transtec increases turnover in the first quarter by 11 %

Volume of orders doubles from 6 million EUR to 12 million EUR

Tübingen, May 3rd 2000.
In the first quarter of 2000 the transtec group made a turnover of 44.1 million Euro. Thus, compared to 39.8 million Euro in the first quarter of 1999, turnover of the business-to-business (B2B) system manufacturer with direct sales rose by 10.8%. Consumer resistance, caused by the special "Year 2000" situation, partially effected turnover in the first two months of this year. This situation has resulted in a large volume of orders amounting to 11.7 million Euro, which, compared to the previous year (6,0 million Euro), has doubled.

Future investments have dominated the first three months of this year. The e-business model Virtual Warehouse has been consistently improved and promoted by a project team.

The amount of employees has risen from 255.5 to 375.3. This increase in employees is partially due to the acquisition of datacomp AG (57.5) but can also be attributed to the expansion of resources in the individual subsidiaries. Especially in European countries apart from Germany, the increase in personnel sets the course for a successful future.

As announced, the turnover situation and investments have a direct effect on transtec AG's figures. According to IAS the net profit amounts to -0.6 million Euro (in the same period last year: 1.0 million Euro). The DVFA earnings of -0.5 million Euro are also below the figures from the previous year (0.9 million Euro). According to DVFA/SG, the cash flow for the first quarter of 2000 represents 0.01 million Euro (1.4 million Euro in the same period in 1999).

transtec's prospects are looking positive for the following months as a growth in the transtec brand product business field in the areas with the most rapid growth - Linux systems, high-end servers and fail-safe RAID storage solutions - is expected.

Considerable amount of effort is being placed in developing and expanding the Virtual Warehouse. Seven business partners have been certified as suppliers for the online offer, and transtec customers can order over 30,000 IT products under www.transtec.de.

The second transtec general meeting will take place in Stuttgart on May 25, 2000. Among other things to be decided, the shareholders will take a vote on authorizing the repurchasing of shares. A dividend of 0.60 Euro will be offered by the Management board (0.56 Euro in the previous year).