• 467-0-0
28.03.2000

CENIT AG with double-digit growth rates in 1999

Plans to double the dividend

Globalisation to be stepped up

Stuttgart, March 28th 2000. - For CENIT AG Systemhaus, the fiscal year brought double-digit growth rates. Sales for the group rose by 29 per cent to EUR 79.5 million (1998: EUR 61.6 million). At the same time, gross profit rose by 34 per cent to EUR 40.5 million (1998: EUR 30.3 million). The company’s operating earnings were boosted 14 per cent to EUR 5.7 million (1998: EUR 5.0 million). The number of employees rose by 125 to 440 on the previous year.

Developments were particularly positive in net income for the year. This was boosted by 100 per cent to EUR 3.2 million (1998: EUR 1.6 million). As a result, earnings per share rose to EUR 0.8 (1998: EUR 0.4) (according to IAS). The board of management will keep its promise to CENIT shareholders to distribute one third of the year’s profits. At the annual general meeting on May 31st 2000, it will propose a dividend of EUR 0.25 per share. Last year - before the share split of 1:4 - a dividend of EUR 0.51 was paid.

All sectors set on a successful course

The tempestuous development of the Internet and the continuing trend towards handling business processes electronically promote strong growth particularly in the e-business segment. Here, sales rose to EUR 18.4 million (1998: EUR 13.8 million). This corresponds to an increase of 33 per cent on the previous year. Despite extensive investments, operating earnings rose by 9 per cent to EUR 0.84 million (1998: EUR 0.77 million).

CENIT succeeded in expanding its leading position as the world’s leading CATIA partner of IBM. Sales in the CAD/CAM Solutions sector rose by 18 per cent to EUR 40.5 million (1998: EUR 34.3 million). At EUR 3.6 million, operating earnings remained at the previous year’s level (1998: EUR 3.58 million).

Strong demand for professional services in information technology was reflected in the outstanding development experienced in the IT Services sector. Here, sales rose by 52 per cent to EUR 20.7 million (1998: EUR 13.6 million). Operating earnings rose more than proportionately by 86 per cent to EUR 1.23 million (1998: EUR 0.66 million).

The wholly-owned subsidiary in the UK, CENIT Ltd. Manchester, boosted its sales by 38 per cent to EUR 2.1 million (1998: EUR 1.5 million).

Concentration on Internet technology

CENIT AG Systemhaus will increasingly concentrate on Internet technologies. The board of management expects this to exercise a positive influence on the development of business all along the line. The sales target for 2000 has been set at EUR 112 million. In operating earnings, the company aims to hit the EUR 8.4 million level. By the end of the year, the group expects to have a workforce of about 600 people. In the intermediate term, the company aims to achieve an average annual growth rate of 40 per cent.

Stepping up globalisation

Now that it has founded a wholly-owned subsidiary in Switzerland and completed the announced acquisition of the UK IT marketing and service company Desktop Engineering, Oxford, CENIT AG Systemhaus plans to continue its globalisation strategy.

Background

With its over 450 employees, CENIT AG Systemhaus, Stuttgart, a company listed on the Neuer Markt, is one of the leading service providers for information technologies in Germany. By concentrating on Internet technologies, this systems provider with business activities in e-business, CAD/CAM Solutions and IT Services, offers tailor-made solutions from one source. In 1999, CENIT AG Systemhaus’ sales totalled EUR 79.5 million. In addition to its branches in Berlin, Frankfurt, Düsseldorf, Hanover, Munich and Saarbrücken, the company has subsidiaries in Manchester, U.K. and Frauenfeld near Zurich, Switzerland.

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