telegate Adopts IFRS Accounting Principles

Munich April 21, 2005 – In accordance with EU directive (No 1606/2002) of July 19, 2002 relating to the use of international accounting standards, telegate is converting its financial reporting from US-GAAP to IFRS (International Financial Reporting Standards) in fiscal 2005. For the first time, the 2005 first quarter results will be presented in accordance with these new standards. The figures will be disclosed on April 25, 2005. For comparison purposes, the consolidated financial statements for fiscal 2004 prepared in accordance with US-GAAP have been converted retrospectively to IFRS.

Key figure reconciliation from US-GAAP to IFRS (fiscal 2004):

in Mio €	US-GAAP	IFRS	Change Absolute	Change percentage
Revenues	165.9	141.2	-24.7	-14.9%
COGS	81.0	55.9	+25.1	+31.0%
EBITDA	35.0	35.6	+0.6	+1.7%
Net profit after taxes	26.4	27.3	+0.9	+3.4%
Equity	33.8	42.3	+8.5	+25.2%

Conversion to IFRS has only had marginal effects on profitability, which has increased slightly as a result of this. The adoption of IFRS, however, has lead to changed recognition of revenues at the group's subsidiary, Italia S.r.l., reducing consolidated revenues but with profitability remaining unchanged.