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09.05.2008

CENIT’s highly successful start in 2007

CENIT Software increases EBIT margin to over 17%

Adhoc Announcement in accordance with §15 of the Securities Trade Act

Stuttgart, May 9, 2007 – CENIT started 2007 with an extremely successfully first quarter, essentially influenced by the development of their software business. In the meantime, 19% of the total revenue is achieved through the sales of CENIT software. At the same time, the hardware sales dropped as expected by 62% to 1.6 million EUR (2006: 4.6 million EUR), thus enabling CENIT to take a decisive step towards their goal of a massive development of their software business. As a result, the EBIT margin improved by 13.6% in 2006 to over 17% in the first quarter of 2007.

In the first quarter, CENIT achieved consolidated sales of 17.6 million EUR (2006: 19.2 Mio. EUR /-9). The decline in sales can be attributed to the hardware business. The gross profit thus increased by 5% to 15.6 million EUR (2006: 14.8 million EUR). The EBITDA achieved 3.3 million EUR (2006: 2.9 million EUR /3%). The result of the operational business operations before interest and taxes (EBIT) rose in the reporting period from 2.6 million € in 2006 by 16% to 3.0 million. The EBT (result before taxes) was 3.1 million EUR (2006: 2.4 million EUR /30%) and the consolidated result in the first quarter is 2.0 million EUR (2006: 1.97 million EUR). The group EPS (earnings per share) was 0.24 € (2006 adjusted: 0.23 EUR), showing that CENIT started the year on an extremely positive basis.

This very favorable growth in earnings is positively affecting the group’s financial standing. At the balance sheet date, the equity capital is 26.4 million EUR (2006: 24.3 million EUR) and the equity ratio is 68% (2006: 62%). The balance of bank deposits and securities of the current assets is 20.6 million EUR (2006: 18,6 Mio. EUR) at the balance sheet date. The operational cash flow is 3.4 million EUR (2006: 2.2 million EUR) and the free cash flow reached 2.0 million EUR (2006: 1.3 million EUR).

Breakdown of Revenue

The sales volume with CENIT Software increased by 9% to 3.3 million EUR, meaning that 19% of the total revenue was achieved with CENIT’s own software. In the previous year it was around 16% of the total revenue, with 3.0 million EUR. Business with other vendors’ software also increased by 6.2% to 1.6 million EUR (2006: 1.5 million EUR). The sales volume in the Services sector again rose by 8.5% to 11.0 million EUR (2006: 10.1 million EUR). Hardware business dropped as expected significantly by 62% to 1.6 million EUR (2006: 4.6 million EUR).

Order Situation

The orders balance as of March 31, 2007 in the group is 27,7 million EUR (12/2006: 18,2 million EUR) and the incoming orders amount to around 31,7 million EUR (2006: 31,2 million EUR). The share of new customers increased in total to 3% in the first quarter.

Prospects

CENIT is aiming at increasing the total revenue share of proprietary software by up to 30% over the next three years. Based on this successful start to the fiscal year 2007, we are confident to continue the tendencies in the software business. A high workload in the consulting business and the sustained positive economic development support our positive expectations for 2007. We are underscoring our reputation in the aerospace industry through the foundation of a subsidiary in Toulouse and expect this to yield additional positive impulses in the consulting business. The international character of CENIT’s business is also increasing in significance through the further consistent development of the subsidiaries in the US and Romania. Given our optimized product portfolio and our competitive range of consulting services, we are confident that CENIT will also profit from the general economic growth.

Forward-Looking Statements This news release may contain forward-looking statements about the business, financial condition, results of operations and earnings outlook of CENIT Words such as "may,""will," "expect," "anticipate," "contemplate," "intend," "plans," "believe,""continue" and "estimate," and variations of these words and similar expressions, identify these forward-looking statements. These statements are not guarantees of future performance, involve certain risks, uncertainties and assumptions that are difficult to predict, and are based upon assumptions as to future events that may not prove accurate. Therefore, actual outcomes and results may differ materially from what is expressed herein. In any forward-looking statement in which CENIT expresses an expectation or belief as to future results, such expectation or belief is expressed in good faith and believed to have a reasonable basis, but there can be no assurance that the statement or expectation or belief will result or be achieved or accomplished. Actual operating results may differ materially from such forward-looking statements and are subject to certain risks.

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