According to the provisional figures for the end of third quarter 2004, the Brain Force Software group achieved an EBIT of EUR 1.74 million (previous year: TEUR -565) with turnover of EUR 47.97 million (previous year: EUR 43.93 million). The group therefore succeeded in raising its result on operating activities by EUR 2.30 million compared to the previous year. During the same period, the EBITDA stood at EUR 2.99 million (previous year: EUR 1.45 million).

During the third quarter, turnover was EUR 16.17 million (previous year: EUR 15.47 million), the EBITDA stood at EUR 1.17 million (previous year: TEUR 906) and the EBIT amounted to TEUR 710 (previous year: TEUR 126).

After the first nine months of 2004, the result per share stood at EUR 0.09 following a loss of EUR 0.34 per share in the comparable period of the previous year. The result per share was EUR 0.04 in third quarter 2004. The seasonal increase in the result per share is also reflected in the EBIT development over the course of the year. The EBIT for the second quarter was 52.7 percent above its first quarter value, with a further 14.5 percent rise in the third quarter compared to the second quarter. The expected result per share for 2004 as a whole remains unchanged at EUR 0.16.

As of the end of third quarter 2004, turnover for the Professional Services business area had increased by 5.8 percent to EUR 38.66 million (previous year: EUR 36.56 million) and the segment EBIT for this area was EUR 1.87 million (previous year: TEUR 1.15). The EBIT margin for this segment therefore improved from 3.2 percent in the previous year to 4.8 percent.

Turnover for the Communication Networks business area was up 17.0 percent to EUR 4.04 million (previous year: EUR 3.46 million). An EBIT margin of 11.5 percent was achieved with a segment EBIT of TEUR 463 (previous year: TEUR -555).

The Financial Solutions business area recorded turnover of EUR 5.27 million (previous year: EUR 3.92 million) and a segment EBIT of TEUR 601 (previous year: TEUR -167), thus producing an EBIT margin of 11.4 percent. Owing to the fact that this segment has only belonged to the Brain Force Software group since 1st May 2003, comparisons with the previous year are only possible to a limited degree.

As of 30th September 2004, non-assignable group costs stood at EUR 1.20 million (previous year: TEUR 996). This rise was the result of increased investment in cross-segment marketing and sales activities as well as greater expenditure in the area of Investor Relations.

Means of payment and short-term monies assessed in current investments of EUR 15.81 million were available to the Brain Force Software group as of 30th September 2004. TEUR 410 was used to buy back own shares during the third quarter.

The finalised figures for the first half of 2004 will be published on 24th November 2004 together with the third quarter report on the company home page (www.brainforce.com) under 'Investors'.