Beta Systems Software AG

ots Ad hoc-Service: BETA Systems Software AG Reorganization of North American Business with positive Effects on First Quarter Results

The sender is solely responsible for the contents of this announcement. ----------------------------------------------------- Berlin (ots Ad hoc-Service) - After adjustment for divestitures, net revenues increase approximately 3% over the first quarter of 1999 but net loss decreased significantly by DM 0.5 million or 36% Management board member responsible for sales and marketing to join Company June 1, 2000 New storage management subsidiary poised to provide incremental revenues and improved profitability Company adjusts strategic business focus and realigns sales effort in Germany to better address regional product demand and market potential The board of BETA Systems Software AG (Neuer Markt:BSS) will present three essential highlights in its report to shareholders at today's scheduled orderely stock holder's meeting: With the appointment of Ralf Männlein as board member responsible for Sales and Marketing, the management board of BETA Systems is once again complete as of June 1, 2000. The appointment of Männlein, who brings comprehensive experience in establishing international sales and marketing structures to the software house, comes at a strategically important time for the Company. An earnings report for the first Quarter 2000 will be released, which shows the positive effects of closing loss-intensive BETA Systems' US operations resulting in a clearly improved earnings result compared to the same period last year. In order to facilitate a comparison between the periods, the Company has prepared pro forma financial information for 1999 and 2000, which eliminates the results of operations of the divested businesses for the period. After elimination of the results of operations of the Company's US subsidiaries, the assets of which, including four products, were sold in January, net revenue for the first quarter of 2000 increased by 2.8% reaching DM 14.5 million. A DM 1.4 million gain on divestiture, resulting from contingent royalty payments received in the first quarter as part of the purchase price for the four products made a contribution, that the Company's net loss was reduced by 35.7% to DM (0.9) million as opposed to a net loss of DM (1.4) million in the first quarter of 1999. Including the results of the US operations, the Company reported total net revenues of DM 14.5 million for the first quarter of 2000, a decrease of DM 1.9 million, or 11.6%, over the first quarter of 1999. The net loss in the 2000 period was DM (2.3) million, or DM (0.58) per share, as compared to a net loss of DM (2.8) million, or DM (0.76) per share, in the 1999 period. With the announcement in April 2000 of the founding of Tantia Technologies, Inc. in Boulder, Colorado, a 100% subsidiary of BETA Systems Software AG, the company's focus on storage management products in the US market announced one year ago is realized. Utilizing a network of distributors, Tantia takes over the marketing of storage products obtained through the December 1998 BETA Systems' acquisition of the Canadian company HARBOR. Board Member Christiane Hotz-Firlus comments: For our Storage Management business segment, we have created a management and organizational structure which we believe will provide growth in revenue and improve the profitability of BETA Systems this year. The company's attention is now centered on the German market where it is realigning its sales force to give it the strategic focus necessary to position the Company for future growth and increased profitability. In the future, BETA Systems will concentrate on three market segments, which board member Christiane Hotz- Firlus will present at today's share holders' meeting. A new business segment Document Management under Windows NT is among the three to be presented, with which the company plans to expand its current target audience. In addition to targeting the largest organizations worldwide that work with mainframe computers under OS/390, solutions for integrated Document Management based on the newly developed BETA 99 Distributed Document Library will be offered to organizations of all types that process large amounts of data and information. Contact: Gudrun Konig Manager Public Relations / Investor Relations Phone: ++49 (30) 399 26-307 Fax: ++49 (30) 399 26-294 E-Mail: Further Information:; End ----------------------------------------------------- Internet: Original-Content von: Beta Systems Software AG, übermittelt durch news aktuell

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