Ctac N.V. — Interim / Quarterly Report 2007

Aug 30, 2007

P R E S S R E L E A S E

's-Hertogenbosch, 30 August 2007

Ctac results in line with expectations

Key figures*

	1st half	1st half
EUR mln (unless stated otherwise)	2007	2006	%
Turnover	22.3	18.0	+24%
Gross margin	16.4	13.1	+25%
Operating result	1.5	1.6	-7%
Net profit	0.7	0.9	-18%
Net earnings per share (in EUR)	0.08	0.10	-20%

* Smart Solutions has been consolidated as per 1 June; ERP2 has been consolidated as per 1 April. IFS - Probity Groep is not yet included in the results and will be consolidated as per 1 July.

Key points

• Strong growth continued; organic turnover increase of 22%; more assignments for all business units
• Necessary extra efforts and investments in the context of continuing growth and integration of new business units put pressure on operating result and operational margin
• Number of employees up by 23% to 342, from 278 (year-end 2006)

Outlook

• Further strengthening of market position business units
• Expected forecast 2007:
• o Turnover growth of 35% 40%
• o Operating margin 7 9%

SAP services provider Ctac booked turnover of EUR 22.3 million in the first half of 2007, an increase of 24% (organic growth: 22%). Turnover increased at all business units. In line with previously given forecasts, the operating result came in at EUR 1.5 million, compared with EUR 1.6 million in the 1st half of 2006. This led to a drop in the operating margin to 7% (1st half 2006: 9%). Net profit, after the deduction of third-party shares, amounted to EUR 0.7 million (1st half 2006: EUR 0.9 million).

Wil Huijben, Chairman of the Ctac Executive Board: "Ctac has now been booking strong growth for a number of years, a growth the entire organisation can quite rightly be proud of. And the past half year, too, this has translated into a further increase in turnover of 24%. Profitability was slightly lower compared with the 1 st half of 2006. This was largely due to lower efficiency and the required extra investments and efforts made in the context of the continued strong growth of our organisation and the integration of new business units. The most important part of this was the renewal of the back office systems.

The market outlook for the Dutch and Belgian markets remains good. Due to our strong market positions and our distinctive Powerhouse business model, we see excellent growth opportunities in both the short and long term."

Turnover and profit

Turnover

All Ctac business units saw increased business activity in the first half of 2007. This resulted in a 24% increase in turnover and organic growth of 22%. Turnover comprised EUR 2.6 million from licences sold and maintenance contracts (1st half 2006: EUR 2.1 million).

Turnover per business unit

(in EUR x 1,000)	1st half 2007	1st half 2006
Application Management & Improvements, Bigrip, Cims, Ytool, CValue	11,880	11,557
mYuice (MKB) (including ERP2) and Yanta (SME Logistics)	2,862	2,183
Re-Spect (Retail)	2,092	1,972
Alphalogic (Logistics)	2,911	962
NetIT Services (Management, Security and Infrastructure)	336	223
Hitch (Training and Change Management)	249	30
Ctac Belgium	1,922	1,052
Total	22,252	17,979

Gross margin

The gross margin increased by 25.3% to EUR 16.4 million. Due to the increase in demand at various projects, Ctac made increased use of external staff (1st half 2007: EUR 3.8 million, 1st half 2006: EUR 3.0 million). As a percentage of turnover, the gross margin still increased slightly, to 73.3%, from 72.7%.

Operating result

Ctac booked an operating result of EUR 1.5 million in the first half of 2007 (1st half 2006: EUR 1.6 million). Personnel costs rose by 30%, largely due to the growth in the number of employees by, on balance, 23% to 342 as per 30 June 2007 (year-end 2006: 278). In addition, personnel costs increased due to salary costs increases, higher training costs and higher recruitment costs. In line with the increased business activity levels, other operating costs also increased by 22% to EUR 3.4 million (1st half 2006: EUR 2.8 million). Depreciations doubled due to IT investments (second data centre, infrastructure and storage capacity for clients), primarily to facilitate the continuing growth.

The lower operating result was due to investments and efforts required in the context of the continued growth of the business activities and the organisation and integration of new business units. This was largely related to the renewal of the back office systems.

Net profit and earnings per share

Net profit for the 1st half of 2007 came in at EUR 0.7 million, after the deduction of third-party shares (in connection with the minority interests in the business units mYuice, Yanta, Re-Spect, Alphalogic, NetIT Services and Ctac Belgium), compared with EUR 0.9 million in the first half of 2006, which translated into net earnings per share of EUR 0.08.

Balance sheet

Shareholders equity, expressed as a percentage of total assets, amounted to 43% at end-June 2007 (year-end 2006: 49%).

Investments

Total investments in tangible and intangible fixed assets amounted to EUR 5.4 million in the first six months of the year.

The investments in tangible fixed assets amounted to a total of EUR 1.7 million. This was largely related to investments in hardware and storage capacity for clients and the opening of Ctac's second data centre. The second date centre enables the business unit Application Management & Improvements to further expand and optimise its hosting activities. For instance, the business unit will be able to host more critical systems and further increase the speed and flexibility of its services. What is more, the second data centre offers more efficient opportunities for disaster recovery.

Ctac invested EUR 3.7 million in intangible fixed assets, via the acquisition of Smart Solutions and the expansion of Ctac's stake in the business units mYuice and Yanta. The company also invested in the replacement of its back office systems. The replacement of the back office systems was necessary due to the continuing strong growth and to further optimise the hosting and management processes.

Cash flow

The cash flow from operational activities in the first half of 2007 was zero, rounded off, compared with EUR 0.5 million in the 1st half of 2006, due to higher working capital in connection with the increased level of business activities. In the 1st half 2007, Ctac invested EUR 5.4 million in tangible and intangible fixed assets. The company also paid out a dividend of EUR 1.1 million. Net cash flow therefore came in at a negative EUR 6.7 million in the 1st half of 2007, compared with a negative EUR 1.8 million in the 1st half of 2006.

New developments

Acquisition Smart Solutions

Ctac Belgium BVBA, a 50.01% participation of Ctac N.V., completed the acquisition of 100% of the shares in Smart Solutions N.V. as per 30 May. This acquisition makes Ctac one of the larger SAP specialists in Belgium. Smart Solutions is the sixth business unit added to the existing five business units in Belgium. Smart Solutions will concentrate largely on the provision of technical SAP expertise and SAP integration know-how. In addition, Smart Solutions strengthens Ctac Belgium in the logistics and financial fields of expertise. Together, Ctac and Smart Solutions can offer their clients a wider product portfolio. In 2006, Smart Solutions booked profitable turnover of around EUR 4.5 million. At this point in time, Smart Solutions has 27 consultants.

Acquisition IFS – Probity Groep.

Ctac completed the acquisition of 51% of the shares in IFS - Probity Groep B.V. as per 5 July. This acquisition gives Ctac a good position in the Dutch utilities sector. IFS - Probity provides business solutions using SAP and focuses in particular on the utilities sector. IFS – Probity is the tenth business unit added to the existing nine business units in the Netherlands. The business activities of IFS – Probity are extremely complementary to other business activities within Ctac, which means the acquisition further increases the cross-selling opportunities between the various business units. In 2006, IFS – Probity booked profitable turnover of around EUR 4.7 million. The acquisition is expected to make an immediate contribution to Ctac's earnings per share. IFS – Probity currently employs 30 consultants.

Increased stakes in mYuice and Yanta

Ctac N.V. increased its stake in mYuice Groep B.V. to 95% from 74% as per 1 January. mYuice Groep B.V. has a 87% stake in mYuice B.V., which focuses specifically on SAP solutions for small and medium-sized enterprises (SMEs) and also has a 67% stake in Yanta B.V., which provides total solutions for the management of logistics processes in the SME segment. The respective minority stakes are held by the management of the companies.

SAP Partnerships

Ctac has in the past year worked in a focused manner on a better positioning in the market. This has been rewarded by SAP through the granting of a number of partnerships. On 23 April of this year, during the annual SAP user days, Ctac was awarded the SAP Hosting Partnership and was appointed Special Expertise Partner for SAP NetWeaver and for Duet.

Outlook

The market outlook continues to be good in both the Netherlands and Belgium. From its solid financial basis, Ctac will continue to work on the further expansion and optimisation of its business model and the strengthening of the market positions of its specialist business units.

For the full-year 2007, Ctac expects turnover growth of between 35% and 40%. The company expects its operating margin to be between 7% and 9%, compared with 10% in 2006.

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Profile Ctac

Ctac is an ICT services provider specialising in SAP solutions. Activities include implementation, integration and management of SAP systems and related activities such as system upgrades and system optimisations. The company is a SAP Service Partner and the largest SAP reseller for medium-sized enterprises in the Netherlands. Ctac's clients include approximately 200 organisations in trade and industry, business services, retail, (semi) government organisations and universities.

Ctac employed 342 people as per 30 June 2007. The company is based in 's-Hertogenbosch (the Netherlands).

Ctac is listed on the Eurolist of Euronext Amsterdam and is included in Euronext's Next Economy segment

PRESS CONFERENCE / ANALYSTS MEETING

The combined press conference / analysts meeting will be held today at 14:00 at the offices of Citigate First Financial, Assumburg 152a in Amsterdam.

For more information, please contact:

Ctac N.V. Goudsbloemvallei 30 Postbus 773 5201 AT 's-Hertogenbosch Tel. + 31 (0)73-6920692 Internet: www.ctac.nl E-mail: info@ctac.nl

Contact persons: Wil Huijben - CEO Jan Willem Wienbelt - CFO

Key dates :
15 November	2007	Publication third quarter results 2007
13 March	2008	Publication annual results 2007
22 May	2008	General Meeting of Shareholders

Enclosed: Consolidated profit and loss account first half 2007 Consolidated balance sheet first half 2007 Consolidated cash flow statement first half 2007 Review report

Reporting The employed reporting standards have not changed in 2007

CONSOLIDATED PROFIT AND LOSS ACCOUNT 1st HALF 2007

(amounts in EUR 1,000)

		1st H 2007		1st H 2006
NET TURNOVER	22,252		17,979
Purchase value of turnover	(5,857)		(4,897)
GROSS MARGIN		16,395		13,082
Personnel costs	10,831		8,315
Depreciations	609		309
Other operating costs	3,444		2,829
TOTAL OPERATING COSTS		14,884		11,453
OPERATING RESULT		1,511		1,629
Interest revenue / interest expenses		(33)		39
RESULT FROM ORDINARY OPERATIONS
BEFORE TAXES		1,478		1,668
Taxes on result from ordinary
operations		(402)		(500)
RESULT FROM ORDINARY OPERATIONS
AFTER TAXES		1,076		1,168
EXTRAORDINARY RESULT AFTER TAXES		-		-
Third-party share		(331)		(262)
NET PROFIT		745		906
		════		════

CONSOLIDATED BALANCE SHEET (as per 30 June 2007) 1st HALF 2007

(amounts in EUR 1,000)

		30 June 2007		year-end 2006
ASSETS
FIXED ASSETS
Intangible fixed assets	5,502		1,843
Tangible fixed assets	3,071		1,838
Financial fixed assets	923		1,031
		9,496		4,712
CURRENT ASSETS
Work in progress	77		346
Receivables	12,083		9,679
Cash and cash equivalents	0		4,668
		12,160		14,693
		21,656		19,405
		════		════
LIABILITIES
GROUP EQUITY
Shareholders' equity	9,282		9,597
Third-party share	1,048		955
		10,330		10,552
SHORT TERM DEBTS		11,326		8,853
		21,656		19,405
		════		════
		1st H 2007		1st H 2006
Average number of outstanding ordinary shares		8,830,879		8,830,879
Net earnings per share (Amount in * EUR 1)		0.08		0.10

	1st H 2007		1st H 2006
CASH FLOW FROM OPERATING ACTIVITIES
	1,511		1,629
	609		309
	2,120		1,938
	(1,656)		(953)
	464		985
(33)		39
(402)		(500)
-		-
	(435)		(461)
	29		524
CASH FLOW FROM INVESTMENT ACTIVITIES
	(5,393)		(1,208)
CASH FLOW FROM FINANCING ACTIVITIES
	(1,298)		(1,113)
	(6,662)		(1,797)
			════
		CONSOLIDATED CASH FLOW STATEMENT 1st HALF 2007 According to the indirect method (amounts in EUR 1,000) ════	STATEMENT OF CHANGES SHAREHOLDERS' EQUITY 1st HALF 2007 9,597

Dividend paid	(1,060)
Result 2007	745
Shareholders' equity per 30/06/2007	9,282

REVIEW REPORT

Introduction

We have reviewed the half-year figures of Ctac N.V., 's-Hertogenbosch, consisting of the consolidated balance sheet as at June 30, 2007, the consolidated profit and loss account, statement of changes in equity and cash flow statement for the period January 1, 2007 to June 30, 2007. Management is responsible for the preparation and fair presentation of the half-year figures in accordance with International Accounting Standard 34 "Interim Financial Reporting" as adopted by the European Union. Our responsibility is to issue a report on these financial statements based on our review.

Scope

We conducted our review in accordance with Dutch law, including Standard 2410 'Engagements to review financial interim statements'. This law requires that we plan and perform the review to obtain moderate assurance about whether the half-year figures are free of material misstatement. A review is limited primarily to inquiries of company personnel and analytical procedures applied to financial data and therefore provides less assurance than an audit. We have not performed an audit and, accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the accompanying consolidated half-year figures do not give a true and fair view of the financial position of Ctac N.V. as at June 30, 2007, and of its result for the period then ended in accordance with IAS 34 "Interim Financial Reporting", as adopted by the European Union.

Waalwijk, August 30, 2007

HLB Van Daal & Partners N.V. Accountants & Belastingadviseurs

drs. E.W. van der Haar Registeraccountant

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