S&T System Integration & Technology Distribution AG: Improved operating result in Q2 from the prior-year

Restructuring expenses remain high, investor participation pressed ahead

Vienna (pta025/05.08.2011/18:05 UTC+2) Highlights

* Revenue declines to EUR 65.2 million, down 17.7% from the previous year, the decline was largely compensated by substantial cost reductions.
* Clear visibility of restructuring efforts - along with increased one-time expenses.
* EBIT in Q2 remains on the level of one-time expenses reaching EUR 2.5 mln.
* The Austrian subsidiary has reached a substantially improved result. The developments at the CEE companies are heterogeneous but show a positive general trend.
* Continuing difficult market environment for the Group due to the investor participation being not yet finalised.

Results

in EUR million	Q1 2011	Q1 2010 **	Delta in %	Q1 2010***
Revenue	65.2	79.2	-18%	90.9
Operating result*	-1.0	-2.5	+60%	-3.5
EBIT	-3.5	-2.5	+44%	-3.5

* Before restructuring expenses (in Q2 1011: EUR 2.5 mln)
** Reclassified pursuant to IFRS 5
*** As announced in the report of the first six months 2010 (without reclassified of discontinued operations pursuant to IFRS 5)

Based on the important financial restructuring measures in the first quarter, the focus in the second quarter has been put on the operative restructuring of the Austrian subsidiary and on selected measures in the CEE countries. S&T Austria will present the key aspects and results of the restructuring in the Austrian subsidiary in a press release on August 9. Group-wide the decline in revenues was largely compensated by consistent personnel cost reductions. Material cost also shows slight improvements. This is attributed to the increased share of service revenues incl. outsourcing vis-à-vis the trading business.

The operating result (before restructuring expenses) in the second quarter of 2011 totalled EUR -1.0 million, an improvement of 60% from the prior-year performance of EUR -2.5 million.

The restructuring expenses of Q2 2011 primarily encompass one-time charges such as cost associated with the redimensioning of the Japanese subsidiary as well as and personnel and extraordinary legal costs and other consulting costs in connection with the preparations for the investor participation.

The investor participation has been pressed ahead in the second quarter with increased intensity, various offers are currently assessed. Regarding that we expect final results in the third quarter.

The current successful restructuring still requires liquidity and thus weighs on the reserves and the liquidity situation of the Group. Therefore a capital increase and the investor participation gain in importance. The current attitude of employees, customers and suppliers still confirms the confidence in the restructuring process.

On basis of the new financial calendar published today, the report of the first six months 2011 is scheduled for 10 August 2011.

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