11 88 0 Solutions AG — Earnings Release 2007

May 3, 2007

News Details

Corporate | 3 May 2007 08:22

telegate AG: telegate records significant rise in profits – Fiscal year 2007 starts in line with plan

telegate AG / Quarter Results

Release of a Corporate News, transmitted by DGAP - a company of EquityStory
AG.
The issuer / publisher is solely responsible for the content of this announcement.

---

In the first quarter of 2007, telegate continues to
increase its profits, following the trend of the second half of 2006.
Earnings before interest, taxes, depreciation and amortization (EBITDA)
increased significantly to 11.0 million Euro (Q1 2006: 0.3 million Euro).
The main drivers behind this performance were a gross margin climbing to 59
percent (Q1 2006: 48 percent) and - compared with last year’s figure –
substantially lower advertisements costs. As a consequence, the annual
profit after taxes rose substantially from the -2.5 million Euro recorded
for the first quarter of 2006 to 7.3 million Euro in the first quarter of
2007. Sales in the period under review were slightly receding to 44.0
million Euro (Q1 2006: 47.2 million Euro). If the figure for Q1 2006 is
adjusted by the outsourcing sales made in France prior to the
liberalization with SFR and Bouygues Telecom DA services (Q1 2006: 9.5
million Euro, at no margin), this would lead to a 17 percent growth in
sales. The free cash flow of 9.9 million Euro for the first quarter 2007
(Q1 2006: -3.9 million Euro) underlines the company’s financial power and
in turn raises freely available liquidity to 28.8 million Euro. This gives
telegate a solid basis for the successful continuation of business this
year.

All business segments of telegate also expanded their respective positions.
The segment Germany/Austria managed to keep sales stable in a
quarter-on-quarter comparison and substantially boosted earnings. Here,
telegate generated sales of 28.5 million Euro (Q1 2006: 28.6 million Euro)
with earnings before interest, taxes, depreciation and amortization
(EBITDA) of 11.0 million Euro (Q1 2006: 9.3 million Euro). Particularly
gratifying was the performance of the business segment Italy/Spain, where
sales grew by almost 28 percent from 7.5 million Euro (Q1 2006) to 9.6
million Euro (Q1 2007). At the same time, the segment’s profitability rose
significantly, recording an EBITDA of 2.4 million Euro (Q1 2006: 1.0
million Euro). Sales made with the `118 000´ DA service within the French
segment were also markedly higher, generating a total of 5.9 million Euro
(Q1 2006: 1.7 million Euro, if restated for the outsourcing sales made
with SFR and Bouygues Telecom prior to French market full liberalization).
In line with this general development the negative earnings from this
segment were further cut from -10.1 million Euro recorded for the first
quarter of 2006 to -2.4 million Euro in the first quarter of 2007.

Based on these results, telegate maintains its target for fiscal year 2007
and reckons to generate an EBITDA of approximately 50 million Euro for the
period.

About telegate AG:
telegate is a leading supplier of information services in Europe. The
company was founded in 1996 and in 1999 was successfully listed on the
Frankfurt stock exchange (ISIN: DE0005118806). Apart from the expansion of
innovative services for consumers and business customers, the drive into
other European countries is the focal point of the company’s strategic
orientation. After Germany, telegate has today successfully established
itself in Austria, France, Italy and Spain. In the fiscal year of 2006 the
telegate Group achieved total revenues of around 180 million Euro, thereby
attaining an annual net income of 6 million Euro.

telegate AG
Claudia Strixner
Fraunhofer Str. 12a
82152 Munich-Martinsried
Tel.: 089/ 8954-1180
Fax: 089/ 8954-1189
E-Mail: presse@telegate.com
www.telegate.com

DGAP 03.05.2007

Language: English
Issuer: telegate AG
Fraunhofer Str. 12a
82152 München-Martinsried Deutschland
Phone: +49 089 - 89 54 0
Fax: +49 089 - 89 54 10 10
E-mail: info@telegate.de
www: www.telegate.com
ISIN: DE0005118806
WKN: 511880
Indices:
Listed: Geregelter Markt in Frankfurt (Prime Standard); Freiverkehr
in Berlin-Bremen, Hannover, Düsseldorf, Hamburg, München,
Stuttgart

End of News DGAP News-Service

---