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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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Peak Result for proALPHA

Increase of Office Room and Personnel Pushed During Past Fiscal Year

Oct 11, 2008

Again in 2008 proALPHA Software AG presented the best result in the company’s history during the SYSTEMS press conference today. The ERP business focussing on mid-sized industrial and commercial enter-prises increased its group revenue from 41 million Euro in 2006/2007 to 45.7 million Euro in 2007/2008. These figures show a growth by 11.5%. Thus proALPHA is significantly above the growth rate of 4.8 % for the Western Europe market and 3.8 % for the German market as predicted by the market researcher IDC. Company earnings (EBIT) of 7.5 million Euro constitute an increase by 10.1 % vs. the previous fiscal year (EBIT 2006/07: 6.8 million Euro). Thus proALPHA continued the uninterrupted series of now thirteen years of positive results.

Product-related profit for software and software-related profit for services increased by 10.9% to 28.7 million Euro (previous year: 25.9 million Euro). Services profits increased by 14.8% to 16.2 million Euro (previous year: 14.1 million Euro). These figures include consulting, project development and services offered by the proALPHA academy.

Personnel expenses have the greatest share in operative costs and increased by 2.9 million Euro to 24.0 million Euro. Recruiting and personnel training have been of decisive importance during the past fiscal year.

Especially for consulting and project development, proALPHA was able to recruit highly qualified experts. With an average of 403 em-ployees in the reporting year, the group has increased its personnel by 13.2%. Even in the current fiscal year this increase is to be continued. In the future, too it will be one of the key tasks of human resource management to recruit more specialists and ensure their long-term involvement with the company.

Besides an increase of personnel, the proALPHA group considerably increased office space during the last business year. On March 1, 2008 a new office in Chemnitz was opened. Due to a lack of space some proALPHA offices had to move to new facilities. The headquar-ters of the proALPHA Consulting AG at Ahrensburg are now located in a company-owned building that meets the requirements for sufficient office room. Even in the current business year expansion continues. On September 1, 2008 a new office in Munich was opened. By the end of the year an additional building for the headquarters of proALPHA Software AG in Weilerbach is to be finished. This building will include 30 office rooms for about 50 employees as well as seminar and presentation rooms.

According to Leo Ernst, executive board member of proALPHA Soft-ware AG, proALPHA aims at further growth in the future. "The group will extend its leading position in the market segment for mid-sized industrial and commercial businesses during the next few years. Our growth will significantly depend on the search of qualified new per-sonnel to safeguard our high-quality consulting portfolio. Our cus-tomers are still in need of these services. It is clear that the lack of skilled staff will sooner or later lead to general price increases for advanced services. Additionally, I expect further adjustment and con-solidation within our competitive environment", says Leo Ernst.

The proALPHA group at a glance
Note: proALPHA Software AG has a deviating financial year ending on March 31.

Revenue (in Mio. €)45.741.034.0
EBIT (in Mio. €)
Cashflow (in Mio. €)
Investment (in Mio. €)
Balance sheet total (in Mio. €) 44.537.131.9
Equity ratio37.6%34.5%29.6 %
Employees Ø403356327

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