08/16/2007

TechniData AG

Record year 2006: TechniData increases total operating performance by 22 percent

Markdorf, May 23 2007

+++ Major growth in outsourcing and license business +++ strong demand from the European process industry +++ 14 percent more employees +++ positive outlook

The TechniData Group stayed on course for growth in fiscal year 2006 and achieved a new record result. The total operating performance of the market leader for environmental compliance management rose by Euro 9.6 million compared to 2005, reaching a total of Euro 52.3 million (+ 22%). The previous year’s figures can only be compared with the current fiscal year to a limited extent, as TechniData BCS GmbH was only fully consolidated after October 1, 2005 in the previous year. Disregarding this effect, growth was 19%.

Growth was accompanied by a major expansion of the company’s workforce, with the number of employees rising from 412 to 471 (+14%). As a result of ongoing positive developments in order levels, TechniData appointed mainly environmental experts and software specialists.

Growth in outsourcing and licensing sales
Growth was based primarily on revenues from outsourcing and maintenance business, which rose by Euro 4.7 million to Euro 12.8 million (+59%). Expansion of the product portfolio and the sale of licenses in 2006 grew by Euro 1.4 million to Euro 9.7 million (+16%). As a result of high licensing revenues, consulting and development business also grew by Euro 3.5 million to Euro 26.4 million (+15%).

Earnings before interest and tax (EBIT) went up by approximately 11% to Euro 3.7 million. A special effect meant that earnings after tax worked out at Euro 1.8 million (previous year: Euro 2.1 million). This special effect relates to expenditure involving the acquisition and disposal of own shares.

Europe drives growth
Due to overall economic conditions, growth was focused in Europe. TechniData increased its revenues in the region by Euro 8.5 million (+29%) to Euro 38.1 million. Business in Europe is set to grow further as the new EU REACH chemicals legislation comes into force. Total operating performance in the U.S. rose by 18% in 2006, reaching Euro 13.6 million and thereby proving that growth in the region is stable.

TechniData is seeking to drive further growth by expanding its partnership with SAP AG. SAP aims to move into a new market with its Governance, Risk and Compliance (GRC) divisions and has bundled all compliance-related topics in one business unit. TechniData AG is working closely with SAP on the issue of environmental compliance.

“The fiscal year 2006 was one of the best in TechniData’s history. Despite ongoing investment in new solutions, we were able to achieve significant growth in operating results. This success proves we were right to pursue our strategy of focusing on product safety, occupational health and safety/occupational healthcare and environmental protection,” comments Dr. Thomas Wrede, CFO at TechniData AG, summing up the results for 2006. “We are planning to drive our total operating performance even higher in 2007. In doing so, we will be making even greater efforts to fulfill our customers’ calls to offer environmental compliance as a service.” The fact that the management team won the renowned business award “Entrepreneur of the Year 2006” in the information technology category provides yet more evidence that TechniData is on a sustainable growth trajectory.