proALPHA: Double digit increase in profit

Munich, 24. October 2005 – proALPHA Software AG presented its business figures for the past financial year 2004/05 (ending March, 31) during today’s press conference at the SYSTEMS in Munich. The ERP systems provider with headquarter in Weilerbach, Germany achieved a group revenue of 32.4 million Euro (27.3 million Euro in 2003/04) and an EBIT of 3.4 million Euro (1.8 million Euro in the previous year) with an increased EBIT margin of 10.6% vs. 6.6 % in 2003/04. Thus proALPHA continued the uninterrupted series of now ten profitable years with a revenue increase of 18.7%. With other words, expectations for the past financial year were met.

Last year’s restructuring measures to centralize and optimize the company’s business processes have been continued in the financial year 2004/04. The reorganization of the proALPHA company structure also aimed at a reduction of minority interests in the group. The equity ratio increased to 32.4 % vs. 27.7 % in the previous year.

In the future proALPHA Consulting AG will be responsible for direct business all over Germany. This measure will considerably strengthen power and effectiveness of the entire group. It can be seen clearly that restructuring resulted in a profit and performance increase. Profit in the key business areas licensing, support and services increased by 17% to 22%, respectively. Their share of the group revenue almost remained unchanged. „The support share is the sound basis for continuous further development of our software products and guarantees firsthand advisory services for our customers”, says Leo Ernst, CEO of proALPHA Software AG.

Even in the current financial year proALPHA intends to continue its growth. Mainly the recruiting of qualified employees for sales, consulting and development is to contribute to future success. In addition to that, the business partner network in Europe and the other western-standard industrial countries will be expanded. Leo Ernst: “The increasing internationalization of the proALPHA group and weakening competitors will help us to get closer to our vision of making proALPHA the standard for upper-range mid-sized businesses.”