Beta Systems announces results for the Third Quarter of 2004

BERLIN 8th November (PROTEXT) - Beta Systems Software AG(Prime Standard: BSS, ISIN: DE 0005224406) announces its resultsfor the third quarter and the first nine months ended September30, 2004.

Financial Highlights for Third Quarter 2004, Beta Systemsincluding Kleindienst ÷ Increase in revenue by 100.4% to Euro27.0 million (Q3 2003: Euro 13.5 million) ÷ Non-recurringexpenses of Euro 0.3 million associated with staff downsizingafter Beta Systems takes over central administrative duties ofKleindienst Datentechnik AG ÷ Slight operating loss of Euro 0.5million (Q3 2003: operating income of Euro 1.7 million) ÷ Pre-tax loss of Euro 0.5 million (Q3 2003: income before taxes ofEuro 2.0 million) ÷ Slight net loss of Euro 0.5 million or Euro0.13 per share (Q3 2003: net income of Euro 0.9 million or Euro0.22 per share)

Financial Highlights for First Nine Months 2004, Beta Systemsincluding Kleindienst ÷ Increase in revenue by 88.6% to Euro67.1 million (9M 2003: Euro 35.6 million) ÷ Exceptional itemsamounting to Euro 1.0 million due to non-cash expenses for stockoptions and issuing of employee shares in first and secondquarter of 2004 ÷ Non-recurring expenses of Euro 0.9 millionattributable to integration ÷ Operating loss of Euro 2.1 million(9M 2003: operating income of Euro 0.6 million) ÷ Pre-tax lossof Euro 1.5 million (9M 2003: income before taxes of Euro 1.4million) ÷ Net loss of Euro 1.5 million or Euro 0.37 per share(9M 2003: Euro 0.5 million or Euro 0.13 per share)

Financial Highlights for Third Quarter 2004, Beta Systemsexcluding Kleindienst (Pro Forma) ÷ Decline in revenue by 14.0%to Euro 11.6 million (Q3 2003: Euro 13.5 million) ÷ Operatingloss of Euro 1.0 million (Q3 2003: operating income of Euro 1.7million)

Financial Highlights for First Nine Months 2004, Beta Systemsexcluding Kleindienst (Pro Forma) ÷ Revenue of Euro 35.4 millioncomparable to that generated in 9M 2003 (Euro 35.6 million) ÷Operating loss of Euro 3.6 million (9M 2003: operating income ofEuro 0.6 million)

Comments of the Management Board :"We have been experiencingstiffer competition and downward pressure on prices within ouroperating business. Despite this challenging situation, towardsthe end of the third quarter we managed to outperform well-established competitors by securing a major ECM contract fromone of Germany's leading IT service enterprises. Overall,however, the IT market remains volatile, particularly as it isstill facing hesitant capital expenditure by customers. It isunlikely that we will see any fresh impetus from the economy inthe coming months. Having said that, we are confident thatseveral new projects will materialize in the near future,particularly within the area of Security Management, where demandremains buoyant. Indeed, this may lead to a number of large-scalebusiness contracts in the fourth quarter of the year,traditionally a particularly strong period for our company,"said Karl-Joachim Veigel, CEO of Beta Systems Software AG,commenting on the results.

"Operating against this backdrop, we are standing by ourforecasts and remain confident that the revenue target of Euro100 million for the Group will be attained for the year.However, if our fourth-quarter business follows the trend of thepreceding quarters, our pre-tax profit margin is likely to bearound 5%, which would be at the lower end of our originalforecast for the year. This is also due to the exceptional itemsaccounted for in our bottom-line results," added Karl-JoachimVeigel.

Conference Call

The Management Board will comment on the financial resultsfor the third quarter of 2004 as part of a conference call to beheld on Monday, 8 November 2004. The conference call will takeplace at 14:00 CET and can be accessed by calling +44(0)20 79847569 (Access Code: "betasystems"). A tape recording of thetelephone conference will be available for twenty-four hours.This recording can be accessed by calling +44 (0)20 7984 7578(Access Code: 877975).

The full quarterly report has been published underwww.betasystems.com.

Beta Systems Software AG, Berlin, Germany

Beta Systems Software AG (Deutsche Börse - Prime Standard:BSS) is a leading provider of intelligent, high-performancesolutions for the administration of bulk data. Beta Systemssupplies software which enables companies to streamline andsimplify their data center, backup, and document managementprocesses. The company specializes in the automation andoptimization of its customers' high volume data processingsystems, focusing on handling, storing, and distributing dataand documents in the most cost effective and intelligent way.Beta Systems' customers are typically large organizations in theindustrial, finance, telecommunications, energy, service, andpublic sectors whose previous methods of data managementinvolved cumbersome procedures consuming a great deal of time,money, and other resources. The solutions developed by BetaSystems have an open architecture and create an informationinfrastructure which considerably reduces the previouscomplexity of the customer's information management. BetaSystems' products are distributed worldwide by its ownsubsidiaries as well as partner organizations. For furtherinformation, please visit the company website atwww.betasystems.com.

Contact: Investor Relations Arne Bassler Beta SystemsSoftware AG Tel.: +49 (0)30 726 118 -170 Fax: +49 (0)30 726 118-881 e-mail: arne.bassler@betasystems.com Public Relations Stefanie Katrin Fehse Beta Systems Software AGTel.: +49 (0)30 726 118 -674 Fax: +49 (0)30 726 118 -852 e-mail:stefanie.fehse@betasystems.com

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