ERG Capital-3 REIT — Earnings Release 2012

Aug 15, 2012

TIE KINETIX total integrated e-commerce

PRESS RELEASE

Amsterdam, August 15, 2012

Trading update Q3: Total Income and SaaS revenue increased by respectively 27% and 18%

TIE Holding N.V. ("TIE") reports the results with regard to the Third Quarter of FY2012 (April 1, 2012 – June 30, 2012).

Business Results:

• Total Income for the Third Quarter FY 2012 amounts to € 3,230k, an increase of 27% compared to the same period in FY 2011 (€ 2,548k).
• Total Comprehensive Income for the Third Quarter FY 2012 amounts to € 82k, compared to € 10k for the same period in FY 2011.
• License revenue is € 239k for the Third Quarter FY 2012, an increase of 33% compared to the same period in FY 2011 (€ 180k).
• SaaS revenue is € 1,193k for the Third Quarter FY 2012 (37% of Total Income), an increase of 18% compared to € 1,007k in the same period in FY 2011 (40% of Total Income).
• Total Operating Expenses are € 2,763k for the Third Quarter FY 2012, an increase of 26% compared to the same period FY 2011 (€ 2,191k)
• For the Third Quarter FY 2012, E-commerce and Content Syndication income amounts to € 837k (26% of Total Income), an increase of 56%, compared to € 536k in the same period in FY 2011 (21% of Total Income).

Mr. Jan Sundelin, CEO of TIE, comments: "Our SaaS revenue develops as foreseen, despite the loss of ADEC as a customer in France. The acquisition of Light will start to contribute to TIE's revenues (€ 60k) from the Fourth Quarter of FY 2012 onwards. We anticipate that the Total Income for the Fourth Quarter of FY 2012 will be at least 10% higher compared to the same period in FY 2011".

Since April 1, 2012 and up to this moment the Company reports the following highlights:

Financial:

On May 24, 2012 the Company reported its half year results.

On August 9, 2012 the Company reported the acquisition of Dutch IT software provider Light B.V.

Employees:

On July 16, 2012 the Company announced the appointment of Mr. Marc Gijsberts as director of the EU operations. Mr. Gijsberts has the right to acquire 150,000 shares of TIE Holding at a

Unaudited financial information

---

TIE KINETIX total integrated e-commerce

share price of € 0,10, commencing as of the date of appointment. The shares will have a three year lock-up period.

Financial and Cash Position:

Shareholders' Equity amounts to € 4,807k on June 30, 2012 (€ 4,535k on September 30, 2011). Equity per June 30, 2012 amounts to € 4,852k (€ 4,580k per September 30, 2011) including Convertible Bonds amounting to € 45k (€ 45k per September 30, 2011).

On June 30, 2012 the Company held a net positive cash and cash equivalents position of € 1,048k (September 30, 2011 € 380k). During the year the Company has a positive operational cash flow.

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 the Fourth Quarter of FY 2010, TIE paid damages to Samar. This amount may be adjusted upwards or downwards in the procedure regarding the assessment of the damages. TIE has filed an appeal and a hearing took place in April 2012. Both parties currently await the outcome of the appeal.

Contracted Value: projections

The Contracted Value is calculated for the next three years, using the following assumptions: SaaS and Maintenance & Support Contracts run between 12 and 36 months with an automatic renewal for 12 months. Since contracts may be renewed during the projected period of three year, the Contracted Value is adjusted based on historical churn rates. The three years Contracted Value Projection does not include the revenue of Light.

Unaudited financial information

---

0000

TIE KINETIX

total integrated e-commerce

Interim Consolidated Income Statement

For the 3 months ending June 30, 2012:

| For the three months ending
30-Jun | | |
| --- | --- | --- |
| (EUR x 1,000) | 2012 | 2011 |
| | (unaudited) | (unaudited) |
| Revenues | | |
| Licenses | 239 | 180 |
| Maintenance and Support | 751 | 691 |
| Consultancy | 786 | 579 |
| Software as a Service | 1,193 | 1,007 |
| Total Revenues | 2,969 | 2,457 |
| Other Income | 261 | 91 |
| Total Income | 3,230 | 2,548 |
| Direct Purchase Costs | (395) | (268) |
| Income Net of Direct Purchase Costs | 2,835 | 2,280 |
| Operating Expenses | | |
| Employee Benefits | 1,913 | 1,521 |
| Accommodation Expenses | 129 | 115 |
| Professional Services | 184 | 121 |
| Communication Expense | 94 | 87 |
| Office & Computer Supplies | 61 | 65 |
| General & Administrative | 63 | 2 |
| Marketing Expenses | 82 | 72 |
| Travel Expenses | 82 | 82 |
| Depreciation & Amortization Expense | 155 | 126 |
| Total Operating Expenses | 2,763 | 2,191 |
| Operating Income | 72 | 89 |
| Interest and other Financial Income | 1 | 1 |
| Interest and other Financial Expense | (1) | (5) |
| Income before Tax | 72 | 85 |
| Corporate Income Tax | (59) | (51) |
| Income after Tax | 13 | 34 |
| Other Comprehensive Income | | |
| Exchange differences on translating of foreign operations | 69 | (24) |
| Total Comprehensive Income net after Tax | 82 | 10 |
| Attributable to Shareholders of TIE: | | |
| Income after Tax | 13 | 34 |
| Comprehensive Income net after Tax | 82 | 10 |
| Net result per share - basic | 0.00 | 0.00 |
| Weighted average shares outstanding - basic (thousands) | 93,295 | 84,595 |
| Net result per share - diluted | 0.00 | 0.00 |
| Weighted average number of shares fully diluted (thousands) | 93,545 | 93,830 |

Unaudited financial information

---

0000

TIE KINETIX

total integrated e-commerce

Interim Consolidated Income Statement

For the 9 months ending June 30, 2011:

| For the nine months ending
30-Jun | | |
| --- | --- | --- |
| (EUR x 1,000) | 2012 | 2011 |
| | (unaudited) | (unaudited) |
| Revenues | | |
| Licenses | 676 | 764 |
| Maintenance and Support | 2,237 | 2,112 |
| Consultancy | 2,232 | 1,708 |
| Software as a Service | 3,360 | 3,010 |
| Total Revenues | 8,505 | 7,594 |
| Other Income | 539 | 393 |
| Total Income | 9,044 | 7,987 |
| Direct Purchase Costs | (843) | (837) |
| Income Net of Direct Purchase Costs | 8,201 | 7,150 |
| Operating Expenses | | |
| Employee Benefits | 5,471 | 4,723 |
| Accommodation Expenses | 391 | 368 |
| Professional Services | 468 | 411 |
| Communication Expense | 264 | 260 |
| Office & Computer Supplies | 168 | 185 |
| General & Administrative | 236 | 45 |
| Marketing Expenses | 248 | 245 |
| Travel Expenses | 211 | 213 |
| Depreciation & Amortization Expense | 484 | 401 |
| Total Operating Expenses | 7,941 | 6,851 |
| Operating Income | 260 | 299 |
| Interest and other Financial Income | 2 | 2 |
| Interest and other Financial Expense | - | (10) |
| Income before Tax | 262 | 291 |
| Corporate Income Tax | (170) | (157) |
| Income after Tax | 92 | 134 |
| Other Comprehensive Income | | |
| Exchange differences on translating of foreign operations | 90 | (85) |
| Total Comprehensive Income net after Tax | 182 | 49 |
| Attributable to Shareholders of TIE: | | |
| Income after Tax | 92 | 134 |
| Comprehensive Income net after Tax | 182 | 49 |
| Net result per share - basic | 0.00 | 0.00 |
| Weighted average shares outstanding - basic (thousands) | 93,295 | 82,991 |
| Net result per share - diluted | 0.00 | 0.00 |
| Weighted average number of shares fully diluted (thousands) | 93,545 | 91,261 |

Unaudited financial information

---

TIE KINETIX
total integrated e-commerce

Segment info:

For the three months ending June 30, 2012

	The Netherlands	TIE MamboFive	North America	France	Rest of World	Holding and Eliminations	Total
Revenues
Licenses	101	9	98	31	0	-	239
Maintenance and Support	245	-	457	44	5	-	751
Consultancy	68	366	199	77	77	-	786
Software as a Service	333	152	521	139	48	-	1,193
Total Revenue	747	527	1,275	291	130	-	2,969
Other Income	189	(1)	51	121	52	(151)	261
Total Income	936	526	1,326	412	182	-	3,230
Direct Purchase Costs	139	91	209	15	92	(151)	395
Income Net of Direct Purchase Costs	796	435	1,117	397	90	-	2,835
Operating Expenses
Employee Benefits	453	220	689	304	22	234	1,922
Depreciation and Amortization
Expense and Impairment Losses	75	10	20	5	36	9	155
Other Operating Expenses	158	62	210	85	33	138	686
Total Operating expenses	686	292	919	394	91	381	2,763
Operating Income	110	143	198	3	(1)	(381)	72
Interest and Other Financial Income	-	-	-	-	-	1	1
Interest and other Financial Expense	-	-	-	-	-	(1)	(1)
Income before Tax	110	143	198	3	(1)	(381)	72
Corporate Income Tax	-	-	(58)	(1)	-	-	(59)
Income after tax	110	143	140	2	(1)	(381)	13

For the three months ending June 30, 2011

	The Netherlands	TIE MamboFive	North America	TIE France	Rest of World	Holding and Eliminations	Total
Revenues
Licenses	28	5	104	5	38	-	180
Maintenance and Support	192		404	47	48	-	691
Consultancy	126	201	167	66	19	-	579
Software as a Service	324	131	293	177	82	-	1,007
Total Revenue	670	337	968	295	187	-	2,457
Other Income	95	(1)	36			(39)	91
Total Income	765	336	1,004	295	187	(39)	2,548
Direct Purchase Costs	72	38	121	16	60	(39)	268
Income Net of Direct Purchase Costs	693	298	883	279	127	-	2,280
Operating Expenses
Employee Benefits	404	187	541	208	35	146	1,521
Depreciation and Amortization
Expense and Impairment Losses	45	11	40	7	18	5	126
Other Operating Expenses	146	36	130	61	30	141	544
Total Operating expenses	595	234	711	276	83	292	2,191
Operating Income	98	64	172	3	44	(292)	89
Interest and Other Financial Income	-	-	-	-	-	1	1
Interest and other Financial Expense	(5)	-	-	-	-	-	(5)
Income before Tax	93	64	172	3	44	(291)	85
Corporate Income Tax	-	-	(44)	(7)	-	-	(51)
Income after tax	93	64	128	(4)	44	(291)	34

Unaudited financial information

---

00000

TIE KINETIX

total integrated e-commerce

For further information about this press release, please contact us via +31 20 658 9099 or bob.out@tiekinetix.com.

Profile TIE Kinetix

TIE Kinetix transforms the digital supply chain by providing Total Integrated E-commerce solutions. These solutions maximize revenue opportunities by minimizing the energy required to market, sell and deliver online. Customers and partners of TIE Kinetix constantly benefit from innovative, field tested, state-of-the-art technologies, which are backed by over 25 years of experience and prestigious awards. TIE Kinetix makes technology to perform, such that customers and partners can focus on their core business.

TIE Kinetix is a public company (NYSE Euronext: TIE Holding), and has offices in the United States, the Netherlands, France and Australia.

END OF PRESS RELEASE

Unaudited financial information