- Revenue for the first nine months increases to EUR 36.2 million
- Loss before interest, taxes, depreciation, and amortization totals EUR 1.4 million

Leonberg, February 28, 2003

Information logistics enterprise caatoosee generated revenue of EUR 36.2 million in the first nine months of the fiscal year 2002/2003. In the same period a year ago, revenue had totaled EUR 35.7 million. The loss before interest, taxes, depreciation, and amortization (EBITDA) for the first nine months stood at EUR 1.4 million (9M 2001/2002: loss of EUR 7.9 million). The third-quarter loss was mainly a result of the decline seen in license activities. This in turn was attributable to sluggish capital expenditure and the decision by many potential customers to delay purchases until the official launch of the company's new iq-server version, which was showcased in December 2002, and final product certification by SAP, which also took place in December 2002. As a result, purchase-related negotiations and test installations were postponed to the fourth quarter.

As a result of the decline in license revenues in the third quarter, the gross profit ratio for the first nine months only amounted to 27 percent. Due to below-par financial income, the Group posted a consolidated net loss of EUR 5.5 million (9M 2001/2002: net loss of EUR 25.3 million). As of December 31, 2002, caatoosee employed 782 people (previous year: 772 employees).

The loss before interest and taxes was EUR 3.6 million (9M 2001/2002: loss of EUR 17.9 million). Selling expenses for the first nine months amounted to EUR 4.3 million (9M 2001/2002: EUR 4.6 million). This corresponds to 12 percent of sales. General and administrative expenses totaled EUR 5.7 million (9M 2001/2002: EUR 8.3 million), which equates to 16 percent of sales (9M 2001/2002: 23 percent). In the first nine months of fiscal 2002/2003, caatoosee invested EUR 4.1 million (9M 2001/2002: EUR 3.9 million) in research and development. Thus, research and development in relation to sales remained unchanged year on year at 11 percent.

The net loss of EUR 5.5 million for the period (9M 2001/2002: net loss of EUR 25.3 million) includes EUR 1.6 million in losses attributable to financial investments. Based on a total number of shares of approx. 17.8 million in the first nine months, the loss per share amounted to EUR 0.32 (9M 2001/2002: loss of EUR 1.47 per share). Stockholders equity reached EUR 49.8 million on December 31, 2002.With a balance sheet total, i.e. total assets, of EUR 75.7 million, this corresponds to an equity ratio of 66 percent.

"Against the backdrop of the current economic malaise, many enterprises have simply decided not to spend their capital resources remaining at the end of the calendar year, instead of fully utilizing these budgets," said CEO Guido Alt. "This situation, coupled with our SAP certification and the release of a new iq-server version, resulted in a decline in license revenue in the third quarter of the fiscal year 2002/2003. But the ongoing negotiations with potential clients make us confident that the fourth quarter will see an upsurge in license revenue."