30.03.2004

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GFT maintains its position in a difficult market environment

Cost saving measures and internationalization have a positive impact on the company´s result

St. Georgen, March 30, 2004 - GFT Technologies AG, one of Europe´s leading technology companies for integrated e-business solutions, announces its 2003 financial results. In the 2003 financial year the GFT business group achieved turnover of EURO 138.1m. Its earnings before interest, taxes, depreciation and amortization (EBITDA) improved considerably, from EURO -11.2m. in the previous year to EURO -1.5m in 2003. Its net loss amounted to EURO -17.7m. (pr. yr. EURO -28.8m.) but was once again affected by non-scheduled goodwill amortization. Solid liquidity has freed up capacities for future development.

The cost saving measures initiated by the GFT Group and its targeted expansion of its more economical international production facilities in Spain, Hungary and India had a positive effect on the development of its financial figures in 2003. Even though turnover decreased by around 11 % on the previous year to EURO 138.1m., the group´s loss was reduced considerably.

EBITDA in the GFT Group amounted to EURO -1.5m. in 2003, compared to EURO -11.2m. in the previous year. It became apparent during the course of the year that the group´s earnings situation was stabilizing: A negative first quarter was followed by three quarters which achieved positive EBITDA for the first time since the end of 2001. In both the second and third quarters of 2003, EBITDA amounted to EURO 0.3m., whilst the fourth quarter recorded EBITDA of EURO 2.1m.

In the past financial year the result from ordinary activities amounted to EURO -13.4m., compared to EURO -34.1m. in the previous year. The GFT Group´s net loss amounted to EURO -17.7m. in 2003 (pr. yr. EURO -28.8m.). However, this was affected by non-recurring items relating to the restructuring measures, the non-scheduled goodwill amortization and tax expenditure which was significantly higher than in the previous year.

On December 31, 2003 the GFT Group´s balance sheet showed liquid funds and securities totaling EURO 36.0m. (pr. yr. EURO 38.2m.). Its shareholders´ equity amounted to EURO 47.0m., corresponding to a shareholders´ equity quota of 56 %.

At the end of the year the GFT Group had 1,058 permanent employees - 32 less than at the same point in the previous year. The company´s employee structure reflects its increasing internationalization. In 2003, for the first time in its history more than half its employees (610) were located outside Germany.

"In 2004 we expect that the outline economic conditions will develop more favorably, which will have a positive knock-on effect on the IT market. Our extensive portfolio of innovative e-business solutions and our capacity to exploit our international IT production resources have made a highly favorable impression on very many companies. Overall, we are aiming for turnover at the same level as in the previous year, but positive earnings before taxes," says Ulrich Dietz, Chief Executive Officer of GFT. "We will be pressing on with our internal optimization program, so as to make substantial further progress towards a future characterized by long-term profitability."