euro adhoc: Beta Systems Software AG / quarterly or semiannual financial statement / Beta Systems announces results for the second quarter and the first half 2006 (E)

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Disclosure announcement transmitted by euro adhoc.
The issuer is responsible for the content of this announcement.
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09.08.2006

CORPORATE NEWS RELEASE
AD HOC ANNOUNCEMENT PURS. TO SEC. 15 WpHG

Beta Systems announces results for the second quarter and the first half 2006

Berlin, 9 August 2006 -The management board of Beta Systems Software AG (BSS,
ISIN DE 0005224406) announced after a detailed analysis of the operating
business and all balance sheet items for the second quarter and first half 2006
that the exceptional expenditure items, due to the risk assessment carried out
in the second quarter and the cost reduction and consolidation measures, are
significantly above the previous year’s level.

Beta Systems key financial figures for Q2 2006
- Revenue increased to EUR 23.5 million (Q2 2005: EUR 23.4 million)
- Special Items: Exceptional expenses of EUR 12.3 million for cost reduction and
consolidation measures and the current risk assessment had an effect on the
operating result.
- Operating result (from continued business operations including aforementioned
exceptional expenses) reduced to EUR -15.4 million (Q2 2005: EUR -3.5 million)
- Quarterly result decreased to EUR -9.4 million / -1.08 per share (Q2 2005: EUR
4.1 million / EUR 0.50 per share)
- Comparable, adjusted operating result reduced to EUR -3.2 million (Q2 2005:
EUR -2.5 million)
- Comparable, adjusted quarterly result reduced to EUR -2.1 million / EUR -0.23
per share (Q2 2005: EUR -0.9 million / EUR -0.11 per share)

Beta Systems key financial figures for first half 2006
- Revenue increased to EUR 45.3 million (HY 2005: EUR 43.2 million)
- Special Items: Exceptional expenses of EUR 13.0 million for cost reduction and
consolidation measures and the current risk assessment had an effect on the
operating result.
- Operating result (from continued business operations including aforementioned
exceptional expenses) reduced
to EUR -19.0 million (HY 2005: EUR -7.6 million)
- Half-year result reduced to EUR -10.9 million / EUR -1.25 per share (HY 2005:
EUR 2.0 million / EUR 0.24 per share)
- Comparable, adjusted operating result increased to EUR -6.0 million (HY 2005:
EUR -6.6 million)
- Comparable adjusted half-year result reduced to EUR -3.1 million / EUR -0.35
per share (HY 2005: EUR -2.5 million / EUR -0.30 per share)

End of ad-hoc announcement

Information and notes provided by the party issuing this ad-hoc announcement:

Assessment of the current risk situation
"The significantly reduced operating result in the second quarter and first half
2006 as a comparison with the previous year is in particular attributable to the
special items within the cost reduction and consolidation measures and the
assessment of the current risk situation which amounted to a total of EUR 13.0
million", stated Kamyar Niroumand, management board chairman of Beta Systems
Software AG. "Therefore we have undertaken a necessary assessment of the current
risk situation which involved some one-off items." In addition the management
team has been significantly slimmed down with two board members in the future
and one implementational first management level. I explained in the last report
that our company was to switch from restructuring mode to growth mode. In Q2 we
have set a positive signal here by stabilising our revenue growth and halting
the drop in the licence business - our most important growth engine. We are
continuing to devote the highest level of attention to increasing our licence
business and at the same time we are working extremely hard to improve our
sustained results which we have not yet been able to in this first half year."

Fine tuning of the company strategy: Focus, Focus, Focus
Mr Niroumand summarised his first 100 days as chairman of the management board
of Beta Systems Software AG as follows: "I have concentrated during this period
on our sales activities in the operating business and have visited two to three
important strategic customers every week. This has been extremely helpful in the
further development of our company strategy. "The series of measures now agreed
for the fine-tuning of our strategy can be summarised with the words focus,
focus and more focus. We develop exclusive, high-value software products and
solutions for the secure and efficient processing of extremely large data
volumes. This consists of a concentration on software for the safeguarding of
business processes in large companies, especially in the financial services and
industrial sectors. In our international business we are focussing on doubling
the partner business in Europe and on a long-term profitable presence in North
America. In the course of these measures we have slimmed down our country
organisations and a streamlined our portfolio. Our prime objective is to
generate sustained positive results. This means that by 2008 at the latest all
the business sectors must be working profitably. Based on the successfully
implemented cost reduction and cost consolidation measures and the current risk
assessment we have carried out, we expect that we will be able to increase our
comparable, adjusted operating result over the rest of the year.

The complete quarterly report will be published on the internet at
www.betasystems.com.

End of announcement

About Beta Systems Software AG, Berlin, Germany
Beta Systems Software AG (Deutsche Börse - Prime Standard: BSS) is a leading
supplier of infrastructure software for enterprise critical applications for the
automation and protection of business processes. Beta Systems provides software
in the following areas: Identity Management (IdM), Enterprise Content Management
(ECM) and Data Centre Infrastructure (DCI). All solutions are able to process
high-volumes of information and throughput. They secure business critical data
and help achieve compliance by addressing regulatory requirements. The ECM
product range includes scanners and sorters from Kleindienst - a brand owned by
Beta Systems Software AG.

Beta Systems with headquarter in Berlin has been listed on the Deutsche Börse
(German stock exchange) since 1997 and currently employs about 700 people. The
company has 17 subsidiaries worldwide, as well as numerous business partners.
Beta Systems’ worldwide customer base comprises more than 1,000 IT service
providers and large organisations from the fields of finance and insurance,
manufacturing, commerce, telecommunications, logistics and energy supply, along
with public sector organisations. For further information please visit:
www.betasystems.com

Further inquiry note:
Contact Information
|Company Contact: |Agency Contact: |
|Beta Systems Software AG |HBI PR&MarCom GmbH |
|Arne Baßler |Corinna Voss, Melanie Körner |
|Corporate Communication |Tel.: +49 (0)89 99 38 87-0 |
|Tel.: +49 (0)30 726 118-170 |Fax: +49 (0)89 930 24 45 |
|Fax: +49 (0)30 726 118-881 |E-mail: corinna_voss@hbi.de; |
|E-mail: |melanie_koerner@hbi.de |
|arne.bassler@betasystems.com | |

end of announcement euro adhoc 09.08.2006 14:01:57
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emitter: Beta Systems Software AG
Alt Moabit 90d
D-10559 Berlin
phone: +49(0)30 726118 0
FAX: +49(0)30 726118 800
mail: info@betasystems.com
WWW: http://www.betasystems.com
ISIN: DE0005224406
indexes: CDAX, Prime All Share, Technologie All Share
stockmarkets: regulated dealing/prime standard: Frankfurter Wertpapierbörse,
free trade: Börse Berlin-Bremen, Hamburger Wertpapierbörse,
Baden-Württembergische Wertpapierbörse, Börse Düsseldorf,
Niedersächsische Börse zu Hannover
sector: Software
language: English

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