CompuGROUP Increases Sales by 23%

CompuGROUP Holding AGIn the first nine months of the business year 2008, CompuGROUP Holding AG has increased its group-wide sales by 23% compared to the same period in the previous year, while operating profit and cash flow were at the same level as last year. Business development activities remain at a high level, and CompuGROUP has secured its largest contract ever in the Austrian hospital information systems sector.

CompuGROUP continues to pursue its growth strategy. Year-to-date revenue reached a new record high of EUR 158.2 million compared to EUR 128.6 million in the same period last year. Acquisitions contributed 19% to growth while organic growth was 4%. The Koblenz-based group was able to increase its earnings before taxes, interest, depreciation and amortization (EBITDA) by EUR 1.2 million to EUR 37.1 million. This result corresponds to an EBITDA margin of 23%.

Depreciation and amortization during the first nine months of 2008 amounted to EUR 22 million compared to EUR 16.9 million in the same period of 2007. This increase is mostly related to acquisitions. Earnings after tax for the reporting period were EUR 8.1 million, which is a decrease by EUR 8.6 million compared to last year. This change is mostly related to the increased amortizations as well as a higher tax rate compared to the same period in 2007.

In October 2008, the Austrian CompuGROUP company Systema Human Information Systems signed a contract for the largest IT project in company history, in competition with worldwide renowned companies. Systema is going to implement the new system in twelve hospitals and eleven geriatrics centers belonging to Vienna's hospital network (Wiener Krankenanstaltenverbund, KAV). The system, which is part of the IMPULS KIS project, will be fully implemented in these institutions by 2013. The net value of the contract amounts to EUR 42 million with a total project value, includ-ing optional proportions, of EUR 58 million.

With this contract, CompuGROUP has taken a major step to further expand its share of the healthcare IT market. Frank Gotthardt, Chairman of the Board of CompuGROUP Holding AG, states: "Our diversified product portfolio for all parties involved in the healthcare system and in social institutions enables all users to allocate their resources more efficiently."

Outlook
CompuGROUP expects regulatory changes in Germany to lead to only a small decrease in revenue and earnings in the HCS (Health Connectivity Services) segment for the remainder of 2008. Germany's health insurance companies continue to be reluctant to enter into large contracts for products of the process and decision support system sector. The slow development of the group's EPS (Electronic Patient Services) segment affects the group's results negatively, and this is also expected to be reflected in the results for the remainder of 2008. In the Health Professional Services segment (HPS I), whose business are information systems for doctors and dentists, CompuGROUP expects sales and earnings to exceed the results targeted for 2008. For the rest of the year, good margins are expected in France and the Czech Republic. Lower growth rates and margins will probably be produced by the Turkish companies acquired in 2007.

In summary, CompuGROUP confirms its prognosis for 2008, which was adjusted in July 2008. For the business year 2008, the group's management board expects an EBITDA of about EUR 50 million (roughly the same as last year), and group sales amounting to about EUR 225 million (a growth rate of 25% compared to 2007).

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About CompuGROUP Holding AG
CompuGROUP is one of the leading eHealth companies worldwide. Its software products, designed to support all medical and organizational activities in doctors' offices and hospitals, its information services for all parties involved in the healthcare system and its web-based personal health records contribute towards safer and more efficient healthcare. The services of CompuGROUP are based on its unique customer base of about 320,000 doctors, dentists, hospitals, associations and networks as well as other service providers. CompuGROUP is the eHealth company with the biggest coverage among eHealth service providers worldwide. The company operates in 14 European countries, Malaysia, Saudi Arabia and in South Africa and currently employs around 2,500 people. For further information, please visit http://www.compugroup.com.

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