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CENIT`s first quarter results confirms positive outlook 2003

Loan to banks reduced and positive cash flow

Stuttgart, May 15th 2003 - The first quarter of 2003 was characterised by a substantial increase in earnings. The decline in revenue is attributable to the deconsolidation of our French subsidiary and the contraction of hardware sales. At the same time, we succeeded in increasing the proportion of services by 10%, thus improving our earnings performance. The positive reversal of trends within the Group is underlined by the solid earnings performance in Germany. With a 96% share of group revenue, i.e. EUR 16.2 mill. (2002:17.7 mill./-9%), Germany plays a pivotal role within the Group. The EBITDA amounted to EUR 0.7 mill. (2002: 0.1 mill.). The EBIT is EUR 0.5 mill. (2002: - 0.4 mill. / 225 %), a marked improvement on the figure posted in 2003. At EUR 0.5 mill., EBT was also substantially above par in the period (2002:-0.5 mill.). A partial income of the selling of our French subsidiary has a positive impact of EUR 0.6 mill. on the results of Germany.

CENIT`s group revenue amounted to EUR 16.9 mill. (2002: 23.1 mill. /-27%). The gross profit for the Group stood at EUR 10 mill. (2002:13.1 mill./ -24 %). As part of the deconsolidation of our French subsidiary, we incurred a loss on disposal of EUR 0.4 mill., which has effected the earnings performance of the Group. The loss in EBITDA amounted to EUR 0.2 mill. (2002: 0.05 mill.). The loss in EBIT for the Group amounted to EUR 0.5 mill. (2002: -0.6 mill. / 18%). Excluding the loss on disposal attributable to the French subsidiary, the loss in EBIT would have been EUR 0.1 mill.. The EBT loss stood at EUR 0.5 mill. (2002: - 0.7 mill. / 28%). The loss in EPS for the Group (basic) was EUR 0.13 (2002: - 0.15 EUR). Group cash flow from operating activities was EUR 2.6 mill. for the period under review (2002: 2.1 mill.). The consolidated balance sheet total declined from EUR 27.5 mill. to EUR 16.5 mill., while the equity ratio improved from 30% in 2002 to 47%. At the end of the first quarter, shareholders’ equity stood at EUR 7.7 mill. (2002: 8.3 mill.). Loan to banks were reduced considerably from EUR 6.2 mill. in 2002 to EUR 2.1 mill. As at March 31, 2003, cash and cash equivalents amounted to EUR 1.6 mill. (2002: 2.5 mill.). With this quarter results the foundation stone is laid to achieve break-even in 2003.

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