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Q3 Results 2005: After Nine Months S&T Set to Meet its Targets

Sales

Total revenue at S&T rose 50% from EUR 150.1 in 2004 to EUR 224.7 million in the first nine months of 2005. Consolidated sales between July and September 2005 rose by 67% to EUR 83.5 million (corresponding period 2004: EUR 50.1 million).

Earnings

In the first nine months EBIT rose from EUR 3.1 million to EUR 3.3 million. In this connection it should be remembered that one-off costs of more than half a million Euro were incurred in Q3 for the integration of T-Systems DSS and Computacenter Austria. Without these costs, EBIT growth would have amounted to more than 20%. These investments will make their first positive contribution to results in Q4 2005.

In the first three quarters, EBITDA rose sharply by 30% from EUR 5.6 million to EUR 7.3 million.

Outlook

The S&T Management Board is looking forward to a successful Q4, as the Group generally generates between 30% and 40% of its total annual sales in the fourth quarter 2005.

"S&T has succeeded in systematically cutting its costs and increasing profitability, maintaining a strong available cash flow year for year and using it, together with existing financing possibilities, to safeguard the higher than average growth of the S&T Group even without capital increase", said Martin Bergler, CFO of S&T AG.

The CEO designate of S&T AG, Christian Rosner said, "our results are right on target and we will post strong growth again in 2005."

S&T is well prepared to make the most of future opportunities:

• The takeover of EFP has enabled S&T to strengthen its position as the leading supplier of Enterprise Resource Planning products on the markets of Central and Eastern Europe. The Group can now offer region-wide SAP competence combined with high quality West European industry and process know-how in the region. The high margin EFP will be consolidated for the first time in Q4.
• Orders that had been delayed due to general elections in Ukraine and Romania will now be realized in Q4 2005.
• In 2006 S&T will continue to focus upon services and industry solutions for banks/insurance companies, telecoms, the manufacturing industry and public institutions.
• S&T will continue to increase its market share in existing markets, both by means of organic growth and further acquisitions.
• IDC is predicting annual average growth rates of 12-13% through to 2009 in S&T's markets – higher than average growth is expected in Poland, the Czech Republic, Hungary, Slovakia and especially Russia.

Conference Call

S&T management will be available for a conference call on October 27, 2005, at 16:00 CET. In order to participate, please call 0049 69 22222 0408, 01 7957 6047 for Austrian participants or 0044 20 7784 1017 for participants from the UK a few minutes before the start of the conference.