Munich, 05.08.2004. COMPUTERLINKS AG, Munich, ended the first half of 2004 with a marked upturn in sales and a further increase in profits. Group turnover rose in the first 6 months of 2004 by 21.4% to 98.0 million Euro (1st half of 2003: 80.7 million Euro). Gross margins have shown an encouraging trend in recent quarters. The important key figure for the Group was 18.7 % in the 2nd quarter of 2004 compared to 17.3% in the 4th quarter of 2003 and 18.6% in the 1st quarter of 2004. EBITDA (earnings before interest, taxes, depreciation and amortisation) in the 1st half of 2004 rose from 5.2 million Euro in the comparable period last year to 5.5 million Euro (+ 5.5%). The net income for the period increased by 15.7% to 3.2 million Euro (1st half of 2003: 2.7 million Euro). This corresponds to earnings per share of 0.54 Euro (1st half of 2003: 0.47 Euro).

Following a successful start to the beginning of 2004, the 2nd quarter of 2004 has shown a continuing positive trend. Group turnover in the 2nd quarter of 2004 at 48.5 million Euro was 25.9% up on the value for the previous year of 38.5 million Euro. Earnings before interest, taxes, depreciation and amortisation (EBITDA) were 2.8 million Euro (same period in the previous year: 2.7 million Euro) and net income for the quarter was 1.7 million Euro compared to 1.5 million Euro in the 2nd quarter of 2003. Earnings per share are therefore 0.29 Euro in the 2nd quarter of 2004 (2nd quarter of 2003: 0.25 Euro).

The gains in the 1st half of 2004 were achieved chiefly in the e-security division (+28.3%) and also in the professional services division (+ 17.0%). The e-business division also slightly exceeded comparable figures for the previous year (+0.3%).

Taking into account the dividend payment of 2.0 million Euro in the 2nd quarter of 2004, the Group’s cash and cash equivalents amounted to 11.3 million Euro as at 30.06.2004. Against this there are no bank loans or overdrafts.

Stephan Link, CEO of COMPUTERLINKS commented on the results for the first half of the year: “The impressive growth rates in double figures in the first and also the second quarter of 2004 reaffirm our steady growth. Encouraged by a successful first half of 2004 we feel optimistic about the traditionally stronger second half of the year”.

At a glance:

* The percentage change is based on values which have not been rounded off