Ad-hoc | 9 November 2000 10:05

Ad hoc-Service: Brainpower N.V. Q3

Ad hoc-Mitteilung verarbeitet und übermittelt durch die DGAP. Für den Inhalt der Mitteilung ist der Emittent verantwortlich. —————————————————————————— * Revenue in the third quarter was Euro 960,076, representing an increase of 121% over last year’s third quarter revenues of Euro 433,906. * Net loss of Euro 1,085,578 for the third quarter compares with a net loss of Euro 448,747 in last years third quarter. * 6 new internet contracts were signed during the quarter, bringing the total number of internet clients at the end of the third quarter to 9. * Revenue from 5 internet contracts were recognized during the quarter, amounting to Euro 245,306, demonstrating our high growth in this sector. * Geographic expansion continues in Europe and the US. The New York office opens in November, with the signing of a major intranet contract with Merrill Lynch. representing our fourth contract in the US. * The Research and Development team has been strengthened with the opening of a new R&D facility in Tunisia in September. Brainpower N.V., the software company specializing in e-finance and intranet financial applications to both online financial service providers and investment professionals, today announced higher third quarter revenues. For the three months ended September 30,2000, the Company’s revenues were Euro 960,076, an increase of 121% over last year’s third quarter of Euro 433,906, Year-on-Year Quarterty Growth For the third quarter, Brainpower N.V. had a net loss of Euro 1,085,578, compared with a net loss of Euro 448,747 in the third quarter of the prior year. Operating expenses were higher at Euro 1,631,214, reflecting an increase in research and development expenses, sales and marketing expenses and general and administrative expenses principally due to an increase in personnel and an increase in the use of external consultants. In addition, depredation and amortization expense increased due to the purchase of computers and other tangible fixed assets and from an increase in goodwill resulting from the purchase of the remaining 10% in Brainpower’s Italian subsidiary, now 100% owned. For the nine-month period ended September 30,2000. Brainpower N.V. had revenue of Euro 2,375,914 versus Euro 1,148,603 – a 106% year-over-year increase. Brainpower N.V. completed its initial public offering on the Neuer Markt on September 21st, 2000 raising net proceeds after commissions of Euro 27.8 million from the sale of 3,100,000 million shares (290,455 secondary shares) at an IPO price of Euro 11.0 per share. This positions the Company extremely well to execute its business plan objectives. As a result of the IPO, the Company now has a net equity of Euro 27.7 million after IPO expenses of Euro 2,162,470 and an accumulated deficit of Euro 6,351,352. “Brainpower is continuing to execute its strategy” said CEO, Rocco Pellegrinelli. “We are adding more and more high profile deals with the market leaders in the internet sector confirming the unique quality of our product range and our strong competitive position”. “Our third quarter results reflect a 121% increase over last year’s third quarter”, said CFO, Jennifer Wick. “In the third quarter, the Company signed 6 new internet clients, bringing the total number of clients to 9. Brainpower recognized Euro 245,306 of internet revenues in the third quarter”. New internet contracts have been signed with Self Trade, Swiss Life, Zürich Financial Services, and International Asset Holdings. Existing internet customers include Banca Profile, San Paolo IMI, and DLJ Direct. The online brokerage sites of Banca Profilo and San Paolo IMI have already been activated. “The IPO has made it easier to attract high quality people – accelerating the pace in the hiring of new web development professionals to help our backlog of deals and new sales and marketing people who will also join us shortly, broadening the number of experts in e-finance applications”, said CEO, Rocco Pellegrinelli. “Our geographic expansion is also continuing – our office in New York will be operational in November and we have currently signed four deals in the United States”. “We are developing more products from the Netxceed Platform (our internet platform) to expand the scope of our product range and satisfy a broader range of e-finance customers. To guarantee the timely delivery of our products to clients, we are expanding our R&D capabilities with the opening of an R&D division in Tunisia in September, which now has four highly qualified R&D professionals who are extending the current Netxceed Platform offering to add new functionalities in both the e-finance and m-finance sectors”. Year-on-Year Quarterly Growth First Quarter Second Quarter Third Quarter 1999 EUR 296,344 EUR 418,353 EUR 433,906 2000 EUR 555,109 EUR 860,729 EUR 960,076 87.32% 105.74% 121.26% Ende der Mitteilung