PIRONET NDH Half year report 2011 in a state of change

Cologne, 23 August 2011 – The current half year report of Pironet NDH shows a company in a state of change. The medium sized company group parts with loss making Group units, renewed and streamlined the Management Board and trimmed the business segments to sustainable profitability.

Separation from loss making business sectors
Already in March Pironet NDH sold the agentes Group (segment Finance IT Services). As at 10th August 2011 the Management Board announced the separation from substantial parts of the segment Master Data Service (MDS). Pironet NDH sold its 51 percent share of the SA2 Worldsync GmbH to its longstanding co-partner GS1 Germany GmbH. The purchase price is set at EUR 2.6 million. Among other things the transaction also encompasses the granting of a licence for EUR 1.4 million. These amounts will flow within the second half year 2011. With the sale of the shares in SA2 Worldsync GmbH the process of the strategic review of the MDS segment of Pironet NDH, as announced on 25th March 2011 is successfully completed. In this connection, as at 10th August 2011 an internal reorganisation of SA2 Retail AG and SA2 Exchange GmbH was decided: SA2 Retail AG is scheduled to be integrated in Imperia AG (segment Content Integration) and SA2 Exchange GmbH in Pironet NDH Datacenter GmbH (segment ICT Outsourcing).

Sales growth and improved operating result
The SA2 Worldsync GmbH had only been consolidated at equity since 1st January 2011. This makes the evaluation of the efficiency difficult compared to the previous year. The half year report offers therefore in the annex a comparison adjusted for this effect for the first half year 2010 and 2011.

On this comparable basis consolidated sales in the continued operations improved of 17% to EUR 26.1 million and the EBIT from EUR 0.0 million to EUR 0.9 million. The continued operations are showing a positive and – compared to the previous year – a significant strengthened EBIT. The exceptional charges from the restructuring have taken a negative effect though on the overall result before taxes (EBT) of Pironet NDH and the Group result.

Focus on profitability and the optimization of the structures
The fiscal year 2011 sees itself as a year of transition and strategic realignment. The main objective is to sharpen the structure and the portfolio within the Group. Therefore Pironet NDH concentrates now on three Group segments (formerly five Group segments). Saving potential within administration and future location costs is a result. Furthermore the Group streamlined its Management Board to two Members of the Board.

As part of the strategic realignment the independence of the individual Group segments will be preserved. At the same time the clear focus on profitable business operations is imperative. Thus Pironet NDH will exploit and develop its strengths as a medium sized company group sustainably.

The Management Board

PIRONET NDH AG offers the market a unique portfolio of solutions for handling digital content and data. This includes consultancy, software, integration and outsourcing services. PIRONET NDH AG is a corporate group that brings together three companies specializing in the different business areas ICT outsourcing, consulting and design as well as content management solutions. PIRONET NDH AG was founded in 1995 and is based in Cologne. Since 2000, it has been listed on the German stock exchange. The Group of companies employs more than 350 people and posted sales figures of around 55 million euros in the last financial year (2010).

Pironet NDH
Investor Relations
Von-der-Wettern-Straße 27
D-51149 Cologne
Tel.: +49.2203.935 30-6002
Fax: +49.2203.935 30-6009
E-Mail: ir@pironet-ndh.com