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Financial Press Releases

15 May 2006 Very high growth in the first quarter 2006: + 78 % (including 17 % organizational)

Acquisition of the company Procea

SQLI Group has achieved a very good start of the year 2006 with a €22,5 million turnover increasing by 78 %, including 17% of organizational growth. This performance, totally in line with the Group’s objectives, confirms the change of dimension and its positioning on the market segments. It also confirms the correct integration of companies acquired in 2005, already bringing large trade synergies.

Growth and Profit Perspectives for 2006 confirmed

This correct fiscal year start reinforces the Group’s ambitions, which targets a €90 million turnover in 2006.

As forecast, this growth should come with strongly improved margins as from the first semester, SQLI targeting a 6 % operating margin objective in 2006.

Acquisition of the company Procea, expertises strengthened in the integration of complex information systems.

Within its strategy aiming at strongly reinforcing its technological density with extra in-depth e-business expertises, SQLI Group announces they have signed a draft agreement for the acquisition of 100% of the company Procea capital.

Based in Lyon, Procea has developed a sharp expertise in the integration of information systems designed to optimise the “availability / cost” ratio of complex sets.

Procea has developed its solution SAGESS and expertise in the military field (defence, space, navy) where constant running operations are a key element.

Since lately, Procea has duplicated their know-how on the civil market, via their offer SAMPLE, to offer to companies a service-orientated integration application (SOA) and for handling operational availability. By relying on more than 30 colleagues, Procea has achieved in 2005 a €2.6 million turnover for results striking a balance.

High trade synergies expected

This acquisition also allows SQLI to have access to clients positioned on new markets with a strong potential (Defence, Energy, Petrochemistry, Space,…) with the ambition to offer them quickly all the e-business skills of the Group.

By joining SQLI, Procea acquires a critical size to reinforce their position on large markets and also to accelerate the distribution of their SAMPLE offer in the civil business with all the sales forces and existing clients of SQLI.

A common industrial project, a close corporate culture

Heads and managers will be strongly implied in the success of the common industrial project and shall continue to take an active part to development. Operational synergies shall be quickly implemented with the gathering of teams in SQLI premises in Lyon.

Consolidation forecast for July 2006

This acquisition of a €1.4 million amount will be financed for half with cash and for half with share exchanges.

An additional €0.3 million price could take place according to the result objectives reached for 2007.

The definitive conclusion of the operation is expected in July.

Procea should therefore be consolidated over 6 months in 2006 from July 1st 2006 and should have a relative impact as from 2007, given the growth potential linked to the merger.

A strengthened development plan 2005-2008

With this operation, SQLI pursues their dynamic strategy aiming at combining an organizational growth superior to the market’s with a targeted external growth policy which reinforces the technological level of the Group in e-business solutions.

It is also totally part of the development plan 2005-2008 of the Group whose target is a €150 million turnover and a 10 % operating margin forecast for 2008.

SQLI will post their turnover of the 1st semester 2006 on August 1 2006 after close of trading.

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