According to preliminary figures for the first six months of 2005, the Brain Force group recorded turnover of EUR 33.86 million (previous year: EUR 31.80 million), an EBITDA of EUR 1.79 million (previous year: EUR 1.82 million) and an EBIT of TEUR 842 (previous year: EUR 1.03 million). Earnings after taxes and minorities of TEUR 315 remained broadly at the previous year's level of TEUR 337.

The EBIT dropped significantly in year-on-year comparison. The fact that development of most components in the FINAS Web software product range had been completed by the end of 2004 meant that there was less internal expenditure capitalised this year, and that depreciation of intangible assets was much higher in 2005 than in the prior year. This adversely affected earnings to the tune of minus TEUR 628.

Other operating income also fell short of the previous year's level as of the midyear point owing to special circumstances linked to changes in the shareholding relationship with BRAIN FORCE Financial Solutions AG as well as resolution of provisions amounting to TEUR 172.

The factors described above, which resulted in a reduced EBIT, had been incorporated into our planning and matched our expectations for the year. As far as the Executive Board is concerned, the operational output of the group has, as expected, improved significantly. The results for the first half of the year correspond to the planned figures for 2005. The sharp rise of 65.3 percent in the order balance (EUR 28.53 million as of 30th June 2005 compared to EUR 17.26 million last year) was a particularly positive development.

After the first six months of 2005, earnings per share stood at EUR 0.03. On account of the lower weighted average number of shares in the previous year, earnings per share for the first half of 2004 amounted to EUR 0.05. The Executive Board continues to anticipate earnings per share of EUR 0.19, not taking account of acquisitions made. The likely result for 2005 (with acquisitions taken into consideration) will be announced in connection with third quarter earnings at the latest.

The results for the segments formed in 2005 are set out below (owing to the restructuring of segments, comparisons with the previous year are not possible).

The Enterprise Services business area achieved turnover of EUR 15.74 million and a segment EBIT of TEUR 892. This segment - the most important in the group - incorporates exclusively service-based activities of the Brain Force group. As of the midyear point, the EBIT margin stood at 5.7 percent, a rise of 1.2 percent compared with quarter one.

The Business Solutions business area recorded turnover of EUR 9.95 million and a segment EBIT of TEUR 690. This segment comprises the former Financial Solutions area along with the specialist areas of Banking Solutions, Business Process Outsourcing and ERP/CRM Systems. During the first six months of 2005, the EBIT margin was sustained at the high level of 6.9 percent, 1.1 percent below the value for the first quarter.

Turnover of EUR 8.17 million and a segment EBIT of TEUR 202 was earned by the Technology and Infrastructure business area. This area incorporates the business of the former Communication Networks segment along with the specialist areas of Application Hosting, Security Solutions, Infrastructure Management and Storage Solutions. During the first six months, the EBIT margin stood at 2.5 percent, 1.0 percent above the value for quarter one. The improvements to the margin for this segment as forecast in the first quarter are therefore being realised, even if further progress is yet to be made.

As of 30th June 2005, non-assignable group costs stood at TEUR 942.

As of 30th June 2005, after payment of dividends and initial payments to the FJH group for the transfer fee due in connection with the BHW Lebensversicherung AG contract award, means of payment and short-term monies assessed in current investments of EUR 15.07 million (EUR 18.49 million on 31st December 2004) were available to the Brain Force group.

The finalised figures for the first six month 2005 will be published on 29th August 2005 together with the midyear report on the company home page (www.brainforce.com) under "Investors".