Due to the insolvency of BenQ Mobile GmbH & Co. OHG, BRAIN FORCE HOLDING AG expects bad debts totalling up to EUR 1.4 million, which will affect the company’s results for the third quarter in 2006. There will be hardly any impact on the results for the fourth quarter, especially since the BenQ Mobile projects were to come to an end anyway. The insolvency will have an insignificant influence on the company's liquidity (as of June 30, 2006: EUR 22.58 million). Due to an unclear allocation of quotas, a detailed quantification of the bad debt cannot yet be foreseen. The discontinuation of the customer relationship with BenQ Mobile however will not affect sales and results for FY 2007 as BRAIN FORCE did not budget for any joint projects with BenQ Mobile next year. BRAIN FORCE will announce their sales and profit forecast for FY 2007 early in October as scheduled.