Beta Systems announces results for fiscal 2005

Berlin (ots) -

- Beta Systems confirms preliminary results: FY 2005 sees growth
in revenue and earnings
- Revenue increases by 6.2% to Euro 95.6 million (2004: Euro 90.0
million)
- Exceptional expenses of Euro 5.6 million (merger, restructuring
and cost streamlining)
- Pre-tax loss from continuing operations of Euro 5.1 million
(2004: profit of Euro 0.3 million)
- Non-recurring income of Euro 6.1 million from disposal of
business unit
- Net profit of Euro 1.6 million / Euro 0.19 per share (2004: Euro
0.1 million / Euro 0.01 per share)

Beta Systems Software AG (BSS, ISIN DE0005224406) recorded
year-on-year revenue growth of Euro 5.6 million, or 6.2%, in fiscal
2005. The increase in revenue is attributable mainly to the full
inclusion of Kleindienst Datentechnik AG in the consolidated group
for the first time. Net profit for the period amounted to Euro 1.6
million (2004: Euro 0.1 million) and is dominated by exceptional
charges associated with corporate integration, amalgamation as well
as Group-wide restructuring and cost streamlining. Exceptional income
of Euro 6.1 million from the disposal of the Outsourcing Service unit
also had an impact on bottom-line results in fiscal 2005. Having
accounted for these non-recurring effects in the relevant separate
financial statements prepared in accordance with the German
Commercial Code (Handelsgesetzbuch - HGB), the parent company of the
Group, Beta Systems Software AG, recorded no net retained earnings
("Bilanzgewinn", also referred to as unappropriated surplus) in
fiscal 2005. As a result, there will be no dividend payment for the
2005 fiscal year. However, both the Management Board and the
Supervisory Board remain committed to a dividend policy that is
geared to the future.

Comments by the Management Board

Dietmar Breyer, CEO of Beta Systems Software AG, issued the
following statement in response to the company's annual results: "The
financial year just ended was influenced by measures aimed at cost
streamlining, consolidation and integration. Our market environment
was characterized by intense competition and reluctance on the part
of large corporations to invest in major IT projects, which was
particularly apparent in our home market, the German-speaking
countries. Having said this, the IdM and ECM segments, in which we
are now perfectly positioned, provided strong impetus in the year
just ended, and we negotiated a number of major sales agreements
towards the end of 2005. Our operating results were impacted by
exceptional charges associated with corporate restructuring. To a
large extent, this process of reorganization within the Group,
initiated as part of our 'GaP'05' program, has now been concluded and
is beginning to take effect."

Dietmar Breyer added, "In addition to providing a more effective
basis for marketing activities, the new structure will ensure greater
proximity to customers and further optimization of costs. We have
identified the majority of opportunities within this area and will
implement the appropriate measures in fiscal 2006 to the full extent,
with the express purpose of leveraging profitability in a manner that
is sustainable and generating palpable earnings growth over the
coming years. The prime objective, however, is to achieve our planned
growth targets in terms of revenue. With the appointment of Kamyar
Niroumand as the Group's new CEO effective from April 1, 2006, Beta
Systems will enter this crucial phase of its corporate development
with renewed vigor and determination."

Further information regarding FY 2005

Online Annual Results Press Conference

The Management Board will comment on the results of fiscal 2005 as
part of an online annual results press conference to be held on March
27, 2006. The online press conference will take place at 11:00 CET
and will be broadcast live on the internet at
http://www.webpk.de/betasystems_270306.

The full annual report for 2005 can be accessed at
www.betasystems.com.

End of announcement

About Beta Systems Software AG, Berlin, Germany

Beta Systems Software AG (Deutsche Boerse - Prime Standard: BSS,
ISIN DE0005224406) is a leading supplier of infrastructure software
for enterprise critical applications for the automation and
protection of business processes. Beta Systems provides software in
the following areas: Identity Management (IdM), Enterprise Content
Management (ECM) and Data Center Infrastructure (DCI). All Beta
Systems' solutions are able to manage high-volumes of information and
throughput. They secure business critical data and help achieve
compliance by addressing regulatory requirements. The ECM product
range includes scanners and sorters from Kleindienst - a brand owned
by Beta Systems Software AG.

Beta Systems has been listed on Deutsche Boerse (German stock
exchange) since 1997 and employs 700 people. The company has 17
subsidiaries worldwide, as well as numerous business partners. Beta
Systems' worldwide customer base comprises more than 1,000 customers
including IT service providers and large organizations from the
fields of finance and insurance, manufacturing, commerce,
telecommunications, logistics and energy supply, along with public
sector organizations. For further information please visit:
www.betasystems.com.

Originaltext: Beta Systems Software AG
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ISIN: DE0005224406

Company Contact:
Beta Systems Software AG
Arne Baßler
Corporate Communications
Tel.: +49 (0)30 726 118-170
Fax: +49 (0)30 726 118-881
E-mail: arne.bassler@betasystems.com

Agency Contact:
HBI PR&MarCom GmbH
Corinna Voss, Melanie Körner
Tel.: +49 (0)89 99 38 87-0
Fax: +49 (0)89 930 24 45
E-mail: corinna_voss@hbi.de;
melanie_koerner@hbi.de