Beta Systems Software AG

CORPORATE NEWS: Beta Systems Announces Audited Annual Results for FY 2006

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balance/annual report

Berlin, Germany. 27 March 2007 (euro adhoc) - ---------------------

-  Revenue increases by 1.1% TO E 96.6 million in 2006 -  Pre-tax
loss of  E -16.4 Mio. (2005: E -5.1 Mio.) and net loss of      E -18.4
Mio. (2005: E 1.6 Mio. incl. E 6.1 Mio. from disposal of business      
unit) due to exceptional expenses (around E 12 million in FY 2006) as
anticipated clearly negative -  Cost reduction and growth in licenses
in 2nd half-year: operating result (net      of extraordinary items)
increased to E -3.6 million in FY 2006 (compared to      prior year at
E -4.2 million)

Beta Systems Software AG (BSS, ISIN DE0005224406) recorded year-on-year revenue growth of E 1.0 million, or 1.1%, in fiscal 2006. Its annual result is E -18.4 million (previous year: E 1.6 million ) and is characterized by extraordinary items resulting from the sale of Kleindienst Scanner GmbH, a mid-year risk reevaluation, and a one-time impact, throughout the enterprise, due  to the company's reorientation in the ECM and IdM segments. The company has undertaken organizational resizing measures and is oriented towards marketing, sales, and service. It has also completed a refocusing of activities on product range, customers, industries, and regions. The effect of these measures is that the second half-year has already shown a reduction of the operating cost basis (fixed costs p.a.) of some 8%. The company's operating result, net of extraordinary items, is E 0.6 million higher than in the prior year.

Having accounted for these non-recurring effects in the relevant separate financial statements prepared in accordance with the German Commercial Code (Handelsgesetzbuch - HGB), the parent company of the Group, Beta Systems Software AG, recorded no net retained earnings ("Bilanzgewinn", also referred to as unappropriated surplus) in fiscal 2006. As a result, there will be no dividend payment for the 2006 fiscal year. However, both the Management Board and the Supervisory Board remain committed to a dividend policy that is geared to the future.

Outlook for Financial Year 2007 Due to the measures taken in the sales area, which resulted from the company refocusing its corporate strategy, the Board expects a slight increase in revenues for the financial year 2007.  This will be accompanied by a significant increase in software license and service revenues as well as a reduction in the proportion of hardware in the overall revenues. Because of the optimized cost structure, management currently expects the company to become and stay profitable during the course of the year with a single-figure EBIT margin for the financial year 2007.

Comments by the Management Board Kamyar Niroumand, CEO of Beta Systems Software AG, issued the following statement in response to the company's annual results: " Behind us lies an eventful year and one that has brought us many changes. The first six months of the fiscal year 2006 were dominated by the final implementation of our cost reduction and consolidation measures. From July onwards we made significant progress, particularly at an operational level and concluded a number of major contracts with key financial customers such as Allianz, Postbank, or UniCredit Group. We succeeded in reversing the downward trend in our licensing business - our main engine for growth -, ending the year with a modest gain of approximately 1% for the year.

Kamyar Niroumand added, "Our target now is to continue this positive trend and to strengthen our maintenance-and service business by concluding new contracts in the licensing- and solutions areas, particularly in the IdM and ECM business segments. We have laid the foundation for a successful turnaround and have created favorable conditions for growth. The goal which we have set ourselves is for all three Lines of Business to operate profitably by 2008."

Further information regarding FY 2006 Online Annual Results Press Conference

The Management Board will comment on the results of fiscal 2006 as part of an online annual results press conference to be held on March 27, 2007. The online press conference will take place at 11:00 CET and will be broadcast live on the internet at http://www.webpk.de/betasystems_270307 (to be held in German language).

The complete annual report is available on www.betasystems.com - section 'Investor relations'.

About Beta Systems Software AG, Berlin, Germany Beta Systems Software AG (Prime Standard: BSS, ISIN DE0005224406) develops high- quality software products and solutions for the secure and efficient processing of large quantities of data, and is one of the leading medium-sized, inde- pendent, European software solution providers in its market segment. Its software products and solutions sup-port customers in the automation, safeguarding and traceability of their business processes within the three core areas of document management (Enterprise Content Management business area), user management (Identity Management business area) and information management in data processing centres (Data Centre Infrastructure business area).

The company has been listed on the stock exchange since 1997, and currently employs around 645 staff, mainly in the competence centres of Berlin (company headquarters), Cologne, Augsburg and Calgary. In addi-tion to this, Beta Systems is internationally active with 17 wholly-owned subsidiaries and numerous partner companies. Among its worldwide total in excess of 1,300 customers with over 3,000 running installations are major businesses in the fields of financial services, industry, commerce, logistics and IT services, in Germany, Europe and the USA. For more information, please see www.betasystems.com.

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ots Originaltext: Beta Systems Software AG
Im Internet recherchierbar: http://www.presseportal.ch

Further inquiry note:
|Corporate:                                |Local UK Media Contact:                                    |
|Beta Systems Software AG         |JGC PR                                                                |
|Arne Bassler                            |Jack Gocher                                                        |
|Tel.: +49 (0)30 726 118-170    |Phone: 0044-(0)1494 724113                                |
|Fax: +49 (0)30 726 118-881      |Mobile: 0044-(0)7815 780931                              |
|E-Mail:                                    |Email: jack@jgc-pr.co.uk                                  |
|arne.bassler@betasystems.com  |                                                                         |

Branche: Software
ISIN:      DE0005224406
WKN:        522440
Index:    CDAX, Prime All Share, Technologie All Share
Börsen:  Frankfurter Wertpapierbörse / regulated dealing/prime
              standard
              Börse Berlin-Bremen / free trade
              Hamburger Wertpapierbörse / free trade
              Baden-Württembergische Wertpapierbörse / free trade
              Börse Düsseldorf / free trade
              Niedersächsische Börse zu Hannover / free trade



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