CANCOM SE — Interim / Quarterly Report 2008

May 30, 2008

Interim Report

Q1/2008

»Leading provider of IT infrastructure and professional services«

TABLE OF CONTENTS

SECTION	page
TABLE OF CONTENTS	02
PREFACE – KEY FIGURES	03
BUSINESS DEVELOPMENT IN THE FIRST THREE MONTHS	04-08
1) CANCOM's business and the general economic situation	04-05
2) Earnings, financial and assets situation of the CANCOM Group	05-07
3) Shareholdings of the Executive and Supervisory Boards	08
4) Events of particular significance after the reporting date	08
5) Risk report	08
6) Opportunities report	08
7) Forecast	08-09
BALANCE SHEET	10-11
INCOME STATEMENT	12
CASH FLOW STATEMENT	13
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY	14-15
NOTES TO THE ACCOUNTS	16-24

CONTENT

PREFACE – KEY FIGURES

Dear Shareholders,

The figures for the first quarter of 2008 show that the success of the last financial year is continuing. Despite the fact that March had fewer working days than in 2007 because of the early Easter, we managed to increase sales revenue and EBITDA again.

A recent survey by Bitkom, the German Association for Information Technology, Telecommunications and New Media, shows that the high-tech industry is confident about how business will develop in 2008. We agree with this positive sentiment. Bitkom confirms that there will be a sustained demand for IT services, and, for the first time in a long while, forecasts growth in sales revenue in the hardware business.

We look forward to the rest of the year 2008. Our decision to concentrate more on IT services from an early stage was well advised, and this is also reflected in our figures.

Thank you for your confidence!

Kind regards,

Klaus Weinmann, CEO

Key figures

in Euro million

Kennzahlenübersicht CANCOM Konzern in Mio. €	01/01/ - 03/31/2008	01/01. - 03/31/2007	Veränderungen/ Change	Overview of key figures CANCOM group in € million
Umsatzerlöse	79.1	69.1	+ 14.5%	Revenue
Rohertrag	24.2	20.8	+ 16.3%	Gross profit
Rohertragsmarge	30.6%	30.1%	+ 1.7%	Gross margin
EBITDA	2.1	2.0	+ 5.0%	EBITDA
EBIT	1.6	1.6	+/- 0%	EBIT
Periodenüberschuss	0.9	1.1	- 18.1%	Net profit
Ergebnis pro Aktie (in €)	0.09	0.1	-10.0%	Earnings per share (in €)
Durchschnittliche Aktienzahl				Adjusted average number of shares
(in 1.000) (verwässert)	10,391	10,391	+/- 0%	(in 1,000) (diluted)
Mitarbeiter zum 31.03.	1,345	1,290	+ 4.3%	Employees as of 31 March

		Veränderungen/
in Mio. €	31.03.2008	31.12.2007	Change	in € million
Bilanzsumme	93.3	100.4	- 7.1%	Balance sheet total
Eigenkapital	37.1	36.3	+ 2.2%	Equity
Eigenkapitalquote	39.8	36.2	+ 11.0%	Equity ratio

1. CANCOM's business and the general economic situation

Organisational and legal structure of the CANCOM Group

CANCOM IT Systeme Aktiengesellschaft, based in Jettingen-Scheppach, Germany, performs the central financial and management role for the equity investments held by the CANCOM Group.

Focus of activities and sales markets

One of the largest integrated systems providers in Germany, the CANCOM Group has been transformed over the last few years from a systems house focusing primarily on hardware and software, into a full-service IT solutions provider. Its central focus is therefore now on providing IT services, in addition to selling hardware and software from reputable manufacturers. Its IT services offering includes design and integration of IT systems, as well as system operation.

The CANCOM Group's customer base primarily includes commercial end-users, from independent professionals and small, medium and large-sized companies, to publicsector institutions.

Explanation of the control system used within the Group

To control and monitor the development of the individual subsidiaries, once a month

CANCOM analyses, among other things, their sales revenues, gross profit, operating expenditure and operating profit, and compares these key figures with the original plan as well as the quarterly forecast. Additionally, the Company regularly uses external indicators such as inflation rates, interest rates, the general economic trend and the business trend within the IT sector – as well as forecasts for these – for the purpose of management control.

Research and development activities

As the business activities of the CANCOM Group are restricted to hardware and software distribution and service provision, no other major research and development costs were incurred.

Overview of the CANCOM Group's business development

The CANCOM Group continued on its path of growth in the first quarter of 2008. Consolidated sales revenues significantly exceeded those of the first quarter of 2007, with consolidated EBIT reaching the same high level as in 2007. This result should be seen in light of the fact that in the current financial year the Easter holiday fell in the first quarter, whereas in 2007 it fell in the second quarter. Therefore there were fewer working days and fewer invoicing days for services in the first quarter than in 2007. The impact of this will

be balanced out over the first half-year.

Consolidated sales revenues were up 14.5 percent on the figures for the first quarter of 2007, at € 79.1 million compared with € 69.1 million. Consolidated EBITDA rose by 5.0 percent, from € 2.0 million in the first three months of 2007 to € 2.1 million in the first three months of 2008, and consolidated EBIT amounted to € 1.6 million, the same result as in the first quarter of 2007.

Significant events and investments

CANCOM Ltd., a wholly-owned subsidiary of CANCOM IT Systeme AG, took over an Apple Premium Reseller (APR) in Edinburgh, Scotland, with effect from 31 March 2008. The acquisition follows the successful restructuring of CANCOM UK in 2007 and is the first step of an aggressive growth strategy that provides for a doubling of the Group's presence in the UK to eight locations within a year.

Employees

As at 31 March 2008, there were 1,345 people employed by the CANCOM Group.

The employees worked in the following areas (as at 31 March 2008):

Administration	111.0
Logistics and customer services	48.0
Marketing and product management	37.0
Professional service	929.0
Purchasing	26.0
Sales	194,0
Total	1,345

The personnel expenses for the first three months were as follows (in € '000):

	First quarter
	2008	2007
Wages and salaries	14,072	12,112
Social security contributions	2,519	2,144
Pension provisions	38	34
Total	16,591	14,290

2. Earnings, financial and assets situation of the CANCOM Group

a) Earnings situation

The CANCOM Group's sales revenues rose considerably in the first three months of 2008. The reason for this, in addition to the successful acquisition strategy, is the stronger demand for IT services as well as hardware and software products.

Consolidated sales revenues were 14.5 percent higher than in the first three months of 2007 at € 79.1 million, compared with € 69.1 million.

Sales revenues of the CANCOM Group, first three months (in € million)

ISales revenues in Germany were 9.4 percent higher than in the first three months of 2007, at € 67.2 million compared with € 61.4 in 2007.

In international business, Group sales revenues rose by 55.8 percent from € 7.7 million to € 12.0 million. This increase is mainly the result of the acquisition of CANCOM a+d IT solutions GmbH.

In the business solutions segment, sales revenues rose by 14.0 percent, from € 45.8 million to € 52.2 million. In the IT solutions segment, sales revenues were up 15.5 percent, from € 23.3 million to € 26.9 million.

The Group's gross profit was up 16.3 percent, from € 20.8 million in the first three months of 2007, to € 24.2 million in the first three months of 2008. This increase was a result of the significant expansion of the IT service activities. This gave rise to a gross profit margin of 30.6 percent, in comparison with € 30.1 percent in 2008.

Gross profit of the CANCOM Group, first three months (in € million)

Consolidated EBITDA earnings were up 5.0 percent in the first quarter of 2008 at € 2.1 million, compared with € 2.0 million in 2007.

EBITDA of the CANCOM Group, first three months (in € million)

Consolidated EBIT in the first three months of 2008 was the same as in 2007, at € 1.6 million.

EBIT of the CANCOM Group, first three months (in € million)

For tax reasons the consolidated profit for the period was slightly down in the first quarter of 2008, at € 0.9 million, compared with € 1.1 million in the first quarter of 2007. Thus earnings per share were € 0.09 in the period under review as against € 0.10 in the first three months of the previous year.

The order position

In our merchandise business, the majority of incoming orders are converted to sales within two weeks because of our large delivery capacity. Consequently, the reporting date figures on their own do not give a true picture of our order situation in this area of our business, which is why they are not published.

b) Asset and financial position

Objectives of financial management

The core objective of the financial management of the CANCOM Group is to safeguard its liquidity at all times, to ensure that day-to-day business activities can be continued. In addition, the Group aims to achieve optimum profitability as well as a high credit status to ensure favourable financing rates.

Notes on the capital structure

On the asset side of the consolidated balance sheet, at 31 March 2008 the current assets had fallen by 10.5 percent in comparison with 31 December 2007, to € 60.8 million. Trade accounts receivable fell only slightly by 5.6 percent to € 37.0 million, cash and cash equivalents fell from € 11.8 million to € 8.5 million as a result of seasonal effects. The non-current assets were the same as at 31 December 2007, at € 32.5 million.

On the liabilities side of the balance sheet, there was a 20.3 percent decline in non-current liabilities, to € 36.5 million. This is mainly owing to the reduction in trade accounts payable.

Non-current liabilities with a remaining term of at least one year rose slightly in comparison with 31 December 2007, to € 19.7 million.

For this reason the ratio between short and long-term loan capital has shifted in favour of long-term finance since the start of the year.

The balance sheet total was reduced from € 100.4 million as at 31 December 2007, to € 93.3 million as at 31 March 2008.

The nominal equity capital was increased over the first three months through transfers to net

profits, from € 36.3 million to € 37.1 million. Overall, therefore, the equity ratio as at 31 March 2008 is further improved, at 39.8 percent compared with 36.2 percent as at 31 December 2007.

Notes on changes in the cash flow

The cash flow from ordinary activities, traditionally negative during the year, shows an increased negative figure as at 31 March 2008 in comparison with the same date in 2007, at € 5.4 million compared with € 1.4 million. This is the result of the higher level of accounts receivable than in 2007.

The cash flow from investing activities improved to € 2.2 million as at 31 March 2008, compared with a negative cash flow of € 0.5 million as at 31 March 2007.

The cash flow from financing activities rose to € 0.0 million, in comparison with a negative € 0.1 million in 2007.

Cash and cash equivalents rose to € 8.5 million as at 31 March 2008, in comparison with € 5.3 million as at 31 March 2007.

3. Shareholdings of the Executive and Supervisory Boards as at 31 March 2008

Total number of shares:	10,390,751	100%
Shares held by Executive Board members:
Klaus Weinmann:	286,145	2,754%
Paul Holdschik:	13,056	0,126%
Shares held by Supervisory Board members:
Walter von Szczytnicki	6,252	0,060%
Dr. Klaus F. Bauer	1,500	0,014%
Stefan Kober	526,289	5,065%
Raymond Kober	620,891	5,975%
Walter Krejci	2,000	0,019%

6. Opportunities report

There have been no major changes in the opportunities of future development at CANCOM since the beginning of the current financial year. Details of the opportunities can be found in the annual report for 2007, starting on page 41.

7. Forecast

shop will continue.

The positive trend in the German IT sector should continue throughout the current financial year, according to the German Association of Information Economy, Telecommunications and New Media (Bitkom). For the first time in a long while, Bitkom is expecting an increase in sales revenues in the IT hardware business. Experts in the industry expect sales in the IT services segment – and particularly in the software segment – to grow by 5.3 percent and 6.6 percent respectively.

In addition the Company feels that the trend towards full-service solutions in a one-stop

Source: Bitkom, April 2008

4. Events of particular significance after the reporting date

There were no events of particular significance after the reporting date.

5. Risk report

There have been no major changes in the risks of future development at CANCOM since the start of the current financial year. Details of the risks can be found in the annual report for 2007, starting on page 37. The annual report can be downloaded from www.cancom. de, or obtained free of charge from the Company.

Development of the German IT sector in 2008*

(real change in comparison with 2007, as a percentage)

Source: Bitkom, April 2008

CANCOM geared its business policy to these trends at an early stage and, because of the promising prospects, it intends to continue pursuing the same policy.

The business plan therefore provides for organic growth, among other things by appointing new IT consultants and technicians, so as to strengthen as a matter of priority the IT services provided by existing locations.

In its media customer business, CANCOM will place increased emphasis on IT infrastructure solutions and services. A further purpose of the structural changes brought about in the sales and distribution segment in 2007 is to enable employees in the media environment to improve customer sales potential and achieve a higher net product by means of a larger product portfolio.

In the Windows-based hardware and software business, the existing business units are to be consolidated further, for instance by expanding key account management. The enlargement of the individual sales and distribution units and the introduction of the new position of Regional Key Account Mangers will ensure that the quality approach in the go-to-market strategy is boosted further.

CANCOM aims to make improvements to its quality management, for instance by steadily improving customer satisfaction and the efficiency of certain business and work processes. The introduction of Microsoft's ERP system Dynamic AX™ in July 2007 has brought with it a multitude of new opportunities with regard to the supply chain, such as delivery directly from Distribution to the customer, and the significant improvement in e-procurement. Overall, the improvement and streamlining of logistics processes, and concentration at the Company headquarters, should result in significant cost savings in this area. By cross-selling and by taking advantage of synergy effects and best practices, costs are to be reduced and resources gathered, so that CANCOM can operate even more competitively in the market in the future. The resulting benefits will bring added value to CANCOM and to its customers and business partners.

Additionally, the CANCOM Group's market position in the German IT environment is to be consolidated by means of targeted acquisitions. The market environment continues to offer favourable conditions for this policy.

However, our planned strategic orientation also carries risks with it. For instance, acquisitions

planned or already carried out may not develop as positively as expected, and have a negative impact on CANCOM's performance. An unexpected worsening of general economic conditions could also have a significant negative impact on future business prospects.

Under the present conditions, the Executive Board expects the financial years 2008 and 2009 to bring further growth in sales revenues, with an even greater increase in profits and a further improvement in the financial situation.

Jettingen-Scheppach, Germany, April 2008 CANCOM IT Systeme Aktiengesellschaft

The Executive Board

This document has not been audited. It contains statements and information about the future that are based on the assumptions and estimates of the Executive Board of CANCOM IT Systeme Aktiengesellschaft. These statements are identifiable by words and phrases such as "plan", "intend", "will", "expect", "we feel" etc. and are based on current expectations, assumptions and assessments. Although we feel that these expectations are realistic, we cannot guarantee their correctness. The assumptions may be subject to several internal and external risks and uncertainties, which may lead to the actual results deviating considerably, either positively or negatively, from the situations and figures forecast. The following influencing factors are relevant in this respect: changes in the general economic and business situation; changes in interest rates and foreign currency exchange rates; changes in the competitive situation, for instance by the emergence of new competitors, new products and services or new technologies; changes in the consumer habits of target customer groups etc.; and changes to the business strategy.

CANCOM does not plan to update its forecasts, nor does it make any commitment to do so.

Consolidated balance sheet (ifrs) – Assets

Zahlenangaben in T€ Aktiva	03/31/2008	12/31/2007	Figures in € '000 Assets
Kurzfristige Vermögenswerte			Current assets
Zahlungsmittel und Zahlungsmitteläquivalente	8,501	11,778	Cash and cash equivalents
Forderungen aus Lieferungen und Leistungen	37,019	39,316	Trade accounts receivable
Vorräte	9,408	8,551	Inventories
Aufträge in Bearbeitung	1,269	932	Orders in progress
Rechnungsabgrenzungsposten und			Prepaid expenses and
sonstige kurzfristige Vermögenswerte	4,612	7,372	other current assets
Kurzfristige Vermögenswerte, gesamt	60,836	67,949	Total current assets
Langfristige Vermögenswerte			Non-current assets
Sachanlagevermögen	3,532	3,019	Property, plant and equipment
Immaterielle Vermögenswerte	3,645	3,817	Intangible assets
Geschäfts- oder Firmenwert	22,006	21,889	Goodwill
Finanzanlagen	61	140	Investments
Nach der Equity-Methode bilanzierte Finanzanlagen	13	14	Investments accounted for by the equity method
Ausleihungen	182	182	Notes receivable/loans
Latente Steuern aus temporären Differenzen	386	404	Deferred taxes arising from temporary differences
Latente Steuern aus steuerlichem Verlustvortrag	2.365	2.663	Deferred taxes arising from tax loss carryover
Sonstige Vermögenswerte	302	349	Other assets
Langfristige Vermögenswerte, gesamt	32,492	32,477	Total non-current assets
Aktiva, gesamt	93,328	100,426	Total assets

Consolidated balance sheet (ifrs) – Assets

Zahlenangaben in T€			Figures in € '000
Passiva	03/31/2008	12/31/2007	Equity and liabilities
Kurzfristige Schulden			Current liabilities
Kurzfristige Darlehen und kurzfristiger Anteil an			Short term debt and
langfristigen Darlehen	1,020	1,935	current portion of long-term debt
Verbindlichkeiten aus Lieferungen
und Leistungen	19,138	27,522	Trade accounts payable
Erhaltene Anzahlungen	352	815	Advanced payments received
Rückstellungen	7,192	6,671	Accrued expenses
Umsatzabgrenzungsposten	1,611	1,594	Deferred revenues
Verbindlichkeiten aus Ertragssteuern	1,195	1,236	Income tax payable
Sonstige kurzfristige Schulden	6,036	6,056	Other current liabilities
Kurzfristige Schulden, gesamt	36,544	45,829	Total current liabilities
Langfristige Schulden			Non-current liabilities
Langfristige Darlehen	5,757	4,510	Long-term debt, less current portion
Genussrechtskapital und nachrangige Darlehen	11,563	11,563	Profit-participation capital and subordinated loans
Umsatzabgrenzungsposten	1,042	867	Deferred revenues
Latente Steuern aus temporären Differenzen	638	675	Deferred taxes from temporary differences
Pensionsrückstellungen	168	168	Pension provisons
Sonstige langfristige Schulden	524	560	Other non-current liabilities
Langfristige Schulden, gesamt	19,692	18,343	Total non-current liabilities
Eigenkapital			Equity
Gezeichnetes Kapital	10,391	10,391	Share capital
Kapitalrücklage	15,441	15,441	Additional paid-in capital
Bilanzgewinn/Bilanzverlust			Net profit/loss
(inklusive Gewinnrücklagen)	11,632	10,721	(incl. retained earnings)
Eigenkapitaldifferenz aus Währungsumrechnung	-404	-294	Currency translation difference
Minderheitenanteile	32	-5	Minority interests
Eigenkapital, gesamt	37,092	36,254	Total equity
Passiva, gesamt	93,328	100,426	Total equity and liabilities

Konzern-Gewinn- und -Verlustrechnung (nach ifrs)

Zahlenangaben in T€	01/01/08	01/01/07	Figures in € '000
Gewinn- und Verlustrechnung	-03/31/08	-03/31/07	Income Statement
Umsatzerlöse	79,126	69,087	Revenues
Sonstige betriebliche Erträge	142	162	Other operating income
Andere aktivierte Eigenleistungen	169	0	Other own work capitalised
Gesamtleistung	79,437	69,249	Total operating revenue
Materialaufwand /			Cost of purchased
Aufwand für bezogene Leistungen	-55,191	-48,479	materials and services
Rohertrag	24,246	20,770	Gross profit
Personalaufwand	-16,591	-14,290	Personnel expenses
Abschreibungen auf Sachanlagen			Depreciation of property, plant and equipment
und immaterielle Vermögensgegenstände	-502	-398	and amortisation of intangible assets
Sonstige betriebliche Aufwendungen	-5,598	-4,521	Other operating expenses
Betriebsergebnis	1,555	1,561	Operating income
Zinsen und ähnliche Erträge	72	40	Interest and similar income
Zinsen und ähnliche Aufwendungen	-331	-238	Interest and other expenses
Abschreibungen auf Finanzanlagen	-2	0	Write-downs of financial assets
Gewinn-Verlustanteile aus Joint Ventures,			Share in profit or loss from joint ventures
die nach der Equity-Methode bilanziert werden	-2	-6	accounted for by the equity method
Währungsgewinne / -verluste	-38	-12	Foreign currency exchange gains/losses
Ergebnis vor Steuern			Profit before taxes
(und Minderheitenanteile)	1,254	1,345	(and minority interests)
Steuern vom Einkommen und Ertrag	-307	-228	Income tax expense
Ergebnis nach Steuern aus			Profit after taxes from
fortzuführenden Geschäftsbereichen	947	1,117	continuing operations
Verlust aus aufgegebenen Geschäftsbereichen	0	0	Loss from discontinued operations
Konzernjahresüberschuss	947	1,117	Net income for the year
davon entfallen auf Gesellschafter des Mutterunternehmens	911	990	thereof attributable to the shareholders of the parent
davon entfallen auf Minderheiten	36	127	thereof attributable to minority interests
Durchschnittlich im Umlauf befindliche			Average number of
Aktien (Stück) unverwässert	10,390,751	10,390,751	shares outstanding (basic)
Durchschnittlich im Umlauf befindliche			Average number of
Aktien (Stück) verwässert	10,390,751	10,390,751	shares outstanding (diluted)
Ergebnis je Aktie (unverwässert)	0.09	0.10	Earnings per share (basic)
Ergebnis je Aktie (verwässert)	0.09	0.10	Earnings per share (diluted)

Consolidated cash flow statement (ifrs)

Zahlenangaben in T€	01/01/08	01/01/07	Figures in € '000
Kapitalfluss	-03/31/08	-03/31/07	Cash flow
Cashflow aus gewöhnlicher Geschäftstätigkeit:			Cash flow from ordinary activities:
Periodengewinn vor Steuern- und Minderheitenanteilen	1,254	1,345	Net profit for the period before taxes and minority interests
Berichtigungen:			Adjustments:
+/- Abschreibungen auf Sachanlagen und immaterielle			+/- Depreciation of property, plant and
Vermögensgegenstände	502	398	equipment, and amortisation of intangible assets
+/- Veränderungen der langfristigen Rückstellungen	-36	0	+/- Changes in long-term accruals
+/- Veränderungen der kurzfristigen Rückstellungen	107	-1,532	+/- Changes in non-current accruals
+/- Ergebnis aus dem Abgang von Anlagevermögen	18	4	+/- Profits/losses on the disposal of non-current assets.
+/- Zinsaufwand	259	198	+/- Interest expense
+/- Veränderungen der Vorräte	-857	830	+/- Changes in inventories
+/- Veränderungen der Forderungen aus Lieferungen			+/- Changes in trade accounts receivable
und Leistungen sowie anderer Forderungen	1,967	5,580	and other accounts receivable
+/- Veränderungen der Verbindlichkeiten aus Lieferungen			+/- Changes in trade accounts payable
und Leistungen sowie anderer Schulden	-8,675	-8,097	and other accounts payable
+/- Gezahlte Zinsen	-48	-45	+/- Interest paid
+/- Gezahlte und erstattete Ertragsteuern	67	-123	+/- Income tax payments and rebates
+/- Zahlungsunwirksame Aufwendungen und Erträge	0	0	Cash-based revenues and expenses
Nettozahlungsmittel aus betrieblicher Tätigkeit	-5,442	-1,442	Non-cash revenues and expenses
Cashflow aus Investitionstätigkeit			Cash flow from investing activities
+/- Erwerb von Tochterunternehmen	-91	8	+/- Acquisition of subsidiaries
+/- Beim Kauf von Anteilen erworbene Zahlungsmittel	0	0	+/- Cash inflow from the acquisition of equity holdings
+/- Zahlungen für Zugänge zu immateriellen			+/- Payments for additions to intangible assets as
Vermögenswerten sowie Sachanlagen	-871	-464	well as property, plant and equipment
+/- Zahlungen für Zugänge zu anderen Finanzanlagen	0	-63	+/- Payments for additions to financial assets
+/- Erlöse aus dem Abgang von und Sachanlagen			+/- Proceeds from disposal of property, plant and
und Finanzanlagen	9	3	equipment as well as financial assets
- Beim Verkauf von Anteilen hingegebene Zahlungsmittel	0	0	- Cash used in disposal of equity holdings
+/- Erhaltene Zinsen	72	40	+/- Interest received
+/- Einzahlungen / Auszahlungen aufgegebene Geschäftsbereiche	3,107	0	+/- Cash inflow / outflow from discontinued operations
Für Investitionstätigkeit eingesetzte Nettozahlungsmittel	-2,394	-4,444	Net cash used in investing activities
Cashflow aus Finanzierungstätigkeit			Cash flow from financing activities
+/- Erlöse aus der Ausgabe von gezeichnetem Kapital	0	0	+/- Income from issuance of share capital
+/- Kapitalerhöhungskosten	0	0	+/- Costs of capital increase
+/- Ein/Auszahlungen für aufgenommene Kredite	332	122	+/- Inflows/ outflows from borrowings
+/- Gezahlte Zinsen	-238	-193	+/- Interest paid
Für Finanzierungstätigkeit eingesetzte Nettozahlungsmittel	49	-71	Net cash used in financing activities
Nettozu-/abnahme von Zahlungsmitt. u. Zahlungmittelaqivalente	-3,167	-1,989	Net change in cash and cash equivalents
+/- Wechelkursbedingte Wertänderungen	-110	-25	+/- Changes in value resulting from foreign currency exchange
+/- Finanzmittelbestand am Anfang der Periode	11,778	7,302	+/- Cash at beginning of period
Finanzmittelbestand am Ende der Periode	8,501	5,288	Cash at end of period
Zusammensetzung:			Breakdown:
Liquide Mittel	8,501	5,288	Cash

Consolidated statement of changes in equity (ifrs)

	Aktien/	Gezeichnetes Kapital	Kapitalrücklagen/	Gewinnrücklagen	Eigene Anteile
	Shares	Subscribed capital	Capital reserves	Revenue reserves	Treasury shares
	TStück/Quantity '000	T€ /'000	T€ /'000	T€ /'000	T€ /'000
31. Dezember 2006	10,391	10,391	15,441	122	0
Kapitalerhöhungen	0	0	0
Veränderung der kumulierten
Währungsdifferenzen
Veränderung der Rücklagen:
- Veränderung stock options
- IPO Kosten
Ergebnis des Berichtszeitraums
Minderheitenanteile
Minderheitenanteile-Ergebnisanteil
Ausschüttungen
Veränderungen durch Erwerb/Veräußerung
31. Dezember 2007	10,391	10,391	15,441	122	0
Kapitalerhöhungen	0	0	0
Veränderung der kumulierten
Währungsdifferenzen
Veränderung der Rücklagen:
- Veränderung stock options
- IPO Kosten			0
Ergebnis des Berichtszeitraums
Minderheitenanteile
31. Dezember 2007	10,391	10,391	15,441	122	0

Consolidated statement of changes in equity (ifrs)

	Eigenkapital			Eigenkapitaldiff. aus der	Eigenkapitaldiff. aus der
	gesamt/Total	Minderheitenanteile	Bilanzgewinn/	erstmaligen Anwendung	Währungsumrechnung/
	equity	Minority interests	Accumulated profit	von IFRS**	*
		T€ /'000	T€ /'000	T€ /'000	T€ /'000
31 December 2006	33,404	1,671	6,070	-153	-138
Capital increase	0
Change in accumulated foreign
currency exchange difference	-156				-156
Change in reserves:
- change in stock options	0
	0
Net profit for the period	4,682		4.682
Minority interests	0
Minority interests - share in profits	523	523
Profit distribution	-349	-349
Change by acquisition / sale	-1,850	-1,850
31 December 2007	36,254	-5	10,752	-153	-294
Capital increase	0
Change in accumulated foreign
currency exchange difference	-110				-110
Change in reserves
- change in stock options	0
	0
Net profit for the period	911		911
Minority interests	37	37
31 December 2007	37,092	32	11,663	-153	-404

*Equity difference due to foreign currency exchange translation ** Equity difference due to first-time adoption of IFRS

NOTES

to the consolidated accounts for the quarter ended 31 March 2008

A. The principles adopted for the consolidated financial statements

1. General information

The consolidated financial statements of CANCOM IT Systeme Aktiengesellschaft and its subsidiaries ("the CANCOM Group" or "the Group") for the financial year 2008 are drawn up according to the International Financial Reporting Standards or the International Accounting Standards (IFRS/IAS).

The main corporate objective of CANCOM IT Systeme Aktiengesellschaft and its consolidated subsidiaries is the sales and distribution of integrated IT system solutions (hardware, software and network products) and the provision of a broad range of IT services (e.g. consultation, system integration, service and support, and training).

The consolidated financial statements were drawn up in euro. Unless otherwise stated, all amounts are shown in thousand euro (€ '000 or € k).

The financial year covers the period from 1 January to 31 December 2008. The address of the Company's registered office is Messerschmittstrasse 20, 89343 Jettingen-Scheppach, Germany.

The shares are traded on the Regulated Market of the FWB Frankfurt Stock Exchange under ISIN DE0005419105 and are admitted to the Prime Standard of Deutsche Börse AG.

2. Reporting entity – scope of consolidation

The consolidated financial statements include CANCOM IT Systeme Aktiengesellschaft and all subsidiaries in which CANCOM IT Systeme Aktiengesellschaft has either a direct or an indirect majority shareholding, or in which it holds the majority of the voting rights. These subsidiaries are fully consolidated.

The following German and non-German subsidiaries are included in CANCOM IT Systeme Aktiengesellschaft's consolidated financial statements for the period ended 31 March 2008:

		Company's registered office	Equity share
	1. CANCOM Deutschland GmbH	Jettingen-Scheppach,
	and its subsidiaries	Germany	100.0
	• CANCOM Computersysteme GmbH	Graz/Thondorf, Austria	100.0
	sowie deren Tochtergesellschaft
	• CANCOM a + d IT solutions GmbH	Perchtoldsdorf, Austria	100.0
	• CANCOM (Switzerland) AG	Caslano, Switzerland	100.0
2.	CANCOM NSG GmbH	Jettingen-Scheppach,
		Germany	100.0
	3. CANCOM IT Solutions GmbH	Munich, Germany	100.0
	4. CANCOM physical infrastructure GmbH	Jettingen-Scheppach,
	and its subsidiariet	Germany	100.0
	• Novodrom People Value Service GmbH	Jettingen-Scheppach,
		Germany	100.0
	5. acentrix GmbH	Jettingen-Scheppach,
		Germany	51.0
	6. CANCOM EN GmbH	Jettingen-Scheppach,
		Germany	100.0
	7. CANCOM Ltd.	Guildford, UK	100.0
	8. SoftMail IT AG	Caslano, Switzerland	100.0

3. Accounting and valuation policies

The same accounting and valuation policies were used as in the consolidated financial statements for the financial year 2007, which can be downloaded from www.cancom.de.

Currency

	First quarter 2008	First quarter 2007	First quarter 2006
Swiss francs
• Rate on reporting date	€ 1 = SFR 1.571	€ 1 = SFR 1.624	€ 1 = SFR 1.579
• Average rate	€ 1 = SFR 1.601	€ 1 = SFR 1.617	€ 1 = SFR 1.559
Pounds sterling
• Rate on reporting date	€ 1 = GBP 0.795	€ 1 = GBP 0.680	€ 1 = GBP 0.697
• Average rate	€ 1 = GBP 0.757	€ 1 = GBP 0.680	€ 1 = GBP 0.686

Classification of financial instruments

An interest rate swap was used as a hedging tool as defined by IFRS 7.22-23 for a variable-rate loan in the financial year 2008. The cash value of the swap as at 31 March 2008 was € 8k.

B. Notes to the consolidated balance sheet

1. Cash and cash equivalents

Cash and cash equivalents consist exclusively of cash in banks payable on demand and cash in hand.

2. Trade accounts receivable

The trade accounts receivable are payable within a year.

3. Inventories

Inventories consist almost exclusively of merchandise, particularly hardware components and software. Most of it is stored at the logistics centre in Jettingen-Scheppach, Germany.

Inventories consist of the following (company-specific breakdown):

	31 March 2008 € '000	31 December 2007 € '000
Finished products and goods	9,406	8,464
Down-payments made	2	86
	9,408	8,551

4. Orders in progress

The orders in progress are orders calculated according to the percentage of completion method. They amount to € 1,409k less down-payments of € 113k.

5. Prepaid expenses, deferred charges and other current assets

This item mainly consists of other current assets. These include receivables arising from a copyright levy (€ 1,078), bonuses due from suppliers (€ 953k), creditors with a debit balance (€ 527k), marketing revenue (€ 347k), tax refunds (€ 313k), employee loans (€ 243k), a claim to the payment of a purchase price (€ 222k) and receivables due from former shareholders (€ 151k).

The prepaid expenses and deferred charges (€ 622k) also include deferred insurance premiums.

6. Non-current assets (fixed assets)

6.1 Property, plant and equipment

Property, plant and equipment mainly consists of the equipment necessary for the automated small parts warehouse and the manual pallet rack to the value of € 0.5 million. Computer equipment, tenant's fittings and office furnishings and equipment are also shown under this item.

In a contract for work and services of 27 April 2007, recorded by notary Bernd Eilbrecht (deed no. 177/2007) and formed between CANCOM IT Systeme Aktiengesellschaft and Jinova Hamburg-Harburg Grundstücks GmbH & Co. KG, CANCOM IT Systeme Aktiengesellschaft undertook to build an office building with a dispatch centre on the land at Messerschmittstrasse 20 in Jettingen-Scheppach, Germany.

An all-inclusive fixed price of € 4,025,000 was agreed as remuneration for the entire work and services to be performed by the company.

The building was ready for use in February 2008, following inspection and approval. The purchase price was paid on 28 March 2008.

6.2 Intangible assets

The intangible assets include purchased software (€ 1,329k), software produced in-house (€ 663k), a customer list (€ 1,614k) and orders received (€ 39k).

The carrying amount of the software produced in-house mainly comprises the costs for the development (customising) of the integrated ERP system, Microsoft®DynamicsTM. A great economic benefit was attributed to the in-house software projects, on the basis of the savings potential created by automating the systems used for business processes and carrying out sector and company-specific adjustments. In addition, Microsoft®Dynamics AXTM will enable the systems of any companies acquired in the future to be integrated into the Group more quickly, and any potential for synergies to be realised swiftly.

6.3 Goodwill

Goodwill at the balance sheet date mainly includes the relevant figures arising from the inclusion of CANCOM Deutschland GmbH, CANCOM IT Solutions GmbH, CANCOM NSG GmbH, CANCOM Ltd., UK and CANCOM a+d IT solutions GmbH in the consolidated financial statements.

6.4 Loans

Loans include the asset value from reinsurance in the sum of € 182k.

7. Deferred tax assets

The deferred tax assets are as follows:

Deferred taxes from	temporary differences € '000	tax loss carryforwards € '000
at 1 January 2008	404	2,663
Inflow from capitalisation	0	0
Tax expenditure from profit and loss calculation	-18	-298
As at 31 March 2008	386	2,365

The deferred tax assets for tax loss carryforwards were capitalised on the basis of the existing loss carryforwards of approximately € 8 million (2007: € 5.8 million) (corporation tax in Germany and other countries) and approximately € 7.5 million (2007: € 5.0 million) (German trade tax). The main reason for the increase in the value of tax loss carryforwards is the future increase in usable loss carryforwards on account of the improved earnings situation of CANCOM Deutschland GmbH, and the profit transfer agreement concluded for the first time between CANCOM IT Systeme Aktiengesellschaft and CANCOM NSG GmbH in the financial year 2007.

The deferred taxes from temporary differences are the result of differences in goodwill (€ 236k), intangible assets (€ 77k), other provisions (€ 61k) and pension provisions (€ 12k).

8. Short-term loans and current component of long-term loans

Short-term loans and the current component of long-term loans comprises liabilities due to banks. These are drawings on credit facilities provided by banks and the portion of long-term loans due for repayment within one year.

9. Trade accounts payable

The trade accounts payable are due within one year.

10. Other provisions

The provisions mainly include bonuses and commissions (€ 1,740k), outstanding invoices (€ 1,505k), copyright levy (€ 1,078k), severance payments and salaries (€ 1,047k), holiday entitlements (€ 807k), purchase price for shares in affiliated companies (€ 647k), trade association payments (€ 376k), contingent risks (€ 102k), social security contributions and tax on wages and salaries (€ 101k), additional leasing costs (€ 78k), Supervisory Board remuneration (€ 72k), cost of financial statements (€ 62k), maintenance (€ 42k) and costs of litigation (€ 30k).

The total amount of the provisions includes long-term provisions amounting to € 524k, which are shown under other long-term liabilities. These mainly relate to a provision for severance payments which is legally mandatory in Austria € 360k) and anniversaries (€ 134k).

11. Income tax liabilities

Income tax liabilities mainly consist of obligations for 2006, 2007 and 2008, and obligation arising from tax audits for 2000.

12. Other current liabilities

Other current liabilities include sales tax liabilities (€ 2,947k), tax on wages and salaries and church tax (€ 968k), purchase price liabilities (€ 650k), debtors with a credit balance (€ 602k), wages and salaries (€ 316k), liabilities due to former shareholders (€ 147k) and social security contributions (€ 122k).

13. Long-term loans

Long-term loans consist purely of liabilities due to banks with a remaining term of at least one year. The part of these loans that is due for repayment within the next twelve months is shown under short-term loans and current component of long-term loans.

14. Capital from profit-participation rights and subordinated loans

This item includes profit-participation rights of € 6,000,000 (PREPS 2005-1 and PREPS 2005-2), mezzanine capital of € 4,000,000 (Bayern Mezzaninekapital GmbH & Co. KG) and a subordinated loan of € 1,650,000 (Sparkasse Günzburg-Krumbach no. 6005 000 119).

15. Deferred tax liabilities

The deferred tax liabilities provide for deviations from the tax balance sheets. They are the result of the revaluation of intangible assets (€ 414k), software produced in-house (€ 196k), capital from profit-participation rights and subordinated loans (€ 25k) and other provisions (€ 3k).

They are recognised at an individual tax rate of between 25 percent (for the Austrian subsidiary) and 31.05 percent.

16. Pension provisions

Provisions for pensions include € 132k for members of the Executive Board and € 36k for other employees.

Individual defined benefit obligations exist with regard to an Executive Board member. There are also other defined benefit obligations for other employees who joined the company as the result of an acquisition.

The pension obligations for pension schemes in Germany are basically measured according to the number of years of service and the remuneration of the employees in question.

17. Equity capital

Changes in the equity capital are shown in Annex 4 on pages 14 and 15.

Share capital

The Company's share capital at 31 March 2008 was € 10,390,751, divided into 10,390,751 notional no-par-value shares.

Authorised and conditional capital

According to the articles of association, the Company's authorised capital at 31 March 2008 amounted to € 3,988,671 and is divided up as follows:

At the Annual General Meeting of 16 June 2004 a resolution was passed authorising the Executive Board to undertake a one-off increase or several increases in the share capital of up to a total of € 838,671 by issuing up to 838,671 new notional no-par-value bearer shares in exchange for cash or non-cash contributions. The capital increases require the approval of the Supervisory Board and must be carried out by 15 June 2009. The shareholders were granted subscription rights which can be rescinded in the event of a capital increase through non-cash contributions in connection with the acquisition of an equity investment. The Executive Board is also authorised to exclude fractional amounts from the shareholders' subscription rights; the Executive Board, with the agreement of the Supervisory Board, will decide on the nature of the relevant rights conferred by the shares and the other conditions of the share issue (Authorised Capital 2004/I).

Based on the resolution of the Annual General Meeting of 22 June 2005, the Executive Board is also authorised to undertake a one-off increase or several increases in the share capital of up to a total of € 150,000 by issuing up to 150,000 new notional no-par-value bearer shares in exchange for cash contributions. The capital increases require the approval of the Supervisory Board and must be carried out by 20 June 2010. The Executive Board may rescind the shareholders' subscription rights with the approval of the Supervisory Board, provided that the new shares were issued at a price that is not significantly lower than the stock market price. The Executive Board is also authorised, subject to the agreement of the Supervisory Board, to exclude fractional amounts from the shareholders' subscription right; the Executive Board, with the agreement of the Supervisory Board, will decide on the nature of the relevant rights conferred by the shares and the other conditions of the share issue (Authorised Capital 2005/II).

By a resolution of the Annual General Meeting of 22 June 2005, the Executive Board is authorised to undertake a one-off increase or several increases in the Company's share capital of up to a total of € 3,000,000 by issuing up to 3,000,000 new notional no-parvalue bearer shares in exchange for cash or non-cash contributions. The capital increases require the approval of the Supervisory Board and must be carried out by 20 June 2010. The shareholders were granted subscription rights which can be rescinded in the event of a capital increase through non-cash contributions in connection with the acquisition of an equity investment or parts of other companies. The Executive Board is also authorised, subject to the agreement of the Supervisory Board, to exclude fractional amounts from the shareholders' subscription rights; the Executive Board, with the agreement of the Supervisory Board, will decide on the nature of the relevant rights conferred by the shares and the other conditions of the share issue (Authorised Capital 2005/III).

The Executive Board did not exercise these powers in the first quarter of 2008.

According to the articles of association, the conditional capital at 31 March 2008 amounted to € 3,740,866 and is divided up as follows:

The increase in share capital by up to € 3,560,866 through the issue of up to 3,560,866 new notional no-par-value bearer shares will only be implemented to the extent that holders of bonds exercise their conversion rights/obligations or their option rights. The Executive Board was authorised by a resolution of the Annual General Meeting of 27 May 2002 to issue these shares until 25 May 2007, with the approval of the Supervisory Board. The new shares carry dividend rights from the beginning of the financial year for which, at the time of their issue, no resolution of the Annual General Meeting has been passed on the appropriation of the net income for the year. The increase in share capital by up to € 180,000 through the issue of up to 180,000 new notional no-par-value bearer shares will only be carried out to the extent that beneficiaries of warrants, which the Executive Board was authorised to issue by the Annual General Meeting of 18 April 2000, exercise their conversion rights. The shares resulting from the exercised option rights are entitled to profit participation from the beginning of the financial year in which they originate as a result of the option rights being exercised. The Executive Board did not exercise these powers in the first quarter of 2008.

The Executive Board knows of no restrictions on voting rights or on the transfer of shares.

18. Minority interests

Minority interests relate to the share of the equity held by the minority shareholders of acentrix GmbH.

19. Capital risk management

The Group manages its capital with the aim of maximising the return to stakeholders through the optimisation of the debt and equity balance. It is ensured that all entities in the Group can operate under the going concern premise. The capital structure of the Group consists of debt, cash and cash equivalents and the equity attributable to equity holders of the parent company, comprising issued shares, reserves and retained earnings.

The goals of the capital management are to ensure that the Group will be able to continue as a going concern and to obtain an adequate return on equity. For implementation the Group balances its capital and the overall capital structure. To implement these goals the Group takes its capital as a proportion of the total capital.

The capital is monitored on the basis of the economic equity. The economic equity is the balance sheet equity. The liability is defined as current and non-current components, provisions and other liabilities as well as prepaid expenses and deferred charges.

C. Notes to the consolidated income statement

1. Segment reporting

The CANCOM Group discloses segmental information according to the rules of IAS 14.

The primary segment reporting format of the CANCOM Group is based on geographical segments, since the risks, the return on equity and the earnings potential of the Group are influenced mainly by whether the business is operational in Germany or elsewhere in Europe.

Geographical segments		Germany		Europe (ex Germany)		Elimination		Consolidated
	03/31/08	03/31/08	03/31/08	03/31/07	03/31/08	03/31/07	03/31/08	03/31/07
	€ '000	€ '000	€ '000	€ '000	€ '000	€ '000	€ '000	€ '000
Sales revenues
- External sales	67,174	61,357	11,952	7,730
- Inter-segment sales	1,877	1,683	24	14	-1,901	-1,697
- Total income	69,051	63,040	11,976	7,744	-1,901	-1,697	79,126	69,087
Profit
EBITDA	1,638	1,816	419	143			2,057	1,959
- Depreciation and amortisation	416	366	86	32			502	398
Operating profit (EBIT)	1,222	1,450	333	111			1,555	1,561
- Profits and losses from joint ventures
recognised according to the equity method	-2	-6	0	0			-2	-6
- Interest income							72	40
- Interest expense							-331	-238
- Write-downs of financial assets							-2	0
Profit from ordinary activities							1,292	1,357
- Extraordinary profit	0	0	0	0			0	0
- Currency differences							-38	-12
- Income tax							-307	-228
- Discontinued operations	0	0	0	0			0	0
Consolidated income for the year							947	1,117
of which attributable to the shareholders of the parent company							911	990
of which attributable to minority interests							36	127
Other information
- Segment assets 1,2	77,461	70,636	13,116	5,372			90,577	76,008
- Current liabilities	30,024	27,725	6,519	2,572			36,543	30,297
- Non-current liabilities	16,980	13,347	2,713	17			19,693	13,364
- Investments 1	928	411	81	52			1,009	6,430

1 Segment assets and investments including goodwill from capital consolidation 2 Excluding deferred tax assets

The secondary segment reporting format of the CANCOM Group is based on the business segments: business solutions and IT solutions.

The same principles apply to the preparation of the segmental report as in the financial statements for the year 2007.

Internal sales are recorded on the basis of either their cost or their current market prices, depending on the type of service or product sold.

The CANCOM Group's primary segmental reporting for 2008 includes the following companies in Germany: CANCOM Deutschland GmbH, CANCOM IT Solutions GmbH, CANCOM NSG GmbH, CANCOM physical infrastructure mbH, Novodrom People Value Service GmbH, acentrix GmbH, CANCOM EN GmbH and CANCOM IT Systeme Aktiengesellschaft.

The Europe segment includes CANCOM Ltd., CANCOM (Switzerland) AG, CANCOM Computersysteme GmbH, CANCOM a+d solutions GmbH and SoftMail IT AG.

The performance pool method is used for internal transfer pricing for transactions between the segments.

In secondary segment reporting, the IT solutions segment includes the subsidiaries CANCOM

NSG GmbH, CANCOM physical infrastructure GmbH, Novodrom People Value Service GmbH, acentrix GmbH, CANCOM IT Solutions GmbH, as well as the CANCOM Deutschland GmbH cost centres allocated to them.

The business solutions segment comprises the companies CANCOM IT Systeme Aktiengesellschaft, CANCOM Deutschland GmbH, CANCOM EN GmbH, CANCOM Computersysteme GmbH, CANCOM a+d solutions GmbH, CANCOM (Switzerland) AG, CANCOM Ltd., SoftMail IT AG, less the cost centres allocated to CANCOM IT Solutions GmbH.

Information on dominant customers:

The Siemens Group customers (Siemens IT Solutions and Services and Fujitsu Siemens Computers) each account for more than 5 percent of the total sales of the CANCOM Group, and significantly more than 5 percent of the contribution margin.

Secondary reporting segment		Systems house		Professional services*		Elimination		Consolidated
	03/31/08	03/31/07	03/31/08	03/31/07	03/31/08	03/31/07	09/30/07	09/30/06
	€ '000	€ '000	€ '000	€ '000	€ '000	€ '000	€ '000	€ '000
Segment revenues
- External sales	52,230	45,831	26,896	23,256
- Inter-segment sales	481	143	407	43	-888	-186
- Total income	52,711	45,974	27,303	23,299	-888	-186	79,126	69,087
Segment assets 1,2	61,331	51,590	29,246	24,418			90,577	76,008
Investments 1	841	364	168	99			1,009	463
1 Segment assets and investments including goodwill from capital consolidation			2 Excluding deferred tax assets

2. Sales revenues

The sales revenues of € 79,126k include order revenues of € 369k calculated using the POC method.

3. Other operating income

Other operating income is made up as follows:

€ '000	1 January - 1 March '08	1 January - 1 March '07
Rent	21	34
Income not relating to the period	97	123
Other operating income	24	5
Total	142	162

Income not relating to the period mainly includes payments received in relation to receivables that had been written off, income from debtors with a credit balance also written off, and income from the reversal of a provision for warranties.

4. Other own work capitalised

This item includes in-house services connected with the manufacture of non-current assets.

Other own work capitalised consists of the following:

	€ '000
Work capitalised for construction of new wing	100
Work capitalised for construction of computer centre	69

5. Personnel expenses

Personnel expenses consist of the following:

€ '000	1 January - 1 March '08	1 January - 1 March '07
Wages and salaries	14,072	12,112
Social security contributions	2,480	2,144
Pension expenses	39	34
Total	16,591	14,290

6. Other operating expenses

Other operating expenses consist of the following:

In € '000	1 January - 1 March '08	1 January - 1 March '07
Office space	994	830
Insurance and other charges	170	180
Motor vehicles	1,119	950
Advertising	381	507
Stock exchange and entertainment expenses	96	67
Hospitality and travel expenses	518	364
Delivery costs	607	493
Third-party services	699	219
Repairs, maintenance, leasing	110	266
Communication and office expenses	298	288
Legal and consulting expenses	248	178
Fees and charges for money transactions	107	116
Allowance for bad debts	0	8
Other operating expenses	251	55
Total	5,598	4,521

7. Interest income / expense

Interest income mainly consists of interest on cash in banks and interest from customers.

8. Income tax

The rate of income tax for the German companies is 29.04 percent. This is made up of corporation tax, trade tax and the solidarity surcharge. The divergence between the tax expenses reported and those at the tax rate of CANCOM IT Systeme Aktiengesellschaft arises as follows:

In € '000	1 January - 1 March '08	1 January - 1 March '07
Earnings before tax	1,218	1,218
Expected tax at rate to German companies
(€ 29.04 percent; 2007: 38.19 percent)	354	465
- Difference from tax paid abroad	-19	-26
- Change in allowance for deferred tax assets
on losses carried forward	1	-221
- Tax-free income	3	13
- Actual income tax not relating to the period	11	-23
- Permanent differences: non-deductible
operating expenses and additions and
reductions due to trade tax	-21	17
- Other	50	20
- Tax saving shown under discontinued
operations	0	0
Total Group income tax	307	228

The income tax consists of the following:
€ '000
Utilisation of tax loss carryforwards of CANCOM IT Systeme Aktiengesellschaft Deferred taxes owing to deviations from tax balance sheet of CANCOM IT	338
Systeme Aktiengesellschaft	-27
Corporation tax and solidarity surcharge of CANCOM IT Systeme Aktiengesellschaft	11
Trade tax of CANCOM IT Systeme Aktiengesellschaft	16
Tax expense of CANCOM IT Systeme Aktiengesellschaft in previous years	3
Deferred taxes owing to deviations from tax balance sheet of CANCOM
Deutschland GmbH	-1
Capitalisation of tax loss carryforwards of CANCOM IT Solutions GmbH	-87
Deferred taxes owing to deviations from tax balance sheet of CANCOM IT
Solutions GmbH	16
Tax expense of CANCOM IT Solutions GmbH in previous years	-48
Deferred taxes owing to deviations from tax balance sheet of CANCOM NSG GmbH	-14
Utilisation of tax loss carryforwards of CANCOM physical infrastructure GmbH	6
Corporation tax and solidarity surcharge of Novodrom People Value Service GmbH	7
Trade tax of Novodrom People Value Service GmbH	4
Utilisation of tax loss carryforwards of acentrix GmbH	5
Deferred taxes owing to deviations from tax balance sheet of acentrix GmbH	-1
Corporation tax and solidarity surcharge of acentrix GmbH	12
Trade tax of acentrix GmbH	10
Utilisation of tax loss carryforwards of CANCOM Computersysteme GmbH, Austria	7
Corporation tax of CANCOM Computersysteme GmbH, Austria	2
Corporation tax of CANCOM a+d IT solutions GmbH, Austria	11
Deferred taxes owing to deviations from tax balance sheet of CANCOM a+d IT
solutions GmbH, Austria	8
Capitalisation of tax loss carryforwards of CANCOM Ltd., UK	-1
Utilisation of tax loss carryforwards of SoftMail Group, Switzerland	30
Total	307

The actual tax rate is calculated as follows:

Actual tax expense rate	25.21 %
Income tax	307
Income before tax	1,218
	€ '000

Tax losses not yet utilised and for which no deferred tax claim was recognised in the balance sheet amounted to € 1.3 million (IAS 12.81.e).

Income tax comprises the income tax paid or owed in the individual countries and also the deferred taxes:

In € '000		1 January - 1 March '08 1 January - 1 March '07
Actual income tax paid	28	-9
Deferred taxes:
Assets	316	261
Liabilities	-37	-24
	279	237
Deferred taxes from items charged directly to equity	0	0
Group income tax	307	228

The calculation of income tax in accordance with IAS 12 takes account of tax deferrals resulting from differing valuations in the commercial balance sheet and the tax balance sheet, from realisable loss carryforwards, from differing results between the tax valuations in the individual financial statements of the consolidated subsidiaries and the standards applied throughout the Group, and from consolidation processes, in as far as these balance out over the course of time. Deferred tax claims relating to the carrying forward of unused tax losses are partially capitalised, as results are expected to be positive in the next 5 years. The deferred taxes are calculated on the basis of the anticipated tax rates in the period in which an asset is realised or a debt satisfied. The tax rates are those that apply or will apply on the balance sheet date.

9. Minority interests

Minority interests are equivalent to 49 percent of the net income of acentrix GmbH (€ 74k).

D. Notes to the cash flow statement

The consolidated cash flow statement is prepared in accordance with IAS 7 "Statement of Cash Flows". This requires that a distinction be made between cash flows from operating activities, investing activities and financing activities. The cash and cash equivalents shown in the cash flow statement comprise cash in hand and cash at banks.

The indirect method was used to establish the cash flow from current activities. The cash flow from ordinary activities fell by € 4.0 million compared with the first quarter of 2007.

The cash resources of € 8,501k include cash and cash equivalents. This item shows cash in hand and cash at banks, as well as current-asset securities.

E. Other disclosures

1. Related party disclosures

CANCOM IT Systeme Aktiengesellschaft has prepared these consolidated financial statements as the parent company with ultimate control. These consolidated financial statements are not included in any other consolidated financial statements.

CANCOM Financial Services GmbH, the joint venture formed in January 2006 with TRS Technology Refresh GmbH, is a related party as defined by IAS 24. This company was set up to strengthen customer loyalty to the CANCOM Group by offering added value in the field of finance. CANCOM Financial Services GmbH brokers the leasing contracts concluded by TRS Technology Refresh GmbH.

For the purposes of IAS 24, Klaus Weinmann can be considered a related party who can exercise a significant influence on the CANCOM Group, both as an Executive Board member and as a shareholder in CANCOM IT Systeme Aktiengesellschaft. Rudolf Hotter and Paul Holdschik, who also belong to the Executive Board, are further related parties for the purposes of IAS 24, as are the members of the Supervisory Board.

There were no receivables or payables in relation to the Executive Board or the other companies in the CANCOM Group at the balance sheet date.

There is a consultancy agreement in place between CANCOM IT Systeme Aktiengesellschaft and the Chairman of its Supervisory Board, Walter von Szczytnicki. This was approved in accordance with Section 114 of the German Stock Companies Act (Aktiengesetz, AktG), and provides for annual remuneration of € 60k.

On 27 June 2007, the Supervisory Board approved an M&A consultancy agreement with Auriga Corporate Finance GmbH of Munich, Germany, dated 7 March 2007, in accordance with Section 114 I of the German Stock Companies Act (Aktiengesetz, AktG) on the occasion of the designated election of the managing director of Auriga Corporate Finance GmbH, Walter Krejci, to the Supervisory Board of CANCOM IT Systeme AG.

Transactions with related parties were settled in the same way as arm's length transactions.

2. Shares held by members of the Executive and Supervisory Boards (at the balance sheet date)

Please see page 8 of this report for a list of shareholdings.

3. Equity interests in the Company as defined in Section 20 IV of the German Stock Companies Act (Aktiengesetz, AktG)

No shareholder reported in writing to CANCOM IT Systeme Aktiengesellschaft a majority shareholding as defined by Section 20 of the above Act in the period from 1 January to 31 March 2008.

Interim Report

3-Monatszahlen 2007 Q1/2008

Impressum

CANCOM IT SYSTEME AG INVESTOR RELATIONS

MESSERSCHMITTSTRASSE 20 89343 JETTINGEN-SCHEPPACH GERMANY

Note: The German version of this report is legally binding. The Company cannot be held responsible for any misunderstanding or misinterpretation arising from the translation in English language.

Tel.: 0 82 25 / 9 96-1051 Fax: 0 82 25 / 9 96-4-1051 E-Mail: IR@CANCOM.DE