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 ForecastCorporate news transmitted by DGAP - a company of EquityStory AG.The issuer is solely responsible for the content of this announcement.----------------------------------------------------------------------Martinsried, October 31, 2006. The board of directors of SHS VIVEON AGannounces the merger of the subsidiary VIVEON AG into SHS VIVEON AG. Withthe registration in the trade register as of October 23, 2006, the mergerbecame legally valid. The rapidly advancing integration and organisationalrestructuring of the SHS VIVEON group is, as well, reflected in thebusiness development of the current financial year. According to targetfigures, the management of the SHS VIVEON AG expects a total output in thefinancial 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 andthus, among others due to acquisitions, 39% higher than in the previousyear. 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 isjust under the 1.0 mn EUR compared to last year. Over all, the financialperformance has been significantly influenced by one-off special items. Forthe financial year 2007, SHS VIVEON AG expects a clearly positiveoperational development as a result of the implemented integrationmeasures.Due to the acquisitions in fall 2005 and February 2006, the currentfinancial year is influenced by one-time effects in connection to theintegration of the acquired subsidiaries into the new group structure.Since October 2006, sooner than anticipated, the company structure isdivided into a product and project business division. The required measuresfor the reorganisation led to temporarily less intense marketing and salesactivities. In addition to the accordingly lower output, one-time chargesfor the re-branding as well as for the merger of the VIVEON AG into the SHSVIVEON AG arose. These one-time effects reduce the groups´ EBITDA of around0.8 mn EUR. With the successful completion of the integration measures, SHSVIVEON AG lays the foundation to significantly enhance the growth in theoperative core business for the coming financial year.Compared to the previous year, the stable business development was alsoshaped by significant management decision at the Spanish subsidiary SHSPolar. The strategy to establish an additional business sector next to theexisting IT-project business (so-called 'Time & Material business”) was notsuccessful. The limited financial resources of the subsidiary contributedto this, caused by the low sales in the opportunistically driven hardwarebusiness. Therefore, in the third quarter, the management made the decisionto cease the activities to create a second business division and insteadpush the hitherto core business. The one-off charges for thesedevelopments, amount to around 1.1 mn EUR. Despite these special items, theSHS Polar will close its financial year 2006 with a positive operatingresult. Furthermore, the management is confident to successfully round upthe negotiations with the IKB Deutsche Industriebank AG regarding therestructuring of SHS Polars’ long-term acquisition-loan and to reach apositive solution for the tax demands against the Spanish subsidiary.In total, the presented integration measures in combination with thebusiness developments of the Spanish subsidiary, add up to one-time chargesof around 1.9 mn EUR. Neverthelesse, the CEO Dirk Roesing positively looksahead: 'We are confident that the integration will be successfullycompleted within the current financial year in order to lay a stablefoundation for the future. The signs, especially for our German-speakingcore business, are promising, to reach clearly higher growth rates inoutput and earnings in the near future.”Martinsried-based SHS VIVEON AG (former SHS Informationssysteme AG) islisted on the Prime Standard segment of the Frankfurt Stock Exchange andoperates subsidiaries in Spain and Switzerland. The IT services providerfocuses on offering customer management and credit risk managementsolutions to companies with a broad customer base. In 2005, the companyrecorded revenues of EUR 41 million. The customers of SHS VIVEON AG includeBMW Financial Services, Toyota Kreditbank, Ingram Micro, Crédit Agricole,T-Mobile, T-Online, SüdLeasing, Telefónica, amena, Barclaycard and otherinternational companies in the automobile, information and financialservices sector. For more information, see www.shs-viveon.com.SHS VIVEON AGDaniela NaseTel.: +49 – 89 – 747257-37Email:Investor.Relations@SHS-VIVEON.com cometis AGUlrich WiehleTel: +49 – 611 – 205855-11Email: wiehle@cometis.deDGAP 31.10.2006 ---------------------------------------------------------------------- Language:     EnglishIssuer:       SHS VIVEON AG              Fraunhoferstraße 12              82152 Martinsried bei München DeutschlandPhone:        +49 (0)89 747-257-0Fax:          +49 (0)89 747-257-10E-mail:       investor.relations@shs.deWWW:          www.shs.deISIN:         DE0005072409WKN:          507240Indices:      Listed:       Geregelter Markt in Frankfurt (Prime Standard); Freiverkehr              in Berlin-Bremen, Stuttgart, München, Hamburg, Düsseldorf End of News                                     DGAP News-Service ---------------------------------------------------------------------------