GL TRADE - Very strong first-half performance, with both turnover and underlying operating profit up by more than 19.5%

Paris, August 30, 2005

The Board of Directors, chaired by Pierre Gatignol, has approved the financial statements for the first half of 2005.

Firm improvement in financial performance

In the first half of 2005, GL TRADE generated turnover of €87.1m, an increase of 19.5%. This included the contribution from Ubitrade and Davidge Data Systems, which were acquired in late 2004. At constant exchange rates, turnover rose by 21.9%. This impressive performance was achieved partly by a strong growth in Asia (+28% at constant exchange rates) and Ubitrade's banking risk business, which was reinforced by non-recurring revenues. GL TRADE generates 80% of its turnover outside France.

As expected, the cost of integrating Ubitrade and DDS held back GL TRADE's underlying operating profit, which rose by 19.6% to €14.8m, just as the integration of MSTS companies affected earnings in the first half of 2004. As a result, underlying operating margin was identical to that seen in the first half of 2004, at 17%.

The company expects operating margin to return to 18-19% in the second half.
Net profit rose 28% at €11.6m, giving net margin of 13.3%. As a result, net profit grew more strongly than turnover. This was mainly due to tax saving arising from the use of previous losses and a research tax credit.

IFRS transition

For the first time, GL TRADE is presenting IFRS-compliant financial statements. Under IFRS, net profit for the first half of 2004 rose from €7.6m to €9.1m.

The main impact of IFRS relates to the fact that goodwill is no longer amortised. Since no write -downs were necessary, this boosted net profit by €1.7m, while stock options had a €0.2m negative impact.

The growth strategy remains proactive

GL STREAM WorkStation combines GL TRADE technology and the best of the functions that the company has acquired in the last few years. It is now the only solution that GL TRADE sells, and all existing customers will migrate gradually to this single workstation product. Once this migration is complete, GL TRADE will refocus its R&D efforts on new functional and technological innovations. In line with its strategy, GL TRADE has recently set up a buy-side business line, in order to adapt products to the needs of buy-side customers and broaden its customer base.

The acquisition of Oasis in early July will boost growth in the US Back Office business, due to synergies with GL SETTLE.

At the same time, numerous projects have been launched in order to enhance the fit between the UBIX and GL CLEARVISION ranges in terms of products and customer bases.

In early August 2005, GL TRADE sold its non-strategic 34% stake in Bourse Connect for €9m. The proceeds will be used to finance GL TRADE's growth.
Based on these first-half results and future prospects, GL TRADE is maintaining its full-year 2005 targets, i.e. turnover growth of around 15%, underlying operating margin of around 18% and net margin of around 16% (including the impact of the Bourse Connect disposal).

These first-half results will be presented in a meeting at 3.30pm on September 1, 2005 in the small auditorium of the Palais Brongniart in Paris.

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