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S&T Announces Final Results 2004: Record Sales With Substantially Higher Profits

Sales EUR 219.5 million - EBIT EUR 5.2 million

Record Sales

In the financial year 2004 S&T recorded sales of EUR 219.5 million, the highest in the company's history. This represents an increase of 7% on 2003 (sales 2003: EUR 204.5 million). This favourable development was the result of new sales initiatives which focus upon solutions and the related strengthening of sales and consulting competences. The strongest growth was consequently reported by the Business Solutions segment, where sales rose by 28% from EUR 38.9 million to EUR 49.8 million. Romania was the country with the strongest sales, slightly ahead of Slovenia. In addition to this core business area, Medical Systems also reported a significant increase - from EUR 9.9 million to EUR 21.1 million (+114%) due to two large-scale projects. One of these projects will also contribute to 2005 results.

Further Improvements to Gross Margin and EBIT

In 2004 the EBIT of the S&T Group rose from EUR 0.2 to EUR 5.2 million. This increase in earnings is largely attributable to the utilisation of synergies within the Group without one time impacts from acquisitions. This positive development was also supported by the application of IFRS 3 accounting principles as of 1 January 2004. The significant improvement in the gross margin from 26% to 28.4% bears witness to the successful implementation of the strategy of focusing upon value-added services.

Sound Capital Structure for Further Growth

The company's financial situation continued to improve in 2004; the equity ratio rose from 24% to 30%. The net profit of EUR 2.8 million represents the equivalent of undiluted earnings per share of EUR 0.80.

Outlook

The recently acquired ITS Intertrade Sistemi d.o.o. in Slovenia and Austrian IT companies Computacenter Austria GmbH and T-Systems DSS GmbH & Co KG will be integrated into the Group this year and will contribute to 2005 results. With these acquisitions S&T has more than 300 employees in Austria and has gained the number one position on the fragmented Austrian IT system integration market.

S&T's management regards the continuation of the growth strategy as vital for the company's future success. Following a year of consolidation S&T seeks further acquisitions to improve its market share in 2005. Other possible acquisitions designed to increase the market share of the existing S&T country organisations are currently being evaluated.

Together with an organic growth of approximately 10%, S&T expects sales to reach EUR 380 million in 2005.

Conference Call

S&T management will be available for a conference call on 31 March 2005, at 16:00 CET. In order to participate, please call 0049 69 2222 7111 or 01 7957 6055 for Austrian participants a few minutes before the start of the conference.

As an additional service, a recording of the conference call will be available from 31 March 2005, 18:00 CET to 1 April 23:59 CET. The number for this is 0049 69 22222 0418 or 0043 1 7957 6046 and the reference number for the conference is 6943744#. If you have any questions about the conference please call 0049 69 22222 0406.