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S&T: Half Year 2005 Results

S&T posts record EBIT and sales in the First Half Year 2005

Record Sales

S&T generated sales of EUR 141.2 million in the first six months of the current financial year, an increase of 41.2% million compared to the same period in the previous year (2004: EUR 100 million). Sales rose by 75.8% from EUR 46.6 million in Q2 2004 to EUR 82 million in Q2 2005.

Sales in the high margin Customer Support and Managed Services segments grew by 71.2% from EUR 17 million to EUR 29.1 million. Business Solutions reported a 27.8% increase in the first half of 2005, rising from EUR 21 million to EUR 26.8 million. The gross margin improved from 29% to 30.4% in the first half of 2005.

Record Earnings

Operating results (EBIT) improved by 21.4%, up from EUR 2.1 million in the first half of 2004 to EUR 2.5 million in 2005. EBITDA rose by 39.9% from EUR 3.6 million in the first six months 2004 to EUR 5.1 million in 2005.

"Despite the costs of integrating the recent acquisitions ITS, Computacenter Austria, T-Systems DSS and SITO we have achieved record earnings. Furthermore, these takeovers have enabled us to take significant strategic moves for the future", explained Christian Rosner, COO of S&T.

The recently announced acquisition of EFP did not contribute to the half-year result. EFP, the leading SAP specialist, will be consolidated for the first time in Q3 2005.

Outlook

These excellent half-year earnings were achieved despite the postponement of certain customer projects due to the elections in Romania and Ukraine. Thanks to these projects, the positive contribution of the recent acquisitions and the traditionally strong Q4, S&T also anticipates higher than average earnings in the second half of the year.

In 2005 S&T will continue to focus on services and industry solutions for banks and insurance companies, telecoms, manufacturing industries and government.

According to Karl Tantscher, CEO of S&T AG, "it now looks as if 2005 will easily be the best year in S&T's history, both with regard to operational figures and our market presence, consequently putting us in an excellent starting position for coming years."

Conference Call

S&T management will be available for a conference call on July 28, 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.

As an additional service, a recording of the conference call will be available from August 9, 2005, on the S&T homepage