Ad hoc announcement Quarter Results/Change in Forecast BRAIN FORCE HOLDING AG: Good operating results in the third quarter and increased EBIT guidance for Ad hoc announcement transmitted by DGAP - a company of EquityStory AG. The issuer is solely responsible for the content of this announcement. ------------------------------------------------------------------------------ BRAIN FORCE HOLDING AG, a leading IT services provider with business operations in Austria, Germany, Switzerland, Italy, the Netherlands and Czech Republic, announces good preliminary results for the third quarter of 2008. In the period from July to September 2008, the BRAIN FORCE Group was able to grow revenues by 10% to EUR 26.06 million. EBITDA improved from EUR -2.86 to +1.76 million, and EBIT climbed from EUR -6.68 to +0.82 million.In the first nine months of 2008, Group revenues rose 10% to EUR 78.32 million, whereas EBITDA increased from EUR -1.56 to +5.66 million, and EBIT improved to EUR +2.68 million, compared to the previous level of EUR -17.42 million in the first three quarters of 2007. Higher EBIT guidance for full-year 2008 Due to the overall positive development of the company since the fourth quarter of 2007, the Managing Board of the BRAIN FORCE Group raises its original guidance in respect to the operating profit for the full-year 2008. An EBITDA of at least EUR 7.0 million is now expected in 2008 (previous guidance: EUR 6 to 7 million), whereas EBIT will surpass EUR 3.0 million (previous guidance: EUR 2 to 3 million). Revenues are expected to exceed EUR 100 million in 2008. Potential risk in the financial result As announced in the half-year report, the balance sheet has been reviewed to determine any further risks from past burdens. From today’s point of view it is not necessary to write-off the goodwill connected to the acquisition of SolveDirect. However, in the 2009 financial year it will be essential for this subsidiary to generate a substantial improvement in earnings to justify this decision. The 30% equity stake in Kemp Technologies Inc., New York was completely written off in 2007. The previous managing board also subscribed for a convertible bond of this company on September 30, 2005 to the amount of USD 900,000 (due June 30, 2009), of which the recoverability will be evaluated by the end of this year. In the case of a negative assessment in respect to the recoverability of this amount, BRAIN FORCE would be required to report a loss of EUR 0.63 million in its financial result for the fourth quarter of 2008. However,the financing of the BRAIN FORCE Group remains secure due to the very positive development of its operating cash flow, a high level of cash and cash equivalents and sufficient lines of credit made available by banks. For this reason the financing ability of BRAIN FORCE is independent of the repayment of this convertible bond. New law on tax loss carry-forwards in Germany entails risk for net earnings Despite the good development of the company’s operating performance in the current financial year, it is possible that BRAIN FORCE will have to report a negative profit after tax.This risk can be exclusively attributed to an amendment to Germany’s Corporate Tax Law, which envisions the complete elimination of tax loss carry-forwards for all German companies or subsidiaries in which an equity stake exceeding 50% has been acquired after January 1, 2008. The consolidated balance sheet of the BRAIN FORCE Group includes a deferred tax asset amounting to EUR 2.9 million from losses carried forward in Germany. Following the takeover offer of BF-Informationstechnologie-Beteiligungsgesellschaft m.b.H. for BRAIN FORCE shares and the contribution in kind of this company in Beko Holding AG effective at the end of September 2008, the current legal stipulations could lead to the elimination of these losses carried forward. In turn, this would result in an increase in deferred tax expenses of EUR 2.9 million in the fourth quarter of 2008, without being immediately cash-effective. In the following years this could also lead to higher tax payments in Germany. However, experts doubt the constitutionality of this new law. Accordingly, the Managing Board cannot finally decide about this balance sheet item at present, and will thus have to make a decision at the end of the year when preparing the consolidated financial statements of the BRAIN FORCE Group. Clearly positive operating result also expected in 2009 BRAIN FORCE is well prepared to meet the challenges posed in 2009 on the basis of the consistent optimisation of the company’s business activities over the past 14 months. However, due to the global financial crisis and the uncertain market environment a precise earnings guidance is impossible for the upcoming year. The management of the BRAIN FORCE Group will continue to carefully monitor costs and investments, and react quickly and determinedly to any potential deterioration of its earnings situation. As a consequence, a clearly positive operating profit is also anticipated in 2009. The final results for the third quarter of 2008, and the third quarter report with the consolidated financial statements of the BRAIN FORCE Group will be published on November 28, 2008. Contact: BRAIN FORCE HOLDING AG Thomas Melzer IZD Tower / 34.OG Wagramer Straße 19 A-1220 Wien t  +43 (0)1 263 09 09 - 12 f  +43 (0)1 263 09 09 - 40 investorrelations@brainforce.com (c)DGAP 12.11.2008 --------------------------------------------------------------------------- Language: English Issuer: BRAIN FORCE HOLDING AG Wagramer Straße 19 A-1220 Wien Österreich Phone: +43 (1) 2630909-0 Fax: +43 (1) 2630909-40 E-mail: postoffice@brainforce.com Internet: www.brainforce.com ISIN: AT0000820659 WKN: 919331 Listed: Foreign Exchange(s) Wien End of News DGAP News-Service ---------------------------------------------------------------------------