P&I: Increase in Sales and Results for the First Quarter

Press release

______

Wiesbaden, 10 August 2006

P&I: Increase in sales and results for the first quarter

Sales growth of 5.6 percent
EBIT increases to 2.0 million euro

With sales growth of 5.6 percent, P&I Personal & Informatik AG increased operative corporate results before tax (EBIT) from 1.6 million euros in the previous year to 2.0 million euros in the first quarter of the 2006/2007 business year (1st April 2006 to 31st March 2007). The P&I group has thus attained an EBIT margin of 17.4 percent compared to 14.8 percent last year. Results before write-offs (EBITDA) increased from 2.4 million to 2.8 million euros. The Wiesbaden specialist in personnel management software, quoted in Prime Standard, improved its DFVA/SG result from 1.1 million to a new1.4 million euro. The P&I share price shows a positive development throughout the first quarter, starting at 1680 euro and closing at 18.30 euro on June 30th – an improvement of 8.5 percent.

The increase in operative results was achieved by increased sales and a below-average increase in costs. Total sales amounted to 11.6 million euros in the first quarter. Maintenance business proved to be the most important factor in driving sales. Sales from this division increased most evidently compared to the same period in the previous year and totalled 5.0 million euro. This demonstrates that increased licence sales from last year are showing a positive effect on maintenance income. The maintenance division earns 43 percent of total group sales. The service division also recordedan increase of almost 9 percent compared to last year, totalling 3.5 million euro and representing 30 percent of group sales. Licensing business has slightly decreased compared to the same period last year and amounted to 2.8 million euro (2.9 million euro for the same period last year).

This should be considered while bearing in mind that sales for the first quarter of the 2006/2007 business year were attained with a large number of medium and small projects, while the slightly higher sales in the same quarter last year were gained in the main part from a major contract.

Last year’s positive development in the International division continued: 1.9 million euro (last year: 1.3 million euro) were recorded with international customers in the first quarter, reflecting a positive EBIT contribution of 0.3 million euros to group results (previous year 0.1 million euros).

P&I confirmed the outlook for the end of the 2006/2007 business year, increasing sales due to organic growth by over 5 percent and establishing an EBIT margin in the region of 20 percent.

„The first quarter results provide us with a good starting position basis for another successful year at P&I “, stated Vasilios Triadis, chairman of the P&I board. „With our product strategy and the continuous development of our organisation, we have created all the right conditions to successfully continue on the path chosen two years ago. P&I is fit for the future.“

The P&I Group in figures:

Figures
acc. to IAS / 30.06.2006
'000 euro / 30.06.2005
'000 euro / Changes
'000 euro / Changes
'000 euro
Group sales / 11,576 / 10,960 / 616 / 5.6 %
EBITDA / 2,839 / 2,438 / 401 / 16.4 %
EBIT / 2,017 / 1,624 / 393 / 24.2 %
EBT / 2,238 / 1,832 / 406 / 22.2 %
Earnings (DVFA/SG) / 1,435 / 1,073 / 362 / 33.7 %
Return on Sales / 12.4 % / 9.8 % / ./. / ./.
EPS (DVFA/SG) / 0.19 € / 0.14 € / 0.05 € / 33.1 %
BQU ()* / 264 / 254 / 10 / 3.9 %
BQU (Closing day)** / 263 / 252 / 11 / 4.4 %

*Number of Employees in average period

**Average employment quotient in average period on closing day

Sales segmentation

Sales

01.04.-30.06.04

01.04.-30.06.05

01.04.-30.06.06

'000 euro /

/ '000 euro /

Sales according to category
Licences / 1,769 / 19 % / 2,921 / 27 % / 2,765 / 24 %
Maintenance / 3,931 / 43 % / 4,479 / 41 % / 4,979 / 43 %
Product line / 5,700 / 62 % / 7,400 / 68 % / 7,744 / 67 %
Consulting / 3,184 / 35 % / 3,243 / 30 % / 3,528 / 30 %
Other * / 321 /

3 %

/ 317 /

2 %

/ 304 /

3 %

Total / 9,205 /

100 %

/ 10,960 /

100 %

/ 11,576 /

100 %

Sales according to region

Germany (domestic) / 8,110 / 88 % / 9,686 / 88 % / 9,692 / 84 %
International (foreign) / 1,095 / 12 % / 1,274 / 12 % / 1,884 / 16 %
Total / 9,205 / 100 % / 10,960 / 100 % / 11,576 / 100 %

*comprises Third Party and ASP (Application Service Providing)

Find out more about P&I AG on the Internet:

Press contact:

P&I Personal & Informatik AG

Andreas Granderath / Investor Relations

Kreuzberger Ring 56

65205 Wiesbaden

Tel.: +49 (0) 611 / 7147-267

Fax: +49 (0) 611 / 7147-369

E-Mail:

P&I: Software for human resources management (Prime Standard: ISINDE 0006913403)

P&I AG is a provider of human resources management software - from payroll accounting to personnel management and on to employee portals for employee relationship management (ERM). The software can be deployed internationally and is geared to decentralised companies as well as large enterprises and public authorities. P&I is represented by 280 staff at 11 locations in Europe. The company has over 35 years experience and more than 3,700 customers from all industry sectors. P&I is quoted on the Prime Standard and achieved sales of 50 million euros in fiscal 2005/2006.

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