Q3/2007

Quarterly Financial Report

GFT Group Summary

Financial figures according to IFRS in €(k)	01/01/–30/09/2007	01/01/–30/09/2006

Revenues	176,295	127,343

Earnings before interest, taxes, depreciation and
amortisation (EBITDA)	9,332	5,021
Total depreciation	996	849
Earnings before interest and taxes (EBIT)	8,336	4,172
Earnings before taxes (EBT)	8,721	4,472
Net income as of 30 September	5,710	2,252

IAS 33 earnings per share, in €	0.22	0.09

Fixed assets	23,710	23,564
Liquid assets and securities	22,839	13,460
Remaining current assets	55,839	46,663
Equity ratio	51	52

Number of permanent employees as of 30 September	1,077	1,046

Content

Interim Management Report GFT Technologies AG as of 30 September 2007

1 Business Overview

Following the outstanding first half of 2007, the GFT Group has posted an extremely successful third quarter. Thanks to the continued significant improvement on the previous year's figures, the company has been able to continue its dynamic growth in terms of both revenues and earnings.

During the first nine months of 2007, the GFT Group has increased total revenues by 38% to € 176.3m. The Services and Resourcing divisions in particular, contributed considerably to this growth. The Resourcing divsion benefited from the rising demand for freelance IT specialists. Furthermore, revenues generated by a project with a new client in the field of third-party management, exceeded expectations. As a result, revenue increased by 56% year-on-year to € 97.1m. In the Services segment, GFT succeeded, with regard to existing clients, in improving its position as a strategic IT partner. As a result, it was possible to improve revenues in this division by 25% to € 75.2m.

The GFT Group was also able to report significant growth on the income side. At € 8.7m, earnings before taxes (EBT) virtually doubled compared to the first nine months of 2006. As a consequence, GFT increased its results during the second quarter by a further 11% and generated pre-tax results totalling € 3.4m in the period from July to September.

With revenues of € 7.6m, the Services division made the greatest contribution to the nine-month result. The major projects with customers from the financial and logistics segments in Germany, the United Kingdom and Brazil proceeded successfully. In the Resourcing segment, rapidly rising revenues created a growth in results from € 1.0m to 2.3m.

The Software division was able to reduce its losses in comparison to the previous year, closing the third quarter on a positive note. Nevertheless, revenues in this division were some € 1m below the previous year's figures and hence fell short of expectations. The reorganisation involving investments in the promising e-mail archiving segment is currently in full swing.

As for the remainder of the year, we are confident that we will be able to continue the positive development of the GFT Group seen in the first three quarters through to the end of the year. The promising orders situation has prompted us to increase the revenue forecast for the GFT Group once again. For the entire financial year 2007, we expect revenue of approximately € 230m, with an operating margin of 5%.

2 Business conditions

2.1 Macroeconomic development

The global economic climate continued to improve during the third quarter of 2007. The data published by the Institute for Economic Research (ifo – Institut für Wirtschaftsforschung e.V. – ) in Munich indicates that the global economy continues to develop robustly. However, according to the Centre for European Economic Research (ZEW – Zentrum für Europäische Wirtschaftsforschung) the crisis on the financial markets has left its mark, with overall growth losing some of its vigour.

According to the ifo, both the current economic situation and the economic expectations in the Euro zone remained at a six-year high. The mood in GFT's prime markets was correspondingly positive: Germany, France and the United Kingdom will continue to grow. Only in Spain the disproportionatel growth of the last years will decelerate.

2.2 Development of the industry

According to the German Association for Information Technology, Telecommunications and New Media (BIT-KOM), the business climate in the ITC sector continues to be positive. According to a survey conducted by the association, expected sales are significantly above the figures determined by the ifo for the market as a whole.

The revenue forecast for the German ITC market totalled € 147.9bn for 2007; an increase of 1.3%. This growth is expected to occur in the software and IT services segments in particular – segments that constitute the core competences of GFT Technologies AG. According to the forecast of the European Information Technology Observatory (EITO) these segments will grow by 6.5% (2006: 6.3%) and 5.5% (2006: 5.3%), respectively.

With predicted market growth of 6.1%, Spain tops the list, followed by the United Kingdom with 5% and France with 4.6%. At 3.5%, Germany was below the EU average of 4.4%, but still clearly outstripped growth of the gross domestic product (GDP) of 2.4%.

3 Revenue development

In the first nine months of 2007, the GFT Group generated total revenue of € 176.3m, thus surpassing the results for the previous year by 38%. The positive trend seen during the first six months was thus maintained. Following the record results in the second quarter, revenue increased again by some 7% to € 63.2m in the period from July to September.

3.1 Revenue by divisions

Compared to the first half of 2007, there were no changes in the segment-specific distribution of revenues. Resourcing and Services remain the largest business segments.

As at 30 September 2007, the revenue distribution according to individual segments was as follows:

Compared to the same period last year, Resourcing increased by six percentage points to 55%, thereby outperforming Services (43%). In absolute terms, Resourcing upped its revenue by 56% to € 97.1m compared to 2006. The steady growth continued from one quarter to the next, and totalled € 35.6m in the third quarter of 2007, following € 28.9m in the first quarter, and € 32.6m in the second. A major project with a customer from the banking sector in the area of Third Party Management made a significant contribution to this, and, accounting for 21% of the Resourcing revenue, was well above expectations.

The increasing scarcity of skilled IT workers, and the resulting rising demand for freelance experts, also had a positive impact on the placement of freelancers.

In addition, revenues increased in the Services division: from € 60.0m in the first nine months of 2006 to € 75.2m during the current reporting period. The strong growth seen in the Resourcing segment resulted in the share of revenue of the Services division falling by some four percentage points. Compared to the previous quarter, the share of total revenue remained constant at 43%.

In this segment, GFT benefited from a consistently good order pipeline, a buoyant market and success in further increasing the revenue generated by business with existing customers, which had already been expanded in previous quarters. The main focus here was on clients from the banking, mail and logistics segments in Germany, the United Kingdom and Brazil.

The Software division fell short of revenue expectations in the third quarter of 2007. Totalling just under € 4.1m during the first nine months of 2007, revenue for this segment fell by some € 1m year on year. Thus, as of 30 September 2007, this share of total revenue remained unchanged at 2%, compared to the first six months of the year. During the same period last year, the segment contributed 4% to total revenue.

The realignment towards the dynamically growing e-mail archiving segment is currently in full swing. To this end, GFT invested in the strategic development of its Software solution GFT inboxx from the products range of the Software division.

3.2 Revenue by country

In terms of the revenue distribution by country as of 30 September 2007, no significant shifts have taken place compared to the same period last year.

Germany is still the most important sales market for the GFT Group; and at € 119.8m, accounted for more than two-thirds of the revenues (prior year: 64%). This increase by € 37.5m compared to 2006 is due on the one hand to the expansion of the Resourcing business and on the other hand to the demand of existing customers from the Services division, which remained at the consistently high level of the previous quarters.

As in previous quarters, business with customers based in the United Kingdom generated the highest revenues outside of Germany – 10% of the total amount. This is due largely to GFT's attractive service offering for investment banks, which has been very well received in the market. Accordingly, revenue in the United Kingdom more than doubled, from € 8.4m to € 17.2m.

At € 11.9m (prior year: € 9.9m), Spain contributed almost 7% to overall revenue. The major project with a significant Brazilian bank, implemented in collaboration with our Spanish development centre, is currently in the final stages and contributed € 9.5m to revenues.

Customer spending also developed positively in France. Revenue during the first three quarters of the previous year improved by 19% to € 10.2m, which represents 6% of the total revenue.

Boasting a 22% increase, Switzerland also improved its absolute revenue to some € 3.3m by the end of the third quarter of 2007, its share of total revenue remaining constant at 2%.

Projects with customers from Italy, Hungary and the USA ("other countries") contributed a total of € 4.4m to total revenue; 41% less than last year. With regard to the revenue for the first six months of the year, this is the result of the shifting of customer projects in the US to the United Kingdom.

3.3 Revenue by industry

Compared to the previous year and the previous quarter, the financial services sector has become increasingly important for the GFT Group. At € 117.0m, 45% more than during the same period last year, revenue generated with companies from the banking and insurance sectors accounted for more than two-thirds of the total revenue.

The industrial clients segment continues to be the second most important industry for GFT, with a 17% share of total revenue, despite falling three percentage points compared to the same period last year. However, in absolute terms, revenue here, largely generated by business with freelancers, also increased by 19% to € 30.7m.

Compared to the previous year, revenue from the postal and logistics sector remained steady at 10%. After rising sharply in the second quarter, revenue was even able to improve slightly on this high level during the third quarter (4%). Thus, € 7.0m was generated in this sector.

Revenue with customers from other industries and authorities totalled € 11.2m during the first nine months. Compared to the same period last year, revenue in this sector thus increased by € 3.8m. Owing to significantly stronger growth in the other segments, the share of total revenue remained unchanged at 6 % compared to 30 September 2006.

4 Income situation

Following the record results posted during the first half of 2007, the GFT Group was also able to significantly improve earnings before taxes (EBT) during the first nine months of 2007 compared to the same period last year. At € 8.7m, the GFT Group was able to virtually double the previous year's results (€ 4.5m).

During the third quarter alone, GFT generated pre-tax results of € 3.4m, which represents a further increase of 11%, compared to the previous quarter.

The Services division made the greatest contribution to the nine-month results at € 7.6m, with positive growth, which had already provided for satisfying income at the half-year mark, continuing unabated. A significant contribution to this was made by a major project in Brazil, where the largest project phase is due for completion in the fourth quarter of 2007. In addition, GFT successfully continued major projects with existing customers in Germany and the United Kingdom in its capacity as a strategic IT partner.

The excellent pre-tax results in the Resourcing segment reflect the sharply rising revenue in this segment, which totalled € 2.3m; € 1.3m more than during the same period last year. At the same time, the operating margin was drawn down by the start-up costs of the new businesses in London and Zurich, whilst margins in the area of Third Party Management, which saw a significant increase in revenue, are typically somewhat lower.

The Software division was able to reduce its loss in comparison to the previous year, even closing the third quarter with a slight improvement. Investments were made in the realignment of the division.

As of 30 September 2007, earnings before interest and tax (EBIT) ran to € 8.3m (2006: € 4.2m). Accordingly, earnings before interest, tax and depreciation of tangible and intangible assets (EBITDA) increased by 86% to € 9.3m by the end of the quarter.

As of 30 September 2007, the GFT Group therefore generated a nine-month net income of € 5.7m after deduction of all expenses. This represents an increase of € 3.4m or around 150% compared to the same period last year.

As of 30 September 2007, the tax rate stood at 35% and is hence three percentage points down on the figure for the first half of 2006. Taking the third quarter separately, the tax rate at 29% was even marginally below the target value of 30%.

Earnings per share amounted to € 0.22 at the end of the third quarter of 2007; € 0.13 up on the same period last year. These figures relate to an average of 26,325,946 shares currently in circulation. An interim dividend will not be paid.

As was already the case at the end of the first six months of 2007, the cost basis of the GFT Group also increased disproportionately in relation to revenue as at 30 September 2007. At the end of the third quarter, the operating costs had increased 24% year on year to € 167.9m. During the same period, revenue increased by 38%.

Nearly two-thirds of the operating costs (62%) comprised cost of materials totalling € 104.6m, which represents an increase of some 65% compared with the previous year's figure of € 63.3m, and mainly consists of expenses for services from freelance personnel. These were incurred in the expanding Resourcing segment and also in the Services segment, as new projects are increasingly being initially staffed by freelance personnel.

At € 48.4m, employee benefits in the first nine months of 2007 were marginally above those of the previous year (€ 46.8m). This is primarily due to an increase in the GFT workforce in the UK and Brazil.

Depreciations on tangible and intangible assets amounted to € 1.0m at the end of the third quarter of 2007, which corresponds to a year-on-year increase of 17%. Taking the third quarter on its own, this represents an increase of 21% to some € 0.4m.

At € 14.9 m, other operating expenses in the first nine months of 2007 were 4% up on the previous year's figure of € 14.3m. This was primarily caused by higher rental and ancillary costs for business premises, as well as higher marketing and distribution expenses.

5 Financial position

The funds available for payment continued to develop positively, owing to the pleasing earnings position. The improvement by € 1.2m, compared with the half-year figures, resulted in available funds of € 22.8m; € 9.3m more that in the same period last year. This was offset by current financial liabilities of € 3.6m, resulting from a factoring credit line taken out in France for the company acquired there in 2006.

Parallel with increasing revenues, trade receivables also increased to € 50.7m. Trade liabilities totalled a mere € 19.0m. This € 1.4m increase during the third quarter is attributable to the increased demand in the Resourcing segment and the associated increased services purchased from external employees.

The positive development also had an impact on the cash flows from operating activities, which improved from € -3.1m during the first half of 2007 to € -0.5m as of 30 September 2007. During the comparable period last year, this figure still stood at € -7.0m. As in previous years, the cash flows from operating activities are likely to increase disproportionately in the fourth quarter owing to annual excess payments of a major customer in December.

Cash flow from investing activities totalled € -1.1m following € -3.4m the previous year, and results almost exclusively from investments in property, plant and equipment.

The above-mentioned factoring line in France resulted in a cash flow from financing activities totalling € 1.0m in the third quarter. Compared to the figures for the first half of 2007, this represents a reduction in utilisation by € 0.6 m.

6 Net assets

The positive business development is also reflected in the balance sheet total. At € 108.5m, it was € 1.7m up from the figure for the first six months of the year, and € 19.0m above the balance sheet total on the reporting date last year.

Rising liquid funds and the slight increase in trade receivables were reflected in a rise in the balance sheet total on the assets side. By contrast there was virtually no change in non-current assets compared to the previous quarter.

On the liabilities side, the increased business capacity seen in the third quarter above all had an effected on equity and trade liabilities. As at 30 September 2007, the latter amounted to € 19.0m and reflect the rising revenues in the Resourcing segment, which regularly result in a rise in services purchased from external employees. The ratio of trade liabilities to the sales volume thus remained virtually unchanged.

Moreover, equity increased from € 52.7m at the end of the first six months of the year to € 55.0m at the end of the third quarter, representing an increase of € 8.5m year on year. This led to an equity ratio of 51%.

7 Employees

As of 30 September 2007, the GFT Group employed 1,077 staff (including part-time staff); 31 (3%) more than during the same period last year. At the same time, the proportion of staff employed outside Germany increased slightly, rising from 71% to 73% (786). Accordingly, 291 members of staff (27%) are employed in Germany.

The greatest proportional increase in employees in 2007 was observed in the UK and Brazilian locations. The South American development centre has been earmarked for further expansion as a near-shore location for the USA.

After falling slightly during the second quarter of 2007, our recruitment activities during the third quarter led to a slight increase in the number of employees in Germany. In the Services segment, new projects will continue to be partly staffed by external personnel, initially. As a consequence, the portion of external personnel has virtually trebled year on year. There were considerable increases in the area of third-party management. Owing to the major project, some 594 external employees were engaged here; 34% more than during the same period last year. GFT UK also trebled, to 51, the number of external personnel employed.

8 Research and development

Following some € 0.8m in the third quarter of 2007, spending in research and development during the first nine month of the year under review totalled € 2.8m. The 38% drop compared to the same period last year is attributable to the reduction of included cost centres in strict compliance with the IFRS standard. Accordingly, since the beginning of 2007, expenses for staff further training measures have no longer been posted as expenditure for research and development.

As in previous quarters, the largest portion, namely 88%, was attributable to personnel costs and hence process innovation in the third quarter.

The majority was accounted for by the implementation of CMMI (Capability Maturity Model Integration), an internationally-recognised process model for software and system development. In the fourth qaurter of 2007, GFT will further enhance the implementation of the quality requirements of Level 3 for the core processes in Germany, Spain and the United Kingdom. The ultimate goal is the standardisation and institutionalisation of management and development processes.

In the area of software, development activities centred on GFT inboxx, a software solution for e-mail archiving.

9 Risk report

During the first nine months of 2007, there were no significant changes to the opportunities and risks described in detail in the management report of the 2006 consolidated financial statements. The risk situation of the GFT Group therefore remains unchanged.

10 Outlook

While general economic growth is expected to slow down by the end of the year, the ITC market continues to boom. This is reflected in the encouraging rising revenue and earnings of the GFT Group. Against this background, and given that the order books are healthy, we have increased our revenue forecast for 2007 again, and now anticipate revenues of in excess of more than € 230m. The profit margin before tax will remain at 5%.

In the Services division, our role as strategic partner to several customers in the banking sector forms a sound basis and allows us to expect sustained demand until the end of the year. We are also benefiting from a significant contribution to income secured by the conclusion of the largest project phase of the major project in Brazil. It remains to be seen whether the dampened demand in the financial service sector, owing to the crisis on the money and capital market, will affect our business development.

The shortage of skilled workers in the IT market is forecast to increase further, meaning that we can expect rising demand for the placement of freelancers. Our new Resourcing divisions in the United Kingdom, Switzerland and France mean that we are also well positioned internationally.

In the Software division we plan to shift the focus of our activities to e-mail archiving and have already invested accordingly in the development of our software GFT inboxx. Owing to the huge demand in this segment, we are anticipating a significant rise in revenues and marked improvement of the earnings situation.

The Executive Board would like to thank all of its employees for their firm commitment and all clients, investors and business partners for their trust and loyalty.

St. Georgen, 2 November 2007 The Executive Board

Ulrich Dietz Marika Lulay Dr, Jochen Ruetz Executive Board Executive Board Executive Board (Chairman)

Balance Sheet (IFRS) as of 30 September 2007

Assets	30/09/2007 €	31/12/2006 €

Current Assets
Liquid Funds	19,565,974.83	20,244,411.54
Marketable Securities	3,273,488.15	3,647,088.15
Trade receivables	50,723,495.59	34,133,550.50
Receivables from related parties	0.00	0.00
Inventories	6,530.00	5,125.00
Deferred tax assets	0.00	0.00
Accrued items and other current assets	3,914,709.49	3,414,408.70
Others	0.00	0.00
Total current assets	77,484,198.06	61,444,583.89

Non-current assets
Tangible fixed assets	2,569,204.42	2,447,985.92
Intangible assets	775,432.74	742,751.92
Goodwill	20,365,010.57	20,365,010.57
Financial assets	0.00	0.00
Investments accounted for using the equity method	0.00	0.00
Loans receivable	0.00	0.00
Deferred tax assets	6,078,625.37	5,969,303.35
Other assets	1,194,001.28	1,225,813.78
Others	0.00	0.00
Total non-current assets	30,982,274.38	30,750,865.54














Total assets	108,466,472.44	92,195,449.43

Liabilities	30/09/2007 €	31/12/2006 €

Current liabilities
Current portion of capital lease obligation	0.00	0.00
Short-term loans and current portion of long-term loans	3,560,424.89	2,415,840.80
Trade payables	19,033,832.33	15,593,508.15
Payables from related parties	0.00	0.00
Deposits received	3,205,069.26	4,783,225.81
Provisions	17,935,136.78	11,883,057.71
Deferred revenues	1,362,107.95	415,014.88
Current income tax liabilities	1,337,325.10	1,240,128.12
Deferred tax liabilities	0.00	0.00
Other current liabilities	4,353,076.39	3,654,439.35
Others	0.00	0.00
Total current liabilities	50,786,972.70	39,985,214.82

Non-current liabilities
Long-term loans	0.00	150,000.00
Long-term capital lease obligations	0.00	0.00
Deferred revenues	0.00	0.00
Deferred tax liabilities	793,039.73	197,443.17
Provisions for pensions	855,692.00	837,692.00
Others	987,396.44	1,661,934.11
Total non-current liabilities	2,636,128.17	2,847,069.28

Minority interest	0.00	0.00

Shareholders' equity
Share capital	26,325,946.00	26,325,946.00
Capital reserve	67,346,563.99	67,346,563.99
Treasury stock	0.00	0.00
Legal reserve	1,387.65	1,387.65
Other retained earnings	2,343,349.97	2,343,349.97
Foreign currency translation	36,187.47	42,176.11
Market assessment for securities	0.00	23,437.50
Consolidated balance sheet loss	-41,010,063.51	-46,719,695.89
Total shareholders' equity	55,043,371.57	49,363,165.33

Total equity and liabilities	108,466,472.44	92,195,449.43

Consolidated Income Statement (IFRS) from 1 January to 30 September 2007

		Interim report		Cumulated Period
	01/07/–30/09/ 2007 €	01/07/–30/09/ 2006 €	01/01/–30/09/ 2007 €	01/01/–30/09/ 2006 €

Revenue	63,192,502.20	47,219,528.30	176,294,723.99	127,342,741.01
Other operating income	93,823.80	492,080.15	1,069,721.07	1,995,831.24
Changes in inventories of work in progress	0.00	0.00	0.00	0.00
Other capitalised services	24,307.65	38,562.15	116,503.24	209,005.50
Cost of material/Purchased services	-38,705,161.36	-24,495,063.52	-104,570,784.69	-63,291,215.90
Employee benefits costs	-15,514,731.44	-15,611,943.98	-48,398,809.53	-46,730,920.25
Depreciation of tangible and intangible assets	-365,573.50	-301,686.37	-996,223.07	-848,718.16
Goodwill amortisation	0.00	0.00	0.00	0.00
Other operating expenses	-5,275,900.75	-5,250,116.82	-14,851,641.53	-14,247,462.41
Others	0.00	0.00	0.00	0.00
Result from operating activities	3,449,266.60	2,091,359.91	8,663,489.48	4,429,261.03

Interest income/expenses	129,072.42	117,625.80	385,251.21	300,285.19
Dividend income	0.00	0.00	0.00	0.00
Income/expenses from financial assets using the equity method	0.00	0.00	0.00	0.00
Foreign currency gains/losses	20,882.30	3,379.45	8,668.45	17,837.03
Other income/expenses	-179,500.00	-25,680.00	-336,100.00	-275,180.00
Earnings before tax
(and minority interest)	3,419,721.32	2,186,685.16	8,721,309.14	4,472,203.25

Income tax expenses	-1,003,627.21	-851,323.13	-3,011,676.76	-2,219,903.44
Extraordinary income/expenses	0.00	0.00	0.00	0.00
Earnings before minority interest	2,416,094.11	1,335,362.03	5,709,632.38	2,252,299.81

Minority interest	0.00	0.00	0.00	0.00
Net income	2,416,094.11	1,335,362.03	5,709,632.38	2,252,299.81

Net earnings per share (basic)	0.09	0.06	0.22	0.09
Net earnings per share (diluted)	0.09	0.06	0.22	0.09

Weighted average number of shares (basic)	26,325,946	26,325,946	26,325,946	26,325,946
Weighted average number of shares (diluted)	26,325,946	26,325,946	26,325,946	26,325,946

Consolidated Cash Flow Statement (IFRS) from 1 January to 30 September 2007

		Cumulated Period
	01/01/–30/09/ 2007 €	01/01/–30/09/ 2006 €
Cash flows from operating activities
Net income	5,709,632.38	2,252,299.81
Adjustments for:
Minority interest	0.00	0.00
Depreciation	996,223.07	848,718.16
Increase/decrease of provisions and value adjustments	6,093,743.91	4,877,477.82
Losses/gains from the disposal of assets	-3,637.44	16,989.96
Foreign currency gains/losses	8,668.45	17,837.03
Others	336,100.00	275,180.00
Changes in working capital	-13,678,585.34	-15,318,755.36
Cash flows from operating activities	-537,854.97	-7,030,252.58
Cash flows from investing activities
Acquisition of consolidated companies, net of purchased cash	0.00	-6,015,882.84
Income of sales of consolidated companies, net of purchased cash	0.00	0.00
Acquisition of fixed assets	-1,151,976.15	-1,200,183.59
Income of sales of fixed assets	5,491.20	24,013.38
Others	3,245.26	3,827,200.00
Cash flows used in investing activities	-1,143,239.69	-3,364,853.05
Cash flows form financing activities
Cash receipts from equity contribution	0.00	0.00
Cash receipts from issuing short- or long-term loans	994,584.09	30,018.74
Cash payments for repayments of loans	0.00	-529,937.63
Cash payments for lease obligations	0.00	0.00
Others	8,073.86	38,977.91
Cash flows used in financing activities	1,002,657.95	-460,940.98
Foreign exchange difference	0.00	0.00
Decrease of liquid funds	-678,436.71	-10,856,046.61
Liquid funds at the beginning of the period	20,244,411.54	20,652,062.51
Liquid funds at the end of the period	19,565,974.83	9,796,015.90

Consolidated Statement of Changes in Equity (IFRS) as of 30 September 2007

	Subscribed Capital	Capital reserve	Retained Earnings
			Legal reserve	Other revenue reserves
	€	€	€	€
As of 31/12/2005	26,325,946.00	67,346,563.99	1,387.65	2,343,349.97
Financial assets available for sale (securities):
- Change of fair value recognised in equity 01/01/–30/09/2006
- Transferred to Income Statement 01/01-30/09/2006
Exchange differences on translating foreign operations 01/01-30/09/2006
Deferred taxes taken directly to or transferred from equity 01/01-30/09/2006
Income and expense recognised directly in equity 01/01-30/09/2006
Net income 01/01-30/09/2006
Total recognised income and expense 01/01-30/09/2006
As of 31/12/2006	26,325,946.00	67,346,563.99	1,387.65	2,343,349.97
Financial assets available for sale (securities):
- Change of fair value recognised in equity 01/01/–31/12/2006
- Transferred to Income Statement 01/01/–31/12/2006
Exchange differences on translating foreign operations 01/01/–31/12/2006
Deferred taxes taken directly to or transferred from equity 01/01/–31/12/2006
Income and expense recognised directly in equity 01/01/–31/12/2006
Net income 01/01/–31/12/2006
Total recognised income and expense for the financial year 2006
As of 31/12/2006	26,325,946.00	67,346,563.99	1,387.65	2,343,349.97
Financial assets available for sale (securities):
- Change of fair value recognised in equity 01/01/–30/09/2007
- Transferred to Income Statement 01/01/–30/09/2007
Exchange differences on translating foreign operations 01/01/–30/09/2007
Deferred taxes taken directly to or transferred from equity 01/01/–30/09/2007
Income and expense recognised directly in equity 01/01/–30/09/2007
Net income 01/01/–30/09/2007
Total recognised income and expense 01/01/–30/09/2007
As of 30/09/2007	26,325,946.00	67,346,563.99	1,387.65	2,343,349.97

					not affecting results
Total share capital €	Minority interests €	Equity attributed to equity holders of the parent €	Consolidated balance sheet loss €	Market assessment for securities €	foreign currency translations €
44,457,096.16	0.00	44,457,096.16	-51,829,043.39	181,250.00	87,641.94


16,500.00		16,500.00		16,500.00
-246,500.00		-246,500.00		-246,500.00
-47,272.09		-47,272.09			-47,272.09
86,250.00		86,250.00		86,250.00

-191,022.09 2,252,299.81	0.00 0.00	-191,022.09 2,252,299.81	0.00 2,252,299.81	-143,750.00	-47,272.09
2,061,277.72	0.00	2,061,277.72	2,252,299.81	-143,750.00	-47,272.09
46,518,373.88	0.00	46,518,373.88	-49,576,743.58	37,500.00	40,369.85

-6,000.00		-6,000.00		-6,000.00
-246,500.00		-246,500.00		-246,500.00
-45,465.83		-45,465.83			-45,465.83
94,687.50		94,687.50		94,687.50
-203,278.33	0.00	-203,278.33	0.00	-157,812.50	-45,465.83
5,109,347.50	0.00	5,109,347.50	5,109,347.50
4,906,069.17	0.00	4,906,069.17	5,109,347.50	-157,812.50	-45,465.83
49,363,165.33	0.00	49,363,165.33	-46,719,695.89	23,437.50	42,176.11

-33,750.00		-33,750.00		-37,500.00
0.00		0.00		0.00
-5,988.64		-5,988.64			-5,988.64
14,062.50		14,062.50		14,062.50
-29,426.14	0.00	-29,426.14	0.00	-23,437.50	-5,988.64
5,709,632.38	0.00	5,709,632.38	5,709,632.38
5,680,206.24	0.00	5,680,206.24	5,709,632.38	-23,437.50	-5,988.64
55,043,371.57	0.00	55,043,371.57	-41,010,063.51	0.00	36,187.47

Changes in equity

Notes to the Interim Consolidated Financial Statements (Interim Management Report)

as of 30 September 2007, GFT Technologies Aktiengesellschaft, St. Georgen

1. Fundamentals for the GFT Group's Interim Financial Statements

The unaudited Interim Financial Statements of the GFT Technologies Aktiengesellschaft Group (GFT AG) should be read in conjunction with the GFT AG Group Annual Financial Statements as of the end of the last financial year (31 December 2006). They were drawn up in € in accordance with standard principles of accounting and valuation and conform to the prescriptions set out in IAS 34, sections 37v to 37z WpHG, and the regulations for the Frankfurt Stock Exchange.

The same accounting and valuation methods were used in these Interim Financial Statements as in the previous Consolidated Financial Statements as of 31 December 2006. These are the International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB), which are to be applied within the EU.

The Interim Consolidated Financial Statements and the Interim Management Report as of 30 September 2007 have neither been audited according to section 317 HGB nor been reviewed.

2. Changes to the consolidated group and its associated companies

No changes to the scope of consolidation have occurred since the Consolidated Financial Statements were closed on 31 December 2006.

The following changes to the scope of consolidation have occurred since the Consolidated Financial Statements were closed on 30 September 2006.

All shares in the subsidiary GFT Websolutions Kft., Budapest, Hungary, were sold by GFT AG on 29 December 2006. GFT Websolutions Kft. was excluded from the scope of consolidation as of 29 December 2006. The share of GFT Websolutions Kft. in the Group's revenue amounted to 0.2% in the financial year 2006 and to 0.2% in the first nine months 2006; at the time it was excluded from the consolidation the share in the Group's asset was 0.3%. The sale of GFT Websolutions Kft. has had no significant impact on the Group's asset, financial, and earnings position; similarly there is no effect on comparability with previous year's figures.

The comparability of the 2007 third-quarter Income Statement and Cash Flow Statement with the first nine months 2006 is affected for the following reason:

With effect from 31 January 2006 GFT AG bought all of the business shares of the following companies:

1. GFT Technologies SARL, Paris, France
1. GFT Resource Management GmbH, Eschborn, Germany

Including the subsidiaries GFT Flexwork GmbH, Berlin, Germany Parity Eurosoft GmbH, Frankfurt am Main, Germany, and Parity Business Solutions GmbH, Frankfurt am Main, Germany

All five companies together are jointly referred to as "Parity companies".

The companies named above were included in the Consolidated Financial Statements for the first time from 31 January 2006.

Therewith they are included in the Income Statement and the 2007 third quarter's Cash Flow Statement with nine months, whereas in the first three quarters of 2006, they were solely included with eight months. Their contribution to revenue in the first nine months 2007 totalled € 38.9m (first nine months 2006: € 30.3m) with a contribution to results totalling € 1.7m (first nine months 2006: € 0.4m).

Parity Eurosoft GmbH and Parity Business Solutions GmbH were consolidated on the effective date of 1 January 2006, into GFT Resource Management GmbH (the absorbing legal entity). The consolidations had no effect on the Consolidated Financial Statement of 31 December 2006.

GFT Business Development GmbH, Eschborn, which had been acquired on 10 February 2006 and been included in the Consolidated Financial Statement from this time onwards, is included with different time periods in the Income Statement and the Cash Flow Statement of the first three quarters of 2007, compared to the first three quarters of 2006. As this company did not engage in operating activities from the time it was purchased, there is no effect on comparability of the two time periods.

3. Changes in equity

With respect to the changes in equity capital between 1 January 2007 and 30 September 2007 we refer to the Consolidated Statement of Changes in equity which is separately represented.

As of 30 September 2007 the company's share capital of € 26,325,946.00 consists of 26,325,946 non par value individual share certificates (no change relative to 31 December 2006). These shares are bearer shares and all grant equal rights. On 30 September 2007 the consolidated balance sheet loss included a carry forward from the previous year amounting to €(k) -46,720 (previous year: €(k) -51,829).

Dividends have not been proposed or paid out during the 2007 financial year.

No changes resulted to the company's authorised capital between 1 January and 30 September 2007 relative to 31 December 2006.

In the period from 1 January to 30 September 2007 the following changes were made to conditional capital compared to 31 December 2006:

By resolution of the Annual General Meeting of 22 May 2007 the authority of the Annual General Meeting of 29 May 2002 to issue convertible and/or option bonds and the existing conditional capital pursuant to section 4 (6) lit. b of the articles of association (conditional capital II/2002) was rescinded. New Conditional capital II/2007 was created as follows:

Pursuant to the resolution of the Annual General Meeting of 22 May 2007 the share capital is to be conditionally increased by € 7.5m. by issuing up to 7,500,000 new individual bearer shares (Conditional capital II/2007). The conditional capital increase will only be carried out to the extent that

the owners or creditors of conversions rights or bonds that are appended to the convertible or option bonds to be issued by the company or by its majority holding companies by 21 May 2012 under the Annual General Meeting resolution of 22 May 2007 exercise their conversion or option rights or
the holders or creditors of convertible bonds to be issued by the company or by its majority holding companies by 21 May 2012 under the Annual General Meeting resolution of 22 May 2007 with an obligation to exercise their right of conversion actually discharge said obligation.

By resolution of the Annual General Meeting on 22 May 2007, the Executive Board was authorised, given Supervisory Board approval, to issue on a one-off basis or on multiple occasions up until 21 May 2012 bearer or registered convertible and/or option bonds ("bonds") with a total nominal value of up to € 100m. with a maximum term of 15 years and to grant the owners or creditors of bonds, option or conversion rights in the company with a pro rata share in the share capital of up to € 7.5m. in close accordance with the terms and conditions governing convertible or option bonds. The bonds may also be issued by direct or indirect majority holding companies of the company. In this case the Executive Board is authorised, given Supervisory Board approval, to accept a guarantee for the issuing majority holding company for the repayment of the bond and to grant holders of such option or conversion bonds in GFT Technologies AG in order to satisfy the rights conceded with these bonds. In certain cases, the Executive Board shall be authorised, given Supervisory Board approval, to exclude the subscription right of the shareholders to the bonds with option or conversion rights in GFT Technologies AG.

4. Segmental reporting

Segmental reporting for the first nine months of the 2007 financial year was undertaken for the same business segments as in the Consolidated Financial Statement as of 31 December 2006. The Resourcing division also contains the Parity companies that were included with nine months in the first three quarters of 2007 and with eight months in the first three quarters of 2006 (see point 2 above).

Segment reporting (IFRS) as of 30 September 2007

	Services		Software
	30/09/2007 T€	30/09/2006 T€	30/09/2007 T€	30/09/2006 T€

Revenue
External sales	75,159	60,017	4,086	5,057
Inter-segment sales	316	24	-	-
Total revenue	75,475	60,041	4,086	5,057

Result
Segment result	7,601	5,489	-527	-812

Unallocated income/expenses
Operating results
Interest expenses
Interest income
Share of net profits of associates
Earnings before tax

Income tax expenses
Net income
Other information
Segment assets	45,624	38,282	1,816	1,376
Investments in associates accounted for under the equity method
Unallocated corporate associates
Consolidated total assets

Segment liabilities	23,017	22,845	1,930	1,791
Unallocated corporate liabilities
Consolidated total liabilities

Capital expenditure	679	818	275	243
Depreciations	756	689	125	90
Non-cash expenditure other than depreciation	-	-	-	-

	Resourcing	Total		Eliminations		Consolidated
30/09/2007	30/09/2006	30/09/2007	30/09/2006	30/09/2007	30/09/2006	30/09/2007	30/09/2006
T€	T€	T€	T€	T€	T€	T€	T€

97,050	62,269	176,295	127,343
3,178	198	3,494	222	-3,494	-222
100,228	62,467	179,789	127,565	-3,494	-222	176,295	127,343


2,303	1,024	9,377	5,701			9,377	5,701

						-1,041	-1,529
						8,336	4,172
						-126	-92
						511	392
						-
						8,721	4,472
							-2,220
						-3,011	2,252
						5,710

50,327	40,299	97,767	79,957			97,767	79,957

						-
				10,699	9,523	10,699	9,523
						108,466	89,480
25,863	15,274	50,810	39,910			50,810	39,910
				2,613	3,051	2,613	3,051
						53,423	42,961

154	115	1,108	1,176	44	24	1,152	1,200
77	53	958	832	38	17	996
-	-	-	-	336	275	336

In addition to segment data by business segment, oriented in accordance with the company's structure, the table shown below contains geographical data in accordance with IAS 14 (secondary segment information).

		Investments in Revenues from sales Carrying amount of equipment and to external clients* segment assets intangible assets
k€	01/01/–30/09/ 2007	01/01/–30/09/ 2006	30/09/2007	30/09/2006	2007	01/01/–30/09/ 01/01/–30/09/ 2006
Germany	119,822	82,261	77,031	63,760	660	537
United Kingdom	17,179	8,392	8,928	5,094	44	19
Spain	11,868	9,940	12,316	13,856	225	417
France	10,176	7,699	7,935	4,473	67	22
Brazil	9,543	8,830	471	143	87	142
Switzerland	3,270	2,684	1,307	1,159	50	38
Other foreign countries	4,438	7,537	478	995	19	25
Total	176,296	127,343	108,466	89,480	1,152	1,200

* Determined by client location

5. Changes to contingent liabilities

As of 30 September 2007, the Group had not undergone any significant changes to its contingencies and other financial commitments since its Consolidated Financial Statements of 31 December 2006.

6. Investments

During the period between 1 January and 30 September 2007, the GFT Group invested €(k) 260 in intangible fixed assets (1 January to 30 September 2006: €(k) 457) and €(k) 892 in tangible assets (1 January to 30 September 2006: €(k) 743).

7. Related party disclosures

Relative to the notes to the Consolidated Financial Statements as of 31 December 2006 there were no changes to the composition of the related companies and people, and to the relationships with these.

8. Explanations about shares for company use and subscription rights of employees and members of the company's executive bodies

As of 30 September 2007 GFT AG does not hold any own shares; nor were any own shares acquired or sold in the period from 1 January to 30 September 2007 (section 160 (1) sentence 2 German Stock Corporation Act (AktG).

The explanations about subscription rights of employees and members of the company's executive bodies as per section160 (1) sentence 5 German Stock Corporation Act (AktG) refer to the stock options programme (subscription rights as per section 192 (2) sentence 3 German Stock Corporation Act):

The extraordinary shareholders' meeting of 4/24 June 1999 approved a conditional equity capital increase through an issue of up to 260,000 individual share certificates (corresponding to 780,000 individual share certificates following the 3:1 stock split of 16 May 2000, Conditional Capital I/1999) permitting subscription rights exclusively through stock options programmes as well as the basic features of stock options programmes to be launched by the Executive Board. The conditional increase in capital is to be carried out only insofar as the holders of the issued subscription rights wish to use their subscription rights according to section 192 (2) sentence 3 German Stock Corporation Act. Beneficiaries are exclusively members of the Executive Board and employees of GFT Technologies AG as well as members of 100% subsidiaries, to whom purchasing rights have been granted. The subscription rights under the "1999/2004" and "2000/2005" stock option programmes issued by the Executive Board lapsed on 6 July 2004 and respectively 1 July 2005 without having been exercised. Therefore, no subscription rights pursuant to section 192 (2) sentence 3 of the German Stock Corporation Act which may be used have existed since 1 July 2005.

Assurance of the Legal Representatives

To the best of our knowledge, and in accordance with the applicable reporting principles for interim financial reporting, the interim consolidated financial statements give a true and fair view of the assets, liabilities, financial position and profit or loss of the group, and the interim management report of the group includes a fair review of the development and performance of the business and the position of the group, together with a description of the principal opportunities and risks associated with the expected development of the group for the remaining months of the financial year.

St. Georgen, 2 November 2007

(Chairman)

Ulrich Dietz Marika Lulay Dr. Jochen Ruetz Executive Board Executive Board Executive Board

Our divisions

Services IT Services:

reliable international direct

In the Services business division we conceive and develop innovative and individual IT applications. After implementing these solutions, we also take on their operation and maintenance. Our well-founded project and technological experience, as well as comprehensive industry competence in the financial and logistics services sectors, make GFT a preferred IT partner for reputable companies domestically and abroad.

Resourcing

GFT

Supplying IT personnel:

flexible punctual suitable

The Resourcing business division covers the facilitation of IT specialists to companies in all industries. We find the sought-after IT experts, and supply them on a project-basis to our customers, ensuring optimum cost effectiveness.

Our subsidiary emagine is the leader in Third Party Management in Germany. It offers its clients the customised management of their IT suppliers, which enables them to reduce costs, increase process quality and improve legal security.

Software Optimisation of business processes:

automated pragmatic innovative

In the Software business division we develop and implement customised IT solutions for the optimisation of business processes and the archiving of documents. Our solutions are based on standardised software products which support companies in digitalising and automating internal processes.

With our GFT inspire family of products we offer a complete and powerful platform. The software solution GFT hyparchiv allows a consistent automatic and company-wide document management as well as auditable archiving.

Contact

GFT Technologies AG

Investor Relations Andrea Wlcek Leopoldstraße 1 D-78112 St. Georgen, Germany T +49 7724 9411-440 F +49 7724 9411-883 [email protected]

The Quarterly Financial Report Q3/2007 is also available in German under www.gft.com/ir. In case of doubt the German language version shall prevail.

Imprint

Concept and Text: GFT Technologies AG, St. Georgen, www.gft.com Creative concept and design: IR-One AG & Co. KG, Hamburg, www.ir-1.com Photography: Rüdiger Nehmzow, Düsseldorf, www.nehmzow.de

GFT Technologies AG Leopoldstraße 1 78112 St, Georgen

T +49 (0)7724 9411-0 F +49 (0)7724 9411-94

info@gft,com www,gft,com