months of 2009 both segments had
raised their contribution to profit again despite integration costs
and a generally higher cost basis (IdM: € 0.8 million (Q1-Q3/2008: €
-0.5 million); DCI: € 11.9 million (Q1-Q3/2008: € 11.6 million)).

By contrast, the global financial crisis, which had its roots in the
banking sector, had a severe impact on the ECM solution business. The
downturn in demand – already evident in the first half of 2009,
combined with a lower level of new orders and a series of major
orders either postponed or not awarded by companies in the banking
and insurance industries – did not see any basic improvement in the
third quarter despite isolated sales successes. Revenues had
therefore declined from accumulated € 30.9 million to € 22.7 million
by the end of the nine-month period 2009. Although the contribution
of € 1.4 million was still positive, it has nonetheless fallen by €
4.2 million, down from € 5.6 million.

Statement by the Chief Executive Officer “The results of the first
nine months of 2009 must naturally be seen in the context of the
global financial crisis. This crisis has left its mark, both in a
positive and in a negative sense, on our software and solutions
business”, explained Gernot Sagl, Member of the Management Board of
Beta Systems Software AG, and added: “The strong performance in the
infrastructure business in particular is compelling proof that our
major customers are saving through IT, and not on IT, by using our
infrastructure products. The situation in the extremely volatile ECM
solutions business has, however, been further exacerbated as there
have been time delays with major projects, compounded by fierce price
competition right through to complete project stops. We have
responded to this development and laid the keystone for a fundamental
realignment in the coming fiscal year with our plans for founding the
new company from hived off operations. In a peer group comparison we
are better positioned and more stable than many other mid-sized
software companies.”

More Key Financial Data for Q1-Q3/2009 at a Glance: - Revenues with
software licenses remain unchanged at € 17.2 million (Q1-Q3/2008: €
17.2 million) - Maintenance revenues rise by 2.4% to € 30.6 million
(Q1-Q3/2008: € 29.9 million) - Service revenues come in at € 9.1
million (Q1-Q3/2008: € 10.0 million) - Revenues from scanner hardware
decline to € 2.6 million, as budgeted (Q1-Q3/2008: € 5.0 million) -
EBITDA (earnings before interest, tax, depreciation and amortization)
posts € 1.9 million (Q1-Q3/2008: € 3.7 million)

More Key Financial Data for Q3/2009 at a Glance: - Revenues from
software licenses climb 23.3% to € 5.4 million (Q3/2008: € 4.4
million) - Maintenance revenues stand at € 10.1 million (Q3/2008: €
10.2 million) - Service revenues decline to € 2.6 million (Q3/2008: €
3.1 million) - Revenues from scanner hardware fall to € 0.6 million,
as budgeted (Q3/2008: € 1.8 million) - Total revenues come in at €
18.7 million (Q3/2008: € 19.6 million) - EBIT posts € 0.1 million
(Q3/2008: € 0.2 million) - Result for the period (after tax) comes to
€ -0.0 million and € -0.00 per share (Q3/2008: € 0.4 million and €
0.03 per share)

The complete Nine Monthly Report 2009 will be published on November
3, 2009, under the Investor Relations/Financial Reports heading at
http://www.betasystems.com. All amounts 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 Interim Consolidated Financial Statements as at
September 30, 2009.

End of the information and explanations

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 automated
processing of large volumes of data and documents. These products and
solutions serve to enhance process optimization, improve security and
make IT more agile. They guarantee compliance with business
requirements in respect of governance, risk management and compliance
(GRC) and raise the performance of a company's IT in respect of
availability, scalability and flexibility.

Beta Systems’ IT infrastructure software product segment
(Infrastructure & Operations Management) is geared towards optimizing
job and output management in data centers across all sectors. In
addition, Beta Systems offers products for automating IT user
administration to companies with high numbers of users. In its ECM
Solutions Division (ECM & Document Solutions) Beta Systems develops
customized solutions for large enterprises in the financial services
sector, industry and trading in the areas of payments, processing of
incoming post and general document management.

Beta Systems was founded in 1983, has been a listed company since
1997, and has a workforce of more than 600 employees. The company’s
principal place of business is Berlin. Beta Systems operates through
Centers of Competence in Augsburg, Cologne and Calgary, as well as 19
subsidiaries worldwide and cooperations with numerous partner
companies. Throughout the world more than 1400 customers use the
products and solutions of Beta Systems in more than 3300 running
installations. At present, Beta Systems generates 50 percent of its
sales from international business. Around 200 of its customers are
based in the USA and Canada.

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

Ende der Mitteilung euro adhoc
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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 Osmani,

Alexandra Janetzko

Tel.: +49 (0)89 99 38 87-37/-32

Fax: +49 (0)89 930 24 45

e-mail: alexandra_osmani@hbi.de

e-mail: alexandra_janetzko@hbi.de

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