The BRAIN FORCE group achieved the best first quarter result in the group's history, posting a slight increase in sales over the fourth quarter of 2005. This equated to sales of EUR 22.14 million in the first three months of 2006, exceeding the comparable figure for the preceding year by 34.7 percent (EUR 16.44 million). Organic growth (i.e. excluding sales achieved through the acquisitions of 2005) amounted to 14.2 percent.

The EBITDA more than doubled in comparison with the same period in the preceding year (+125.0 percent), rising by EUR 1.10 million to EUR 1.98 million (Previous year: EUR 0.88 million). Accordingly. the EBITDA margin rose from 5.4 percent in Q1 2005 to 8.9 percent in Q1 2006.

The result for the 2006 first quarter includes an extraordinary item relating to compensation payments totalling TEUR 422. The EBITDA adjusted for this effect is EUR 1.56 million, still a significant increase of 77.3 percent over the preceding year, constituting an EBITDA margin of 7.0 percent.

The 2006 first quarter EBIT was EUR 1.17 million (Previous year: EUR 0.41 million), making it almost triple that of the previous year (+185.4 percent). Consequently, the EBIT margin rose by 2.8 percentage points from 2.5 percent to 5.3 percent.

The Q1 2006 EBIT adjusted for the extraordinary item amounted to EUR 0.75 million (+ 82.9 percent increase over the previous year), producing an EBIT margin of 3.4 percent.

The profit for the period after minority interests for the first three months of 2006 amounts to TEUR 696 (Previous year: TEUR 134). This equates to an increase of TEUR 562 or 418.2 percent. Earnings per share were EUR 0.07 (Previous year: EUR 0.01).

Enterprise Services (ES)achieved net sales of EUR 8.69 million in the first quarter of 2006. (Previous year: EUR 7.62 million.) and a segment EBIT of EUR 0.81 million (Previous year: EUR 0.35 million). The EBIT margin was 9.3 percent (Previous year: 4.6 percent). Excluding the percentage involving the extraordinary item described above for the ES segment, the EBIT margin was 6.0 percent.

Business Solutions (BS)achieved a segment EBIT of EUR 0.67 million (Previous year: EUR 0.39 million) in the first quarter of 2006, posting sales of EUR 6.59 million (Previous year: EUR 4.88 million). The EBIT margin was 10.2 percent (9.9 percent when adjusted for the extraordinary item; previous year: 8.0 percent).

The segment Technology and Infrastructure (TI) posted sales of EUR 6.86 million (Previous year: EUR 3.95 million), with a segment EBIT of EUR 0.32 million (Previous year: EUR 0.06 million). The EBIT margin was 4.7 percent (Previous year: 1.5 percent). In the first quarter approximately EUR 0.19 million was invested in developing a group-wide distribution network for BRAIN FORCE Packaging Robot and BRAIN FORCE Migration out of the Box. Excluding these investments and adjusted for the extraordinary item, the EBIT margin was 5.8 percent.

The BRAIN FORCE Group had funds and marketable securities at its disposal as at 31.03.2006 in the amount of EUR 10.83 million (31.03.2005: EUR 18.58 million). This amount does not yet include the emission proceeds in the amount of EUR 15.9 million out of the capital increase concluded in the beginning of April.