ERG Capital-3 REIT — Earnings Release 2011

Feb 16, 2011

TIE KINETIX total integrated e-commerce

PRESS RELEASE

The Netherlands, Amsterdam, February 16, 2011

TIE: Q1_2011 Trading Update: Profitable Q1, Total Comprehensive Income € 114k

TIE Holding N.V. ("TIE") reports the following highlights with regard to the first Quarter 2011 (October 1, 2010- December 31, 2010)

Business Results:

During the first Quarter 2011 Total Income amounts to € 2,750k (Q1_2010: 3,068k). Operating Income Q1 amounts to € 139k (Q1_2010: € 222k) and Total Comprehensive Income Q1 amounts to € 114k (Q1_2010: € 151k).

CEO Jan Sundelin said: "I'm pleased to announce we can report a profitable Q1. Last years' numbers included the one-time revenue and profit from the low end EDI business in the US (Edge product line) of € 176k. For the first time our quarterly SaaS revenue has reached the € 1 million revenue mark, showing that the quality of our revenue stream is improving. Our SaaS technology in the E-commerce was recognized and rewarded by the SaaS Excellence Award from Progress Software Corporation. For the next quarters we will continue to strive strengthening our SaaS revenue from Content Syndication Solution with our important partner CBS Interactive and our E-commerce Solution with our strategic partner Progress Software Corporation. Furthermore we seek to increase the SaaS and license revenue from our Business Integration Solution with the support of our strategic partner Epicor".

Starting fiscal year 2011, the Company reports the following highlights:

Customers/Products:

• October 26, 2010: TIE announced that the TIE Kinetix "EDI Managed Services On-Demand" is available to Epicor Customers;
• November 15, 2010: TIE announced that it participates in EU project Omelette;
• December 9, 2010: TIE announced the website for SME to reduce costs by invoicing using WebEDI: www.3stappenEDI.nl;
• January 18, 2011: TIE announced that it participates in the “Webwinkel Vakdagen 2011” as Gold sponsor;
• January 20, 2011: TIE announced that it will modernize the Emobiel.nl webshop;
• January 24, 2011: TIE announced that it has entered into a strategic partnership with Medius;
• January 25, 2011: TIE reported that it received the SaaS excellence award at the Global Partner Conference of Progress Software Corporation..

Legal & Financial:

• November 10, 2010: TIE announced that it is selecting a new Banker;
• November 24, 2010: TIE announced: 2010 Annual Result € 1,700k negative;
• December 28, 2010: TIE announced that it grants stock option to the Managing Director of TIE France SAS;
• January 31, 2011: TIE announced publication of its Annual Report 2010 and agenda for the annual General Meeting of Shareholders.

The numbers stated in this Trading Update are unaudited

---

The numbers stated in this Trading Update are unaudited

Annual Accounts:

The 2010 Annual Report (October 1, 2009 - September 30, 2010) has been published on January 31, 2011. The annual report is available on the corporate website.

Cash/Financial Position:

The Equity position of the Company remains positive. Shareholders' Equity as per December 31, 2010 amounts to € 2,827k (September 30, 2010: € 2,663k).

Total Equity as per December 31, 2010 amounts to € 4,192k (September 30, 2010: € 4,028k) including convertible bonds amounting to € 1,365k (September 30, 2010: € 1,365k).

On December 31, 2010 the Company held a net cash and cash equivalents position of € 266k (the net cash position per September 30, 2010 amounted to € 10k).

Pending Litigations:

Since December 2007 the Company has been involved in discussions and subsequently in legal proceedings with Samar. All claims in the summary proceedings were instantly dismissed at the court hearing of February 15, 2008. On July 7, 2010, the court of Haarlem unexpectedly granted all claims by Samar. In Q4_2010, TIE has paid damages this amount may be adjusted upwards or downwards in the procedure regarding the assessment of the damages. TIE has filed an appeal.

On November 20, 2009 the Company initiated an investigation on a potential infringement on the Content Syndication Platform by CMC. On May 7, 2010, the judge pronounced a ruling in summary proceedings; dismissing TIE's claim and ruling payment of the costs of litigation of the defendants. These costs amounted to € 70k. TIE has lodged an appeal against the ruling and considers any counterclaims without merit.

---

Consolidated Income Statement

For the 3 months ended December 31, 2010:

(EUR x 1,000)	For the three months ended 31-Dec
	2010	2009
	(unaudited)
Revenues
Licenses	285	580
Maintenance and Support	730	721
Consultancy	568	623
Software as a Service	1,002	743
Total Revenues	2,585	2,667
Other Income	165	401
Total Income	2,750	3,068
Direct Purchase Costs	(269)	(330)
Income Net of Direct Purchase Costs	2,481	2,738
Operating Expenses
Employee Benefits	1,644	1,667
Depreciation and Amortization Expense	136	126
Other Operating Expenses	562	723
Total Operating Expenses	2,342	2,516
Operating Income	139	222
Interest and other Financial Income	-	-
Interest and other Financial Expense	(5)	(16)
Income before Tax	134	206
Corporate Income Tax	(50)	(86)
Income after Tax	84	120
Other Comprehensive Income
Exchange differences on translating of foreign operations	30	31
Total Comprehensive Income	114	151
Attributable to Shareholders of TIE:
Income after Tax	84	120
Comprehensive Income	30	31
Net result per share - basic	0.00	0.00
Weighted average shares outstanding - basic (thousands)	82,202	71,977
Net result per share - diluted	0.00	0.00
Weighted average number of shares fully diluted (thousands)	96,806	81,099

The numbers stated in this Trading Update are unaudited

---

Segment info:

For the three months ended December 31, 2010 (unaudited)

	The Netherlands	North America	Rest of World	Holding and Eliminations	Total
Revenues
Licenses	74	164	47	-	285
Maintenance and Support	209	415	106	-	730
Consultancy	318	156	94	-	568
Software as a Service	410	318	274	-	1,002
Total Revenue	1,011	1,053	521	-	2,585
Other Income	133	3	29	-	165
Total Income	1,144	1,056	550	-	2,750
Direct Purchase Costs	144	117	8	-	269
Income Net of Direct Purchase Costs	1,000	939	542	-	2,481
Operating Expenses
Employee Benefits	650	551	255	188	1,644
Depreciation and Amortization
Expense and Impairment Losses	58	34	39	5	136
Other Operating Expenses	212	195	78	77	562
Total Operating expenses	920	780	372	270	2,342
Operating Income	80	159	170	(270)	139
Interest and Other Financial Income	-	1	-	-	-
Interest and other Financial Expense	-	-	-	(5)	(5)
Income before Tax	80	160	170	(275)	134
Corporate Income Tax	-	(60)	10	0	(50)
Income after tax	80	100	180	(275)	84

For the three months ended December 31, 2009 (unaudited)

	The Netherlands	North America	Rest of World	Holding and Eliminations	Total
Revenues
Licenses	174	319	87	0	580
Maintenance and Support	226	384	111	0	721
Consultancy	407	113	103	0	623
Software as a Service	376	186	181	0	743
Total Revenue	1,183	1,002	482	0	2,667
Other Income	226	175	0	0	401
Total Income	1,409	1,177	482	0	3,068
Direct Purchase Costs	187	106	37	0	330
Income Net of Direct Purchase Costs	1,222	1,071	445	0	2,738
Operating Expenses
Employee Benefits	769	500	251	147	1,667
Depreciation and Amortization Expense and Impairment Losses	72	46	5	3	126
Other Operating Expenses	343	157	78	145	723
Total Operating expenses	1,184	703	334	295	2,516
Operating Income	38	368	111	(295)	222
Interest and Other Financial Income	0	0	0	0	0
Interest and other Financial Expense	(4)	(2)	0	(10)	(16)
Income before Tax	34	366	111	(305)	206
Corporate Income Tax	4	(78)	(12)	0	(86)
Net Income	38	288	99	(305)	120

The numbers stated in this Trading Update are unaudited

---

5 / 5
The numbers stated in this Trading Update are unaudited

Profile TIE

TIE (NYSE Euronext: TIE Holding) delivers innovative web centric, software based solutions that enable all trading partners in the supply chain to work seamlessly together on the major E-commerce processes of marketing, sales and fulfillment. With its TIE Kinetix concept, it provides a Total Integrated E-commerce process, embracing three innovative platforms for Business Integration (including e-invoicing, XML/EDI data synchronization), Content Syndication and E-commerce. The Total Integrated E-commerce solutions minimize the energy needed for a transaction lifecycle throughout the supply chain giving organizations the advantage to reduce cost and maximize revenue and profit.

TIE has more than two decades of experience in developing and implementing global E-commerce standards. TIE is a listed company with offices in the United States, Australia, France and the Netherlands.

Further information:

TIE Holding N.V.
Jan Sundelin, CEO
Antareslaan 22-24
2132 JE Hoofddorp
The Netherlands
T: +31-20-658 93 33
F: +31-20-658 90 01
E: info@TIEHolding.com
W: www.TIEHolding.com

END OF PRESS RELEASE