GK Software SE — Share Issue/Capital Change 2008

May 14, 2008

News Details

Corporate | 14 May 2008 10:02

GK SOFTWARE AG Plans IPO

GK Software AG / IPO

Release of a Corporate News, transmitted by DGAP - a company of EquityStory
AG.
The issuer / publisher is solely responsible for the content of this announcement.

---

Schöneck, May 14, 2008 – GK SOFTWARE AG, a technologically leading European
solutions provider of standard software for the retail sector, aims to list
its shares on the Frankfurt Stock Exchange during the next few months. The
company plans to use the expected IPO proceeds to extend its core market in
Germany and to promote its international expansion in Europe, the USA and
Asia. In order to achieve this, the company wants to intensify its
investments in new technologies, enhance its product portfolio and recruit
additional staff.

Over the past years, GK SOFTWARE AG has been able to establish itself on
the retail software market in Germany as a technology and innovations
leader. This was owed to its comprehensive and integrated solutions for
retail stores and company headquarters. Customers of GK SOFTWARE AG are
well-known German retail chains in Germany and abroad which include inter
alia Galeria Kaufhof, Parfümerie Douglas, EDEKA Hannover-Minden, Netto
Markendiscount or Tchibo. 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’s revenues reached EUR 10.8
million in 2007. The company’s earnings before interest and taxes (EBIT)
amounted to EUR 2.3 million, which corresponds to an EBIT margin of 21.5%.
The dynamic growth in revenues and earnings over the past years has largely
been due to the success of the 'GK/Retail' suite, which allows modern store
management.

The current management board members, Rainer Gläß (CEO) and Stephan
Kronmüller (CTO), founded GK SOFTWARE AG in 1990. Since this time the
company has successfully grown and has established itself at four business
locations in Europe with 166 employees. 'Our top technology enabled us to
play a leading role as a software provider for retail stores in a very
short time, particularly in Germany,' says CEO Rainer Gläß. 'This makes us
ideally equipped to also succeed internationally. Retail companies around
the globe are investing more in technology in order to make better use of
customer potential, optimize processes and support international expansion.
GK SOFTWARE AG provides solutions to match this trend.' Experts (PAC and
EHI Retail Institute studies 2007) are predicting a strong rise in IT
expenditures in the retail sector on the German and US markets until 2011.
Rainer Gläß says: 'This opens up huge growth potential for us, which we
want to systematically make use of based on our planned IPO!' The planned
transaction is supported by ICF Kursmakler AG Wertpapierhandelsbank.

Company Profile

GK SOFTWARE AG is a technologically leading European solutions provider of
standardized software for the retail sector. It supplies a comprehensive
portfolio of products for retail stores and company headquarters. Due to
the open and platform independent software solutions of GK/Retail Suite,
which are fully programmed in JAVA, the company has established itself on
the market as a technology and innovations leader. The software allows
retail chains to optimize the company 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 a quick project completion. At the same
time, solutions for customers remain releasable and new functions can be
introduced by a release change. One important 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 like ERP or CRM solutions.

The company currently employs 166 employees at its headquarters in Schöneck
in the Vogtland region in Germany 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 inter alia Galeria Kaufhof, Parfümerie Douglas, EDEKA
Hannover-Minden, Lidl, Netto Markendiscount or Tchibo. 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 years and its revenues reached EUR
10.8 million in 2007. The company’s earnings before interest and taxes
(EBIT) amounted to EUR 2.3 million (EBIT margin of 21.5%). Since 1990, the
two founders and management board members, Rainer Gläß (CEO) and Stephan
Kronmüller (CTO), have formed GK SOFTWARE into a profitable and strongly
growing company. They are supported by the board members Ronald Scholz
(COO) and André Hergert (CFO).

For further information on the company go to: www.gk-software.de.

This publication does not constitute an offer to sell or a solicitation of
an offer to buy or subscribe for any securities. No offer of securities of
GK SOFTWARE AG, Schöneck, is being, or will be, made to the public outside
Germany. A prospective offer in Germany would be made exclusively by means
of a securities prospectus to be published and filed with the
Bundesanstalt für Finanzdienstleis¬tungsaufsicht. Such securities
prospectus would at the appropriate time made available free of charge at
the offices of GK SOFTWARE AG, Schöneck, at the offices of ICF Kursmakler
AG Wertpapierhandelsbank, Frankfurt, 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 Securities Act of
1933 as amended (the 'Securities Act')) unless they are registered under
the Securities Act or exempt from registration. Neither GK SOFTWARE AG,
Schöneck, nor any potential selling shareholder intend to register a
prospective offer, or any part thereof, in the United States or to make a
public offer of securities in the United States.

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

14.05.2008 Financial News transmitted by DGAP