A RECORD FIRST QUARTER FOR KALAHARI CONTINUES ITS ‘BEST-EVER’ TREND

Improved profitability and continued investment in new product development and customer services

London. 23rd June, 2003 – Kalahari, a global provider of real-time analytic solutions and strategic consulting services to financial and energy institutions in over 15 countries, today is delighted to announce that the company has continued its solid-performance by achieving record results for its first financial quarter for 2003.

Kalahari’s first quarter for the financial year 2003 closed at the end of April. The Company was successful in achieving its quarterly targets, including a 32% increase in top-line revenues as well as reaching its gross profit target. Additionally, the Company recognised a 24% increase in turnover compared to Q1 2002, with licensing experiencing a modest gain. At the same time, Kalahari was also able to substantially improve overall profitability by more than 17% compared with Q1 2002, while continuing to increase investment in professional services, new product development and marketing.

"Q1 2003 has been very active and exceptionally fruitful for Kalahari," commented Peter Trenier, Executive Chairman for Kalahari. "We continue to observe some very positive developments within all departments, improved financial results and new internal and external corporate initiatives, under the leadership of our managing director, David Harrelson. With an improved pipeline of new business, combined with the positive feedback we are receiving from our customers, we fully anticipate seeing this trend continue throughout the next three quarters."

Quarter One, 2003 Operating Highlights:

Achieved 101% of targeted financial objectives including turnover and profit.
Achieved 24% increase in turnover compared with Q1 2002 and more than 17% increase in profit.
Achieved strong sales performance in the high-growth area of Asia-Pacific with the signing of several new clients in that region, including: Singapore, Sydney and Tokyo

Appointment of Adrian Jones as head of the professional services organisation (PSO) to deliver complete end-to-end customer lifecycle management, solutions support centre, strategic consultancy, education and training.

Initiated ‘Performance Assessments’ with existing clients which significantly increased customer satisfaction and, in turn realised a professional services revenue increase of 75% compared to Q1 2002.

Achieved more than 150% of targeted revenue objectives within the area of professional services.

Appointed Blue Star Infotech, as a strategic technology partner, to further enhance Kalahari’s development capabilities which allows Kalahari to focus on providing value-added solutions to its global community of customers.

Appointed Red:Ant Solutions to deliver a consolidated and sustained programme of communications for Kalahari’s solutions and services to existing and new market sectors.

"Kalahari’s capacity to consistently win new business around the world, combined with our customers’ sustained commitment mitigated, to a large extent, the adverse effects of some of the worst economic conditions that our industry has ever faced," said David Harrelson, Managing Director at Kalahari. Commenting on the outlook for the remainder of 2003, he added: "This year Kalahari is focused and determined to create a business environment that can produce tangible results that are repeatable, predictable and sustainable, not only for our clients but for our shareholders and our team of business professionals. If the first quarter is any indication, then we are on a run-rate that will achieve close to 100% of our established corporate objectives."

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