GFT Technologies SE — Interim / Quarterly Report 2008

Aug 7, 2008

Interim Financial Report 1 January – 30 June 2008

GFT Group Summary

Financial Figures according to IFRS in €(k)	01/01-30/06/2008	01/01-30/06/2007
Revenue	115,902	113,102
Earnings before interest, tax, depreciation
and amortisation (EBITDA)	2,680	5,676
Total depreciation	805	631
Earnings before interest and taxes (EBIT)	1,875	5,045
Earnings before taxes (EBT)	2,255	5,302
Net income as at 30 June	1,086	3,294
IAS earnings per share, in €	0.04	0.13
Non-current assets	30,494	30,933
Cash, cash equivalents and securities	18,057	21,595
Other current assets	56,154	54,261
Balance sheet totals	104,705	106,789
Equity ratio, in %	56	49
Number of permanent employees as at 30 June	1,039	1,051

Contents

Interim Management Report as at 30 June 2008

1.	Economic environment	2
2.	Course of business during the first six months of 2008	2
3.	The GFT share	3
4.	Development of revenues	4
5.	Earnings situation	6
6.	Financial position	7
7.	Net assets	7
8.	Employees	8
9.	Research and development	8
10.	Opportunities and risks	8
11.	Significant events during the first half year of 2008	8
12.	Outlook	9

Interim Consolidated Financial Statements

Consolidated Balance Sheet	10
Consolidated Income Statement	12
Consolidated Cash Flow Statement	13
Consolidated Statement of Changes in Equity	14
Notes to the Interim Consolidated Financial Statements	16

Responsibility Statement ²⁰

Further information

Our Divisions/Imprint 21

Interim Management Report

as at 30 June 2008 GFT Technologies Aktiengesellschaft, St. Georgen

1. Economic environment

Macroeconomic developments

The effects of the tide of the US real estate crisis, the turbulence on the international financial markets and the increase in energy prices, means that the world economy has lost some of its dynamic in the first six months of 2008. The International Monetary Fund (IMF), in its updated study of July 2008, is forecasting an economic weakening in the global gross domestic product (GDP) from 5.0% in 2007 to 4.1% in 2008. The IMF estimates an increase of 2.0% for Germany however, but not until sometime during 2009 do the experts expect a gradual recovery.

The economic climate, as analysed by the German ifo Institute for the Euro zone, deteriorated again in the second quarter of 2008. In Western Europe, the indicator sank primarily in France, Italy and Spain; by contrast, in Germany, Austria and Switzerland the climate indicator deteriorated only slightly.

Development in the IT industry

According to current studies by the European Information Technology Observatory (EITO), the European Information Technology, Telecommunications and New Media industry continues on a growth course, despite the temporarily difficult business conditions. Forecasts from the industry association BITKOM (German Association for Information Technology, Telecommunications and New Media) confirm this; according to the association, the European market for IT, telecommunications electronics and digital entertainment electronics will grow in 2008 by 3% to € 761bn, somewhat weaker than in the previous year. The most growth will be seen in the IT services market with 5.7% by the end of the year.

Here, EITO is forecasting an annual turnover of around € 160bn for the entire EU. If one observes the market in which GFT operates, the UK is the front-runner with

a forecasted annual turnover of € 45.6bn, followed by Germany with € 32.8bn and France with € 24.8bn. € 7.8bn is expected for Spain. The growth forecasts look best for Germany (6.6%) and Spain (6.5%).

According to the BITKOM industry barometer for Germany (June 2008), the mood in the high-tech industry is predominantly optimistic. Nonetheless, after an encouraging start to the year, the dynamics in some market sectors slackened slightly. All the same, 62% of companies expect increased turnover in 2008 and only 15% anticipate a reduction. The largest obstacle in the industry, according to the BITKOM industry barometer, continues to be the lack of qualified personnel. 58% of all companies indicate that the lack of experts is slowing down their business.

2. Course of business in the first six months of 2008

Despite the difficult business conditions in the first half of 2008, the GFT Group achieved its planned sales objective in the first six months of the current financial year and was able to increase the Group's total revenue by 3% to € 115.9m.

Resourcing was the best-performing division, as in the previous quarters. With an increase by 12% compared to the previous year, the division continued to benefit from the dynamically growing demand for freelance IT specialists and the continued lack of experts. It was therefore possible to balance out the forecast revenue reduction in the Services division. Weakening activity in this area, which focuses on clients from the financial services industry, can be attributed to the current restraint on the part of banks and insurance companies when it comes to new investments. In the Software division the expenditure on sales and marketing has already led to a slight revenue increase compared to the same period in the previous year. After the successful market launch of the e-mail archiving solution inboxx, the sales channels are steadily expanding further. We therefore expect a stronger revenue growth for the second half of the year.

The earnings before taxes (EBT) of the GFT Group was € 2.3m, slightly below budget expectations in the reporting period. This can be attributed mostly to the significant investments in marketing for inboxx, the new product in the Software division. The Services division continued to make the largest contribution to earnings; however this had levelled off somewhat, compared to the first half of 2007, due to the aforementioned effects of the financial market crisis. In addition, the one-time deconsolidation costs from the sale of shares in GFT India (Ltd.) in the first quarter encumbered earnings. The Resourcing division was only slightly affected by the difficult market environment and was accordingly able to increase its earnings from the previous year. 60 80

Given the backdrop of the continued cooling down of the world economy and of the, not yet foreseeable, effects of the financial market crisis, we are anticipating a moderate increase in revenue compared to the previous year (2007: € 247.1m) for the GFT Group for the entire year. In terms of the operational earnings before taxes we are striving to exceed the threshold of a double-digit million value, but consider this to be a major challenge given the current market environment.

3. The GFT share

In the first half of 2008, the German stock markets noted price losses on almost all sectors due to the US financial market crisis, the dramatically rising oil price and the weakening of the economy. The GFT share price was not spared this development either; it started in 2008 at € 3.31 and ended the second quarter at € 2.33. As a result, it lies 27% below the level of 30 June 2007 (€ 3.19). Compared to similar issues on the TecDax and on the TecAllShare, the GFT share price showed an average development. The analysts from Equinet and SES Research continued to assess the GFT share as "buy" in the first half of 2008.

In June 2008, there was a minor change in shareholder structure. The Baden-Württembergische Investmentgesellschaft mbH reduced its shares in GFT from 6.00% to 4.98% in June. In addition to the two members of the founding family who continue to hold 28.42% and 9.68%, the Austrian AvW Group is involved in the company with 5.01%, while 51.91% is to be allocated to free float.

Development of the GFT share during the first six months 2008 indexed (Basis 2 January 2008 = 100%)

4. Development of revenue 60

In the first half of 2008, the GFT Group generated revenue of € 115.9m. Despite the difficult business conditions, it was thus possible for it to exceed the previous year's value of € 113.1m by 3%. As was already the case in the first quarter of 2008, revenue in the Services division fell year on year due to the restrained spending behaviour of clients in the financial sector. However, growth in the Resourcing division was able to more than compensate for this. 0 20 40

Revenue by divisions

Resourcing and Services, as the divisions of the GFT Group generating the most revenue, represent 98% of the overall revenue, while the revenue share of the Resourcing division compared to the previous year has grown by five percentage points to 60% and remained at the level of the first quarter. The Services share dropped accordingly from 43% to 38%, while the share of the Software division remained constant at 2%. Thus, there were only minor shifts in comparison to the first quarter, in which Services made up 37% and Software 3% of the overall revenue.

The continuing lack of qualified IT staff also favoured business in the second quarter of 2008, through the provision of freelancers. The growing demand for external IT specialists led to a growth in revenue of 12% in the

Resourcing division compared to the first half-year of 2007. Here € 68.9m was generated in the first six months of the current financial year (previous year: € 61.5m), of which € 36.1m was generated by the Third Party Management area (TPM; previous year: € 37.0m) and € 32.8m by the Resource Management area (RM; previous year: € 24.5m).

When it came to new investments, GFT clients from the financial services sector proved to be cautious throughout the first half of 2008, due to the ongoing crisis on the capital market. This influenced revenue in the Services division, which compared to the first six months of 2007 dropped by € 4.8m to € 44.2m. As in the first quarter of 2008, revenue was affected by the conclusion, at the end of 2007, by implementation phase of a project with a large bank in Brazil. This project accordingly contributed less to the revenue. If we consider the quarters separately, an upside trend can already be observed: in the second quarter revenue increased by just under 15%, compared to the first three months of 2008, to € 23.6m.

Concentration on the dynamically growing e-mail archiving market with the software product inboxx showed initial success in the Software division. It was thus possible to achieve a slight increase in revenue by 10% to € 2.8m compared to the same period the previous year. Due to delayed sales successes we are anticipating a clear increase in revenue in this division for the rest of the year.

Revenue by countries

Revenue distribution by country has not changed significantly in comparison to 30 June 2007. 3,0 3,5

0,0

Germany continues to be the largest and most important market of the GFT Group. In the first half of 2008, two thirds of revenues was generated here (previous year: 65%). Compared with the first half of 2007, it was possible to increase revenue slightly from € 75.6m to € 78.0m. The effects of the financial market crisis prevented stronger growth in the Services area. The Resourcing business, in contrast, was able to expand further.

Representing the largest GFT market after Germany, in the UK 12% more revenue was generated in the first half of the year than in the same period of the previous year, whereby the UK clients are mainly active in the finance sector. With € 12.7m, the share of GFT's overall revenue was 11%, one percentage point more than in the first six months of 2007, thus continuing the positive trend from the first quarter of 2008, in which € 6.4m was generated.

GFT was also able to increase revenue with clients in Spain, from € 8.1m in the previous year's half-year to € 8.5m in the first six months of the current financial year. Compared to the previous quarter, revenue rose again by 16%, with the share of the overall revenue remaining constant at 7%.

Revenue with clients in Brazil fell, owing to the fact that the project with a Brazilian bank has entered the maintenance phase. This project was realised in collaboration with our Spanish development centre. As in the first quarter of 2008, this caused the share in overall revenue to drop again in comparison to the first half of 2007, from just under 6% to 2% and amounted to € 2.0m (previous year: € 6.5m).

Unchanged from the first half of 2007, the share in revenue from French clients was at 6%, which translates as € 6.8m (previous year: € 6.4m), with a slight increase of 4% noted in the second quarter, compared to the prior quarter.

GFT was able to achieve a substantial increase in revenue with clients in Switzerland: at € 2.9m the figure was about 42% above that of the previous year, of which € 1.6m were attributable to the second quarter. The share in overall revenue came to 3% (previous year: 2%).

Projects with clients from the USA and Italy ("Other countries") contributed € 5.0m in total to overall revenue, 59% more than in the same period of the previous year. Together they represent 4% of overall revenue (previous year: 3%), the reason being the growth in business in the USA.

Revenue by industry

With a 64% share of overall revenue, the financial services sector continued to be the most important industry for GFT in the first half of 2008 (previous year: 67%). Restraint on the part of financial institutions when it came to new investments caused revenues to decline slightly from € 74.9m in the first six months of 2007 to € 73.9m in the current financial year. Compared to the first quarter, however, a slight upside trend has already been noted, which is reflected in an increase in revenue of 8%.

GFT was able to note an increase in revenue with industrial clients, compared to the first half of 2007, of 17% to € 22.4m (previous year: € 8.6m). The share of overall revenue rose from 17% to 19% in the current financial year. As already noted in the previous quarter (€ 11.2m), the increase in business through the provision of freelance IT specialists was especially noticeable here.

Clients from other industries and government agencies generated a clear improvement on revenue in the first half of 2008, compared to the previous year, up to € 10.4m (previous year: € 8.6m). This corresponds to an increase of 21%. The share of overall revenue thus amounted to 9%, up from around 7% in the previous year. The second quarter of 2008 in particular, made a positive difference to the results, with revenue of € 6.6m 69% more than in the first three months.

The revenues with companies from the Post and Logistics sector fell slightly. After securing € 10.4m in the first half of 2007, GFT achieved revenues of € 9.2m in the current financial year. The share of overall revenue dropped accordingly by one percentage point to 8%, while the first three months (€ 4.7m) were somewhat stronger than the second quarter (€ 4.5m).

5. Earnings situation

The earnings before taxes (EBT) of the GFT Group came to € 2.3m in the first half of 2008 and thus remained, as expected, behind the earnings of the same period from the previous year (€ 5.3m). Thus, at € 1.7m, earnings during the second quarter were € 1.2m above that of the previous quarter. The special items already mentioned in the first quarter, also caused the decline in earnings in the second quarter: the expected negative difference in each quarter of 2008 year on year (H1 2008: € 1.0m), is a s a result of the extraordinary earnings contributions at the end of 2007, when the implementation phase of the large project in Brazil was concluded. The outflow of the majority stakes in the company in India also encumbered the earnings for the first six months by € 0.2m. Furthermore the investment in sales and marketing for the software product inboxx exceeded the corresponding licence proceeds in the second quarter, by € 1.0m in total in the first six months of 2008. In addition, the continuation of the subdued market environment also impacted the earnings situation in the second quarter, in particular in the Services division.

Earnings before interest and taxes (EBIT) amounted to € 1.9m in the first half of 2008. The difference compared to the first half of 2007 was thus € -3.1m (previous year: € 5.0m).

At € 2.7m, earnings before interest, taxes, depreciation and amortisation (EBITDA) were 53% lower than as at 30 June 2007 (€ 5.7m).

After deducting all expenses, the net income as at 30 June at € 1.1m was € 2.2m short of the previous year's semi-annual net income (€ 3.3m). The quarterly net income in the second quarter of 2008 came to € 1.0m.

The calculated taxation rate for the first half of 2008 was thus at 52%, since the earnings were concentrated further on countries with a relevant tax ratio (previous year: 38%). However, the calculated taxation rate of the second quarter fell to 45% compared to the previous quarter (75%). We expect further normalisation up to the budgeted taxation rate of around 30% for the second half of the year.

Earnings per share as at 30 June 2008 were € 0.04 per share compared to € 0.01 in the previous quarter, after € 0.13 as at 30 June 2007. These figures relate to an average total number of 26,325,946 shares in circulation.

Group earnings situation by division

Earnings in the Services division improved by € 0.8m compared to the previous quarter to € 1.7m. This resulted in a half-year value of € 2.6m, which as expected remained behind the value for the first half of 2007 (€ 4.1m). A large part of this difference can be attributed to the nonrecurrence of the earnings from the concluding phase of the major Brazilian project. The half-year earnings also contain the outflow loss of GFT India for the Services division as well as decreased project earnings resulting from the restrained market situation.

The earnings situation in the Resourcing division was € 1.7m for the first half of 2008 and was thus € 0.1m up on the comparable period of the previous year (€ 1.6m). This resulted from the increased revenues in this division compared to the first six months of 2007.

The earnings situation in the Software division improved slightly by € 0.1m compared to the previous quarter, however it remained below our expectations in the first half of 2008 with € -1.5m. The current costs for sales and marketing continued to exceed the revenue proceeds achieved.

Group expenses and income

Other operating income exhibited a value of € 1.3m as at 30 June 2008 (previous year: € 1.0m). Worthwhile were the earnings from liquidating provisions that for the most part stemmed from the first quarter.

The cost of material increased again in the second quarter corresponding to the increase in revenue in the Resourcing division and is to be attributed to the increased purchases of external labour. The half-year value for 2008 was € 70.2m (previous year: € 65.9m), which corresponds to a 7% increase. In the Services division there was a correspondingly lower demand for external workers due to the lower revenue, in comparison to the same period the previous year.

At € 17.0m in the second quarter, personnel expenses remained on par with the first quarter of 2008 (€ 16.7m). At € 33.7m, the cumulative value as at 30 June 2008 was € 0.8m higher than in the comparable period of the previous year (€ 32.9m), which corresponds to an increase of 2%. The personnel expenses of the first half of 2008 include the proportionate share of personnel expenses of GFT India.

In the second quarter, depreciation of non-current intangible assets and of tangible assets remained on par with the first quarter at € 0.4m. At the half-year mark the value was thus € 0.8m in comparison to € 0.6m during the first half of 2007.

Other operating expenses in the second quarter remained almost unchanged compared to the first at € 5.1m. At € 10.3m after the first six months of 2008, they were thus € 0.7m over the previous year's value (€ 9.6m). This change represented a net effect mainly from increased rental costs and consulting services, as well as reduced travel expenses.

6. Financial position

The funds available for payment (including securities) declined slightly year on year (€ 21.6m) to € 18.1m. In return, the non-current financial liabilities dropped from

€ 2.6m in the first half of 2007 to € 0.5m as at 30 June 2008. This is mainly attributable to the repayment of the factoring credit line in France at the end of 2007.

In the first quarter of 2008, the trade receivables increased by € 3.5m to € 53.4m year on year. This was countered by trade payables of € 17.7m (previous year: € 17.6m). The rising trend in trade receivables is being determined by the growing Resourcing business which has higher average payment targets.

This trend towards longer days sales outstanding is also the reason for the reduction in cash flows from operating activities, from € -3.1m as on the previous year's cut-off date to € -9.9m compared to the end of the first half of 2008.

The change in cash flows from investing activities from € -0.7m in the first half of 2007 to € -0.9m is mainly due to the disinvestment in the Indian subsidiary in the first quarter of 2008. Further capital expenditures flowed mainly into property, plant and equipment.

The cash flows from financing activities was clearly lower in the first half of 2008 than in the previous year and came to € 0.4m (previous year: € 1.6m). No financial transactions worth mentioning were made in the first six months of this year.

7. Net assets

At € 104.7m, the balance sheet total as at 30 June 2008 was € 2.1m lower than on the previous year's cut-off date and € 7.2m below the value as at 31 December 2007.

The trade receivables increased compared to the first half of 2007 by 7% and compared to 31 December 2007 by 11%, the reason being the reduced trade receivables at the end of the year, due to early payments in the fourth quarter of 2007.

In comparison to the first half of 2007, equity increased from € 52.7m to € 58.7m due to the reduced losses carried forward, which consistently decreased as a result of the positive quarterly results, in particular in the second half of 2007. As a result, the equity ratio increased from

49% to 56% compared to the previous year's cut-off date of 30 June 2007. Equity remained almost unchanged in comparison to the end of 2007. The lower balance sheet total thus led to an increase in the equity ratio of 52% as at the end of 2007.

Trade payables were on par with the figure for the previous year and for the previous quarter.

8. Employees

As at the cut-off date of 30 June 2008, the GFT Group had 1,039 employees including the proportionately included part-time workers, 12 people fewer than at the same time in the previous year and six fewer than as at 31 March 2008. With 716 employees, the share of staff employed abroad was 69% (previous year: 758, or 72%). Accordingly, 323 employees or 30% (previous year 293, or 28%) were employed in Germany. The decrease in the number of employees abroad continues to be due mainly to the sale of 70% of the shares in the Indian subsidiary GFT India Ltd, Trichy, India, to the managing director of the company on 29 February 2008. The increase in the number of employees working in Germany stems from the recruitment of new sales employees in the Resourcing division.

The Services division continues to have the largest share of employees with 871 people. 916 employees were active in this division in the same period last year. The reduction in people largely corresponds to the reduction in the Indian shares, as 47 employees were employed here last year.

The Resourcing division employed 97 people as at 30 June 2008, which is 27 more people than in the same period last year. This reflects the growing demand for external experts in the companies.

On the cut-off date 30 June, 71 people worked in the Software division – six more than in the same period last year.

The number of freelancers rose by 8% in comparison to the same period last year from 1,167 to 1,266 people.

9. Research and development

The expenses for research and development increased slightly at € 2.2m in comparison to the first half of 2007 (previous year: € 2.0m). The largest share of this increase continued to be attributed to personnel costs.

In the research and development area, as already outlined in the first quarter of 2008, the focus was on achieving steady process improvement in the Services division through the continuing implementation and expansion of CMMI (Capability Maturity Model Integration). In the meantime, GFT has achieved the quality requirements and certifications of level three for the Spanish and Brazilian development centres. Also the work on the further development and expansion of the internal Group wide information platform continued.

10. Risk report

During the first half of 2008, no substantial changes occurred to the opportunities and risks extensively dealt with in the Management Report of the 2007 Consolidated Financial Statements. The risk situation of the GFT Group therefore remains unchanged.

11. Significant events during the first half of 2008

In the first half of 2008, GFT concluded the bundling of all activities in the Resourcing division in Germany. With effect from 1 January 2008, the GFT Technologies AG brought its business unit "emagine" into the GFT Resource Management GmbH in the way of singular succession. Active in third-party management, emagine is responsible for purchase management for its clients with regard to non-strategic IT service providers as well as the sourcing of software developers, programmers and other smaller IT service providers. In the financial year 2007, emagine generated revenue in the amount of € 85.9m. With the integration of emagine into the GFT Resource Management GmbH, all activities in the Resourcing division are now consolidated in Germany in the

GFT Resource Management GmbH or its subsidiaries. All revenues of GFT Technologies AG are being allocated to the Services segment starting on 1 January 2008.

A further significant event in the first half-year of 2008 was the sale of shares in GFT India Ltd. In the course of concentrating its offshore activities in Brazil, GFT Technologies AG sold 70% of its shares in GFT India Ltd., Trichy, India, to the managing director of the company on 29 February 2008. GFT AG will continue to use the development centre in India in the future for the further development of internal applications and product development in the Software area.

On 11 June 2008, the ninth regular Annual General Meeting of GFT Technologies AG agreed to relocate the company's headquarters from St. Georgen to Stuttgart. St. Georgen will continue to be used as a location for development and administrative functions.

12. Outlook

Based on the IMF's forecasts, world economic growth is expected to continue to slow throughout 2008 with experts predicting a gradual recovery sometime during 2009.

Given the cooling world economy, growth forecasts for the IT industry are relatively optimistic. To what extent GFT can benefit from this will depend, however, on how the current financial crisis develops. The restrained demand on the part of international financial institutions appears to be influenced by this at the moment.

Against this backdrop, we are expecting a moderate increase in revenue for the GFT Group for the entire year 2008 compared to the previous year (2007: € 247.1m). As in previous years, we are assuming a steadily rising revenue volume across all quarters.

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

The earnings development of the first half went according to plan, with the exception of the Software division. With a view to the second half-year, we anticipate an appreciable improvement in the earnings situation. In terms of the operational earnings before taxes we are striving to exceed the threshold of a double-digit million value, but consider this to be a major challenge given the current market environment.

In the Services division, the difficulties in the financial market will continue to influence the investment behaviour of our clients. At the same time, the economic impact on the demand from banks and insurance companies of skyrocketing energy prices and rising inflation are still unpredictable. Therefore, we are expecting at least constant revenues from our Services division during the second half of the year with our existing clients. At the same time we are working intensively on increasing revenue through new projects and clients.

We will continue to consistently use the growth opportunities that result from the rising demand for IT freelancers in the Resourcing division.

After the successful market launch of the e-mail archiving solution inboxx in the first quarter as well as the expansion of the sales channels in the second quarter, we now have a good starting position for the second half of the year. We are therefore expecting rising revenues and correspondingly increasing results.

The Executive Board would like to thank all the company's employees for their high level of commitment and all our clients, investors and business partners for their trust and loyalty.

St. Georgen, 1 August 2008 The Executive Board

Consolidated Balance Sheet (IFRS)

as at 30 June 2008

GFT Technologies Aktiengesellschaft, St. Georgen

Assets	30/06/2008 €	31/12/2007 €
Current Assets
Cash and cash equivalents	15,328,510.78	25,699,209.08
Marketable Securities	2,728,121.87	3,002,421.87
Trade receivables	53,425,388.98	47,947,226.08
Receivables from related parties	0.00	0.00
Inventories	3,467.50	9,052.66
Deferred tax assets	0.00	0.00
Accrued items and other current assets	2,725,942.78	4,381,094.28
Others	0.00	0.00
Total current assets	74,211,431.91	81,039,003.97
Non-current assets
Property, plant and equipment	2,493,954.03	2,615,952.56
Intangible assets	778,819.26	873,656.13
Goodwill	20,365,010.57	20,365,010.57
Financial assets	0.00	0.00
Investments accounted for using the equity method	54,096.35	0.00
Loans receivable	0.00	0.00
Deferred tax assets	5,710,312.73	5,943,048.58
Other assets	1,091,776.07	1,095,276.07
Others	0.00	0.00
Total non-current assets	30,493,969.01	30,892,943.91
Total assets	104,705,400.92	111,931,947.88

Interim Consolidated Financial Statements

Liabilities	30/06/2008 €	31/12/2007 €
Current liabilities
Current portion of capital lease obligation	0.00	0.00
Short-term loans and current portion of long-term loans	537,941.02	150,000.00
Trade payables	17,721,549.19	28,915,694.45
Payables from related parties	0.00	0.00
Deposits received	2,622,308.30	2,916,443.88
Provisions	16,016,236.83	13,696,366.78
Deferred revenues	1,725,290.68	987,004.25
Current income tax liabilities	1,154,383.55	1,050,674.39
Deferred tax liabilities	0.00	0.00
Other current liabilities	3,728,375.33	3,643,165.60
Others	0.00	0.00
Total current liabilities	43,506,084.90	51,359,349.35
Non-current liabilities
Long-term loans	0.00	0.00
Long-term capital lease obligations	0.00	0.00
Deferred revenues	0.00	0.00
Deferred tax liabilities	558,021.60	564,461.71
Provisions for pensions	857,836.00	853,036.00
Others	1,108,317.09	1,425,125.34
Total non-current liabilities	2,524,174.69	2,842,623.05
Minority interest	0.00	0.00
Shareholders' equity
Share capital	26,325,946.00	26,325,946.00
Capital reserve	42,147,782.15	42,147,782.15
Treasury stock	0.00	0.00
Legal reserve	0.00	0.00
Other retained earnings	2,343,349.97	2,343,349.97
Foreign currency translation	62,804.20	34,331.96
Market assessment for securities	-365,600.00	-196,300.00
Consolidated balance sheet loss	-11,839,140.99	-12,925,134.60
Total shareholders' equity	58,675,141.33	57,729,975.48
Total equity and liabilities	104,705,400.92	111,931,947.88

Consolidated Income Statement (IFRS)

for the period from 1 January to 30 June 2008 GFT Technologies Aktiengesellschaft, St. Georgen

		Quarterly Financial Report		Interim Financial Report
	01/04-30/06/ 2008 €	01/04-30/06/ 2007 €	01/01-30/06/ 2008 €	01/01-30/06/ 2007 €
Revenue	60,511,874.18	59,312,408.00	115,901,621.59	113,102,221.79
Other operating income	475,290.54	366,505.62	1,277,785.88	975,897.27
Changes in inventories of work in progress	0.00	0.00	0.00	0.00
Other capitalised services	44,490.97	39,936.31	78,802.90	92,195.59
Cost of material/Purchased services	-36,895,933.51	-35,115,999.92	-70,227,167.96	-65,865,623.33
Employee benefits costs	-16,978,834.36	-16,668,779.60	-33,708,438.78	-32,884,078.09
Depreciation of tangible and intangible assets	-392,959.04	-330,694.71	-805,484.05	-630,649.57
Goodwill amortisation	0.00	0.00	0.00	0.00
Other operating expenses	-5,121,336.84	-4,568,415.66	-10,268,392.66	-9,575,740.78
Others	0.00	0.00	0.00	0.00
Result from operating activities	1,642,591.94	3,034,960.04	2,248,726.92	5,214,222.88
Interest income/expenses	148,822.11	114,488.72	380,150.45	256,178.79
Dividend income	0.00	0.00	0.00	0.00
Income/expenses from financial assets using the equity method	-7,777.66	0.00	-28,826.03	0.00
Foreign currency gains/losses	-15,678.56	2,511.03	-46,783.68	-12,213.85
Other income/expenses	-35,000.00	-85,100.00	-298,484.54	-156,600.00
Earnings before tax (and minority interest)	1,732,957.83	3,066,859.79	2,254,783.12	5,301,587.82
Income tax expenses	-778,868.25	-1,070,592.28	-1,168,789.51	-2,008,049.55
Extraordinary income/expenses	0.00	0.00	0.00	0.00
Earnings before minority interest	954,089.58	1,996,267.51	1,085,993.61	3,293,538.27
Minority interest	0.00	0.00	0.00	0.00
Net income	954,089.58	1,996,267.51	1,085,993.61	3,293,538.27
Net earnings per share (basic)	0.04	0.08	0.04	0.13
Net earnings per share (diluted)	0.04	0.08	0.04	0.13
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

for the period from 1 January to 30 June 2008 GFT Technologies Aktiengesellschaft, St. Georgen

		Reporting Period
	01/01-30/06/ 2008 €	01/01-30/06/ 2007 €
Cash flows from operating activites
Net income	1,085,993.61	3,293,538.27
Adjustments for
Minority interest	0.00	0.00
Depreciation	805,484.05	630,649.57
Increase/decrease of provisions and value adjustments	2,132,623.69	5,377,090.31
Losses/gains from the disposal of assets	59,802.86	-2,480.04
Foreign currency gains/losses	-46,783.68	-12,213.85
Others	327,310.57	94,800.00
Changes in working capital	-14,265,575.42	-12,479,471.08
Cash flows from operating activities	-9,901,144.32	-3,098,086.82
Cash flows from investing activities
Acquisition of consolidated companies, net of purchased cash	0.00	0.00
Income of sales of consolidated companies, net of purchased cash	-174,067.05	0.00
Acquisition of fixed assets	-715,996.83	-665,408.50
Income of sales of fixed assets	4,096.64	3,898.58
Others	0.00	3,245.26
Cash flows used in investing activities	-885,967.24	-658,264.66
Cash flows from financing activities
Cash receipts from equity contribution	0.00	0.00
Cash receipts from issuing short- or long-term loans	387,941.02	1,545,980.71
Cash payments for repayments of loans	0.00	0.00
Cash payments for lease obligations	0.00	0.00
Others	28,472.24	42,442.59
Cash flows used in financing activities	416,413.26	1,588,423.30
Foreign exchange difference	0.00	0.00
Decrease of liquid funds	-10,370,698.30	-2,167,928.18
Liquid funds at the beginning of the period	25,699,209.08	20,244,411.54
Liquid funds at the end of the period	15,328,510.78	18,076,483.36

Consolidated Statement of Changes in Equity (IFRS)

as at 30 June 2008

GFT Technologies Aktiengesellschaft, St. Georgen

				Retained Earnings
	Subscribed Capital €	Capital reserve €	Legal reserve €	Other revenue reserves €
As at 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 01/01-30/06/2007
– Transferred to Income Statement 01/01-30/06/2007
Exchange differences on translating foreign operations 01/01-30/06/2007
Deferred taxes taken directly to or transferred from equity 01/01-30/06/2007
Income and expense recognised directly in equity 01/01-30/06/2007
Net income 01/01-30/06/2007
Total recognised income and expense 01/01-30/06/2007
As at 30/06/2007	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 01/01-31/12/2007
– Transferred to Income Statement 01/01-31/12/2007
Exchange differences on translating foreign operations 01/01-31/12/2007
Deferred taxes taken directly to or transferred from equity 01/01-31/12/2007
Income and expense recognised directly in equity 01/01-31/12/2007
Annual net income 01/01-31/12/2007
Total recognised income and expense for the financial year 2007
Allocated from capital reserve		-25,198,781.84
Allocated from retained earnings
– thereof from the statutory reserve			-1,387.65
As at 31/12/2007	26,325,946.00	42,147,782.15	0.00	2,343,349.97
Financial assets available for sale (securities):
– Change of fair value recognised in equity 01/01-30/06/2008
– Transferred to Income Statement 01/01-30/06/2008
Exchange differences on translating foreign operations 01/01-30/06/2008
Deferred taxes taken directly to or transferred from equity 01/01-30/06/2008
Income and expense recognised directly in equity 01/01-30/06/2008
Net income 01/01-30/06/2008
Total recognised income and expense 01/01-30/06/2008
As at 30/06/2008	26,325,946.00	42,147,782.15	0.00	2,343,349.97

		Equity			not affecting results
Total share capital €	Minority interests €	attributed to equity holders of the parent €	Consolidated balance sheet loss €	Market assessment for securities €	Foreign currency translations €
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		-33,750.00
0.00		0.00		0.00
29,786.34		29,786.34			29,786.34
12,656.25		12,656.25		12,656.25
8,692.59	0.00	8,692.59	0.00	-21,093.75	29,786.34
3,293,538.27	0.00	3,293,538.27	3,293,538.27
3,302,230.86	0.00	3,302,230.86	3,293,538.27	-21,093.75	29,786.34
52,665,396.19	0.00	52,665,396.19	-43,426,157.62	2,343.75	71,962.45
-233,800.00		-233,800.00		-233,800.00
0.00		0.00		0.00
-7,844.15		-7,844.15			-7,844.15
14,062.50		14,062.50		14,062.50
-227,581.65	0.00	-227,581.65	0.00	-219,737.50	-7,844.15
8,594,391.80	0.00	8,594,391.80	8,594,391.80
8,366,810.15	0.00	8,366,810.15	8,594,391.80	-219,737.50	-7,844.15
0.00	0.00	0.00	25,198,781.84
0.00	0.00	0.00	1,387.65
57,729,975.48	0.00	57,729,975.48	-12,925,134.60	-196,300.00	34,331.96
-169,300.00		-169,300.00		-169,300.00
0.00		0.00		0.00
28,472.24		28,472.24			28,472.24
0.00		0.00		0.00
-140,827.76	0.00	-140,827.76	0.00	-169,300.00	28,472.24
1,085,993.61	0.00	1,085,993.61	1,085,993.61
945,165.85	0.00	945,165.85	1,085,993.61	-169,300.00	28,472.24
58,675,141.33	0.00	58,675,141.33	-11,839,140.99	-365,600.00	62,804.20

Notes to the Interim Financial Statements

as at 30 June 2008 GFT Technologies Aktiengesellschaft, St. Georgen

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

The 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 2007). 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 Interim Financial Statements have been prepared according to the International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB), which are to be applied within the EU. The same accounting and valuation methods were used in these Interim Financial Statements as in the previous Group Financial Statements as at 31 December 2007.

The Interim Consolidated Financial Statements and the Interim Management Report as at 30 June 2008 have neither been audited according to section 317 HGB, nor been reviewed.

2. Changes to the consolidated group and its associated companies

The following changes to the scope of consolidation have occurred since the Consolidated Financial Statements were closed on 31 December 2007.

With effect on 1 January 2008, GFT AG sold its holdings in the emagine gmbh, Eschborn to GFT Resource Management GmbH, Eschborn, and contributed its operative share in emagine to GFT Resource Management GmbH by means of singular succession. These intergroup transactions had no effect on the group's assets, financial and earnings position.

Since 1 February 2008, the subsidiary GFT Solutions GmbH has been trading under the name GFT inboxx GmbH, Hamburg.

On 29 February 2008, GFT AG sold 70% of its shares in the subsidiary GFT Technologies (India) Private Limited, Trichy, India. GFT Technologies (India) Private Limited left the consolidated group on 29 February 2008; since then, this company has been an associate, whose shares are shown in the balance sheet using the equity method. In the first quarter of 2008, and in the financial year 2007, GFT Technologies (India) Private Limited accounted for a share in revenues amounting to in each case 0.0%; as at 31 December 2007 and on the date of divestment, its share in the financial assets of the group amounted to 0.3%. The hiving off of GFT Technologies (India) Private Limited did not have any material effect on the assets, financial and earnings position of the Group; the costs of the sale amounted to €(k) -193.

On 11 June 2008 GFT USA INC., located in New York, USA, was founded as a 100%-subsidiary of GFT Iberia Solutions, S.A., Sant Cugat del Vallés, Spain. GFT USA INC. hasn't performed any operational activity in the first half of 2008.

3. Changes in equity

For the changes in equity capital between 1 January 2008 and 30 June 2008 we refer to the consolidated statement of changes in equity which is separately represented.

As at 30 June 2008 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 2007). These shares are bearer shares and all grant equal rights. On 30 June 2008 the consolidated balance sheet loss included a carry forward from the previous year amounting to €(k) -12,925 (previous year: €(k) -46,720).

No changes resulted to the company's authorised and conditional capital between 1 January and 30 June 2008 relative to 31 December 2007. Dividends have not been proposed or paid out during the 2008 financial year.

4. Segmental reporting

Segmental reporting (table on pages 18 and 19) for the first six months of the 2008 financial year was undertaken for the same business segments as in the Consolidated Financial Statement as at 31 December 2007.

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).

in €(k)	Revenue from sales to external clients*			Carrying amount of Investments in equipment segment assets and intangible assets
	01/01-30/06/ 2008	01/01-30/06/ 2007	30/06/2008	30/06/2007	01/01-30/06/ 2008	01/01-30/06/ 2007
Germany	78,032	75,587	75,612	74,984	555	323
UK	12,652	11,269	8,476	7,648	0	17
Spain	8,474	8,138	11,602	14,422	127	129
France	6,779	6,425	6,593	7,811	5	47
Switzerland	2,912	2,049	1,768	1,184	22	17
Brazil	2,026	6,479	560	293	7	112
Other foreign countries	5,027	3,155	94	447	0	20
Total	115,902	113,102	104,705	106,789	716	665

* Determined by client location

5. Changes to contingent liabilities

As at 30 June 2008, the Group had not undergone any significant changes to its contingencies and other financial commitments since its Consolidated Financial Statements of 31 December 2007.

6. Investments

During the period between 1 January and 30 June 2008, the GFT Group invested €(k) 197 in intangible fixed assets (1 January to 30 June 2007: €(k) 161) and €(k) 519 in tangible assets (1 January to 30 June 2007: €(k) 504).

7. Related party disclosures

Relative to the notes to the Consolidated Financial Statements as at 31 December 2007 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 at 30 June 2008 GFT AG does not hold any own shares; nor were any own shares acquired or sold in the period from 1 January to 30 June 2008 (section 160 (1) No. 2 AktG – German Company Law).

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) No. 3 of the German Stock Corporation Act which may be used have existed since 1 July 2005.

Segment reporting (IFRS)

as at 30 June 2008

GFT Technologies Aktiengesellschaft, St. Georgen

	Services		Software
	30/06/2008	30/06/2007	30/06/2008	30/06/2007
	€(k)	€(k)	€(k)	€(k)
Revenue
External sales	44,170	49,003	2,833	2,586
Inter-segment sales	127	69	671	–
Total revenue	44,297	49,072	3,504	2,586
Result
Segment result	2,563	4,121	-1,533	-576
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	56,053	48,351	1,682	2,080
Investments in associates accounted for under the equity method
Unallocated corporate associates
Consolidated total assets
Segment liabilities	17,754	24,185	2,554	2,101
Unallocated corporate liabilities
Consolidated total liabilities
Capital expenditure	526	437	50	134
Depreciations	598	503	133	54
Non-cash expenditure other than depreciation	193	–	–	–

	Eliminations		Total		Resourcing
30/06/2007	30/06/2008 €(k)	30/06/2007 €(k)	30/06/2008 €(k)	30/06/2007 €(k)	30/06/2008 €(k)
		113,102	115,902	61,513	68,899
	-2,521	1,959	2,521	1,890	1,723
	-2,521	115,061	118,423	63,403	70,622
	-117	5,136	2,736	1,591	1,706
		95,674	94,225	45,243	36,490
	10,426
		51,905	43,871	25,619	23,563
	2,159
	27	644	689	73	113
	30	611	775	54	44
	134	–	193	–	–

Responsibility Statement

To the best of our knowledge, and in accordance with the applicable reporting principles for interim financial reporting, the reduced 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, 1 August 2008

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

21 Further information

Our Divisions/Imprint

GFT
Services IT Services: reliable international direct	Resourcing Supplying IT personnel: flexible punctual suitable	Software E-mail archiving: automated pragmatic structured
In the Services business division we conceive and develop innovative and individual IT applications. After implement ing these solutions, we also take on their operation and maintenance. Our well-founded project and technological experience, as well as compre hensive industry competence in the financial and logistics services sectors, make GFT a preferred IT partner for repu table companies domestically and abroad.	The Resourcing business divi sion 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 Manage ment in Germany. It offers its clients the customised manage ment of their IT suppliers, which enables them to reduce costs, increase process quality and improve legal security.	In the Software business division we develop and implement customised, integral IT solutions for the optimisation of docu ment and process based work routines. With inboxx we offer a user friendly software solution for e-mail archiving. It is based on the mature technology of our archiving platform hyparchiv.

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, Berlin, www.nehmzow.de

© Copyright 2008: GFT Technologies AG, St. Georgen

The Interim Financial Report for the third quarter will be published on 6 November 2008.

Further Information

For further information, please contact our IR team who will be happy to answer any queries. Call us or visit our website at www.gft.com/ir. There you can find further information on our company and the GFT share.

GFT Technologies AG

GFT Technologies AG Investor Relations Andrea Wlcek Filderhauptstr. 142 70599 Stuttgart GERMANY

T +49 711 62042-440 F +49 711 62042-301 ir@gft.com

The Interim Financial Report 2008 is also available in German. The online versions of the Interim Financial Report in German and English are available on www.gft.com/ir. Please note that only the German version is legally binding.