GK Software SE — Capital/Financing Update 2008

Jun 2, 2008

News Details

Corporate | 2 June 2008 12:01

Shares of GK SOFTWARE AG will be offered in a price range of EUR 29.00 – 35.00

GK Software AG / IPO

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• Planned issue of up to 485,000 shares from capital increase
• Gross proceeds from the issue of EUR 16.975 million expected for the
  company
• Subscription period presumably from June 3 – 10, 2008
• Initial listing in Prime Standard scheduled for June 11, 2008

Schöneck, June 2, 2008 – GK SOFTWARE AG, a technologically leading European
solutions provider of standard software for the retail sector, announced
details of its planned IPO during today's press conference. The company is
planning to place up to 485,000 new bearer shares from a capital increase
including a greenshoe option. The shares can be subscribed in a price range
of EUR 29.00 – 35.00. As a result, GK SOFTWARE AG is expecting gross
proceeds from the issue of up to EUR 16.975 million, which will be used for
the company's further growth. The public offer begins on June 3, 2008 and
is expected to run until noon on June 10 for retail investors and 2 pm for
institutional investors. The shares are to be admitted to trading in the
Frankfurt Stock Exchange's strictly regulated Prime Standard segment on
June 11, 2008 with the German Securities Code (WKN) 757142 / ISIN
DE0007571424.

When the 415,000 bearer shares, each with a theoretical interest of EUR
1.00 in the share capital, are successfully placed, GK SOFTWARE AG's share
capital will initially increase from EUR 1,250,000 to EUR 1,665,000. In
addition, the issuing concept also includes placing a further 209,000
shares from the holdings of existing shareholders. A further up to 70,000
shares from another capital increase that could also be implemented are
available as part of a greenshoe option. The share capital would thus then
increase to EUR 1,735,000. The free float would be 40% if the issuing
volume including the greenshoe is successfully placed. The remaining 60% of
the shares will continue to be held by the two founders and Managing Board
members Rainer Gläß and Stephan Kronmüller directly and also via the
investment company GK Software Holding GmbH.

'The IPO will further drive our growth,' explained CEO Rainer Gläß.
'Pressure on retail companies to invest in high-performance IT systems has
increased significantly over the past few years. As a technology leader, we
intend to profit substantially from the expected boom and drive our
growth.' GK SOFTWARE is already a leading provider of high-performance
solutions for retail companies. Based on its excellent references from
leading German retailers, GK SOFTWARE AG plans to further increase its
market share in Germany and also to acquire companies with several branches
in Europe and the US as customers. GK SOFTWARE AG has already taken the
first step towards successful internationalization by recently acquiring
the Swiss retail company Coop.

GK SOFTWARE AG's IPO is being supported by the securities trading bank ICF
Kursmakler AG. The company's securities offering prospectus, approved by
BaFin, and the first addendum can be downloaded from the Web site
www.gk-software.de (Investor Relations section).

Company Profile

GK SOFTWARE AG is a technologically leading European solutions provider of
standardized software for the retail sector. It supplies an end-to-end
range of products for retail stores and company headquarters. The open and
platform-independent software solutions in the GK/Retail Suite, which are
fully programmed in JAVA, have allowed the company to establish itself on
the market as a technology and innovation leader. The software allows
retail chains to optimize their company's organization and to create
significant potential for cost savings as well as to realize customer
loyalty potential in order to increase competitiveness. The key features of
the solutions are: international applicability, consistent use of open
standards and SOA (Service Oriented Architecture) capability. As GK/Retail
is genuine standard software, parameters can be used to make the necessary
adjustments to meet most customer requirements. This reduces the
programming effort and allows rapid project completion. At the same time,
solutions for customers remain releasable and new functions can be
introduced by a release change. A key component of the modular software is
also the StoreWeaver integration platform, which connects all the
subsystems in a retail store and also provides a powerful interface for
enterprise systems such as ERP or CRM solutions.

The company currently employs 166 employees at its headquarters in Schöneck
and at three other business locations: Berlin, Pilsen in the Czech Republic
and Basel/Riehen in Switzerland. GK SOFTWARE AG can list well-known German
retail stores among its customers which include, for example, Galeria
Kaufhof, Parfümerie Douglas, EDEKA Hannover-Minden, Lidl, Netto
Markendiscount and Tchibo, as well as its first international customer
Coop, headquartered in Switzerland. The company’s software solutions are
being used in more than 12,000 retail stores with around 50,000
installations in more than 20 countries worldwide. The company has grown
quickly over the past few years and its revenues reached EUR 10.7 million
in 2007. The company’s EBIT amounted to
EUR 2.3 million (EBIT margin of 21.7%). Since 1990, the two founders and
Managing Board members, Rainer Gläß (CEO) and Stephan Kronmüller (CTO),
together with the Managing Board members Ronald Scholz (COO) and André
Hergert (CFO) have grown GK SOFTWARE to become a fast-growing, profitable
company.

For further information visit the company’s website www.gk-software.de.

Investor relations contact:

cometis AG
Ulrich Wiehle
Tel.: +49 (0)611-205855-11
Fax: +49 (0)611-205855-66
E-mail: wiehle@cometis.de

Disclaimer

This publication does not constitute an offer to sell or a solicitation of
an offer to buy or subscribe for any securities. No public offer of
securities of GK SOFTWARE AG, Schöneck, is being, or will be, made outside
Germany. A prospective offer in Germany would be made exclusively by means
of a securities offering prospectus to be published and filed with the
Bundesanstalt für Finanzdienstleistungsaufsicht. Any decision to invest in
the offered securities of GK SOFTWARE AG, Schöneck, should be made
exclusively on the basis of the securities offering prospectus. Such
securities prospectus is available free of charge at the offices of GK
SOFTWARE AG, Schöneck, the banking syndicate, and at the Frankfurt Stock
Exchange.
This publication and the information contained therein is not for
distribution or publication, neither directly nor indirectly, in or into
the United States of America, Canada, Australia or Japan.
This publication does not constitute an offer for sale of any securities
into the United States. Securities, including any shares of GK SOFTWARE AG,
Schöneck, in the course of a prospective offer, may not be offered or sold
in the United States or to, or for the account or benefit of, US persons
(as such term is defined in the Regulation S under the US Securities Act of
1933 as amended (the

02.06.2008 Financial News transmitted by DGAP