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proALPHA Software Corporation

20 Trafalgar Square

Suite 403

Nashua, NH 03063

Tel. 001 603-881-3635

Fax 001 603-886-4350

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proALPHA Increases Turnover and Revenue

Fiscal Year 2010/11 Again Confirms Successful Development of the Company

Sep 14, 2011

During the annual shareholder’s meeting on September 13, 2011 proALPHA Software AG presented the results of the past fiscal year. The ERP provider focusing on medium-sized industrial, trade and service businesses could assert its position in a permanently difficult market environment and even resume real growth. The group revenue, for instance, increased by almost 3 % to 50.7 million euros (previous year: 49.3 million euros). Company earnings (EBIT) of 8.4 million euros exceeded last year's result of 7.7 million euros. Thus the proALPHA group completed the fiscal year 2010/11 successfully, too in terms of turnover and revenue.

In the product-related field of software revenues and revenues for software-related services a result of 31.7 million euros was achieved. This corresponds to an increase of 3.8 % versus the previous year. In the field of services including consulting- and project-related development and the portfolio of the proALPHA Academy, turnover increased by 2.8% to 18.4 million euros. Personal expenses have the greatest share in operative costs and increased by 0.4 million euros to 28.7 million euros. With an EBIT of 8.4 million euros and an EBIT margin of 16.6 % (previous year: 15.7 %) the profitability could be increased over last year's level. In the past fiscal year cashflow amounted to 6.4 million euros (previous year: 5.8 million euros).

In all, the internationally present ERP provider could considerably extend its market significance, as confirmed by several market researchers. Lünendonk GmbH, for example, ranks proALPHA among the leading German medium-sized standard software providers of the year 2010. In addition to that a survey of the publishing house Konradin confirms that the business service provider with headquarters in Weilerbach is the suitable ERP provider for medium-sized businesses. In this survey 90 % of the companies questioned agreed to the statement "solutions suitable for medium-sized businesses". Furthermore, proALPHA's position as technological leader and as international provider of software solutions could be strengthened according to Konradin. In the past year, too technological developments made allowance for the requirements of increasingly internationalized customers and for the faster and faster changing business environment. Werner Ernst, proALPHA CTO, says: "In addition to the participation in the software cluster "software innovation for digital business" funded by the Federal Government, proALPHA has made many efforts to completely rebuild the ERP solution towards a service-oriented structure in order to make user processes more flexible. Additionally, we have to supply our internationally present customers not only with optimal local services in the countries they work in but also with a software tailored to the habits and legal conditions of these countries. Furthermore, in the fiscal year 2010/11 proALPHA was released for operation with Unicode, so that users are enabled to smoothly exchange electronic data all over the world."

The intertrade organization Bitkom assumes a clear growth of the German software market for 2011. The proALPHA board of directors, too expects the company to develop positively. "In our opinion the proALPHA group is well-positioned in the market for medium-sized ERP solutions. Even in times of economic crisis we always continued our stable development. We of course face up to the fact that growth in world economics is influenced by many uncertainty factors which might impact the business development of proALPHA, too. Sound and clear-sighted business management will safeguard our future stability. To grow organically, increase turnover and at the same time maintain our profitability, will remain our main business objective." says CFO Jürgen Brand, with a confident look the future.

The proALPHA group at a glance

Note: proALPHA Software AG has a deviating financial year ending on March 31.

Turnover (in million euros)50.7 49.348.1
EBIT (in million euros)
Cash flow (in million euros)
Investment (in million euros)
Total assets (in million euros)52.1  49.145.7
Equity radio48.4 %43.8 %38.4 %
Employees Ø464462442

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