DJ EANS-Adhoc: Beta Systems realizes positive effects from the sale of the ECM business in the first half of 2010

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ad-hoc disclosure pursuant to section 15 of the WpHG transmitted by euro adhoc
with the aim of a Europe-wide distribution. The issuer is solely responsible for
the content of this announcement.
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29.07.2010

Berlin, July 29, 2010 - Beta Systems Software AG (BSS, ISIN DE0005224406)
achieved a result of EUR 2.2 million after taxes in the first half of 2010. A
significant effect was the EUR 4.9 million disposal gain (before taxes) arising
from the sale of the ECM business, which more than compensated for the negative
result from the continued operations of EUR -1.4 million (after taxes), which
reflected seasonal fluctuations.

Special effects arising from the sale of the ECM business in Q1-Q2/2010
* Sale of net assets of EUR 10.9 million
* Disposal gain of EUR 4.9 million (before taxes)
* Sundry income of EUR 0.6 million

Assets of EUR 21.0 million (status as of May 31, 2010), which were allocated to
the ECM segment, were sold as a result of the disposal. These were offset by
liabilities of EUR 10.1 million connected with these assets (status as of May
31, 2010). A EUR 4.9 million disposal gain (before taxes) was incurred in the
first half-year as part of the realization of all purchase price components that
are not dependent on the occurrence of certain conditions. At the same time,
sundry income of EUR 0.6 million was achieved as part of the transfer-related
rendering of administrative services (including accounting, reporting, staff
administration, and IT services) for the company Beta Systems ECM Solutions GmbH
that was sold.

Operating trends in the continued business lines in Q1-Q2/2010 (DCI/IdM)
* Moderate business progress with delays to important major projects in
the continued infrastructure software business (following major orders in the
prior-year period)
* Significant operating expense cost-savings of more than EUR 2.0 million
* Operating cash flow grows by EUR 1.4 million to EUR 7.9 million
(Q1-Q2/2009: EUR 6.5 million)
* Operating profit (EBIT) falls to EUR -1.8 million (Q1-Q2/2009: EUR -0.3
million)

It proved impossible to fully repeat last year's extraordinarily good sales
performance in the continued infrastructure software business (DCI/IdM lines of
business) in the first half of 2010 due to reticence on the part of some
customers, or delayed decisions relating to major projects. Consequently,
revenue declined to EUR 20.7 million (Q1-Q2 2009: EUR 25.1 million).

Despite significant operating expense cost-savings of more than EUR 2.0 million,
operating profit (EBIT) of EUR -1.8 million fell to below last year's level (EUR
-0.3 million). At the same time, however, operating cash flow, which comprises
an important key indicator, was again raised, by EUR 1.4 million to EUR 7.9
million. Therefore, the company's financial position was significantly improved
compared to the end of 2009 through a EUR 9.3 million reduction in short-term
loans.

Q3-Q4/2010 outlook
* Management Board adjusts forecast for continued business operations

The statements concerning the outlook for revenue and the result that were made
at the start of the year have been reformulated for the ongoing business
operations, although excluding one-off effects. As a consequence, the management
currently anticipates a revenue level of around EUR 50 million in the DCI and
IdM lines of business (2009: around EUR 52 million), and an EBIT margin in the
mid-single-digit percentage range as part of cost-reductions (2009: around 4%).

Many key customers are currently continuing to critically scrutinize their major
IT investments, and experience suggests that they will fail to place major
project orders before the end of the year. The conclusion of significant
contracts in the infrastructure business is consequently not anticipated until
the fourth quarter. This is resulting in a shift in the timing of breakeven over
the course of the year, and the dependency of the consolidated net result on
these year-end license revenues is rising.

There is also additional positive earnings potential in the second half of 2010
arising from additional purchase price components for ECM of up to EUR 2.0
million, which are connected with the occurrence of certain conditions.

At the same time, and following an initial analysis, the Management Board
anticipates one-off expenses of up to EUR 5.0 million for the second half of
2010 for the restructuring and re-positioning of the business.

end of ad-hoc-announcement
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Information and explanations on this ad-hoc release by the issuer:

Management Board comments
Jürgen Herbott, Chief Executive Officer of Beta Systems Software AG commented as
follows: "The 'buy & build strategy' that we have opted for in the
infrastructure business is working well, and proving correct. It nevertheless
presupposes a fundamentally re-positioned and significantly profitable Beta
Systems. To this end, and following the ECM sale, we must review, and, if
required, optimize structures and processes. We will conduct the necessary
conversations with the new Supervisory Board following the Annual General
Meeting of Shareholders, and launch the requisite measures by the year-end."

"We have fundamentally and sustainably improved our financing and net asset
positions through the ECM sale, and through stronger cash management in the
continued business operations. This not only signifies a solid basis for our
forthcoming re-positioning, but also creates the financial scope to exploit
smaller acquisition opportunities as part of our 'buy & build' strategy," added
Chief Financial Officer Gernot Sagl.

Complete report
The full Report on the first six months of 2010 will be released on August 3,
2010 and posted on the company's website at http://www.betasystems.com under the
heading Investor Relations/Financial Reports.

Disclaimer
All amounts cited in this information by the Company and information derived
therefrom (e.g. percentage figures) are figures fully rounded up to thousands of
euros as presented in the summarized Consolidated Financial Statements as at
June 30, 2010.

End of information and explanations
Beta Systems Software AG
Beta Systems Software AG (Prime Standard: BSS, ISIN DE0005224406) offers large
corporations high-end infrastructure software which spans sectors. This software
enhances the performance of a company's IT in terms of its availability,
scalability and flexibility. Data centers optimize their job and output
management. Moreover, especially companies with high numbers of users are
supported in the automation of their IT user administration. Improved security
also serves to fulfill the requirements placed on business operations in respect
of governance, risk management and compliance (GRC).

Beta Systems was founded in 1983, has been a listed company since 1997, and has
a workforce of around 350 employees. The company's principal place of business
is Berlin. Beta Systems operates through Centers of Competence in Cologne and
Calgary, as well as 18 subsidiaries worldwide and cooperations with numerous
partner companies. Throughout the world more than 1,300 customers use the
products and solutions of Beta Systems to improve their processes and security
in more than 3,200 running installations. At present, Beta Systems generates 50
percent of its sales from international business. Around 200 of its customers
are based in the USA and Canada.
More information on the company and its products can be found under
www.betasystems.com.

end of announcement euro adhoc
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(END) Dow Jones Newswires

July 29, 2010 16:26 ET (20:26 GMT)