Latest provisional figures for the first half of 2004 show that the Brain Force Software group has achieved an EBIT of EUR 1.03 million (previous year: TEUR -690), thereby raising earnings on operating activities by EUR 1.72 million compared to the previous year. At the midway point of the year, the EBITDA stood at EUR 1.82 million (previous year: TEUR 546) with turnover of EUR 31.80 million (previous year: EUR 28.46 million).

The Executive Board regards these results as well within the target values set for fiscal year 2004. The first-half rise in turnover of 11.7 percent was slightly above the increase of
10.0 percent planned for the year as a whole. The EBITDA recorded at the half-yearly stage amounted to 40.5 percent of the EUR 4.50 million envisaged for the entire year. In previous years, only 18.2 percent (in 2003) and 32.1 percent (in 2002) of the EBITDA for the whole year had been earned by the six-month point.

The Professional Services business area succeeded in raising sales by 4.0 percent to EUR 25.58 million (previous year: EUR 24.59 million), thus achieving a segment EBIT of TEUR 985, 70.0 percent above the previous year's value of TEUR 580.

In the second quarter, the Communication Networks business area demonstrated the sustainability of the turnaround established during the first quarter. A segment EBIT of TEUR 374 (previous year: TEUR -310) was achieved thanks to a sales increase of 13.4 percent to EUR 2.74 million (previous year: EUR 2.41 million).

With turnover of EUR 3.49 million (previous year: EUR 1.46 million), the Financial Solutions business area recorded a segment EBIT of TEUR 358 (previous year: TEUR -270). 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.

During the first half of the year, non-assignable group costs were virtually unchanged at TEUR 691 (previous year: TEUR 690).

As of 30.06.2004, means of payment and short-term monies assessed in current investments of EUR 16.11 million were available to the Brain Force Software group. This figure exceeded the value for 30.06.2003 by EUR 13.41 million. The group also invested EUR 2.92 million in other long-term financial assets during the first six months.

The finalised figures for the first half of 2004 will be published on 30th August 2004 together with the half-yearly report on the company home page (www.brainforce.com) under 'Investors'.