Profits Rise with Growing Sales in Q3 Result for 2006/2007

PRESS RELEASE

Wiesbaden, February 8, 2007

P&I growth continues:

profits rise with growing sales in Q3 result for 2006/2007

-Operating result (EBIT) rises to € 8 million

-Growth in sales of 5.0%

In the first three quarters of fiscal 2006/2007 (April 1, 2006 to December 31, 2006), P&I Personal & Informatik AG increased Group operating earnings before interest and taxes (EBIT) from the previous year's € 7.1 million to € 8 million. The Prime Standard listed HR management software specialists, based in Wiesbaden, thus achieved an EBIT margin of 21.0% in comparison with the previous year’s 19.6%. Earnings before depreciation (EBITDA) rose from € 9.6 million to the present € 10.5 million. According to the German Association of Financial Analysts and Investment Consultants Schmalenbach Society (DFVA/SG), Group earnings amounted to € 5.3 million compared to € 5 million in the previous year. P&I shares opened on April 4, 2006 at a price of € 16.80 and closed on December 31, 2006 at € 16.60. Taking into account the dividend of € 3.00 per share paid out in the same period, this was an increase in the share price of 17%.

The improvement in results is accounted for by the combination of an increase in Group sales of 5%, up to € 38.1 million in the first nine months of 2006/2007, in conjunction with a lower than average rise in costs. Marked increases in both the Maintenance and Consulting business areas were significant factors in the growth in sales.

The most significant engine of growth proved to be the service providing activities. P&I improved on the previous year's result by € 2 million, to € 13.4 million, with 35% of revenues coming from the Consulting/SI business area.

Sales of € 15.2 million were attained in Maintenance business. This represents an increase of € 1.2 million or 8.6% compared with previous year's sales for the same period, the fruits of last year's strong Licensing sales. The Maintenance business area generated 40% of Group sales.

Licensing business remained below the previous year’s level with € 8.3 million (€ 9.8 million). Although many medium and smaller-sized projects have been realised during the year, major contracts such as those concluded in the comparable period of last year were lacking.

"Although the first half of this fiscal year was strong, it has been difficult to top the magnificent third quarter we had in the last financial year," comments CEO Vasilios Triadis. "Still, the superb dedication of our employees, has meant that we have matched last year's third quarter performance with respect to sales and result. Nevertheless, despite not having managed to hold Licensing sales at the previous year's level in these first nine months, we expect to have caught up on this by the end of this fiscal year, as far as possible. By then, the large projects, planned for the third quarter but postponed to the fourth quarter, will have been realised."

P&I is still confident of achieving, overall, around 10% organic growth in sales for 2006/2007, and establishment of the EBIT margin at around the 20% mark.

The P & I Group in figures:

Key Figures
according to IAS / Dec. 31,2006
'000 euros / Dec. 31,2005
'000 euros / Change
'000 euros / Change
%
Group sales / 38,071 / 36,255 / 1,816 / 5.0%
EBITDA / 10,455 / 9,571 / 884 / 9.2%
EBIT / 7,992 / 7,119 / 871 / 12.3%
EBT / 8,723 / 7,729 / 994 / 12.9%
Consolidated result (DVFA/SG) / 5,298 / 4,976 / 322 / 6.5%
Return on Sales / 13.9% / 13.7 / . / . / . / .
EPS (DVFA/SG) / 0.69 € / 0.65 € / 0.04 € / 6.5%
BQU ()* / 270 / 253 / 17 / 6.7%
BQU (Closing day)** / 299 / 283 / 18 / 5.7%

*Number of Employees in average period

**Average employment quotient in average period on closing day

Sales segmentation:

Sales

Apr.1 – Dec. 31, 04

Apr. 1 – Dec. 31, 05

Apr. 1 – Dec .31, 06

'000 euros /

/ '000 euros /

Sector
Licences / 8,294 / 25% / 9,773 / 27% / 8,256 / 22%
Maintenance / 12,203 / 37% / 14,024 / 39% / 15,233 / 40%
Product line / 20,497 / 62% / 23,797 / 66% / 23,488 / 62%
Consulting / 11,363 / 35% / 11,370 / 31% / 13,385 / 35%
Other* / 820 / 3% / 1,088 / 3% / 1,198 / 3%
Total / 32,680 / 100% / 36,255 / 100% / 38,071 / 100%

Geographical segment

Germany (domestic) / 28,711 / 88% / 30,135 / 83% / 32,138 / 84%
International (foreign) / 3,969 / 12% / 6,120 / 17% / 5,934 / 16%
Total / 32,680 / 100% / 36,255 / 100% / 38,071 / 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

Email:

P&I: software for human resources management DE 006913403

P&I Personal & Informatik AG specialise in HR management software solutions - from payroll accounting, personnel management and time management to employee portals. The solutions are international and can be deployed in any industry sector. P&I is represented by more than 300 employees at 11 locations in Europe. The Wiesbaden-based company has over 35 years experience in the market. Around 3,700 businesses and institutions of all sizes place their trust in P&I solutions. P&I is listed on the Prime Standard and in fiscal 2005/2006 achieved sales of € 50 million.