Press Office

Financial performance of the Asseco Group in the first half of 2011 was stronger than in the corresponding period last year. Sales revenues reached PLN 2.3 billion and they increased by 60% as compared with the first half of 2010.Operating profit amounted to PLN 342 million, outperforming the previous year's figure by 34.6%. The Group generated a net profit of PLN 182.7 million as compared to PLN 205.4 million earned in the first half of 2010. However, net profit adjusted for one-time events (reversal of write-downs on financial assets, write-down on Gladstone, write-down on Asseco Spain, reversal of a deferred income tax provision, and disposal of Uniquare company) turns out to be higher by 6.7% in comparison to the first half of 2010.The Asseco Group effectively implements its strategy to boost financial results by promoting sales of its proprietary software and services. During the first six months of 2011, the Group's revenues from proprietary software and services reached PLN 1.7 billion and they improved as much as 75.5% in relation to the corresponding period a year ago. The distribution of our revenues by sector changed and in the first half of 2011 it was as follows: banking and finance: 34%, enterprises: 42%, and public administration: 24% (the share of industrial enterprises increased offsetting a decline in public administration).Asseco gains a stronger position in the Polish ERP market – Asseco Business Solutions is Poland's second largest provider of ERP systems in terms of sales revenues (after SAP Poland), with a market share of 25% (according to Computerworld TOP 200, June 2011). Whereas, Asseco Central Europe is a leader in the ERP market in Slovakia. Asseco Spain has become Apple's most important partner in the Spanish market. Also our Israeli operations are very successful in the market – Sapiens signed an agreement to merge with two providers of software solutions for the insurance industry: IDIT I.D.I. Technologies and FIS Software. The merged company will become one of the major players in the global insurance software industry.One of our most important events of the past six months was the Asseco's payout of nearly PLN 140 million in dividends from the last year's earnings. Whereas, on 6 September 2011 we will hold an Extraordinary General Meeting of Shareholders to approve a buy-back of Asseco's own shares.

In June 2011, Asseco Poland received from Polska Telefonia Cyfrowa (PTC) a contract to design and implement a mass communication tool for mobile and electronic channels. The solution is intended for business and institutional customers of PTC.The new information system dedicated to PTC is being created in the Java Enterprise Edition technology and fully integrates with the operator's key service platforms and IT systems. Asseco Poland is responsible for the technical design of this solution and user interface, as well as for development, implementation and maintenance of the system.Asseco Poland has cooperated with PTC, T-Mobile's phone network operator, on the basis of a framework agreement concluded in 2003. One area of cooperation involves the implementation of information technology systems to support sales and provision of value-added services for the business market.

Sapiens International Corporation, an Israeli company of the Asseco Group, has signed an agreement to merge with two providers of software solutions for the insurance industry: IDIT I.D.I. Technologies and FIS Software. The merged company will become one of the major players in the global insurance software industry. The combined businesses are expected to reach USD 100 million in revenues in 2012, doubling the present value of sales generated by Sapiens. Following this announcement, Sapiens shares listed on TASE (Tel Aviv Stock Exchange) surged 6 percentage points.As consideration for the existing shareholders of IDIT and FIS Software, Sapiens International will issue a total of 17.5 million ordinary shares and warrants to purchase 1 million ordinary shares. In addition, Sapiens is going to pay USD 6.75 million in cash. Pursuant to the conditions precedent defined in the shares purchase agreement, the parties may refrain from completing the transaction if the price of Sapiens shares falls below a certain agreed level. The transaction is anticipated to be completed within 45 days."The Sapiens' merger with IDIT and FIS companies is a milestone in creating the world's major provider of IT solutions for the insurance industry. I am confident that this transaction will bring measurable business benefits for the entire Asseco Group and will further reinforce our position in the sector", said Adam Góral, President and CEO of Asseco Poland.The combined customer base will comprise more than 70 insurance customers worldwide, including Fortune 500 companies. The merged companies are recognized among the market's leading providers of comprehensive software solutions, including core systems, for the insurance sector.FIS Software Ltd. offers a comprehensive enterprise level solution for Life, Pension and Annuity providers. The company has a global client base across the UK, Europe, Asia Pacific and North America.IDIT I.D.I. Technologies Ltd. offers a full suite of a single end-to-end component-based integrated solution for organizations specialized in the Property and Casualty insurances. The company focuses on the markets of Europe, UK, Australia and Asia Pacific.Sapiens International Corporation N.V. is a global provider of software solutions for the insurance industry. The company operates through its subsidiaries in North America, the United Kingdom, EMEA (Europe, Middle East, Africa) and Asia Pacific. Sapiens' innovative solutions are widely recognized for their ability to cost-effectively align IT with business demands. Their flexibility helps modernize business processes and enables insurance organizations to adapt quickly to market change.

The agreement with the National Health Fund regards IT system service. The contract worth 21.3 million PLN net will last one year within a consortium of Asseco Poland S.A. and Kamsoft company.For the Health Care Systems Center, Asseco Poland S.A. implements the project worth 2.3 million PLN. It includes the provision of software, licenses and system infrastructure necessary for the emergence of Electronic Collection Platform, Analysis and Distribution of Digital Content on Medical Events. Asseco will also provide technical support services for the supplied software.What is more, Asseco Poland S.A. won the tender for the computerization of the hospital in Krynica. This project, worth 2.55 million PLN net is co-financed from EU funds. Also, Asseco Poland undertook the development of hospital medical system in Bochnia, which will cost 0.9 million PLN net. Additionally, the company signed a contract worth 1.63 million PLN net with Centrum Zdrowia Dziecka (Children's Memorial Health Institute). It concerns the provision of software service provision that the hospital uses.Thus, Asseco Poland S.A. strengthens the role of leader in market of IT solutions for healthcare. Among company clients are over 460 major hospitals in Poland and the majority of polish Blood Donation and Treatment Centres. It provides them with solutions to support operation of both patients as well as billing systems for the management of contracts and institutions. The cooperation with units of the National Health Fund is conducted both within the field of IT infrastructure as software. For settlement of their services with the NHF, all spa treatment sector facilities use web application, supplied and implemented by Asseco Poland S.A.

Joining the global quality accreditation program is tantamount to having access to advanced patterns as well as processes, which of use contributes to reducing the project risk. Active quality management translates into increased clients' satisfaction, helping to successfully lead the implementation and avoid escalation.-Asseco Competence Centre within SAP technology is equal to over 80 professionals with years of experience. We have completed dozens of major projects for the largest Polish enterprises from various industries. Participation in the SAP Partner AQM Quality program is our great opportunity to develop our own quality procedures related to sale and completion of implementation projects as well as provision of services concerning solutions maintenance - said Jacek Michałowski, Director of SAPvTechnology Department, Asseco Poland S.A.Active participation in program will enable Asseco Poland S.A. to obtain formal accreditation by the end of 2011. Such award will enhance the company effectiveness in acquiring new customers.

The Asseco Group earned almost PLN 100 million in net profit for the first quarter of 2011. Sales revenues reached PLN 1.2 billion having jumped over 73% in comparison to 2010. Operating profit improved almost 46% year on year and amounted to PLN 221 million. The Group reported a net profit of PLN 97 million, reflecting a 2% growth from the year-ago earnings of PLN 95 million. Furthermore, in the first quarter, Asseco was awarded many prestigious contracts.The Asseco Group consistently pursues its strategy to boost financial results by promoting sales of its proprietary IT solutions. In the first quarter of 2011, sales of proprietary software and services reached PLN 840 million surging 80% from PLN 466 million reported a year ago, and they accounted for 70% of the total turnover. As compared with 2010, the sectoral structure of sales saw some changes. The Group's key revenue drivers are industrial enterprises (42%), followed by banking and finance (32%), and public administration (26%).During the past quarter, Asseco Poland signed many prestigious contracts, among others, with Idea Bank, Xelion Financial Advisors, Polish Telecom, PGE Dystrybucja, and PSE Operator. The Group's backlog of orders looks quite optimistic in comparison with the actual results for 2010. Our orders backlog for 2011 already covers 117% of total revenues generated in 2010, yet in the case of proprietary software the backlog is even higher and corresponds to 141% of the last year's sales of proprietary solutions.The first quarter financial results achieved by the Group's subsidiaries are also very favourable. Formula Systems, Asseco's largest foreign subsidiary, increased its sales revenues by 19% as compared with the first quarter of 2010 (USD 156 million vs. USD 131 million), while its operating profit improved 11% (USD 12 million vs. USD 11 million). Detailed financial results of our companies are presented in the Asseco Group consolidated financial statements for the 1st quarter of 2011, available at www.inwestor.asseco.pl.