ATOSS Software AG — Earnings Release 2006

Dec 19, 2006

News Details

Corporate | 19 December 2006 09:25

ATOSS Software AG: ATOSS remains on course for record performance

ATOSS Software AG / Development of Sales/Miscellaneous

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The issuer is solely responsible for the content of this announcement.

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Corporate News

ATOSS remains on course for record performance

Munich, 18.12.2006 ? ATOSS Software AG has seen the positive development in
its business continue in the fourth quarter. The Munich-based specialist in
intelligent staff deployment software has already raised its forecasts
three times in the current financial year 2006 and the Management Board is
confident that latest targets will be easily achievable. The company
expects to return an operating profit (EBIT) of at least ? 2.7 million
(previous year ? 0.6 million), representing a margin on sales of better
than 12 % (previous year 3 %). The return on equity will also rise
substantially from 2 % last year to around 18 %.

These expectations are supported by the trend in acquiring new customers
and contracts over recent weeks. ATOSS has been successful in converting
several existing customers such as Coca Cola Erfrischungsgetränke AG to its
new generation of products based on Java J2EE technology. Against the
backdrop of the gratifying development in business in 2006, forward
planning for the year 2007 is looking secure.

In the course of the year to date, the considerable effort devoted in
recent years to research and development has been paying off, a fact which
is underscored by the orders received from high-profile companies such as
Austrian Airlines, T-Punkte, Edeka and Max Bahr.

The driving forces behind the highly gratifying development in sales and
results since the fourth quarter of 2005 have in particular been the
software licensing business and associated services. On this basis as of
September 30, 2006, with sales up by 9% at ? 15.9 million, ATOSS was able
to report EBIT of ? 2.1 million (up from - ? 0.3 million in the previous
year), equating to a margin on sales of 13 %. Software licensing sales were
up 24 % at ? 3.4 million. The strength of customer demand was even clearer
from the software license order book which put on 37 % to stand at ? 4.3
million. Turnover in services as of September 30, 2006, was 12 % higher at
? 4.1 million.

Comfortable return on equity and net liquidity at year end 2006

The strength of ATOSS likewise remains unchanged in terms of finance. Cash
flow from operations as of 30.9.2006 had risen by 86 % over the year before
to stand at ? 5.4 million. By the year end the Management Board expects to
see a figure of around ? 4 million, with net liquidity of approx. ? 10
million and an equity ratio 60 %.

In May ATOSS paid a dividend of ? 5.5 per share, amounting to almost ? 21.5
million in total. Since then liquidity has risen steadily and most recently
stood at ? 11.7 million.

Despite record results and sustained high demand, the Management Board is
as usual conservative in it outlook

2006 is shaping up for a record result. With EBIT expected to reach at
least ? 2.7 million, ATOSS will far exceed the previous best result in the
company?s history of ? 2.3 million in the year 2003. The sharp rise in
profits will also be reflected in earnings per share where the Management
Board is looking for around ? 0.45, compared with ? 0.11 last year.

Against the background of the development in business in 2006 the
Management Board is confident that the positive trend will continue in
2007, however the Board stands by its conservative planning and forecasting
policy. ATOSS sees further potential to enhance profits and is targeting a
further increase at least over the 2006 result after adjustment for
extraordinary effects. It should be borne in mind that 2006 was boosted by
exceptional earnings from the disposal of the product AENEIS.

As in the current financial year, further improvements are possible
provided that the present consistently strong order situation continues.
ATOSS will announce details of the outlook for the coming financial year
when the annual financial statements for 2006 are published.

Upcoming dates:

31.01.2007 Press release on the consolidated / annual financial
statements
for 2006

14.03.2007 Publication of the consolidated / annual financial statements
for 2006

24.04.2007 Press release on the results for the first 3 months

26.04.2007 General Meeting in Munich

Further information: http://www.atoss.com Contact: ATOSS
Software AG
Christof Leiber / Management Board
Am Moosfeld 3, D-81829 Munich
Tel.: +49 (0) 89 4 27 71 ? 265
Fax: +49 (0) 89 4 27 71 ? 100
investor.relations@atoss.com

DGAP 19.12.2006

Language: English
Issuer: ATOSS Software AG
Am Moosfeld 3
81829 München Deutschland
Phone: +49 (0)89 4 27 71-0
Fax: +49 (0)89 4 27 71-100
E-mail: revolution-in-time@atoss.com
WWW: www.atoss.com
ISIN: DE0005104400
WKN: 510440
Indices:
Listed: Geregelter Markt in Frankfurt (Prime Standard); Freiverkehr
in Berlin-Bremen, Stuttgart, München, Hamburg, Düsseldorf

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