SAF Interim Report Q1/2006

– 57 % growth in net sales in first quarter of 2006
– Positive EBIT and net profit in the first quarter already
– Successful IPO achieved in under four months
– Increased awareness for SAF products

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In publishing its figures for the first quarter of 2006, SAF AG,
which has been listed on the Prime Standard of the Frankfurt Stock
Exchange (ISIN CH0024848738), reports a successful start to the new
financial year. Not only did the quarterly comparison show a
remarkable 57 percent increase in sales, but in the first quarter the
company also achieved a positive operating result (EBIT of EUR
272,682) and consolidated net profit (EUR 189.479).

Sales of licences and maintenance income up by 88 percent and 118
percent respectively

"The first quarter of 2006 for SAF AG was devoted to the IPO and the
consistent pursuit of organic growth in our core business of
generating sales of software licenses and maintenance income", the
CEO and President, Dr. Andreas von Beringe, explained.

SAF AG achieved an increase in total net sales of 57 percent compared
with the prior-year period. The growth in sales of licences and in
maintenance income was especially impressive at 88 percent and 118
percent respectively.

Sales of licences amounting to TEUR 1,184 were mostly generated from
the conclusion of three new contracts for licence customers.
Following a substantial increase in sales of licences in the previous
year, maintenance income, which reflects sales of licences in earlier
periods, rose significantly compared with the first quarter of the
previous year to TEUR 540 or by almost 120 percent. There was also a
corresponding increase in the volume of the order backlog resulting
from the maintenance activities.

Income from services remained slightly below the level in the first
quarter of 2005. The main reason for this was the increased use of
SAF consultants in pre-sales projects.

The geographical analysis of the development of net sales by end
customer reveals a slight increase over the prior-year period of 7
percentage points to TEUR 930 in the proportion of net sales to end
customers located in Germany. End customers from the rest of Europe
and the Middle East accounted for 39 percent of net sales for the
first quarter of 2006. This represents an increase of 29 percentage
points compared with the same quarter last year.

The proportion of net sales made to end customers in America fell by
35 percentage points, from 49 percent in the first quarter of 2005 to
14 percent for the same quarter of 2006. But SAF does not regard this
shift in any way as setting the pattern for the following quarters.
Moreover, the establishment last year of the US subsidiary has
created a platform for acquiring additional customers in the US.

Rise in net sales outpaces increase in costs

Costs for the first three months rose by 36 percent overall compared
with the prior-year period, considerably less than the rise in net
sales of 57 percent. The analysis of the increase in costs by
function is as follows: 17 percent rise in cost of sales, 24 percent
in research and development costs and 40 percent in distribution
costs. The increase was in line with expectations. Costs incurred in
the context of strategic expansion relate, in particular, to the
costs of developing SAF's business activities in the USA, and the
expansion of SAF's own sales and distribution operations. General
administrative costs rose by TEUR 216 compared with the first quarter
of the previous year, an increase of 66 percent. The increase was
mainly the result of costs incurred in connection with preparations
for the IPO. These included the costs of improving the accounting
systems, for example for the conversion to IFRS, tax and legal advice
and the development of investor relations activities.

The analysis of costs by the type of expense shows personnel expenses
24.2 percent higher than in the prior-year period at EUR 1,118. The
rise in the number of employees is in line with SAF AG's business
plan and will continue until the end of the year. Depreciation and
amortisation was 237 percent higher in the first quarter of 2006,
mainly as a result of the investment in equipment of new business
premises, rising from TEUR 27 to TEUR 92. This amount is not
significant, however.

Major financial indicators (EBIT, EBT, net profit) substantially
higher than prior year

The positive sales development was also strongly reflected in the
operating result (EBIT). The EBIT amounted to TEUR 273 with an EBIT
margin of 13 percent. This is a remarkable improvement over the first
quarter in the previous year, for which SAF AG had reported an EBIT
of TEUR - 18.

SAF AG also achieved a substantial improvement over the previous year
in income before tax (EBT) which, at TEUR 242, significantly exceeded
the loss before tax of TEUR -40 reported by SAF AG for the first
three months of 2005.

SAF AG also achieved a significant increase in net profit for the
period from a net loss of TEUR -62 in the first quarter of the
previous year to TEUR 189. The net profit margin amounted to 9
percent. This perform-ance at net profit level too, is an additional
major achievement, because the first quarter for SAF is typically
somewhat weak for seasonal reasons, as is generally the case in the
software industry.

Increase in staff numbers in line with growth in sales

SAF has recruited additional members of staff to help in continuing
to drive the growth in sales forward. At the end of the first quarter
of 2006, SAF AG had 55 employees, 10 more than in the same period of
2005.

Significant events after the end of the first quarter

In order to add even greater impetus to SAF AG's future growth, the
Company successfully completed its admission to listing on the Prime
Standard of the Frankfurt Stock Exchange on 6 April 2006 and also
established a 100% subsidiary of SAF AG, SAF Simulation, Analysis and
Forecasting s.r.o., in Bratislava (Slovakia). The subsidiary will
commence operations even before the end of the second quarter, with
the aim of carrying out nearshore development activities in
particular, but also facilitating access to the Eastern Euro-pean
market in the medium term.

SAF AG's prime objective is to achieve significant and also
profitable growth in sales in the current financial year, together
with a further improvement in the profit margin

In stating the reasons for the positive outlook, Dr. Andreas von
Beringe said, "We have noticed that there has been a significant
increase in interest from potential customers in the SAF SuperStore,
SAF Super-Warehouse and SAF SuperForecast software products. This is
undoubtedly also due to increased awareness of SAF AG thanks to the
higher level of publicity generated in the context of the IPO. But we
have also noticed a higher level of long-term interest in our
standard software solutions for the retail sector at trade fairs over
the course of the last few months. This is also reflected in the fact
that we have already won several new direct customers for pre-sales
studies and pilot installations".

This will trigger a further improvement in the profit margin. In the
first quarter of 2006, SAF AG has already shown that net sales are
continuing to rise at a rapid rate. It is notable that the increase
in sales of just under 60 percent and the 80 percent rise in gross
profit were achieved despite the preparations for the IPO, which took
up large amounts of time and management resources. Since almost all
of the administrative costs incurred in connection with the
preparations for the IPO were included in the income statement for
the first quarter, this has had an effect - as expected - on the EBIT
and net profit margins.

end of announcement euro adhoc 31.05.2006 07:17:35
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ots Originaltext: SAF AG
Im Internet recherchierbar: http://www.presseportal.de

Further inquiry note:
Astrid Strömer
+41 (0)71 666 79 48
astrid.stroemer@saf-ag.com

Branche: Software
ISIN: CH0024848738
WKN: A0JD78
Index: Technologie All Share, Prime All Share
Börsen: Frankfurter Wertpapierbörse / official dealing/prime standard
Börse Berlin-Bremen / free trade
Baden-Württembergische Wertpapierbörse / free trade
Börse Düsseldorf / free trade
Bayerische Börse / free trade