NorCom Information Technolgoy GmbH & Co. KGaA

Earnings Release • Aug 14, 2007

News Details

Corporate | 14 August 2007 12:52

NorCom Information Technology AG:

NorCom Information Technology AG / Half Year Results

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The issuer / publisher is solely responsible for the content of this announcement.

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NorCom: Successful first half of 2007 with higher sales and strong net
income confirming corporate strategy

• Sales of € 14.18 million, up 8 percent on the previous year
• Sharp rise in net income to € 0.88 million (up 200 percent year on year)

Munich, August 14, 2007 - NorCom Information Technology AG, which is listed
in the General Standard of the German Stock Exchange, achieved a
year-on-year increase of a good 8 percent in sales in the first half of the
year (January 1 - June 30, 2007) to € 14.18 million (previous year: € 13.14
million). At € 0.88 million, consolidated net income for the period surged
by a very gratifying rate of more than 200 percent over the previous year
(€ 0.29 million).

The NorCom Group achieved earnings before interest, taxes and
depreciation/amortization (EBITDA) of EUR 0.78 million (previous year: EUR
1.20 million) and earnings before interest and taxes (EBIT) of EUR 0.41
million (previous year: EUR 0.85 million). The decline in operating
earnings is due to the strategic realignment of Value & Risk AG, in which
NorCom holds a majority stake, and the resultant spending on building up
marketing operations and expertise.

Individual companies

Munich-based NorCom Information Technology AG achieved extremely strong
growth, underpinned by its software product business, where NorCom was able
to substantially extend its market position and international marketing
efforts. At EUR 7.30 million in the first half of 2007, NorCom’s sales were
up over 85 percent on the year-ago period (EUR 3.94 million), with
consulting business contributing around EUR 4.85 million and software
products EUR 2.45 million.

Following spending in earlier periods on establishing sales and marketing
activities, successes in software product business are now also feeding
through to operating earnings. As a result, EBIT came to EUR 0.88 million,
well and truly eliminating the year-ago loss at the EBIT level (EUR 0.17
million). This was accompanied by an improvement in net income for the
period, which at EUR 1.32 million was up around 90 percent on the previous
year (EUR 0.69 million).

Norske Systemarkitekter AS (NSA) in Oslo, in which NorCom holds a majority
stake, performed in line with expectations, closing the first half with
sales of EUR 4.34 million (previous year: EUR 4.27 million) and EBIT of EUR
0.24 million (previous year: EUR 0.36).

In the wake of realignment efforts in response to consolidation in its
established market, Value & Risk AG, Bad Homburg, failed to repeat its
successful performance of earlier years. As a result, the software and
consulting company is now increasingly turning its attention to the
financial services sector and achieved sales of EUR 2.54 million in the
first six months of 2007 (previous year: EUR 4.94 million). However, it
sustained a loss of EUR 0.70 million at the EBIT level (previous year: EBIT
of EUR 0.66 million) on account of heavy spending on building up sales and
marketing activities as well as expertise.

Outlook

In the second half of the year, NorCom Information Technology AG expects
sales in the Software Product segment to double, with sales in the
Consulting segment set to rise by around 20 percent. This forecast is based
on the substantial year-on-year improvement in orders and the traditionally
stronger second half of the year.

NSA AG will continue its stable performance in the second half and close
the year in line with expectations.

At Value & Risk AG, business performance is expected to be a good deal more
favorable in the second half of the year. It is aiming to break even at the
operating level at the end of the year on a monthly basis and to achieve
higher sales than in the first six months of the year.

NorCom Information Technology AG, Stefan-George-Ring 23, 81929 Munich
Stefanie Zimmermann – Investor Relations
Tel +49 – 89 – 93948-248
Fax +49 – 89 – 93948-111
mailto:aktie@norcom.de

DGAP 14.08.2007

Language: English
Issuer: NorCom Information Technology AG
Stefan-George-Ring 23
81929 München
Deutschland
Phone: +49 (0)89 93948-248
Fax: +49 (0)89 93948-111
E-mail: aktie@norcom.de
Internet: www.norcom.de
ISIN: DE0005250302
WKN: 525030
Indices:
Listed: Geregelter Markt in Frankfurt (General Standard); Freiverkehr
in Berlin, Düsseldorf, Stuttgart, München, Hamburg

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