BRAIN FORCE HOLDING AG (Vienna Stock Exchange: BFC, Reuters: BFC.VI), a leading IT services provider with business operations in Austria, Germany, Switzerland, Italy, the Netherlands and Czech Republic, announces the best operating result in the company’s history in 2008 according to preliminary figures.

Considerable improvement in all performance indicators

In 2008 the BRAIN FORCE Group increased its total revenues by 8% to EUR 106.21 million, surpassing the EUR 100m threshold for the first time. EBITDA climbed from EUR 0.35 to 7.79 million, and EBIT improved to EUR 3.83 million in 2008, compared to the negative EBIT of EUR -16.68 million in the restructuring year 2007. “Accordingly, BRAIN FORCE has achieved the best operating result in the company’s history, exceeding the previous record EBIT of EUR 3.58 million posted in 2005. Moreover, we significantly outperformed our own guidance”, says Günter Pridt, Chief Executive Officer of BRAIN FORCE HOLDING AG, commenting on the preliminary results presented today. In 2007, the results of the BRAIN FORCE Group were burdened by high restructuring costs and goodwill depreciation totaling EUR 14.16 million.

BRAIN FORCE will presents its financial result, net earnings for the 2008 financial year, cash flow and balance sheet data together with the Annual Report 2008 at the results press conference scheduled for March 27, 2009. At this time, the Managing Board will also give its view of the convertible bond relating to Kemp Technologies as well as the tax loss carry-forwards of its German subsidiary.

Solid fourth quarter despite difficult market situation

The BRAIN FORCE Group also achieved considerably higher operating results in the fourth quarter of 2008, thus significantly improving its earnings for the fifth consecutive quarter. In the period from October to December 2008 revenues rose 4% to EUR 27.89 million. “This also enables us to present a solid performance in the fourth quarter, despite a difficult business environment“, explains Günter Pridt. “This is also reflected in our earnings. In the last three months of 2008, EBITDA was up 12% to EUR 2.13 million, and EBIT rose 57% to EUR 1.16 million”, he adds.

All subsidiaries made a positive contribution to the good results

All subsidiaries contributed to the positive development of the BRAIN FORCE Group. The most pronounced earnings improvement was generated in Germany, with the Austrian and Dutch companies also featuring a gratifying business development. Cost saving measures implemented in the holding also made an important contribution to the success of the BRAIN FORCE Group. The subsidiary in Italy continued to hold up well despite the difficult market environment and a write down on receivables, closing the 2008 financial year with better results than in the previous year.

Management aims to achieve clearly positive operating result for 2009

A precise earnings guidance for 2009 is not possible at the present time due to the financial crisis and the uncertain market environment. However, the management of the BRAIN FORCE Group will carefully monitor costs and investments, and react quickly and determinedly to any potential deterioration of its earnings situation, in order to post a clearly positive operating result in 2009.