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24.10.2000

CENIT AG with 40 per cent growth in sales in the first nine months of the year. A new order worth over DM 12 million

Stuttgart, October 24th 2000. CENIT AG has worked intensively during the first nine months of the year to boost the development of business. A glance at sales shows appreciable growth of 40 per cent on the comparable period last year to EUR73.774mill (last year: EUR52.848mill). The gross profit rose by 59 per cent to EUR 42.490mill (last year: EUR26.677mill). Operating earnings before goodwill depreciation amount to EUR 0.51mill (EBITA). The decline in EBIT to minus EUR 0.549mill is essentially attributable to goodwill depreciation amounting to EUR 1.059mill, and to start-up costs for globalisation activities. The workforce also developed gratifyingly. In a highly contested market, the number of employees rose from 410 in the comparable period of 1999 to 846 today.

The most gratifying new order was an order from a major european financal services provider relating to IT infrastructure and applications services over a period of three years, worth over DM12mill. Furthermore, a strategically pioneering training and consulting contract in the engineering sector was placed with CENIT by a leading European aerospace company. To these were added new orders from the industrial corporation Bosch, the automotive supplier TRW and a follow-up order from the trading company REWE, alone worth over DM1mill, in the e-business sector.

Business in Germany, France and North America performed as planned. In the UK and Switzerland, however, CENIT is facing some special challenges. In the period under review, the quota of foreign sales increased once more, and thus reflects the company’s successful globalisation strategy. "After our take-over of Desktop Engineering Ltd., Oxford, UK and Spring Technologies S.A., Montreuil, France, and the acquisition of L&H Consultants Inc. Canada, we are confident that our business abroad will continue to develop well," stresses Falk Engelmann, spokesman for the board of management, "As regards the further development of business in the fourth quarter of 2000, we expect sales growth to continue and earnings to develop positively".

Background

CENIT AG Systemhaus, Stuttgart, is an internationally operating information technology service provider which employs over 846 people altogether. Focusing on Internet technologies, the company with a listing on Germany’s Neuer Markt offers tailor-made solutions from one source in its three business segments e-business, CAD/CAM Solutions and IT services. In 1999, CENIT AG Systemhaus made sales of EUR79.5mill. Besides branches all over Germany, the company has subsidiaries in the UK, Switzerland, France and North America (USA, Canada, Mexico).

Please contact:

CENIT AG Systemhaus
Prime Standard Listing - ISIN DE0005407100
Fabian Rau
Vice President Investor Relations & Marketing
Industriestraße 52-54, D-70565 Stuttgart
Tel.: +49 711 7825-3185
Fax: +49 711 782544-4185
E-Mail: info@cenit.de