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21.03.2000 – 08:00

All for One Steeb AG

ots Ad hoc-Service: AC-Service AG AC-Service on the Way to Being an Application Service Provider

The sender is solely responsible for the contents of this announcement. ---------------------------------------------------------

    Stuttgart (ots Ad hoc-Service) -      
    Integration of Most Recent Acquisition Successfully Completed. IT
Outsourcing Grows by 14 %.

    With the integration of its latest acquisition in the human resource services field, AC-Service has made yet another step in its new alignment as application service provider (ASP). Just ahead of this were the more than 700 new clients and 100,000 monthly payroll accounts assumed from the Rechenzentrum Schulte GmbH in Aßlar and the BRW GmbH in Vaterstetten near Munich in early November 1999. Together with this acquisition, AC-Service is planning additional sales of some DEM 12 million and an EBIT of more than DEM 2 million, after goodwill amortisation, for the financial year 2000.

    According to preliminary figures, group revenues for the 1999 financial year were DEM 100.8 million (prior year: DEM 95.1 million) with an operating profit (EBIT) was DEM 5.7 million (prior year: DEM 7.7 million). At the end of 1999 the workforce included 425 employees (31.12.1998: 358). Additional details will be made known at the balance sheet press conference in Frankfurt on 29 March 2000.

    Due to weak demand leading up to the millennium, total sales in the Distribution Solutions division slipped to DEM 39.6 million (prior year: DEM 45.5 million). This change had a larger than expected impact on the group's operating profit. In the current year the Distribution Solutions division's efforts will be concentrating on implementing measures to achieve a significant improvement to operational profitability.

    Compared to last year, AC-Service saw organic revenue growth within IT Outsourcing increasing by 14 % to DEM 28.6 million. The current financial year is expected to again show growth well above that of the prior year. Contributing to this will be new application services such as the recently introduced e-business solution for the Bosch wholesalers' broadened supply chain. The IT Outsourcing division will be newly offering SAP R/3 solutions like AC TRADE. Acquisitions are to further grow and expand this R/3 business.

    AC-Service sees itself very favorably positioned to play a role in the strongly growing application service providers market and expects major growth for the year 2000.

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