Q3: transtec AG considerably increases turnover -

Results affected by non-recurring expenditures

Tuebingen, 24.10.2000
The IT system manufacturer transtec based in Tuebingen, Germany, has reported group sales of 132.9 million Euro for the first nine months of 2000. Compared with the same period last year (117.1 million Euro), a 13. 5% increase has been made. According to IAS, the profit after tax for the year amounts to -5.2 million Euro (in the same period in 1999: 2.4 million Euro).

According to the Management Board, the decline in profits was due to the fusion of the Swiss subsidiary transtec Computer AG and datacomp AG. This caused unscheduled expenditures due to the streamlining of products and changes to the infrastructure. The aim of these measures is to complete all necessary changes as quickly as possible in order to set matters straight.

In addition to this, investments were also needed for establishing tec2b AG. tec2b specialises in the direct online sales of IT products for B2B customers and offers an assortment of more than 30,000 products. The online start is to take place some time this year.

Turnover for the year is expected to be considerably higher than that of the previous year, however the Management Board expects negative results in 2000.

The negative development of the company's operating results in 2000 will, however, remain an exception. Due to this success-oriented strategical perspective, transtec's Management Board expects to generate distinctively more positive figures in the year 2001, with respect to both turnover as well as the results of transtec's core business.

The complete Nine Month Report with all background information is available at transtec AG or at invest.transtec.de.