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Agresso North America Reports 74% Growth

VICTORIA, British Columbia-(Business Wire)-September 4, 2008 - Agresso, the ERP market’s definition of agility, has announced an increase in revenues of 74 percent for the six months ending June 30 compared to the same period in 2007, continuing its impressive growth path in the U.S. and despite the global economic decline following the credit crisis.

The activities in North America showed strong growth. Sales of the Agresso Business World suite increased and the company has significantly increased its footprint in the U.S., particularly in the public sector. Sizeable contracts have been signed this year including the City of West Linn, Ore., the City of Sparks, Nev., the Township of Langley, B.C. and Emeritus Corporation, the second largest provider of assisted living communities in the U.S.

Agresso’s ERP value proposition is proving successful as most of the new contracts were won against SAP, Oracle and Microsoft. The company has shown that its unique product architecture enables post-implementation change unlike rival products, and is well suited to Businesses Living in Change (BLINC). This is enabling customers to save money in the long term and remain agile and responsive in a difficult business environment.

“When we launched in the U.S., we were confident that our proposition would set us apart from the rest and now customers throughout the U.S. are using Agresso as a competitive advantage. These are excellent half year results for Agresso, and we’re extremely pleased with how we’ve performed in North America despite difficult economic conditions,” said Shelley Zapp, president of Agresso North America. “We have grown significantly by staying focused and showing organizations how they can save money over the long term. Business change doesn’t have to be costly and difficult and our ability to prove this to our customers and prospects means we have outperformed many other software developers and the outlook remains positive.”

Group highlights include:

Total revenue increases by 25% to $279.1 million (€191.4 million) (H1 2007: $222.6 million; €152.7 million)
EBITDA increases by 29% to $44.6 million (€30.6 million), including $2.48 million (€1.7 million) in integration and reorganization costs
EBITDA margin increases to 16% (excluding integration and reorganization costs: 17%)
Pro forma¹ revenue increases by 10%
Healthy development of operational cash flow: + $39.65 million (€27.2 million)
Net earnings per share before goodwill (excluding discontinued operations): + 41%

The acquisition of CODA in 2008 has played an important role in the results. The first half of 2008 showed a strong growth in consultancy revenue, especially due to the implementation of the large orders from 2007. Historically speaking the second half of the year usually produces higher licence revenue than the first half of the year. Based on the current pipeline and order book a similar outcome is expected in 2008. Statements can be found at www.unit4agresso.com/usa

About Agresso

Agresso (www.agresso.com/usa) is a $480 million enterprise resource planning (ERP) company and one of the top five providers of ERP solutions for professional services and public sector organizations. Agresso offers a uniquely integrated architecture designed specifically for Businesses Living IN Change (BLINC)™. Agresso allows an unlimited amount of ongoing, post-implementation changes without the typical external IT costs and intervention that nets billions of dollars in revenue to the market leaders. Over 2,750 companies and organizations in 100 countries deploy Agresso Business World for both operational support and strategic management. The company’s role-based, Web Services and Services-Oriented Architecture (SOA) enabled solutions include: Financial Management, Human Resources and Payroll, Procurement Management, Project Costing and Billing, Reporting and Analytics, Business Process Automation, Field Services and Asset Maintenance, and CRM.

¹ Adjustment of comparing revenue figures 2007 to include CODA results as of 26 February 2007, assuming constant exchange rates.

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