GFT Technologies SE — Interim / Quarterly Report 2010

Nov 10, 2010

interim financial report as of 30 September 2010

Key figures according to IFRS

		Nine-months
Continued operations		01.01.– 30.09.2010	01.01.– 30.09.2009	Change
Income Statement
Revenue	€m	178.74	158.90	12.5%
Earnings before interest, taxes, depreciation and amortisation (EBITDA)	€m	9.12	6.19	47.3%
Earnings before interest and taxes (EBIT)	€m	8.26	5.30	55.8%
Earnings before taxes (EBT)	€m	8.76	5.65	55.0%
Net income as at 30 September	€m	6.70	4.44	50.9%
Balance Sheet 1
Non-current assets	€m	29.84	30.68	-2.7%
Cash, cash equivalents and securities	€m	32.68	27.33	19.6%
Other current assets	€m	60.59	51.39	17.9%
ASSETS	€m	123.11	109.40	12.5%
Non-current liabilities	€m	2.31	2.78	-16.9%
Current liabilities	€m	51.04	42.45	20.2%
Shareholders´ equity	€m	69.76	64.17	8.7%
SHAREHOLDERS' EQUITY AND LIABILITIES	€m	123.11	109.40	12.5%
Equity ratio	%	57	59	-3.3%
Cash flow 2
Cash flow from operating activities	€m	-1.85	-5.54	-66.6%
Cash flow from investing activities	€m	-13.99	-0.37	3.681.1%
Cash flow from financing activities	€m	-2.29	-2.54	-9.8%
Employees
Number of permanent employees (as at 30 September)	no.	1,268	1,011	25.4%
Share
IAS earnings per share from continued operations	€	0.25	0.17	50.9%

1 In accordance with IFRS 5 regulations, the balance sheet figures for Q3/2009 include the discontinued operation »Software«.

2 According to IFRS 5 the discontinued operations (segment »Software«) are included in all cash flow figures (Q3/2009 and Q3/2010).

(Rounding differences in the Management Report due to presentation in € thousand)

The GFT Group continued to grow and closed the third quarter with a significant increase in revenue and earnings. In view of this development, we have raised our forecast for total revenue to €245 million and for earnings before taxes to between €11 million and €12 million.

Contents

Consolidated Interim Management Report … 2 | Consolidated Interim Financial Statements … 14 | Notes to the Interim Financial Statements … 21

Consolidated Interim Management Report

of GFT Technologies AG as of 30 September 2010

Business environment

Economic environment

Macroeconomic development

The global economy recovered faster than expected during the year and made further strong progress in the third quarter. As a result, the International Monetary Fund (IMF) raised its global growth forecast for 2010 as a whole from 4.6% in mid 2010 to 4.8% in its autumn report. According to the IMF, global growth is being driven above all by the emerging economies, such as China, India and Brazil.

The IMF believes that the Euro zone economies have begun to benefit from a weaker euro over the past few months. Above all, this has given a boost to Europe's exporting nations. The Fund has raised its forecast for economic growth in the Euro zone to 1.7% in 2010. In summer, the IMF's experts were still forecasting growth of 1.0%. However, growth is expected to vary strongly among the 16 nations of the monetary union. The IMF continues to see risks for a sustainable recovery. In late 2010 and early 2011 the pace of economic growth may begin to slow. This is due to the end of stimulus packages in many nations and the introduction of budget cuts. The IMF's economists expect a further decline in output especially in those nations hit hardest by the debt crisis – such as Greece. These developments may also lead to further uncertainties on the financial markets.

The IMF described Germany as the engine for the entire Euro zone. In its current forecast, the experts forecast growth of 3.3% in Germany this year. This represents a considerable improvement on their forecast in July, when they predicted growth of 1.4% for 2010. Germany's economy is thus growing considerably faster than the European average and most other industrialised nations. With its traditional focus on exported capital goods, Germany is benefitting above all from strong investment

in machinery in the emerging nations. Research institutes, however, also stressed the global economic risks for the German economy, which are expected to lead to slower growth in early 2011.

Sector development

The positive development of the Information and Communication Technology (ICT) sector continued in the third quarter of 2010. According to the latest survey of the German Federal Association for Information Technology, Telecommunications and New Media (BITKOM) in September 2010, 78% of companies expected increased revenues. Software houses and IT service companies in particular reported a strong increase in demand.

In October 2010, BITKOM raised its forecast for the German IT market: total IT sales are now expected to grow by 2.7% to €65.4 billion in 2010, compared to growth of 1.4% forecast in spring. For the IT services segment, BITKOM forecasts sales growth of 1.4% to €32.1 billion in 2010, compared to 2.2% which the association forecast in spring.

Course of business in the first nine months of 2010

The GFT Group succeeded in maintaining its positive development of the first six months in the second half of the year and closed the third quarter with a strong increase in revenue and earnings. At €8.76 million, earnings before taxes (EBT) performed particularly well with year-on-year growth of 55% (€5.65 million). There was also dynamic growth in revenue. In the months January to September, total revenue reached €178.74 million and was thus 13% higher than in the same period last year (prev. year: €158.90 million).

In the third quarter alone, the GFT Group posted pre-tax earnings of €4.12 million (prev. year: €2.88 million) – the best quarterly result in the company's history. A quarterly comparison of revenue also underlines its high and stable level at present. In the third quarter of 2010, the Group generated revenue of €64.06 million (prev. year: €53.84 million), compared to €60.25 million in the second quarter and €54.43 million in the first quarter.

As in the previous year, the Services division accounted for the lion's share of total earnings in the first nine months of 2010 with a segment result of €7.71 million (prev. year: €4.60 million). The division thus succeeded in maintaining the high order level of previous months and was able to capitalise on the positive development of the financial sector. Segment earnings in the Resourcing division amounted to €1.53 million, compared to €1.74 million in the same period last year. The ongoing recovery of the economy as a whole – and thus the growing demand for freelance IT specialists – failed to have a significant impact on segment earnings. This is expected, however, in the fourth quarter as revenues begin to pick up again. Pre-tax earnings also include non-allocated, scheduled expenditure of the Group's headquarters amounting to €0.40 million.

The ongoing macroeconomic recovery, especially in manufacturing and the financial sector – of particular importance to GFT – has had a positive impact on revenue. The financial sector had already loosened its cautious approach to capital spending in the first few months of the year and has begun investing heavily in IT again. Demand was particularly strong for outsourcing in Spain and IT solutions for corporate and investment banking in the core US and UK markets. This high level of demand remained stable in the third quarter. The Services division succeeded in raising segment revenue by 30% to €86.14 million, compared to prior-year revenue of €66.02 million. Revenue in the Resourcing segment – the division with the strongest contribution to Group revenue and a large proportion of customers outside the financial sector – remained largely unchanged from the previous year at €92.57 million (€92.88 million). In the third quarter, there were signs of a gradual increase in demand for freelance IT specialists in the industrial sector.

In accordance with IFRS regulations, the Software segment sold in the second quarter has been carried in the balance sheet as a discontinued operation since the Annual Financial Statements 2009. The key figures of this interim financial report as of 30 September refer to continued operations. Consolidation effects for revenue of €0.03 million and for pre-tax earnings of €0.08 million must be taken into account.

In view of this dynamic business development in the first nine months of the current year, the GFT Group expects to end 2010 at the same high level. An attractive portfolio of services and increasing demand for IT solutions and IT specialists in all sectors are likely to boost both revenue and earnings in the fourth quarter. We expect demand in the financial sector to remain at the high level of the first three quarters. Moreover, we also expect renewed growth in our Resourcing division during the fourth quarter – the first signs of growing demand in the manufacturing sector are already visible. Against this backdrop, the Executive Board has raised its revenue and earnings forecasts for 2010 as a whole. It now expects earnings before taxes to lie between €11 and €12 million and believes that total revenue will reach €245 million.

GFT share

Following a slow start to the year and a subsequent brief recovery, the international stock markets remained volatile in the first half-year as a whole. This trend continued in the third quarter, albeit with an overall positive tendency. Encouraging corporate earnings in the second quarter, many well above analysts' expectations, meant that share prices were generally buoyant at the beginning of the third quarter with year-highs for many companies. In the course of the third quarter, however, weaker economic data, growing uncertainty about the US economic recovery and fears that growth in China may be slowing led to further strong price falls.

Whereas the bluechip DAX index had outperformed the MDAX (mid-cap) and TecDAX (tech stocks) indices in the first six months, it came under pressure in the third quarter. In August, the DAX fell below its 200-day line. However, there was an encouraging return to strength in September, bringing the DAX comfortably above the line by the end of the month. On 30 September, the DAX closed at 6,229 points – corresponding to growth of around 5% since the beginning of the year. Following sub-par performance in the first half of the year, the TecDAX displayed growth of 6% in the third quarter to close at 781 points – still below its year-opening level. The index has thus fallen 4% since the beginning of the year.

Similar to other technology stocks, the GFT share was unable to escape the strong capital market fluctuations of the months January to September. Following a bright start to 2010 and an extremely volatile second quarter, the share

got off to a cautious start to the third quarter in July. The publication of figures for the second quarter on 9 August helped bolster the share's price towards the middle of the quarter – within just a few minutes, it had risen almost 10% to a month-high of €3.58. This positive trend could not be maintained in September, though. In line with price falls suffered on all international stock markets, the GFT share recorded a month-low of €3.10 on 23 September.

Following the publication of the interim financial report as of 30 June 2010, the analysts of equinet and SES Research raised their upside targets of €4.20 and €4.50 to €4.70 in August and upheld their »buy« recommendation. In September, the analysts at LBBW raised their upside target from €4.30 to €4.70 and also upheld their »buy« recommendation.

Information on the GFT share

	Q1–3 2010	Q1–3 2009
Opening price as of 4 January (XETRA)	€2.45	€1.31
Closing price as of 30 September (XETRA)	€3.15	€2.70
Change in value	+29%	+106%
High	€3.74 (15.03.2010)	€2.73 (30.09.2009)
Low	€2.33 (04.01.2010)	€1.13 (23.01.2009)
Market capitalisation as of 30 September	€82.93 million	€72.40 million
Earnings per share	€0.25	€0.17
Average daily trading volume (shares)	43,696	20,164

ISIN	DE0005800601
Market segment	Prime Standard
Designated sponsors	Landesbank Baden-Württemberg (LBBW) equinet AG
Number of bearer shares without par value	26,325,946

Shareholder structure

The following change in the shareholder structure of GFT Technologies AG occurred in March: on 25 February 2010, the share of voting rights held by AvW Invest AG fell below the threshold of 5% and has since amounted to 4.74%. As a consequence, its shareholding is now included in the free float portion. Company founder Ulrich Dietz continues to hold 28.46%, while Maria Dietz owns 9.68% of shares. Dr. Markus Kerber, a former member of GFT's Supervisory Board, holds 5% of voting rights; the free float amounts to 56.86%.

GFT shares held by the insolvent AvW Gruppe AG are to be auctioned by the appointed administrator. The bidding process will be held independently of the stock exchange. The administrator is free to set the terms of sale. GFT's Executive Board is in close contact with the administrator, providing its best-possible support.

Shareholder structure (%)

Development of revenue

In the first nine months of 2010, the GFT Group generated revenue of €178.74 million – representing year-on-year growth of 13% (prev. year: €158.90 million). Compared to the two preceding quarters (Q1: €54.43 million and Q2: €60.25 million), revenue in the third quarter of 2010 increased once again to €64.06 million. This positive trend is due mainly to the success of the Services division. Segment sales amounted to €86.14 million and were thus 30% above the prior-year figure of €66.02 million. Revenue in the Resourcing division remained stable at €92.57 million (€92.88 million).

Revenue by segment

The positive sales development of the Services division is also reflected in the distribution of revenue by segment: the Services segment now accounts for 48% of total revenue volume (prev. year: 42%); the Resourcing segment accounts for the remaining 52%. In turn, this share is divided almost equally between Third Party Management (27%, prev. year: 30%) and Resource Management (25%, prev. year: 28%).

The Resourcing division remained the largest segment by revenue. The general economic upswing, however, was only noticeable in this division towards the end of the third quarter. It is likely that the growing demand for freelance IT specialists will not be fully reflected in revenue until the fourth quarter. In the first nine months of 2010, segment revenue remained steady at €92.57 million (prev. year: €92.88 million). The division's Third Party Management business generated revenue of €47.50 million (prev. year: €47.43 million). The Resource Management business was also stable at €45.07 million (prev. year: €45.45 million).

Revenue by country

%	Q1–3 2010
Germany	56%
UK	16%
Spain	10%
France	8%
USA	3%
Switzerland	3%
Other countries	4%

With year-on-year revenue growth of 30% to €86.14 million in the first nine months of 2010 (prev. year: €66.02 million), the Services division succeeded in building on the high level of the first two quarters. The strong recovery of the financial sector had a positive impact on revenue. IT investments which were postponed during the crisis – especially in investment and corporate banking – are now being implemented.

Revenue by country

Germany remained the GFT Group's largest sales market. With revenue of €99.33 million, the prior-year figure of €102.17 million was almost reached again in the first nine months of 2010. Market recovery, especially in the industrial sector, has not yet been fully translated into an increased demand for IT freelancers. Comparatively strong revenue growth abroad was the reason for Germany's share of total revenue slipping from 64% last year to 56% in the first nine months of 2010.

The UK played a key role in boosting the GFT Group's revenue. In the Services segment, the Group's second largest sales market continued to benefit from growing demand for IT solutions for investment and corporate banking. Compared to the first nine months of 2009, revenue grew by 75% in the period under review to €27.83 million (prev. year: €15.91 million). As a result, the UK's share of total revenue grew from 10% in 2009 to 16% so far this year.

There was also a strong increase in revenue generated by customers in Spain. In the first nine months of 2010, revenue amounted to €17.32 million. This corresponds to year-on-year growth of 51% (prev. year: €11.47 million). The country's share of total revenue grew accordingly from 7% to 10%. The successful implementation of outsourcing projects for German and British financial institutes was continued once again.

As in the previous year, projects with customers from France accounted for 8% of the GFT Group's total revenue in the first nine months of the current year. Revenue of €14.89 million was generated – up 18% on the previous year (€12.66 million). This success was due to increased activities in the field of Third Party Management for the French financial sector.

Similar to the UK, the GFT Group also benefited in the USA from the current strong demand for IT solutions in corporate and investment banking. There was also strong growth in revenue of 59% to €4.94 million (prev. year: €3.10 million). As a result, the US share of total revenue grew by one percentage point to 3%.

In Switzerland, the GFT Group raised revenue slightly by 5% to €4.77 million (prev. year: €4.53 million). The country continued to account for 3% of total revenue.

The proportion of total revenue generated by clients in »Other countries«, including the Benelux states, Italy and Brazil, fell slightly from 6% last year to 4%. Projects with clients in these countries generated €9.66 million (prev. year: €9.06 million).

Revenue by industry

With a 69% share of total revenue (prev. year: 64%), the financial services industry continued to grow in importance for the GFT Group. The recovery which started in the preceding quarters continued to gather pace and led to year-on-year revenue growth of 21% in the period under review to €124.08 million (prev. year: €102.42 million).

Revenue from clients in the postal and logistics industry was virtually unchanged at €12.75 million (prev. year: €12.60 million), accounting for 7% of total revenue.

Since the beginning of 2010, the »Others« category has also included clients in the industrial sector. Clients in these sectors accounted for 24% of the GFT Group's total revenue, 4 %-points less than in the same period last year. Revenue fell by 4% to €41.91 million (prev. year: €43.88 million). By the end of the year, increased demand for freelance IT experts in industry is expected to have a positive impact on revenue in this sector.

Revenue by industry

%	Q1–3 2010
Financial services providers	69%
Postal/Logistics	7%
Others	24%

Earnings position

Following the encouraging result for the first half of 2010, the GFT Group also posted strong year-on-year growth in earnings before taxes (EBT) in the first nine months of 2010. At €8.76 million, earnings were up 55% on the previous year (€5.65 million). The improvement in earnings was largely a result of increased demand and very high utilisation of staff, especially in the Services segment.

As of 30 September 2010, earnings before interest and taxes (EBIT) amounted to €8.26 million (prev. year: €5.30 million). There was a corresponding increase in earnings before interest, tax, depreciation and amortisation (EBITDA) of 47% to €9.12 million as of the end of the third quarter (prev. year: €6.19 million).

After deducting all expenses, the GFT Group thus generated net income of €6.70 million for the period ending 30 September 2010. This corresponds to growth of €2.26 million or 51% compared to the same period last year (€4.44 million).

As of 30 September 2010, the tax ratio amounted to 24% and thus remained virtually unchanged from the first half-year 2010 (prev. year: 21%).

At the end of the third quarter 2010, earnings per share were €0.08 up on the previous year and amounted to €0.25 (prev. year: €0.17). These figures are based on an average of 26,325,946 outstanding shares. No interim dividend is to be paid.

Group earnings position by segment

At €7.71 million, the Services segment made the largest contribution to nine-monthly earnings. The encouraging development which had already led to strong profits in the preceding quarters continued unabated. The reason was improved utilisation of capacity in connection with increased project volume with existing clients at almost all national Services units. EBT in the previous year amounted to €4.60 million.

Third-quarter earnings in the Resourcing segment were up on the preceding quarters, amounting to €1.53 million as of 30 September 2010. However, this result was still below the prior-year figure of €1.74 million. With a contribution to earnings of €1.34 million (prev. year: €1.58 million), the Resource Management business generated the major share of earnings. Third Party Management accounted for €0.19 million of earnings (prev. year: €0.16 million).

Group earnings position by income and expense items

As of 30 September 2010, other operating income amounted to €2.72 million and resulted mainly from the liquidation of provisions and income from currency fluctuations.

The cost of materials once again accounted for the largest share of operating expenses, amounting to €100.49 million. It was thus around 5% above the prior-year figure of €95.59 million. The increase resulted mainly from the addition of a business unit.

At €56.63 million, personnel expenses in the first nine months were well above the prior-year figure of €46.39 million. This was due to the takeover of employees in Spain following a business transfer at the end of 2009 and a strong increase in headcount during 2010.

At the end of the third quarter 2010, depreciation of intangible and tangible assets amounted to €0.87 million and were thus slightly up on the previous year (€0.89 million).

At €15.12 million, other operating expenses in the first nine months of 2010 were 25% higher than in the previous year (€12.08 million). The rise was mostly due to increased sales and administration expenses, as well as losses from currency fluctuations.

Financial position

As a result of the Group's encouraging profit situation, cash, cash equivalents and securities continued to grow. An improvement of €6.24 million over the half-year figure resulted in a volume of €32.68 million, up €5.35 million on the previous year (€27.33 million).

Increased revenue resulted in a rise in trade receivables to €57.49 million (prev. year: €48.58 million). Trade payables, however, amounted to €20.39 million (prev. year: €15.89 million), due to the increased use of external staff in addition to the Group's own staff in the Services segment.

The positive development also had an impact on cash flows from operating activities, which improved from €-8.59 million as of 30 June to €-1.85 million as of 30 September 2010. In the previous year, this figure amounted to €-5.54 million. The improvement resulted from a small change in working capital of around €1 million as well as changes in provisions.

At the end of the third quarter, cash flows from investing activities amounted to €-13.99 million (prev. year: €-0.37 million). The change resulted mainly from an investment in securities during the second quarter of 2010.

Compared to 30 June, there was only a slight change in cash flows from financing activities to €-2.29 million (prev. year: €-2.54 million). The main component of cash flows from financing activities is the payment of dividends in the second quarter of 2010.

Asset position

The Group's strong business development was also reflected in its balance sheet. At €123.11 million, total assets were €9.73 million higher than at year-end 2009.

The growth in assets resulted from an increase in cash and cash equivalents as well as a rise in trade receivables. Apart from the purchase of securities in the second quarter, however, there was little change in non-current assets compared to year-end 2009.

On the liabilities side, increased business volume in the third quarter mainly affected equity and trade payables. Equity capital grew from €65.75 million at year-end 2009 to €69.76 million as of the third quarter and thus improved by 6%. As a result, the equity ratio amounted to 57% (prev. year: 59%).

ASSETS € million	30.09. 2009	30.09. 2010	30.09. 2010	30.09. 2009	EQUITY & LIABILITIES € million
Cash, cash equivalents and securities	27.33	32.68	51.04	42.45	Current liabilities
Other current assets	51.39	60.59	2.31	2.78	Non-current liabilities
Other non-current assets	30.68	29.84	69.76	64.17	Equity capital
	109.40	123.11	123.11	109.40

Group balance sheet structure

Employees

In accordance with IFRS 5, figures for the Software segment are stated separately. The employees of this segment are therefore not included in the total figures. In order to aid comparison, the figures of the previous year have been adjusted accordingly. The number of employees is calculated on the basis of full-time staff. Part-time staff are included on a pro rata basis.

Compared to the same date last year, the GFT Group increased headcount by 25% to 1,268. As of 30 June, the Group had already achieved its aim of raising headcount to 1,200 by year-end.

As in the previous periods, the Services division registered the strongest growth in headcount with 1,132 employees as of 30 September – an increase of 27% on the same date last year. This was due in part to the high utilisation of development capacity as well as revenue growth. Staff were also taken over as part of an outsourcing project started in late 2009.

Headcount in the Resourcing division increased from 86 last year to 97 as of 30 September 2010.

As of the balance sheet date, no employees were still attributable to the Software segment, which is classified as a discontinued operation pursuant to IFRS 5. The »Others« category comprises 39 persons belonging to the holding company – four more than at this time last year.

Employees by segment as of 30 September

	2010	2009
Services	1,132	890
Resourcing	97	86
Others	39	35
	1,268	1,011
Software	0	50
	1,268	1,061

Employees as of 30 September

(without Software segment)

	2010	2009
Germany	264	251
Abroad	1,004	760
	1,268	1,011
Foreign share in %	79%	75%

The proportion of staff employed outside Germany increased from 75% last year to 79% as of 30 September 2010.

The average number of freelancers employed rose from 1,113 last year to 1,370 personas as of 30 September 2010.

Research and development

R&D expenses in the first three quarters of 2010 were up on the previous year at €0.93 million (prev. year: €0.44 million). As this item continues to comprise mainly personnel expenses, the rise is mainly due to the increase in headcount.

As in the previous quarters, the GFT Group's R&D activities focused on optimising software development processes. In the Services segment, the company has been working since 2005 on further developing its project management for software and system development according to the internationally recognised CMMI® (Capability Maturity Model Integration) standard. Activities at present are focused on maintaining the status already achieved.

A further main area of focus since the beginning of 2010 has been the implementation of innovation projects in the field of Mobile Banking and investment consulting.

Subsequent events

No events occurred after the balance sheet date as of 30 September 2010 that are of major significance to GFT.

Opportunity and risk report

In the first nine months of 2010, there were no material changes with regard to the comprehensive discussion of opportunities and risks provided in the Management Report accompanying the 2009 Consolidated Financial Statements. The risk position of the GFT Group is thus unchanged.

Forecast report

The economic upturn is expected to slow considerably in the fourth quarter and in 2011. Although the IMF upgraded its forecast of 30 June for the current year by 0.2 %-points to 4.8%, due to the positive development of the global economy, it now expects growth of 4.2% in 2011. This is 0.1 %-points less than it forecast in June.

Economic growth in the Euro zone will also slow in 2011, reaching just 1.5% compared to 1.7% in 2010.

The IMF also forecasts slower growth for Germany in 2011 than in the current year. Despite raising its forecast for 2011 to 2.0% – compared to 1.6% forecast in summer – this figure is well below the expected growth of 3.3% for 2010.

The IMF's economists state several reasons for this slowdown in economic growth, including the end of stimulus packages, high deficits, budget cuts and falling output.

According to the industry association BITKOM, the mood on the German ICT market will remain positive in 2011. Its business mood index climbed to a 10-year-high in the third quarter of 2010, as demand in all market segments grew strongly. For 2011, BITKOM already forecast accelerated growth in summer 2010. It expects the IT market to grow by 4.3% to €68.2 billion in 2011. In spring, the association had forecast growth of 3.8%. Even stronger growth is forecast for the IT services segment: revenue is expected to grow by 4.2% to €33.5 billion in 2011.

The GFT Group expects the positive development of the first nine months to continue in the fourth quarter. Our clients' markets recovered at varying speeds during the year, as reflected in the development of our two segments, Services and Resourcing, in the first three quarters. The initial disparity in growth will diminish in the fourth quarter as both divisions benefit strongly from the ongoing economic recovery. Thanks to strong demand in the financial sector, business in the Services division will remain steady at the current high level. At the same time, we see increasing demand in the industrial sector. Towards the end of the year, this will have a marked impact on the placement of freelance IT specialists and generate significant growth for this division in all sectors.

The increasing stability of the financial sector and the resulting strong demand will continue to positively impact business in the Services segment. Financial institutes will continue to demand outsourcing services and IT solutions to meet regulatory compliance – especially with regard to Basel III regulations – while the need for IT solutions in corporate and investment banking will remain stable. In the current year and 2011, banks will also be investing more heavily in customer management and core banking systems, as well as in new topics such as Mobile Finance. This propensity to invest makes us optimistic that we can maintain the current high level of business activity. At the same time, we are fully aware of the risks from a possible return to financial market uncertainty – especially with regard to currency risks – and the potential impact on demand from the banking sector.

The rise in demand from the industrial sector indicates that the economic upturn has now also reached this sector of the economy. This change in market conditions will have a positive impact on revenue and earnings in the Resourcing division in the fourth quarter. The placement of freelance IT specialists is expected to grow strongly in the last three months of 2010, as well as in early 2011. We will continue to monitor closely the macroeconomic risks – which have a delayed impact due to the nature of our business model – and take countermeasures as soon as they are required.

The fourth quarter of 2010 will give us the opportunity to carry our positive business development into the new year. Thanks to our attractive portfolio of services, high level of capacity utilisation and measures taken swiftly to strengthen our competitive edge, we are confident that we can maintain the positive development of our Services division in the coming months while at the same time achieving dynamic growth in the Resourcing division. Against this backdrop, we have raised our revenue and earnings forecast for 2010 as a whole. In the current year, we now expect total revenue of €245 million and earnings before taxes of between €11 and €12 million.

Stuttgart, 9 November 2010 GFT Technologies Aktiengesellschaft The Executive Board

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

Consolidated Statement of comprehensive Income

for the period from 1 January to 30 September 2010 GFT Technologies Aktiengesellschaft, Stuttgart

Partial Statement Affecting Net Income: Consolidated Income Statement

	Nine-months		Third quarter
€	01.01.– 30.09.2010	01.01.– 30.09.2009	01.07.– 30.09.2010	01.07.– 30.09.2009
Revenue	178,735,584.08	158,896,586.28	64,056,146.45	53,829,284.36
Other operating income	2,720,178.01	1,357,239.91	641,762.35	286,083.61
Other capitalised service	0.00	0.00	0.00	0.00
	181,455,762.09	160,253,826.19	64,697,908.80	54,115,367.97
Cost of materials
a) Expenses for raw materials and supplies and for purchased goods	21,446.55	29,107.47	7,341.52	16,904.24
b) Costs of purchased services	100,467,181.31	95,560,086.16	37,174,417.16	32,548,278.40
	100,488,627.86	95,589,193.63	37,181,758.68	32,565,182.64
Personnel expenses
a) Salaries and wages	47,082,349.19	38,419,212.51	14,628,395.25	11,874,765.64
b) Social security and expenditures for retirement pensions	9,551,918.54	7,973,153.20	3,318,834.70	2,591,718.26
	56,634,267.73	46,392,365.71	17,947,229.95	14,466,483.90
Depreciation on non-current intangible assets and of tangible assets	864,947.79	894,481.57	293,739.78	285,857.55
Other operating expenses	15,118,494.94	12,076,427.93	5,295,857.29	4,014,372.31
Result from operating activities	8,349,423.77	5,301,357.35	3,979,323.10	2,783,471.57
Income from participations	0.00	0.00	0.00	0.00
Other interest and similar income	517,150.68	373,048.62	220,456.47	110,412.10
Expenses for investments in associates	11,855.87	3,414.54	-1,615.58	2,361.11
Depreciation on securities	78,980.30	0.00	78,980.30	0.00
Interest and similar expenses	11,386.54	21,229.98	3,178.59	6,825.17
Financial result	414,927.97	348,404.10	139,913.16	101,225.82
Earnings before taxes	8,764,351.74	5,649,761.45	4,119,236.26	2,884,697.39
Taxes on income and earnings	2,064,840.53	1,208,555.56	973,387.39	586,787.76
Net income from continued operations	6,699,511.21	4,441,205.89	3,145,848.87	2,297,909.63
Net loss from discontinued operations	-382,704.46	-1,402,606.70	-113,474.29	-853,086.16
Net income	6,316,806.75	3,038,599.19	3,032,374.58	1,444,823.47
– attributable to non-controlling equity holders	0.00	0.00	0.00	0.00
– attributable to equity holders of the parent (consolidated net income)	6,316,806.75	3,038,599.19	3,032,374.58	1,444,823.47
Net earnings per share – undiluted	0.24	0.12	0.12	0.05
Net earnings per share – diluted	0.24	0.12	0.12	0.05
Net earnings per share from continued operations – undiluted	0.25	0.17	0.12	0.09
Net earnings per share from discontinued operations – diluted	0.25	0.17	0.12	0.09

Partial Statement Not Affecting Net Income: Consolidated Income Statement

	Nine-months		Third quarter
€	01.01.– 30.09.2010	01.01.– 30.09.2009	01.07.– 30.09.2010	01.07.– 30.09.2009
Net income	6,316,806.75	3,038,599.19	3,032,374.58	1,444,823.47
Financial assets available for sale (securities):
Change of fair value recognised in equity during the period	374,500.00	492,615.00	136,000.00	358,915.00
Reclassification amounts to the income statement	-292,800.00	0.00	0.00	0.00
	81,700.00	492,615.00	136,000.00	358,915.00
Exchange differences on translating foreign operations:
Profits/losses during the period	214,097.65	130,739.77	-24,457.62	41,490.83
Reclassification amounts to the income statement	0.00	0.00	0.00	0.00
	214,097.65	130,739.77	-24,457.62	41,490.83
Income taxes on components of other result	24,920.00	-33,656.00	0.00	-26,376.00
Other result	320,717.65	589,698.77	111,542.38	374,029.83
Total result	6,637,524.40	3,628,297.96	3,143,916.96	1,818,853.30
– thereof attributable to non-controlling shareholders	0.00	0.00	0.00	0.00
– thereof attributable to shareholders of parent company	6,637,524.40	3,628,297.96	3,143,916.96	1,818,853.30

Consolidated Balance Sheet

as at 30 September 2010

GFT Technologies Aktiengesellschaft, Stuttgart

Assets

€	30.09.2010	31.12.2009	01.01.2009
Non-current assets
Intangible assets
Licences, industrial property rights and similar rights	315,864.64	364,535.53	476,845.48
Goodwill	20,367,310.57	20,365,010.57	20,365,010.57
	20,683,175.21	20,729,546.10	20,841,856.05
Tangible assets
Other equipment, office and factory equipment
as well as construction on foreign property	2,448,137.39	2,191,468.15	2,626,154.23
Financial assets
Securities	13,015,546.21	0.00	0.00
Financial assets, accounted for using the equity method	38,320.28	36,165.05	40,096.56
Investments	0.00	0.00	0.00
	13,053,866.49	36,165.05	40,096.56
Other assets	311,167.59	349,408.58	375,844.99
Current profits tax assets	592,119.36	655,816.14	737,781.01
Deferred tax assets	5,764,616.84	5,813,304.61	6,704,066.98
	42,853,082.88	29,775,708.63	31,325,799.82
Current assets
Inventories	0.00	0.00	6,602.50
Trade receivables	57,492,353.77	41,757,487.92	44,122,891.38
Securities	1,590,500.00	2,235,800.00	2,177,744.00
Current tax assets	430,038.29	204,920.81	1,172,024.61
Cash and cash equivalents	18,073,117.28	35,471,848.76	33,014,913.43
Other assets	2,668,341.28	1,886,174.47	1,676,181.12
	80,254,350.62	81,556,231.96	82,170,357.04
Non-current assets and disposal groups held for sale	0.00	2,049,496.73	0.00
	80,254,350.62	83,605,728.69	82,170,357.04
	123,107,433.50	113,381,437.32	113,496,156.86

Shareholders' Equity and Liabilities

€	30.09.2010	31.12.2009	01.01.2009
Shareholders´ equity
Equity attributable to equity holders of the parent
Share capital	26,325,946.00	26,325,946.00	26,325,946.00
– Conditional capital € 8,280,000.00 (previous year: € 8,280,000.00)
Capital reserve	42,147,782.15	42,147,782.15	42,147,782.15
Retained earnings
Other retained earnings	8,543,349.97	8,543,349.97	6,843,349.97
Changes in equity not affecting net income
Foreign currency translations	354,675.29	140,577.64	-32,434.45
Reserve of market assessment for securities	-303,800.00	-410,420.00	-708,080.00
Consolidated balance sheet loss	-7,311,024.08	-10,995,236.23	-11,403,899.20
	69,756,929.33	65,751,999.53	63,172,664.47
Interests of non-controlling equity holders	0.00	0.00	0.00
	69,756,929.33	65,751,999.53	63,172,664.47
Liabilities
Non-current liabilities
Provisions for pensions	960,166.44	457,472.44	963,076.09
Other provisions	994,530.05	879,895.84	969,299.00
Other liabilities	0.00	0.00	47,887.12
Deferred tax liabilities	357,734.81	601,198.65	392,204.10
	2,312,431.30	1,938,566.93	2,372,466.31
Current liabilities
Other provisions	19,945,196.37	13,568,351.01	12,293,780.88
Current income tax liabilities	2,629,136.27	1,170,106.70	1,384,108.10
Financial liabilities	100,543.11	0.00	150,000.00
Trade payables	20,387,299.39	23,277,976.61	26,100,329.27
Other liabilities	7,975,897.73	5,999,709.79	8,022,807.83
	51,038,072.87	44,016,144.11	47,951,026.08
Liabilities directly associated with non-current assets and disposal groups held for sale	0.00	1,674,726.75	0.00
	51,038,072.87	45,690,870.86	47,951,026.08
	53,350,504.17	47,629,437.79	50,323,492.39
	123,107,433.50	113,381,437.32	113,496,156.86

Consolidated Statement of Changes in Equity

as at 30 September 2010

GFT Technologies Aktiengesellschaft, Stuttgart

€	Subscribed	Capital	Retained
	capital	reserve	earnings
			Other
			retained
			earnings
As at 01.01.2009	26,325,946.00	42,147,782.15	6,843,349.97
Dividend payment June 2009
Total income and expenses for the period 01.01.–30.09.2009
As at 30.09.2009	26,325,946.00	42,147,782.15	6,843,349.97
Dividend payment June 2009
Total income and expenses for financial year 2009
Allocations to retained earnings 01.01.–31.12.2009
– to other retained earnings			1,700,000.00
As at 31.12.2009	26,325,946.00	42,147,782.15	8,543,349.97
Dividend payment May 2010
Total income and expenses for the period 01.01.–30.09.2010
As at 30.09.2010	26,325,946.00	42,147,782.15	8,543,349.97

Total	Minority	Equity	Consolidated		Changes in equity not affecting
share capital	interests	attributable to	balance sheet		results
		equity holders	loss
		of the parent		Market	Foreign
				assessment	currency
				for securities	translations
63,172,664.47	0.00	63,172,664.47	-11,403,899.20	-708,080.00	-32,434.45
-2,632,594.60	0.00	-2,632,594.60	-2,632,594.60
3,628,297.96	0.00	3,628,297.96	3,038,599.19	458,959.00	130,739.77
64,168,367.83	0.00	64,168,367.83	-10,997,894.61	-249,121.00	98,305.32
-2,632,594.60	0.00	-2,632,594.60	-2,632,594.60
5,211,929.66	0.00	5,211,929.66	4,741,257.57	297,660.00	173,012.09
0.00	0.00	0.00	-1,700,000.00
65,751,999.53	0.00	65,751,999.53	-10,995,236.23	-410,420.00	140,577.64
-2,632,594.60		-2,632,594.60	-2,632,594.60

As at 30.09.2010 26,325,946.00 42,147,782.15 8,543,349.97 354,675.29 -303,800.00 -7,311,024.08 69,756,929.33 0.00 69,756,929.33

Consolidated Cash Flow Statement

for the period from 1 January to 30 September 2010 GFT Technologies Aktiengesellschaft, Stuttgart

	Nine-months
€	01.01.– 30.09.2010	01.01.– 30.09.2009
Net income	6,316,806.75	3,038,599.19
Depreciation on non-current intangible and tangible assets as well as financial assets	881,813.79	938,269.73
Changes in provisions	6,157,118.25	3,590,965.72
Other non-cash expenses/income	196,705.64	-154,642.67
Earnings from the disposal of long-term tangible and intangible assets as well as financial assets	-301,000.00	-7,402.78
Changes in trade receivables	-15,689,454.80	-4,453,304.23
Changes in other assets	-854,292.24	197,491.66
Changes in trade liabilities and other liabilities	1,446,175.61	-8,688,085.65
Cash flow from operating activities	-1,846,127.00	-5,538,109.03
Cash receipts from sales of tangible assets	0.00	22,085.73
Cash payments to acquire tangible assets	-918,374.43	-355,898.29
Cash payments to acquire non-current intangible assets	-154,545.32	-39,781.72
Cash payments to acquire financial assets	-12,733,959.31	0.00
Cash receipts from the sale of consolidated companies net of cash and cash equivalents disposed of 1	-1,331,471.43	0.00
Cash receipts for the short-term financial management of cash investments	1,150,000.00	0.00
Cash flow from investing activities	-13,988,350.49	-373,594.28
Payments to shareholders	-2,632,594.60	-2,632,594.60
Cash receipts from taking out financial loans	100,543.11	373.87
Other changes in equity	239,017.65	97,083.77
Cash flow from financing activities	-2,293,033.84	-2,535,136.96
Change in cash funds from cash-relevant transactions	-18,127,511.33	-8,446,840.27
Cash funds at the beginning of the period	36,200,628.61	33,014,913.43
Cash funds at the end of the period	18,073,117.28	24,568,073.16

1 concerning the disclosed segment

Notes to the Interim Financial Statements

as at 30 September 2010 GFT Technologies Aktiengesellschaft, Stuttgart

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 Annual Financial Statements of GFT AG as of the end of the last financial year (31 December 2009). They were drawn up in euro (€) in accordance with standard principles of accounting and valuation and conform to the prescriptions set out in IAS 34, sections 37w and 37y of the German Securities Trading Act (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) effective on the balance sheet date, which are to be applied within the EU. The same accounting and valuation methods were used in these Interim Financial Statements as in the last Consolidated Financial Statements as of 31 December 2009. The reporting format used in these Interim Financial Statements has changed slightly in comparison with the corresponding Interim Financial Statements of the previous year; the previous year's figures have been adapted to the changed reporting format. New or amended standards and interpretations to be applied as of the beginning of the financial year 2010 did not have any major effect on the Interim Financial Statements.

The Interim Financial Statements and the Interim Management Report as of 30 September 2010 have neither been audited according to section 317 HGB, nor been reviewed.

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 2009:

On 14 May 2010, GFT AG sold all its shares in the subsidiary GFT inboxx GmbH, Hamburg. GFT inboxx GmbH was deconsolidated on 14 May 2010. In financial year 2009, GFT inboxx GmbH accounted for 2.1% of the Group's revenues; its share in the financial assets of the Group amounted to 1.6% as of 31 December 2009. The hiving off of GFT inboxx GmbH had no material effect on the assets, financial and earnings position of the Group. Further information on the Group's hiving off of GFT inboxx GmbH is provided in the explanations on discontinued operations.

On 13 August 2010, the memorandum of association of subsidiary GFT Business Development GmbH, Eschborn, was extensively altered. This included a change in its name to Youdress GmbH and the relocation of its registered office to Stuttgart. These changes became effective on 1 October 2010. Subsequently on 13 August 2010, GFT AG sold 50% of shares in GFT Business Development GmbH. GFT Business Development GmbH was deconsolidated on 13 August 2010 and has since been carried as an associated company (named Youdress GmbH), whose shares are carried in the balance sheet according to the equity method. In the financial years 2010 and 2009, GFT Business Development GmbH accounted for 0.0% of Group revenues. As of 31 December 2009 and on the date of divestment, its share in Group assets amounted to 0.0%. The deconsolidation of GFT Business Development GmbH had no material effect on the assets, financial and earnings position of the Group; income from the sale amounted to €11 thousand.

On 13 August 2010, GFT AG also acquired all shares in the previously non-operating company Platin 569. GmbH, Frankfurt am Main, which has been trading as GFT Innovations GmbH with registered office in Stuttgart since 23 September 2010. The above company was first consolidated as of its date of acquisition on 13 August 2010. Its contribution to consolidated revenues of the GFT Group in the period 1 January to 30 September 2010 amounted to €0 thousand with a contribution to net income of €-100 thousand. As of 30 September 2010, the share in Group assets of GFT Innovations GmbH amounted to 0.0%. The initial consolidation of GFT Innovations GmbH had no material effect on the assets, financial and earnings position of the Group.

Compared to the Interim Financial Statements as of 30 September 2009, the following changes in the scope of consolidation have occurred:

On 24 December 2009, GFT AG sold all its shares in the subsidiary GFT Technologies GmbH, Vienna, Austria. GFT Technologies GmbH was deconsolidated on 24 December 2009. GFT Technologies GmbH had no operating activities in the financial years 2009 and 2008, its share of revenues in both financial years amounted to 0.0%; its share in the financial assets of the Group amounted to 0.0% on the date of divestment. The hiving off of GFT Technologies GmbH did not have any material effect on the assets, financial and earnings position of the Group; the costs of the sale amounted to €4 thousand.

Discontinued operations ······························································································································· ··························································································································

The GFT Group intended to dispose of its business activities in the Software division. The Executive Board of GFT AG had adopted a respective disposal plan and had been actively seeking a buyer since November 2009; the disposal was expected to be completed in the second quarter of 2010. Most of the activities in this business division, and the respective employees, were pooled with the subsidiary GFT inboxx GmbH, Hamburg, Germany. All shares in this subsidiary were to be sold. Moreover, the Software division of GFT AG included disclosed software rights which are also to be sold. The Software division to be sold was identical with the Software segment, which is disclosed separately in segment reporting.

Discontinuation of the business division will take the form of a disposal as a whole. As the division intended for disposal also represents a disposal group as defined by IFRS 5, the disclosure and measurement regulations of IFRS 5 have been applied.

The discontinuation of the business division in the second quarter of the financial year 2010 was realised as follows:

In a purchase agreement dated 14 May 2010, the software rights of GFT AG were sold to a non-Group company. In a share purchase agreement also dated 14 May 2010, GFT AG sold all shares in the subsidiary GFT inboxx GmbH to the same buyer; the Software segment was thus disposed of. All assets and liabilities of the Software segment were transferred on 14 May 2010, with the exception of pension obligations and the respective securities which the Group retains in accordance with its contractual agreements. The disposal of the Software segment resulted in a loss of €372 thousand.

The net loss after taxes of the discontinued operation is disclosed in a separate line of the Consolidated Statement of Comprehensive Income (Part-Group Consolidated Income Statement). The Consolidated Balance Sheet of the previous year also includes assets and liabilities pertaining to discontinued operations, summarized as separate items.

Changes in equity ······························································································································· ······························································································································· ··············

For the changes in equity capital between 1 January 2010 and 30 September 2010, we refer to the Consolidated Statement of Changes in Equity which is disclosed separately.

As of 30 September 2010, 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 2009). These shares are bearer shares and all grant equal rights.

In May 2010, a dividend of €0.10 per share was distributed to shareholders, totalling €2,633 thousand (previous year: same dividend payment in June 2009), from the balance sheet profit of the parent company GFT AG.

There were no changes in the company's authorised and conditional capital between 1 January and 30 September 2010 relative to 31 December 2009. As of 30 September 2010, GFT AG did not hold any of its own shares, nor did it purchase or sell any of its own shares in the period 1 January 2010 to 30 September 2010.

Segment reporting ······························································································································· ······························································································································· ···········

GFT has identified the three segments Services, Software, and Resourcing as reportable segments. The identification of these segments was mainly based on the fact that the products and services offered in these segments show differences, and that the GFT Group is organised and controlled on the basis of these three segments. Internal reporting to the Executive Board is based on the classification of group activities in these three segments. The Software segment was sold in May 2010; we refer to the explanations on discontinued operations.

The products and services with which the reportable segments generate their income can be characterised as follows: all activities in connection with IT solutions (services and projects) are aggregated in the Services segment. The Resourcing segment focuses on the placement of freelance IT specialists. The Software segment concerned the internal development of software products, their distribution, and associated services.

Internal controlling and reporting within the GFT Group, and thus also segment reporting, is based on IFRS accounting principles as applied in the Consolidated Financial Statements. The GFT Group measures the success of its segments by means of segment EBT (earnings before tax). Segment income and results also include transactions between the segments. Intersegment transactions take place at market prices on an arm's length principle.

As a general rule, the assets of the segments include all assets, except for those from income tax and assets attributed to the holding activity. The segment liabilities include all liabilities, except for those from income tax, financing, and liabilities in connection with the holding activity.

For detailed information about the business segments, please refer to the Appendix attached to the Notes to the Consolidated Financial Statements. It also includes disclosures concerning revenue from external clients for each group of comparable products and services.

€ million 01.01.– 30.09.2010 01.01.– 30.09.2009 Total segment revenue 193.64 171.67 Elimination of inter-segment revenue -13.83 -9.42 Group revenue 179.81 162.25 Total segment results (EBT) 9.06 5.10 Non attributed expenses of Group HQ -0.40 -0.72 Other 0.00 -0.03 Group result before taxes 8.66 4.35

€ million	30.09.2010	30.09.2009
Total segment assets	101.63	98.66
Non-attributed assets of Group HQ	0.08	0.09
Securities	14.61	2.76
Assets from income taxes	6.79	7.89
Group assets	123.11	109.40
Total segment liabilities	50.03	42.47
Non-attributed liabilities of Group HQ	0.33	0.54
Liabilities from income taxes	2.99	2.22
Group liabilities	53.35	45.23

The reconciliation discloses items which per definition are not components of the segments. In addition, non-attributed items of Group HQ, e.g. from centrally managed issues, are also contained. Business transactions between the segments are also eliminated in the reconciliation. The reconciliation of the segment figures to the corresponding figures in

Segment report

GFT Technologies Aktiengesellschaft, Stuttgart

	Services		Software
€ thsd.	30.09.2010	30.09.2009	30.09.2010	30.09.2009
External sales	86,136	66,020	1,101	3,356
Inter-segment sales	9	14	32	646
Total revenues	86,145	66,034	1,133	4,002
Depreciation	-743	-751	-17	-53
Non-cash income/expenditure other than depreciation	16	67	-254	0
Interest income	123	155	0	0
Interest expenses	-94	-34	0	0
Share of net profits of associated companies reported according to the equity method	-12	-3	0	0
Segment result (EBT)	7,707	4,595	-176	-1,228
Segment assets	63,419	63,274	0	1,108
Investment in associates reported according to the equity method	38	37	0	0
Investment in non-current intangible and tangible assets	946	313	10	32
Segment liabilities	19,372	16,322	0	2,273

Eliminations Consolidated			Total		Resourcing
30.09.2009 30.09.2010 30.09.2009	30.09.2010	30.09.2009	30.09.2010	30.09.2009	30.09.2010
179,805 162,252		162,252	179,805	92,876	92,568
-13,837 -9,416 0		9,416	13,837	8,756	13,796
-13,837 -9,416 179,805 162,252		171,668	193,642	101,632	106,364
-27 -30 -882 -938		-908	-855	-104	-95
41 88 -197 155		67	-238	0	0
391 209 517 373		164	126	9	3
145 118 -11 -21		-139	-156	-105	-62
0 0 -12		-3	-12	0	0
-403 -752 8,662 4,350		5,102	9,065	1,735	1,534
21,473 10,734 123,107 109,395		98,661	101,634	34,279	38,215
0 0 38		37	38	0	0
33 13 1,073 396		383	1,040	38	84
3,324 2,760 53,350 45,227		42,467	50,027	23,872	30,655

The table below shows information according to geographic regions for the GFT Group (incl. Software):

€ million	Revenue from sales to external clients 1		Non-current intangible and tangible assets
	01.01.– 30.09.2010	01.01.– 30.09.2009	30.09.2010	30.09.2009
Germany	100.19	105.38	21.66	21.66
UK	27.95	15.94	0.15	0.17
Spain	17.32	11.47	0.83	0.74
France	14.89	12.72	0.05	0.07
USA	4.94	3.10	0.01	0.00
Switzerland	4.77	4.73	0.09	0.09
Other foreign countries	9.75	8.91	0.34	0.25
Total 2	179.81	162.25	23.13	22.98

1 Determined by client location

2 Total company

Revenue from clients who account for more than 10% each of Group revenue is shown below:

	Revenue		Segments in which this revenue is generated
€ million	01.01.– 30.09.2010	01.01.– 30.09.2009	01.01.– 30.09.2010	01.01.– 30.09.2009
Client 1	83.30	57.09	Services, Resourcing, Software	Services, Resourcing, Software

Changes to contingent liabilities ······························································································································· ····································································································

As of 30 September 2010, there were no significant changes to contingencies and other financial commitments compared to the Consolidated Financial Statements as at 31 December 2009.

Investments ······························································································································· ······························································································································· ·······························

During the period between 1 January and 30 September 2010, the GFT Group invested €155 thousand in intangible fixed assets (1 January to 30 September 2009: €40 thousand) and €918 thousand in tangible assets (1 January to 30 September 2009: €356 thousand).

Related party disclosures ······························································································································· ·························································································································

Compared to the disclosures made in the Notes to the Consolidated Financial Statements as of 31 December 2009, there were no changes in the composition of related parties nor in relations with such parties except the following ones.

As of 13 August 2010, Youdress GmbH, Stuttgart (formerly GFT Business Development GmbH, Eschborn), is a related party of the GFT Group (associated company as of 13 August 2010, previously fully consolidated). In the period 13 August 2010 to 30 September 2010, there were no significant relations with this company.

Stuttgart, 9 November 2010

GFT Technologies Aktiengesellschaft

The Executive Board

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

Financial Calendar

German Equity Forum, Frankfurt 23 November 2010

Further information

Write to us or call us if you have any questions. Our Investor Relations team will be happy to answer them for you. 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

Investor Relations Andrea Wlcek

Filderhauptstrasse 142 70599 Stuttgart Germany

T +49 711 62042-440 F +49 711 62042-301

ir@gft.com

This Interim Report is also available in German. The online versions of the German and English Interim Reports are available on www.gft.com/ir.

IMPRINT

Concept: GFT Technologies AG, Stuttgart, www.gft.com

Text: GFT Technologies AG, Stuttgart, www.gft.com

Creative concept and design: Impacct Communication GmbH, Hamburg, www.impacct.de

© Coypright 2010: GFT Technologies AG, Stuttgart