Softmatic AG

ots Ad hoc-Service: Softmatic AG NORDERSTEDT SOFTWARE HOUSE INITIATES RESTRUCTURING MEASURES
SOFTMATIC AG: FIGURES FOR Q3 BELOW PLAN

Ad hoc-announcement edited and sent by DGAP. The sender is solely responsible for the contents of this announcement. ----------------------------------------------------- Norderstedt (ots Ad hoc-Service) - Softmatic AG, listed on the German Neuer Markt, reports its preliminary figures for the first nine months of fiscal 2000. Revenues amount to DEM 62.2 million, an increase of 119 % compared to the same period in fiscal 1999. U.S.GAAP group earnings before taxes (EBT) amounted to minus DEM 27.8 million (1999: minus DEM 8.5 million) for the first three quarters in fiscal 2000, earnings after taxes totalled minus DEM 21.7 million (1999: minus DEM 1.8 million). The board of directors announced today that these figures are below their own expectations. The main reason being the unexpected market weakness in the software market, which led to revenues of approx. DEM 13 million below plan for the third quarter. Due to structural costs remaining on a high level, this shortfall in revenues has had a direct impact on earnings. For instance, the company still increased its number of software developers by more than 20 in June 2000 in order to introduce the Comet-successor Diamant@ into the market in autumn. In the light of the lower than expected revenues, the costs of the internationalisation, which has been driven forward intensely in the current business year, had direct impact on earnings. Particularly, expenses for personnel, administration and marketing in the foreign operations have increased disproportionately. The German tax reform that was decided on in the third quarter had a one time negative effect on the after tax result. At the end of the quarter, liquid assets amounted to DEM 28.6 million for the group. The company has already taken first restructuring measures, the board announced. Personnel costs will be reduced significantly in the short term by slimming the workforce. At the same time, the structure of the subsidiaries will be reorganised. Concrete decisions have been made todrastically reduce the overhead costs. The target volume of savings from these measures amounts to more than DEM 20 million. A first positive effect from these initial measures is expected for the beginning of next year. For fiscal 2000, the board now expects group revenues ofDEM 90 million and a loss before taxes of DEM 39 million. Short term restructuring costs are included in these figures. The complete quarterly report will be published on November 30. Further Information: Kay Bommer: Tel.: +49 / 40 / 52 844 212, Email: kbommer@softmatic.com End ----------------------------------------------------- Internet: http://recherche.newsaktuell.de Original-Content von: Softmatic AG, übermittelt durch news aktuell

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