CENIT AG

Quarterly Report • Nov 8, 2007

9 Months Report 2007

CENIT AG Systemhaus

Industriestraße 52-54 D-70565 Stuttgart Tel: + 49 711 7825-30 Fax: + 49 711 7825-4000 Internet: http://www.cenit.de

Investor Relations: ISIN:DE0005407100

Fabian Rau Tel: + 49 711 7825-3185 Fax:+ 49 711 782544-4185 E-Mail: aktie@cenit.de

CENIT AT A GLANCE (unaudified)
At a glance - January 1 until September 30, 2007
in Mill. EUR	Sept. 30, 2007	Sept. 30, 2006
Sales	55.55	58.33
Gross profits	43.61	43.51
EBITDA	7.31	8.00
Operating returns (EBIT)	6.51	7.28
EBT	7.06	7.05
Netincome of the group	4.60	5.62
Result per share (basic) in EURO	0.55	0.67 *
Result per share (diluted) in EURO	0.55	0.67 *
Number of employees at end of period	602	563
EBIT - Margin in %	11.7	12.5
Profit - Margin in %	8.3	9.6
in Mill. EUR	Sept. 30, 2007	Dec. 31, 2006
Equity in ratio in %	70.8	62.0
Equity	24.86	24.30
Liabilities	10.26	14.91
Balance sheet total	35.11	39.21

*change in disclosure

Dear shareholders, partners, customers and other interested parties,

The issue of enterprise content management has become a key topic for the banking and insurance industry. This market is driven not only by legal requirements and compliance guidelines, but also by a high optimization potential within business processes. At the same time, the aerospace industry has redefined the use of PLM technologies as business-critical, and the automotive industry has clearly acknowledged and defined model offensives, as well as holistic development and manufacturing processes that extend beyond the supplier chain, as competitive advantages. CENIT will continue to benefit from these trends in future, and has increased its orientation along these lines both domestically and abroad. In this respect, increasing the number of qualified national and international staff is one of the greatest challenges for CENIT. But the future development of CENIT will also be influenced strongly by the software earnings achieved through our sales cooperation with IBM, SAP and Dassault Systèmes. We plan to further expand and enhance these collaborative efforts.

The performance of CENIT stock remains unsatisfactory. An extremely high stock flow of more than 6 million shares over the past 10 months shows that the shareholder structure has been transformed. Both nationally and internationally, our investor relations activities work to promote confidence in our stock. We have conducted far more than 100 investor relations discussions on the institutional side and are well on the way to gaining the interest of longterm investors in CENIT. We plan to continue on this path in the future.

Nevertheless, we want to ensure that certain aspects are taken into consideration when looking at CENIT from a purely financial market perspective. Due to the concentration and expansion of product sales, the already distinct seasonality of CENIT's business is growing even more pronounced from year to year. In addition, CENIT's increasing presence abroad makes a comparable quarterly assessment difficult. In relation to investments in business abroad, CENIT is rising to new challenges and opportunities not only in 2007, but also in the future. We intend to continue our expansion course and our efforts to sustainably position and advance our product business. Thanks to our very positive balance-sheet structure and our solid market position, we are interesting both as a prospective employer and as a longterm investment opportunity.

We thank you for your confidence!

The Board

OVERALL ECONOMIC SITUATION AND BUSINESS CLIMATE

According to assessments by the Organization for Economic Cooperation and Development (OECD), the economic slowdown in the USA and the so-called subprime crisis have had no negative effects on international business activities, as demonstrated by current figures on global economic development. Instead, the economic performance of all OECD members, i.e. the total of the gross domestic products (GDP) of the industrialized countries, has increased during the second half of the year. Europe, says the OECD, has meanwhile replaced the USA as a driving force of global markets. The German economy in particular is developing much more positively than expectations suggested just a few months ago.

Particularly the markets and sectors which are relevant to CENIT are continuing their positive trends. The business climate in the high-tech sector remains upbeat, as suggested by poll taken quarterly by the German Association for Information Technology, Telecommunications and New Media (BITKOM) within this sector. According to the poll, 75 percent of businesses expect increased sales in 2007 compared to the previous year; 12 percent expect stable and 13 percent declining sales. The BITKOM sector index is currently at 59 points, putting it 18 points ahead of the respective quarter of 2006. Especially providers of software, IT services and digital entertainment electronics are registering very strong levels of demand. According to BITKOM, growth could be even stronger if sufficient numbers of qualified staff were available. 62 percent of polled businesses indicated that the shortage of qualified staff is hampering their business activities.

business internationalization. CENIT now has a total of 602 staff worldwide (2006: 563). GROUP SITUATION REPORT

DEVELOPMENT OF RESULTS

During the 3rd Quarter, CENIT continued to push forward our strategically important goal of business internationalization. CENIT now has a total of 602 staff worldwide (2006: 563). Particularly the numerous recruiting activities and the related investments are a focal point of CENIT's further growth. Staff expansion in Romania is proceeding more quickly than planned and now extends to 17 staff at the Iasi premises. Expansion in the USA, with currently 23 staff, is proceeding according to plan. The rise in staff costs by 0.7 m € to around 26.3 m € reflects the wide-ranging shortage of qualified staff. Sales and earnings from CENIT's product business have increased particularly with respect to our sales cooperation with IBM/FileNet. But the most important months for the software business are still ahead, which prevents us from making a clear-cut assessment at this point. However, we expect that the decisive 4th Quarter will see strong growth in software earnings.

OVERVIEW OF 3rd QUARTER FIGURES

As a result of the declining hardware business, Group-wide sales at the end of the 3rd Quarter were down 5% to 55.55 m € (09/2006: 58.33 m € /-5%). The gross surplus grew slightly to 43.61 m € (09/2006: 43.51 m €). EBITDA reached 7.31 m € (09/2006: 8.0 m €/ -9%). EBIT for the reporting period are at 6.51 m € (09/2006: 7.28 m/-11%). The pre-tax result EBT remained virtually unchanged at 7.06 m € (09/2006: 7.05 m €). A significantly higher tax rate of 35% (2006: 20%) has led to a Group result of 4.6 m € (09/2006: 5.6 m €). Tax expenditures alone rose by over 1 m €. The Group EPS (earnings per share) thus derives to 0.55 € per share (09/2006 adjusted: 0.67 €). The operative cash flow attained 7.35 m € (09/2006: 7.67 m €). The balance of bank deposits and marketable securities are at 15,7 m € on the accounting date (2006:18,7 m €).

3rd QUARTER RESULTS

During the 3rd Quarter, CENIT achieved Group-wide sales of 17.5 m € (09/2006: 20.9 m €/ -16%). The decline is due largely to developments in the hardware business, which as expected contracted by approximately 3 m € on-year. Gross proceeds amounted to 14.12 m € (09/2006: 14.52 m €/-3%). EBITDA attained 2.10 m € (09/2006: 2.74 m €/-23%)

The result of operative business activities before interest and taxes (EBIT) in the 3rd Quarter is 1.83 m € (09/2006: 2.53 m €/-28,0%). The pre-tax result (EBT) attained to 2.11 m € (09/2006: 2.52 m €/-16%), and the Group result for the 3rd Quarter is 1.49 m € (09/2006: 2.11 m €). The Group EPS (earnings per share) are at 0.18 € (09/2006 adjusted: 0.25 €).

BREAKDOWN OF EARNINGS

Sales in the service sector grew by 2% to a current 33.2 m € (09/2006: 32.5 m €), making it the strongest contributor to sales with a share of 60%. For the first 9 months of the current business year, sales of CENIT software amounted to 8.6 m € (09/2006: 8.8 m €/-2%). Thus approximately 16% of overall sales can be attributed to CENIT's proprietary software. Sales of non-CENIT software fell by 5% to 6.2 m € (09/2006: 6.5 m €), thus accounting for 11% of overall sales. The hardware business contracted by 28% to 7.6 m € (09/2006: 10.4 m €), which equals about 13% of CENIT's overall sales.

HOLDINGDS – FOREIGN SUBSIDIARIES

We are very content with the development of CENIT (Switzerland) AG, which was able to achieve sales proceeds of 2.5 m € (09/2006: 2.0 m €) and a disproportionately high EBIT increase of 62% to 1.36 m € (09/2006: 0.86 m €).

CENIT North America Inc. achieved total sales of 3.8 m € (09/2006: 3.0 m €/+27%), accounting for an EBIT of 0.34 m € (09/2006: 0.30 m €).

CENIT SRL achieved sales of 0.2 m € and an EBIT of 0.02 m €.

The CENIT company in Toulouse, France did not yet achieve sales as it remains in the startup phase.

DEVELOPMENT OF COSTS

Other business-related expenditures have developed as projected.

INVESTMENTS

Investments during the first 9 months of 2007 amounted to 1.25 m € (30.09.2006: 0.83 m €).

CHANGES IN COMPOSITION OF EXECUTIVE AND SUPERVISORY BOARD

Andreas Schmidt, Supervisory Board Member, left the company on 31.07.2007.

EVENTS OF SPECIAL SIGNIFICANCE WHICH COULD AFFECT THE BUSINESS RESULT

None

RISK ANALYSIS

During the reporting period there was no inventory risk for the Group. For more information, please refer to the detailed risk analysis contained in the 2006 Business Report.

INTERIM DIVIDEND

No interim dividend was paid out.

DIVIDENDS PAID OR PROPOSED FOR PAYMENT

None

NEW ORDERS

Group-wide orders on hand increased by 10% as at 30 September 2007 and now amount to 20 m € (09/2006: 19.0 m €). Incoming orders total to approximately 61 m € (9/2006: 61 m €). The total share of new customers is by now 4%.

ORDERS OF SPECIAL SIGNIFICANCE

None

LIQUID ASSETS AND SECURITIES

On the balance-sheet date, bank deposits and securities including current assets totalled 15.7 m € (2006: 18.7 m €).

ASSET, FINANCIAL AND EARNINGS SITUATION

The balance-sheet total is 35.12 m €. Trade debtors and other assets total 15.6 m €. The positive earnings situation has positive consequences for the Group's assets situation. As at 30 September 2007, the Group's net worth was approximately 24.86 m € (2006: 24.3 m €), with an equity ratio of 71% (2006: 62%). The operative cash flow was 7.35 m € (2006: 7.67 m €).

STAFF

On the balance-sheet date, CENIT employed a total of 602 staff word-wide (2006: 563). A number of vacant positions remain to be filled. The staff pool grew by about 7%.

SUPPLEMENTARY REPORT; OPPORTUNITIES AND OUTLOOK

The future development of CENIT will be influenced strongly by software earnings achieved through our sales cooperation with IBM, SAP and/or Dassault Systèmes. We plan to further expand and enhance these collaborative efforts. We are optimistic with respect to the further development of CENIT in both the short and the long term. The decisive product earnings are expected for the traditionally strong 4th Quarter.

CENIT Aktiengesellschaft Systemhaus
Consolidated Balance Sheet prepared in accordance with IFRS (unaudified)
as of September 30, 2007
in EUR k	Sept. 30, 2007	Dec. 31, 2006
ASSETS
NON-CURRENT ASSETS
Intangible assets	272	248
Property, plant and equipment	1,780	1,366
Property, plant and equipment	714	699
	2,766	2,313
DEFERRED TAX ASSETS	0	0
NON-CURRENT ASSETS	2,766	2,313
CURRENT ASSETS
Inventories	1,048	668
Trade receivables	14,480	16,243
Current income tax assets	666	1,062
Other receivables	156	76
Other financial assets at fair value through
profit or loss	11,245	11,042
Cash and cash equivalents	4,442	7,615
Prepaid expenses	309	191
CURRENT ASSETS	32,346	36,897
TOTAL ASSETS	35,112	39,210

CENIT Aktiengesellschaft Systemhaus
Consolidated Balance Sheet prepared in accordance with IFRS (unaudified)
as of September 30, 2007
in EUR k	Sept. 30, 2007	Dec. 31, 2006
EQUITY AND LIABILITIES
EQUITY
Share capital Capital reserve	8,368 1,058	8,368 863
Currency translation reserve	-259	-212
Revenue reserves	418	418
Revenue reserves	6,399	2,899
Net income of the Group allocable to the shareholders of CENIT AG	8,873	11,968
	24,857	24,304
Minority Interests	0	0
TOTAL EQUITY	24,857	24,304
NON-CURRENT LIABILITIES
Deferred tax liabilities	719	231
CURRENT LIABILITIES
Short-term liabilities to banks	0	1,249
Trade payables	3,072	3,787
Other liabilities	6,075	8,668
Current income taxes	192	834
Other Provisions	197	137
Deferred Income	0	0
	9,536	14,675
TOTAL EQUITY AND LIABILITIES	35,112	39,210

CENIT Aktiengesellschaft Systemhaus Consolidated Income Statement prepared in accordance with IFRS (unaudified) for the period from January 1 to September 30, 2007

in EUR k	Sept. 30, 2007	Sept. 30, 2006
1. SALES		55,548	58,328
2. Increase/Decrease in inventories		2,629	1,743
of work in process
Total operating perfomance		58,177	60,071
3. Other operating income		499	515
Operating perfomance		58,676	60,586
4. Cost of materials	15,065		17,075
5. Personnel expenses	26,288		25,581
6. Amortization of intangible assets and depreciation on property,
plant and equipment	797		719
7. Other operating expenses	10,013		9,928
		52,164	53,303
NET OPERATING INCOME		6,512	7,284
8. Other interest and similar income	380		134
9. Interest and similar expenses	47		48
10. Result from financial instruments
at fair value through profit or loss	218		-321
		550	-236
RESULT FROM ORDINARY ACTIVITIES		7,062	7,048
11. Income taxes		2,463	1,430
12. NET INCOME OF THE GROUP FOR THE YEAR		4,600	5,618
13. Thereof allocable to the shareholders of CENIT AG		4,589	5,533
14. Thereof allocable to minority interests		11	84
Earnings per share in EUR
undiluted		0.55	0.67 *
diluted		0.55	0.67 *

*change in disclosure

CENIT Aktiengesellschaft Systemhaus Consolidated Income Statement prepared in accordance with IFRS (unaudified) for the period from July 1 to September 30, 2007

in EUR k	3rd Quarter, 2007		3rd Quarter, 2006
1. SALES		17,499	20,914
2. Increase/Decrease in inventories		1,063	445
of work in process
Total operating perfomance		18,562	21,359
3. Other operating income		123	171
Operating perfomance		18,684	21,531
4. Cost of materials	4,562		7,005
5. Personnel expenses	8,345		8,307
6. Amortization of intangible assets and depreciation on property,
plant and equipment	269		210
7. Other operating expenses	3,677		3,480
		16,853	19,001
NET OPERATING INCOME		1,831	2,530
8. Other interest and similar income	294		31
9. Interest and similar expenses	9		42
10. Result from financial instruments
at fair value through profit or loss	0		10
		285	-2
RESULT FROM ORDINARY ACTIVITIES		2,116	2,528
RESULT FROM ORDINARY ACTIVITIES
11. Income taxes		623	412
12. NET INCOME OF THE GROUP FOR THE YEAR		1,493	2,116
13. Thereof allocable to the shareholders of CENIT AG		1,482	2,093
14. Thereof allocable to minority interests		11	23
Earnings per share in EUR
Basic earnings		0.18	0.25 *
Diluted earnings		0.18	0.25 *

*change in disclosure

CENIT Aktiengesellschaft Systemhaus Consolidated Statement of Cash Flows prepared in accordance with IFRS (unaudified)

as of September 30, 2007

in EUR k	Sept. 30, 2007	Sept. 30, 2006
Cash flow from operating activities
Earnings before income taxes and deferred taxes	7,062	7,048
Adjusted for:
Amortization of intangible assets and depreciation of property, plant and equipment	797	719
Losses on disposals of non-current assets	4
Gains on disposals of non-current assets	-1	-3
Dividends income
Other non-cash expenses and income	-178	-12
Increase/Decrease Provisions
Interest income	-380	-134
Interest expenses	47	48
Net operating income before changes in net working capital	7,352	7,667
Increase/decrease in trade receivables
and other current, non-monetary assets	1,389	-75
Change in other financial assets that are
not allocable to cash and cash equivalents
Increase/Decrease in inventories	193	-2,749
Increase/decrease in current liabilities and provisions	-3,547	-3,638
Cash flow from ordinary operations	5,387	1,205
Interest paid	-47	-48
Interest received	380	134
Dividends income
Income taxes paid	-3,259	-1,107
Net cash flow from ordinary activities	2,460	183
Net cash flow from operating activities	2,460	183
Cash flow from investing activities
Purchase of property, plant and equipment and
intangible assets	-1,247	-827
Proceeds from the disposal of property, plant and equipment
Net cash paid for investing activities	-1,247	-827
Cash flow from financing activities
Dividends paid to shareholders	-4,184	-3,765
Net cash paid for investing activities	-4,184	-3,765
Net increase/decrease in cash and cash equivalents	-2,970	-4,409
Cash and cash equivalents at the beginning	15,667	17,827
of the period
Cash and cash equivalents at the end	12,697	13,418
of the period

CENIT Aktiengesellschaft Systemhaus

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (IN ACORDANCE WITH IFRS) (unaudified) as of September 30, 2007

	Equity allocable to the parent company´s shareholders
in k	Subscribed		Capital Currency	Revenue		Group result	Group result	Minority	Total
	capital		reserve translation	reserve	reserve	per share-		interests
			reserve			holder of
						CENIT AG
as of January 1,2006	4,184	543	-119		5,039	9,879	19,526	43	19,569
Currency fluctuation			-93				-93	-7	-100
Net income of the Group for the year						8,372	8,372	30	8,402
Group for the year			-93			8,372	8,279	23	8,302
Transfer from stock options		320					320		320
Dividend distribution						-3,765	-3,765		-3,765
Allocation to the revenue reserve					2,100	-2,100
Allocation to the revenue reserve				418		-418
Allocation to the revenue reserve	4,184				-4,184
the revenue reserve					-56		-56	-66	-122
as of Dec. 31,2006	8,368	863	-212	418	2,899	11,968	24,304		24,304
Currency fluctuation			-47				-47		-47
Net income of the Group for the year						4,589	4,589		4,589
Group for the year			-47			4,589	4,542		4,542
Transfer from stock options		195					195		195
Dividend distribution						-4,184	-4,184		-4,184
Allocation to the revenue reserve					3,500	-3,500
Allocation to the revenue reserve
Allocation to the revenue reserve
the revenue reserve
as of Sept. 30,2007		8,368 1,058	-259	418	6,399	8,873	24,857		24,857

CENIT Aktiengesellschaft Systemhaus

Segment Report by Segments prepared in accordance with IFRS (unaudited) for the period from January 1 to September 30, 2007

in EUR `000	ECM	PLM	not allocated	Group
Sales to third parties
Q1-Q3 2007	21,142	34,406	0	55,548
Q1-Q3 2006	18,768	39,560	0	58,328
EBIT
Q1-Q3 2007	3,630	2,882	0	6,512
Q1-Q3 2006	1,568	5,716	0	7,284
Interest and financial result
Q1-Q3 2007	0	0	550	550
Q1-Q3 2006	0	0	-236	-236
Taxes
Q1-Q3 2007	0	0	-2,463	-2,463
Q1-Q3 2006	0	0	-1,430	-1,430
Net Income/loss of the group
Q1-Q3 2007	3,630	2,882	-1,912	4,600
Q1-Q3 2006	1,568	5,717	-1,667	5,618
Segment assets
September 30, 2007	5,841	12,160	17,111	35,112
Dec 31, 2006	5,434	13,358	20,418	39,210
Segment liabilities
September 30, 2007	2,221	7,123	911	10,255
Dec 31, 2006	4,966	7,505	2,435	14,906
Capital expenditure
September 30, 2007	336	911	0	1,247
Dec 31, 2006	298	760	0	1,058
Amortization & depreciation
Q1-Q3 2007	207	590	0	797
Q1-Q3 2006	155	564	0	719

CENIT Aktiengesellschaft Systemhaus Segment Report by Region prepared in accordance with IFRS (unaudited) for the period from January 1 to September 30, 2007

in EUR `000	D	CH	USA	RU	FR	not allocated	Consoli dation	Group
Intercompany Sales
Q1-Q3 2007	943	1595	164	128	0	0	-2,831	0
Q1-Q3 2006	1077	1020	366	0	0	0	-2,463	0
Sales to third parties
Q1-Q3 2007	50,887	910	3,647	104	0	0	0	55,548
Q1-Q3 2006	54,659	1,024	2,645	0	0	0	0	58,328
Segment assets
September 30, 2007	17,033	2,417	978	92	0	17,068	-2,476	35,112
Dec 31, 2006	17,637	1,080	1,291	0	0	20,418	-1,216	39,210
Capital expenditure
September 30, 2007	1,164	8	34	41	0	0	0	1,247
Dec 31, 2006	981	2	75	0	0	0	0	1,058

INFORMATION ON SHARES AND OPTIONS HELD BY BOARD MEMBERS AND EMPLOYEES; IN ACCORDANCE WITH § 160 para. 1 No. 2 AND 5 AktG

CENIT's Executive and Supervisory Boards hold subscription rights to 39,000 share options. CENIT employees hold subscription rights to 168,000 share options.

Directors´ Holdings:

Share Portfolio as at 30.09.2007

Total number of shares: 8,367,758

Executive Board:		Supervisory Board:
Kurt Bengel:	0	Falk Engelmann:	187,000
Christian Pusch:	0	Hubert Leypoldt:	1,600
		Dr. Dirk Lippold:	0

Financial Calendar:

8 November 2007 - Publication of 3rd Quarter results 12 - 14 November 2007 - German Equity Forum, Frankfurt

DIRECTORS' HOLDING