The BRAIN FORCE group announces the following results for the year ending December 31, 2006:

* adjusted or not adjusted for receivables and depreciation and amortization expense based on purchase price allocation

In the reporting period, the group's operative cash flow increased by EUR 5.55 million to a total of EUR 7.22 million (previous year: EUR 1.67 million). This meant that BRAIN FORCE was able to achieve an exceptional YoY growth of 332 percent, thereby underlining the firm's excellent financial position. The result for the period rose by 33.3 percent to EUR 4.17 million which is the best result ever in the company history.
 

In the financial year 2006, sales of the group increased by 15.5 percent to EUR 88.53 million. The result was adversely affected by the insolvency of BenQ Mobile which occurred in Q3, 2006, and also by higher depreciation and amortization expenses compared with the previous year, due to purchase price allocation resulting from acquisition. Without these special factors, the EBITDA (earnings before interest, taxes, depreciation and amortization) would be EUR 7.72 million and EBIT (earnings before interest and tax) would be EUR 4.67 million. Excluding these effects, EPS (earnings per share) of EUR 0.37 were achieved.

Including these effects, EIBTDA was EUR 6.52 million and EBIT EUR 2.92 million. In spite of a large increase in the number of shares resulting form the share capital issue, the company was again able to match last year's EPS record mark of EUR 0.30.

The results of the various sectors are as follows: The Technology and Infrastructure division achieved sales of EUR 27.68 million in the last financial year, i.e., a clear YoY growth of 31.1 percent (previous year: EUR 21.12 million). EBIT dropped from EUR 1.87 million to EUR 1.42 million this year, which is due to the concentration on enhancing the market share and on increasing sales of this sector. Increasing investments in the fields of desktop application management, migration and network management thereby led to a short-term drop in profit. At the same time, an indirect sales channel as well as BRAIN FORCE Net Organizer and BRAIN FORCE Packaging Robot were pushed across the group.

The Enterprise Services division achieved sales of EUR 34.15 million in 2006 (previous year: EUR 32.49 million) which represents a 5.1 percent growth. EBIT dropped from EUR 1.66 million in 2005 to EUR 0.81 million in 2006, which is due to BenQ Mobile's insolvency in Q3 of the financial year in question.

The Business Solutions sector looks back on a successful year and it experienced a YoY sales growth of 16.1 percent. Sales in financial year 2006 amounted to EUR 26.70 million (previous year: EUR 23.00 million). The EBIT underwent a substantial increase: It showed a noteworthy 61.4 percent growth from EUR 2.07 million (previous year) to EUR 3.34 million. The EBIT margin increased from 9.0 to 12.5 percent, which makes this the most profitable sector in the BRAIN FORCE group. In particular the investments in new and enhanced systems made in the past few years paid off in the last financial year. What is more, this growth underlines the soundness of the company's decision to carry out further expansion of this high margin division.

As at the reporting date of December 31, 2006, the group has cash assets of EUR 13.53 million (previous year: EUR 11.79 million). This, together with the debt of EUR 10 million which was taken up recently, means that the group has the ideal base on which to continue its buy and build strategy this year.

The annual report 2006 is available for download at http://www.brainforce.com/.