Exact Holding N.V. 2008 Trading Update

Delft, 11 Juli 2008 - Based on the continued deteriorating economic conditions over the last weeks, Exact’s Board of Managing Directors is issuing a trading update on the outlook for the full year results for 2008. The guidance given on July 24, 2008 was subject to no further material changes in the economic climate at that time.

In light of the uncertainties surrounding the current economic and business environment and the importance of the 4th quarter for the full-year results, the Board decided to no longer provide a specific outlook for the full-year 2008.

Since the beginning of the year the Board has been prepared for such a down-turn in the economic climate and aligned the company’s cost structure to the current market conditions. As a result of a further organizational alignment within the Americas and Netherlands regions and a global recruitment stop as per August 2008, the total number of employees has been reduced by approximately 10% to fewer than 2500. In addition, cost saving programs in the areas of travel and general expenses have been implemented early in the year. Based on these cost measures, the Board expects the EBITDA amount for the full-year 2008 to be at least on the same level as for 2007. This is subject to no further material changes in the economic climate.

“Given the deteriorating economic environment we had a solid performance in most of the regions up to the third quarter. Although we saw a decline in license revenue from new customers, an early shift of focus enabled us to compensate that to a large extent with additional revenue from existing customers. This gave us confidence to meet our full-year expectations,” said Raj Patel, CEO of Exact Software. “October was the first month in which we experienced a noticeable impact from the current economic conditions on license revenue, leading to October results below our expectations. We have seen continued postponement in deal flow in most regions which is making us more cautious on the full-year outlook. Based on timely action and diligent execution of the cost saving measures, I expect that we achieve at least the same level of EBITDA amount for the full year 2008 as in 2007 and our focus will remain on profitability and cash conversion.”

Exact has also reacted swiftly on the current economic environment in terms of solution offering. Under the umbrella “Exact Solutions for Challenging Times” several specific solutions have been defined to help customers weather a tough economic climate. These solutions address the specific challenges of small to medium-sized companies in an economic downturn and are targeted to increase business insight and control, reduce costs, maximize cash flow and improve customer relations. Corresponding marketing programs have been launched in the Netherlands, EMEA and Americas regions to capture the market opportunities related to the economic downturn.

Over Exact Software

Exact Software werd in 1984 opgericht en is een internationaal vooraanstaande producent van zakelijke software oplossingen voor kleine, middelgrote en grote organisaties. Naast traditionele, geïntegreerde oplossingen voor Enterprise Resource Planning (ERP) ontwikkelt zij daaraan gerelateerde oplossingen, zoals Human Resource Management (HRM), Customer Relationship Management (CRM), Project Management, Business Analytics en Elektronische Workflow.

Exact heeft zijn hoofdkantoor in Delft en vestigingen in Europa, het Midden-Oosten, Noord-, Midden- en Zuid-Amerika, Azië, Australië en Afrika. Met ongeveer 2750 medewerkers, vestigingen in ruim 40 landen en oplossingen die beschikbaar zijn in 40 talen bedient Exact momenteel klanten in meer dan 125 landen.

In 2007 bedroeg de omzet € 252,1 miljoen. Sinds juni 1999 is Exact Holding N.V. genoteerd aan de Eurolist bij Euronext Amsterdam.

Meer informatie

Media Relations
Leoni Janssen
T: 31 20 3010980
M: 31 6 24 60 3632

Investor Relations
Jeroen Bruins Slot
Exact Holding N.V.
T: 31 (0)15 711 5075
M: 31 (0)6 2666 3660

Exact Holding N.V.
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