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26.07.2000

Steep growth and globalisation

Stuttgart, July 26th 2000. In the first half of fiscal 2000, CENIT AG Systemhaus achieved its goal of becoming a systems provider with global operations. "After our acquisitions in the UK, France and North America, we are now the biggest CAD/CAM system integrator world-wide", was how Falk Engelmann, spokesman for the board of management, described the company’s position.

CENIT wants to take advantage of its world-wide presence, and especially the opportunities offered by the world’s biggest IT market, the USA, says Mr. Engelmann, to develop its new business segment e-business energetically. In addition to providing products of Intershop, CENIT now also has projects on the basis of SAP platform mysap.com in sight.

The board of management is quite pleased with the business development. CENIT closed the first half-year with a good rate of growth. Sales revenue rose by 31% to 44.73 million EUR (1999: 34.22 million EUR). Gross profit rose within the reported period by 49% being 8.47 million EUR to 25.79 million EUR. Adjusted for acquisitions sales rose to 37.8 million EUR and gross profit to 22.02 million EUR (1999: 17.31 million EUR). The decline in operating earnings (EBIT) to minus 0.37 million EUR (1999: 1.23 million EUR) is essentially attributable to the allegation of the first quarter.

CENIT’s workforce in Germany rose from 391 last year to 461. The new subsidiaries abroad boosted the number of employees in the CENIT group as a whole to 808. "Business is growing for the new CENIT companies in France and North America and in Germany too. We shall therefore have a staff of about 900 by the end of the year", was Mr. Engelmann’s forecast of future growth.

A very good backlog of orders

The company reported new orders in Germany from Volkswagen AG, in Switzerland from the Coop group, in France from the PSA group and the Airbus consortium. Recently, the company succeeded in winning the sporting goods manufacturer ITECH as a new customer in the consumer sector in North America.

Thanks to its good backlog of orders and with demand for hardware picking up, CENIT is optimistic as it starts the second half of the fiscal year. "We see additional stimulation of the economy as a whole coming from the tax reform law which has just been passed in Germany", said Mr. Engelmann. In autumn this year, CENIT intends to announce its further plans at an analysts’ conference held with other enterprises quoted on the Neuer Markt.

Background

With over 808 employees, CENIT AG Systemhaus, Stuttgart, a company listed on the Neuer Markt, is an internationally operating service provider for information technologies. By concentrating on Internet technology, 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 EURO 79.5 million. In addition to its branches all over Germany, the company has subsidiaries in Great Britain, Switzerland, France and North America (Canada, US, 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