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Final Results 2005: S&T Announces Record Results for 2005

Sales +62%; EBIT +66%; EPS +82%

Sales

S&T generated record sales of EUR 355.7 million in the financial year 2005, an increase of some 62% on the previous year (2004: EUR 219.5 million). The increase in sales of services and software solutions was especially significant. They rose by 54% compared to the previous year.

EBIT / EBITDA / EPS

Earnings rose sharply again in 2005, with EBIT, EBITDA and earnings per share all significantly higher than in the previous year.

Profit from operations (EBIT) rose 66% from EUR 5.1 million in 2004 to EUR 8.5 million. EBITDA grew by 73% from EUR 8.4 million to EUR 14.5 million. Earnings per share (EPS, diluted) increased from EUR 0.76 to EUR 1.38, an increase of 82% compared to the previous year.

Capital Structure for Further Growth

"Financing for further growth has been secured," says Martin Bergler, CFO of S&T AG. "Last year we issued corporate bonds totalling EUR 25 million, thus increasing our equity a further 20% by ourselves."

Acquisitions

Acquisitions in 2005 included Computacenter Austria, T-Systems DSS, both in Austria, Sito in Serbia, Infonet in Croatia, EFP (Austria, Switzerland, Germany, Poland, Slovakia and the Czech Republic) and ITS in Slovenia, Croatia, Serbia and Montenegro.
The acquisitions in Austria have created a top company on the domestic market; the acquisitions in the other countries have expanded the portfolio, above all in the service segment, thus improving the market position in Slovenia, Croatia, Serbia and Montenegro, Poland, the Czech Republic and Slovakia.

The takeover of the EFP Group with a 50 member team of SAP specialists has opened up new markets in Switzerland. With approximately 400 SAP/ERP specialists S&T now has a formidable team in this fast-growing business area.

The purpose of these acquisitions was to deepen expertise in the target industries banking & insurance, manufacturing, telecoms and power utilities, and to create competence centres.

Outlook

"We are convinced that the East European markets offer opportunities for further growth and will reinforce our already strong position in this region. This position has now also been bolstered by the strong presence we have established in Austria: For many corporations with investments in CEE, Austria is an important location, so providing joint support for Austria and the CEE is of crucial importance," says Christian Rosner, CEO of S&T AG.

S&T will continue its strategy of focusing upon services and software solutions in 2006, the transformation of the Group to a solutions provider has already been completed.

Management aims to achieve strong growth once more in 2006, with sales in excess of EUR 400 million and EBIT of EUR 10 million.

Conference Call

S&T management will be available for a conference call on March 28th, 2006, at 16:00 CET. In order to participate, please call 0049 (0)69 2222 7111, 0043 (0)1 7957 6055 for Austrian participants and 0044 (0)20 7784 1004 for participants from the UK a few minutes before the start of the conference.

As an additional service, a recording of the conference call will be available from April 4, 2006, on the S&T homepage