• 463-0-0
03.05.2000

CENIT continues to implement its policy of internationalisation in the first quarter

Stuttgart, May 3rd 2000. CENIT AG Systemhaus consistently continued to pursue its policy of internationalisation in the first quarter of 2000. After the acquisition of Desktop Engineering in the UK and Spring Technologies in France, CENIT signed a preliminary agreement for the hundred percent takeover of L&H Consultants in North America. Thus, in the first three months of this year, CENIT has taken decisive steps towards becoming a global player.

Business developments in the first quarter were in line with expectations. Thanks to full utilisation of capacities in the service sector, gross earnings rose to EUR 10.1m (first quarter 1999: EUR 7.6m). This corresponds to a steep rise of 33 per cent. Due to the comparatively weak hardware business, sales, at EUR 14.4m, fell about eight per cent short of the previous year’s figure (first quarter 1999: EUR 15.7m). Operating earnings also developed as planned, at EUR -0.8m (first quarter 1999: EUR 0.0m). This is attributable primarily to non-recurring expenses for mergers and acquisitions, and to extensive investments to build up the Swiss subsidiary and the newly founded branch in Berlin. There was an enormous rise in orders received by CENIT - twice the figure for the same period last year. The number of employees rose by 128 to 470 (first quarter 1999: 342).

"The first quarter is traditionally the weakest for CENIT AG Systemhaus’ business. As always, the second half of the year will generate markedly higher earnings. Our recent acquisitions in north America, France and the UK will also contribute to an upswing," comments board of management spokesman Falk Engelmann on the quarterly results presented today. "By mid-year, we shall present a revised plan for the year 2000 which takes these factors into account."

Background

With its over 600 employees, CENIT AG Systemhaus, Stuttgart, a company listed on the Neuer Markt Frankfurt am Main, is an internationally operating service provider for information technology. By concentrating on Internet technologies, this systems provider with business activities in e-business, CAD/CAM Solutions and IT Services, offers its customers tailor-made solutions from one source. In 1999, CENIT AG Systemhaus made sales of c. EUR 79.5m. In addition to its branches in Berlin, Frankfurt, Düsseldorf, Hanover, Munich and Saarbrücken, the company has subsidiaries in Manchester and Oxford, U.K., in Frauenfeld near Zurich, Switzerland, and Spring Technologies S.A. near Paris France.

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