euro adhoc: S&T System Integration&Technology Distribution AG / Quarterly or Semiannual Financial Statements
S&T announces second quarter and first half-year results for 2003 (E)

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- Total sales up 6% in second quarter - Solutions business triples in second quarter (+ 186%) - EBITDA falls by 4% in the first half-year

23 July 2003, Vienna, Austria - S&T System Integration & Technology Distribution AG ("S&T"; Vienna Stock Exchange: SNT, NASDAQ Europe: SNTS, OTC: STSQY) today announced results for the second quarter and first half-year ending 30 June 2003.

The consistent continuation of S&T's strategy of focusing on high quality, mission critical IT infrastructure and related services led to a significant increase in this area of business in the second quarter. Sales in the Business Solutions unit rose to EUR 8.5 million in the 2nd quarter of 2003 from just under EUR 3 million in the same period in 2002. This was largely due to the successful development of the SAP-related business in the Adriatic region and the first-time consolidation of the subsidiaries acquired from Fujitsu Services in Poland, the Czech Republic, Hungary, Romania, Greece and Malta. The planned takeover of the Fujitsu Services subsidiary in Slovakia was not realized after a thorough due diligence.

As announced on 16 July 2003 management has decided to apply an impairment adjustment of EUR 1.1 million (50% of remaining goodwill) due to the continued underperformance of the Turkish operation. Together with the operating loss in Turkey and costs in connection with the Fujitsu Services acquisition, EBIT for the second quarter was minus EUR 1.6 million.

Business in Turkey was difficult, in particular due to the volatile economic situation and tense international relations during and after the war in Iraq. The national budget was only approved on 30 June 2003, resulting in a far reaching stop to public spending in the first six months.

On 30 June 2003 the S&T Group had a total workforce of 1,214 people.

CONSOLIDATED INCOME STATEMENTS for the three months period April 01 to June 30, 2003 and 2002 (consolidated, unaudited) in EUR 1,000

Sales (in EUR 000)
                                                        Q2/2003          Q2/2002          +/-%
BS (Business Solutions)                      8.545              2.987          186%
ES (Enterprise Systems)                    23.387            24.715            -5%
CS (Customer Support)                         6.451              6.961            -7%
MS (Managed Services)                            671                    0
MED (Medical Systems)                         2.280              2.487            -8%
ITD (Information Technology
Distribution)*                                          0              1.750                -
Total sales                                        41.334            38.900              6%
Other Income                                          857                 501         71,1%
Total Revenues                                  42.191            39.401          7,1%
COGS                                                 -29.201          -28.588          2,1%
Staff                                                 -7.942            -5.255         51,1%
Other Operating Expenses                  -4.085            -3.973          2,8%
EBITDA                                                    963              1.585        -39,2%
Depreciation and amortisation              -808                -621         30,1%
EBITA                                                      155                 964        -83,9%
Impairment adjustment
goodwill Turkey                                 -1.100
Amortisation of goodwill                      -662                -529         25,1%
Profit from Operations/EBIT              -1.607                 435                -

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~ CONSOLIDATED INCOME STATEMENT (unaudited) in EUR 1,000 for the six months period ending June 30, 2003 and 2002

Sales (in EUR 000)                         1-6/2003         1-6/2002          +/-
BS (Business Solutions)                    13.017              7.264          79%
ES (Enterprise Systems)                    55.750            43.795          27%
CS (Customer Support)                        11.988            12.443          -4%
MS (Managed Services)                         1.249                    0
MED (Medical Systems)                         4.404              5.549         -21%
ITD (Information Technology
Distribution)                                            0              3.401              -
Total sales                                        86.408            72.452          19%
Other Income                                        1.305                 925        41,1%
Total Revenues                                  87.713            73.377        19,5%
COGS                                                 -62.770          -52.111        20,5%
Staff                                                -13.936          -10.402        34,0%
Other Operating Expenses                  -7.849            -7.576         3,6%
EBITDA                                                 3.158              3.288        -4,0%
Depreciation and amortisation          -1.461            -1.189        22,9%
EBITA                                                  1.697              2.099      -19,2%
Impairment adjustment
goodwill Turkey                                 -1.100
Amortisation of goodwill                  -1.324            -1.050        26,1%
Profit from Operations/EBIT                 -727              1.049              -

* The business unit ITD (PC and Hardware distribution) was sold

Total sales per region in EUR 1,000 for the six months period ending
June 30, 2003 and 2002
                                          2003                2002         +/- %
Adriatic                          26.476            30.918          -14%
South                                27.336              6.847          299%
Cyrillic                          10.448            13.503          -23%
Central                            22.148            21.184              5%
                                        86.408            72.452            19%

Adriatic: Slovenia, Croatia, Bosnia-Herzegovina, Macedonia, Serbia and Montenegro Central: Czech Republic, Hungary, Poland, Slovakia Cyrillic: Russia, Ukraine, Moldova, Latvia, CIS South: Bulgaria, Romania, Turkey, Greece, Malta, Cyprus

Outlook As in previous years, it can be assumed that after an average 3rd quarter a strong 4th quarter will follow. Due to the advancing integration of the Fujitsu Services subsidiaries, a positive impact on gross margins can be expected, as the percentage of total sales derived from services will increase. The exploitation of synergies (office mergers will be completed by the end of 2003) is also expected to reduce the burden on the cost side.

Management expects that the Turkish subsidiary will reach break-even at the end of 2003 after the started restructuring measures have been completed.

In the longer term, promising economic growth rates in Central and Eastern Europe as well as EU enlargement will lead to greater IT investments. S&T's management expects sales in excess of EUR 200 million in 2003.

Conference Call S&T’s management is available for a conference call on July 23 at 4.00 p.m. Central European time, UK: 3.00 p.m., US: 10.00 a.m. Eastern time. To take part in the conference call, please dial 0049 69 509 573 747 a few minutes prior to the start time. For your convenience, an instant replay will be available from July 23 at 6.00 p.m. Central European time. The replay telephone number is: 0049 69 50 957 9999 and the conference reference number is 23 70 51. If you have any questions please call 0049 69 50500600 for assistance.

Disclaimer This Information reflects the situation of S&T as per December 31, 2002. The Information contains certain forward-looking statements. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, financial condition, performance or achievements of S&T, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, the following: - competition from other companies, - changes in operating expenses, - attraction and retention of qualified employees, - uncertainties arising out of S&T’s operation outside Austria, - adverse changes in applicable tax laws, - adverse changes in governmental rules and fiscal policies, - civil unrest, - acts of God, - acts of war, and - other factors referenced in this Information. Given these uncertainties, prospective investors are cautioned not to place undue reliance on such forward-looking statements. No representation or warranty can be given, expressly or implied, regarding the correctness, completeness or fairness of information and opinion regarding such forward-looking statements contained in this Information. S&T disclaims any obligation to update any such forward-looking statements to reflect future events or developments. S&T and the persons acting on behalf of S&T do not accept any liability whatsoever arising from any use of this Information or its contents or otherwise arising in connection therewith. This Information does not constitute an offer or invitation to subscribe for or purchase any securities of S&T.

About S&T S&T is a leading provider of IT solutions for customers in 19 countries in Central, Eastern and Southern Europe. The company advises, develops and implements customised IT solutions and also offers round the clock service support. S&T has in-depth problem solving and service expertise for mission-critical applications with a specific concentration on the needs of large and medium-sized enterprises, in particular telecommunications companies, banks, power companies, the government and health care sectors.

end of announcement            euro adhoc 23.07.2003

Further inquiry note:
Karl Tantscher                          
Chief Executive Officer            

Henriette Lininger Investor and Public Relations mailto:henriett.lininger@snt.at

S&T System Integration & Technology Distribution AG Gunoldstrasse 16, 1190 Vienna, Austria Phone: +43 1 367 80 88 0 Fax:    +43 1 367 80 88 99 mailto:snt@snt.at http://www.snt.at/

Branche: Computing & Information Technology
ISIN:      AT0000905351
Index:    ATX Prime, NECI, ViDX
Börsen:  Wiener Börse AG / official dealing
              Nasdaq Europe / official dealing

Weitere Meldungen: S&T AG

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