31/10/2006 Corporate News EN
Christian Steiner

SHS VIVEON AG: • Sales and earnings for 2006 influenced by special items • Merger of VIVEON AG into SHS VIVEON AG completed


SHS VIVEON AG / Results Forecast



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The issuer is solely responsible for the content of this announcement.
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Martinsried, October 31, 2006. The board of directors of SHS VIVEON AG
announces the merger of the subsidiary VIVEON AG into SHS VIVEON AG. With
the registration in the trade register as of October 23, 2006, the merger
became legally valid. The rapidly advancing integration and organisational
restructuring of the SHS VIVEON group is, as well, reflected in the
business development of the current financial year. According to target
figures, the management of the SHS VIVEON AG expects a total output in the
financial year 2006 of around 41 mn EUR (incl. 4.2 mn EUR hardware sales).
The total output of the core business is estimated at about 36.8 mn EUR and
thus, among others due to acquisitions, 39% higher than in the previous
year. The earnings before interest, taxes, depreciation and amortisation
(EBITDA) will add up to around 1.0 mn EUR (previous year: 1.5 mn EUR).
Within the core business the EBITDA target is set at 0.9 mn EUR, which is
just under the 1.0 mn EUR compared to last year. Over all, the financial
performance has been significantly influenced by one-off special items. For
the financial year 2007, SHS VIVEON AG expects a clearly positive
operational development as a result of the implemented integration
measures.

Due to the acquisitions in fall 2005 and February 2006, the current
financial year is influenced by one-time effects in connection to the
integration of the acquired subsidiaries into the new group structure.
Since October 2006, sooner than anticipated, the company structure is
divided into a product and project business division. The required measures
for the reorganisation led to temporarily less intense marketing and sales
activities. In addition to the accordingly lower output, one-time charges
for the re-branding as well as for the merger of the VIVEON AG into the SHS
VIVEON AG arose. These one-time effects reduce the groups´ EBITDA of around
0.8 mn EUR. With the successful completion of the integration measures, SHS
VIVEON AG lays the foundation to significantly enhance the growth in the
operative core business for the coming financial year.

Compared to the previous year, the stable business development was also
shaped by significant management decision at the Spanish subsidiary SHS
Polar. The strategy to establish an additional business sector next to the
existing IT-project business (so-called 'Time & Material business”) was not
successful. The limited financial resources of the subsidiary contributed
to this, caused by the low sales in the opportunistically driven hardware
business. Therefore, in the third quarter, the management made the decision
to cease the activities to create a second business division and instead
push the hitherto core business. The one-off charges for these
developments, amount to around 1.1 mn EUR. Despite these special items, the
SHS Polar will close its financial year 2006 with a positive operating
result. Furthermore, the management is confident to successfully round up
the negotiations with the IKB Deutsche Industriebank AG regarding the
restructuring of SHS Polars’ long-term acquisition-loan and to reach a
positive solution for the tax demands against the Spanish subsidiary.

In total, the presented integration measures in combination with the
business developments of the Spanish subsidiary, add up to one-time charges
of around 1.9 mn EUR. Neverthelesse, the CEO Dirk Roesing positively looks
ahead: 'We are confident that the integration will be successfully
completed within the current financial year in order to lay a stable
foundation for the future. The signs, especially for our German-speaking
core business, are promising, to reach clearly higher growth rates in
output and earnings in the near future.”

Martinsried-based SHS VIVEON AG (former SHS Informationssysteme AG) is
listed on the Prime Standard segment of the Frankfurt Stock Exchange and
operates subsidiaries in Spain and Switzerland. The IT services provider
focuses on offering customer management and credit risk management
solutions to companies with a broad customer base. In 2005, the company
recorded revenues of EUR 41 million. The customers of SHS VIVEON AG include
BMW Financial Services, Toyota Kreditbank, Ingram Micro, Crédit Agricole,
T-Mobile, T-Online, SüdLeasing, Telefónica, amena, Barclaycard and other
international companies in the automobile, information and financial
services sector. For more information, see www.shs-viveon.com.


SHS VIVEON AG
Daniela Nase
Tel.: +49 – 89 – 747257-37
Email:Investor.Relations@SHS-VIVEON.com

cometis AG
Ulrich Wiehle
Tel: +49 – 611 – 205855-11
Email: wiehle@cometis.de



DGAP 31.10.2006
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Language: English
Issuer: SHS VIVEON AG
Fraunhoferstraße 12
82152 Martinsried bei München Deutschland
Phone: +49 (0)89 747-257-0
Fax: +49 (0)89 747-257-10
E-mail: investor.relations@shs.de
WWW: www.shs.de
ISIN: DE0005072409
WKN: 507240
Indices:
Listed: Geregelter Markt in Frankfurt (Prime Standard); Freiverkehr
in Berlin-Bremen, Stuttgart, München, Hamburg, Düsseldorf

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