Companies news

BOCA RATON, Florida, July 29 /PRNewswire-FirstCall/ -- FTS , a global provider of Billing, CRM and Business Control solutions for communication, content and service providers, today announced that Globalcom(TM) Inc., one of the fastest-growing privately held service providers in the USA, has gone live with Leap(TM) RevChain(R) Version 7.1. The deployment has enabled Globalcom to seamlessly migrate from outsourced billing operations to in-house, resource-efficient billing management.

FTS' Leap RevChain is a full, end-to-end, rating, billing and customer-care solution for the service-provider market throughout the Americas, supporting voice, data and content services. When Globalcom selected FTS last year, the choice was largely due to Leap RevChain's flexible management and monitoring tools combined with its comprehensive rating mechanism for both traditional and next-generation services.

The Globalcom Leap RevChain deployment supports switched voice, data, VoIP and conference communication services with rating, billing and mediation capabilities. In addition, the solution comes complete with the data-migration capabilities needed to transition Globalcom's billing operations from an outsourced solution to one that is internally managed.

Prior to the deployment Globalcom was dependent on a 3rd party billing provider, with limited in-house control of billing operations. The implementation of Leap RevChain will support Globalcom's current and future billing needs, with the ability to flexibly self manage, update and control their billing operations in-house, in response to commercial requirements; without being limited by technological constraints or costly integration projects.

"The deployment of FTS' billing solution will help us to strengthen our in-house operations and provide even better support for our growing customer base," said John Shave, CEO of Globalcom. "Throughout the entire process FTS has surpassed our expectations."

"We selected FTS on the basis of their technical strengths, and the flexibility of Leap RevChain," said Eric Wince, Globalcom's COO. "Aside from their billing expertise, superb product, and unparalleled professionalism in always delivering on-time and in-budget, they worked extremely closely with us and were critical facilitators in the process of bringing our billing operations in-house."

"We were delighted when Globalcom selected FTS' Leap RevChain and are thrilled to see how smooth the transition between systems has been," said Shaul Ganel, President, FTS Americas. "We approach our customer relations with a partnering philosophy, and after working so closely with Globalcom on this deployment, we share their excitement in them now having in-house control of their billing operations."

About Globalcom, Inc.

Headquartered in Chicago, Globalcom offers a comprehensive portfolio of voice, broadband and IP Telephony integrated from a single, trusted provider. Globalcom caters to the specific needs of businesses of all sizes, delivering performance with a solid technical expertise and unbeatable service. For more information please visit http://www.callglobalcom.com/.

About FTS

FTS is a leading provider of Billing, CRM and Business Control solutions for communications and content service providers. By analyzing events from a business standpoint rather than just billing them, FTS allows providers to better understand their customer base and leverage business value from every event and interaction. FTS deploys its full range of end-to-end, stand-alone and add-on solutions to customers in over 40 countries and has implemented solutions in wireless, wireline, cable, content and broadband markets including multiple cross-network installations. Serving the evolving needs of both traditional and next generation providers, the company's operations comprise four international R&D locations and strategically-located sales support offices worldwide. In 2007, FTS was voted the 'Most Promising Company' at the prestigious TeleStrategies Billing and OSS World industry event. For more information please visit http://www.fts-soft.com/.

For further information please contact:

Sonus PR for FTS Patrick Smith, Tel. +44-20-7903-5454, patrick.smith@sonuspr.com

FTS Moshe Peterfreund, Tel. +972-9-952-6500, press@fts-soft.com

Globalcom Inc. Gavin McCarty, Tel. +1-312-895-8818, gmccarty@callglobalcom.com

FTS

CONTACT: For further information please contact: Sonus PR for FTS,
Patrick Smith, Tel. +44-20-7903-5454, patrick.smith@sonuspr.com; FTS, Moshe
Peterfreund, Tel. +972-9-952-6500, press@fts-soft.com; Globalcom Inc., Gavin
McCarty, Tel. +1-312-895-8818, gmccarty@callglobalcom.com

CSR - Second Quarter Results

LONDON, July 29 /PRNewswire-FirstCall/ -- CSR, the provider of wireless connectivity solutions and leader in Bluetooth technology, today announced second quarter results in line with guidance.

In a video interview, Joep van Beurden, CSR Chief Executive, explains how the company is responding to the challenging macro-economic conditions and what's happened to current market share. He also assesses R&D spend and why repositioning the business around the Connectivity Centre represents an enormous growth opportunity.

Will Gardiner, Chief Financial Officer, discusses whether the company can meet its growth objectives within current levels of expenditure and whether margins can be maintained at current levels.

Also, there will be a live presentation to analysts at 10:00BST.

The interviews, transcripts, podcasts and vodcasts are available now on http://www.cantos.com/. Cantos interviews can also be found on our CEO Insight page on iTunes.

It's free to view. All you need to do is register at http://www.cantos.com/. Cantos.com, the online financial broadcaster, features in-depth interviews, documentaries and webcasts with senior company executives. If you would like to contact us, please email enquiries@cantos.com or phone +44-207-936-1333.

CSR

CONTACT: If you would like to contact us, please email
enquiries@cantos.com or phone +44-207-936-1333.

CSR - Second Quarter Results

LONDON, July 29 /PRNewswire/ -- CSR, the provider of wireless connectivity solutions and leader in Bluetooth technology, today announced second quarter results in line with guidance.

Will Gardiner, Chief Financial Officer, discusses whether the company can meet its growth objectives within current levels of expenditure and whether margins can be maintained at current levels.

Also, there will be a live presentation to analysts at 10:00BST.

The interviews, transcripts, podcasts and vodcasts are available now on http://www.cantos.com. Cantos interviews can also be found on our CEO Insight page on iTunes.

It's free to view. All you need to do is register at http://www.cantos.com. Cantos.com, the online financial broadcaster, features in-depth interviews, documentaries and webcasts with senior company executives. If you would like to contact us, please email enquiries@cantos.com or phone +44-207-936-1333.

CSR

If you would like to contact us, please email enquiries@cantos.com or phone +44-207-936-1333.

Manpower Software plc Announces Record Results for the Year Ended 31 May 2008

LONDON, July 29 /PRNewswire/ -- Manpower Software plc, the leading provider of workforce optimisation software applications, is pleased to announce record results for the year ended 31st May 2008.

Highlights

- Revenue up 39% to GBP11.6m - Trading profit up 73% to GBP1.85m - Improved net operating margin of 16% (2007: 13%). - Cash balances at the year-end of GBP4.3m - 23 new NHS Trusts became customers - Successful integration of Key Information Technology Systems Limited ("Key ITS") - Particularly strong growth in the Healthcare business - Directors confident of another successful year

Ian Bowles, Chief Executive Officer commented: "2008 has been a year of significant achievement for Manpower Software. We have strengthened, both financially and in market share, and established firm foundations for continuing growth in the NHS market in the UK. We are committed to improving the performance of all areas of the business still further. While the global economic outlook is uncertain, Manpower Software is well positioned to continue to deliver profitable growth. I remain confident in the company's future."

About Manpower Software

Manpower Software is the leading workforce optimisation software applications provider for world-wide organisations with large, multi-skilled workforces. With over 17 years' experience, they ensure customers can match operational demands with workforce supply. Using MAPS, Manpower Software's workforce optimisation software application, organisations can deploy the right people and right skills, to the right place at the right time. With UK headquarters in London, and its US base in Miami, Manpower Software provide services and support to an international customer base across Europe, North America and Asia Pacific. Founded in 1991, Manpower Software plc is a British public company listed on the UK AIM stock market.

Please visit http://www.manpowersoftware.com for further information.

Manpower Software PLC

Manpower Software plc Enquiries: Ian Bowles - Chief Executive Officer, Tel: +44-(0)20-7389-9500, ibowles@manpowersoftware.com. Ciara Matthews - Corporate Marketing Manager, Tel: +44-(0)-20-7389-9531, cmatthews@manpowersoftware.com

Autonomy Supports Blackberry(R) Pin-To-Pin and SMS Messaging for FRCP-ComplianceElectronic Discovery, Archiving Software and Hosted Services Help Minimize Mobile Communication Risk

CAMBRIDGE, England and SAN FRANCISCO, July 29 /PRNewswire-FirstCall/ -- Autonomy Corporation plc , a global leader in infrastructure software for the enterprise, today announced that its software and hosted services for end-to-end eDiscovery and archiving enable the compliance archiving and search of BlackBerry(R) Pin-to-Pin and SMS messages, helping organizations to manage risks associated with mobile communications and comply with strict regulations such as the Federal Rules of Civil Procedure (FRCP). The Autonomy eDiscovery and archiving solutions support more than 1,000 data formats, including multimedia attachments, imaged documents, instant messages, BlackBerry Pin-to-Pin messages, SMS, audio, and video logs, and can automate the retrieval of relevant information for risk management through a conceptual understanding of the meaning of the messages and data.

FRCP Rule 26(a) requires an exhaustive search for and identification of sources of discoverable electronically stored information (ESI), including email, voice, and video content. In the case of email, this disclosure may require references to email that may be stored on backup tapes, employee PCs, and/or BlackBerry devices. In addition, the Financial Industry Regulatory Authority (FINRA), SEC, and National Association of Securities Dealers have strict regulations governing the preservation of electronic communications.

Standard BlackBerry e-mail passes through a company's messaging servers, where it can be captured and monitored for compliance and information governance purposes. However, BlackBerry SMS text and Personal Identification Number (PIN) messaging typically bypass a company's messaging systems, making the communications completely private and unmanaged. These SMS and PIN messages can expose the company to data leaks and compliance risks.

Highly regulated industries such as financial institutions are challenged with capturing, storing, and retrieving these difficult formats, which are now common for mobile business communication. Autonomy technology is increasingly used by financial and government institutions for long-term management and eDiscovery of their BlackBerry communications. The company's Meaning-based Computing technology automatically analyses and categorizes messages flowing though the BlackBerry RIM Server, capturing SMS and PIN messages in addition to emails; the de-duplicated messages are archived in the ultra scalable and secure consolidated archive. Each message is tagged with additional company specific metadata for faster more cost-effective supervision, long-term management and potential legal hold and eDiscovery.

"Having a mobile workforce has become a way of life for all businesses," said Mike Lynch, CEO of Autonomy. "However, electronic communication poses a real risk to corporations' compliance and corporate governance requirements. It is critical for organizations to select effective eDiscovery and archiving solutions that can find, hold and deliver all of the relevant information when litigations arise, which Autonomy is uniquely able to accomplish."

About Autonomy

Autonomy Corporation plc is a global leader in infrastructure software for the enterprise and is spearheading the meaning-based computing movement. Autonomy's technology allows computers to harness the full richness of human information, forming a conceptual and contextual understanding of any piece of electronic data including unstructured information, be it text, email, voice or video. Autonomy's software powers the full spectrum of mission-critical enterprise applications including information access technology, pan-enterprise search, information governance, end-to-end eDiscovery and archiving, records management, business process management, customer interaction solutions, and video and audio analysis, and is recognized by industry analysts as the clear leader in enterprise search.

Autonomy's customer base comprises of more than 17,000 global companies and organizations including: 3, ABN AMRO, AOL, BAE Systems, BBC, Bloomberg, Boeing, Citigroup, Coca Cola, Daimler Chrysler, Deutsche Bank, Ericsson, Ford, GlaxoSmithKline, Lloyd TSB, NASA, Nestle, the New York Stock Exchange, Reuters, Shell, T-Mobile, the U.S. Department of Energy, the U.S. Department of Homeland Security and the U.S. Securities and Exchange Commission. More than 350 companies OEM Autonomy technology, including BEA, Citrix, EDS, H-P, Novell, Oracle, Sybase and TIBCO, and the company has over 400 VARs and Systems Integrators. The company has offices worldwide.

Autonomy and the Autonomy logo are registered trademarks or trademarks of Autonomy Corporation plc. All other trademarks are the property of their respective owners.

Autonomy Editorial Contacts: Winifred Shum Tania Kempf Autonomy (US) Cohn & Wolfe (US) +1-408-771-6668 +1-650-281-7556 wshum@autonomy.com Tania_Kempf@sfo.cohnwolfe.com David Vindel Edward Bridges Red (UK) Financial Dynamics (UK) +44-207-0256529 +44-207-831-3113 david.vindel@redconsultancy.com edward.bridges@fd.com

Autonomy Corporation plc

CONTACT: Autonomy Editorial Contacts: Winifred Shum, Autonomy (US),
+1-408-771-6668, wshum@autonomy.com; Tania Kempf, Cohn & Wolfe (US),
+1-650-281-7556, Tania_Kempf@sfo.cohnwolfe.com; David Vindel, Red (UK),
+44-207-0256529, david.vindel@redconsultancy.com; Edward Bridges, Financial
Dynamics (UK), +44-207-831-3113, edward.bridges@fd.com

Second Quarter 2008 Revenue in Line With Guidance - Full Year 2008 Outlook ConfirmedKey Highlights for the QuarterRevenues of Euro 4.101 Billion, up 6.1% SequentiallyAdjusted(2) Gross Profit of Euro 1.433 Billion or 34.9% of Revenues

PARIS, July 29 /PRNewswire-FirstCall/ -- - Adjusted(2) Operating Income(1) of Euro 93 Million or 2.3% of Revenues

- Adjusted(2) Net Loss (group share) of Euro (222) Million or Euro (0.10) per Diluted Share

- Goodwill Impairment Charge of Euro (810) Million Related to CDMA

- Reported Net Loss (Group Share) of Euro (1,102) Million or Euro (0.49) per Diluted Share

- Chairman Serge Tchuruk and CEO Pat Russo to Step Down (see separate press release)

Note: 2nd quarter 2008 reported and adjusted income statement is enclosed in Annex, click here: http://www1.alcatel-lucent.com/2q2008/pdf/annex_E.pdf

Alcatel-Lucent's Board of Directors (Euronext Paris and NYSE: ALU) reviewed and approved reported results for the second quarter 2008.

During the quarter, revenues declined 5.2% year-over-year and increased 6.1% sequentially to Euro 4.101 billion. At constant Euro/USD exchange rate, revenues grew 1.7% year-over-year and 8.5% sequentially. At constant exchange rate and on a year-over-year basis, Carrier revenues declined 3%, Enterprise revenues grew 7% and Services revenues grew 16%. The adjusted2 gross margin was 34.9% of revenues, of which 0.5-percentage point was due to a capital gain on the sale of real estate. Adjusted2 operating income1 was Euro 93 million or 2.3% of revenues.

During the second quarter of 2008, the CDMA activity declined at a higher pace than the company had planned. This was due, to a large extent, to a strong reduction in the capital expenditure of a key customer in North America. Although there are new opportunities in other geographic areas, the uncertainty regarding spending in North America has led the company to take more cautious mid-term assumptions in this activity. This has resulted in a goodwill impairment charge of Euro (810) million which is reflected in the reported net loss of Euro (1,102) million or Euro (0.49) per diluted share for the second quarter.

Executive commentary Patricia Russo, CEO commented:

"Looking beyond the non-cash impairment charge, operationally we made good progress against our turnaround plan in the second quarter, delivering top-line and an adjusted operating margin in line with our expectations.

"First, revenue performance came in at the higher end of our guidance, posting sequential growth of slightly more than 6%. We were able to fully absorb the material decline in CDMA, achieving year-over-year growth of close to 2% at constant Euro/USD exchange rate, thanks to the strong growth of our Enterprise and Services operating segments and good performance in most of our other carrier activities. Of particular note, GSM/W-CDMA/WiMAX continued to enjoy strong, double-digit growth year-over-year. In addition, our activities in convergence grew for the first time since completing the merger and we saw slight growth in our wireline activities.

"Second, our adjusted gross margin is in the mid thirties, which is in line with our overall guidance for the year. Factoring out the impact of one-time gains, our gross margin increased by 150 basis points year-over-year, reflecting a more stringent pricing discipline and the impact of our product costs reduction programs. Sequentially, it declined 90 basis points, in spite of higher volumes, reflecting to a large extent a negative shift in the product and geographic mix.

"Finally, we continue to make good progress in reducing our fixed costs. Our operating expenses declined 8.6% year-over-year and 1.7% sequentially. As a result, we achieved higher adjusted operating margins in all three business segments, with break-even performance in the carrier segment and high single-digit operating margins in the Enterprise and Services segments."

Market and outlook

Pat Russo, CEO, continued: "In our outlook for the second quarter and full year, we were prudent in our view of the telecommunications equipment market due to the macroeconomic environment and the resulting potential for lower capital spending in the US. Over the past three months, the global macroeconomic environment has further deteriorated and the economic slowdown has begun to spread to Europe. Although not evident yet, we believe this could impact somewhat the capital expenditure decisions of certain European customers, especially in fixed access.

At the same time, we are seeing a stronger-than-expected demand for GSM/W-CDMA mobile access in emerging markets, especially in Asia. In addition, we feel positive about our prospects in China, both in 2G and 3G (including CDMA EV-DO) for the fourth quarter and next year. Finally, we now see a stronger than initially expected demand in Services, especially in network operations and network integration. Against this mixed backdrop, we continue to anticipate that the global telecommunications equipment and related services market should be flat in 2008 at constant currency".

With approximately half of the company's revenue in US dollar or dollar-linked currencies, Alcatel-Lucent reiterates its previous guidance for the full year 2008 revenue. Expressed in current Euro rate and due to the reduction in the value of the dollar since 2007, revenue should be down in the low to mid single-digit range. The company continues to expect an adjusted gross margin in the mid thirties and an adjusted operating margin in the low to mid single-digit range in percentage of revenue in full year 2008. For the third quarter 2008, Alcatel-Lucent expects its revenue to be flat to slightly down sequentially, followed by a strong ramp in the fourth quarter.

Reported results

For the second quarter 2008, Alcatel-Lucent's reported revenues amounted to Euro 4,101 million. The reported gross profit was Euro 1,432 million. Reported operating loss1 was Euro (21) million, including the negative impact from PPA entries of Euro (114) million. For the quarter, reported net loss (group share) was Euro (1,102) million or Euro (0.49) per diluted share (USD (0.77) per ADS), including the negative after tax impact from PPA entries of Euro (880) million.

Adjusted results

In addition to the reported results, Alcatel-Lucent is providing adjusted financial results in order to provide meaningful comparable information, which exclude the main non-cash impacts from PPA entries in relation to the Lucent business combination. These non-cash impacts are very material and non-recurring due to the different amortization periods depending on the nature of the adjustments, as detailed in the annex. Reported figures are not comparable with our main competitors and many business players who have not undergone any similar business combinations as the Alcatel and Lucent one.

For the second quarter 2008, Alcatel-Lucent generated revenues of Euro 4,101 million, compared to Euro 4,326 million in the year-ago quarter, a decrease of 5.2%. The adjusted2 gross profit was Euro 1,433 million or 34.9% of revenues, compared to an adjusted2 gross profit of EUR 1,447 million or 33.4% of revenues in the year ago-quarter. Adjusted2 operating income1 was Euro 93 million, 2.3% of revenues, compared with an adjusted2 operating loss of Euro (19) million or (0.4%) of revenues in the year-ago quarter. Adjusted2 net loss (group share) was Euro (222) million or Euro (0.10) per diluted share (USD (0.16) per ADS), compared to an adjusted2 net loss of Euro (336) million or Euro (0.15) per share (USD (0.20) per ADS) in the year-ago quarter.

Balance sheet and pension status

The net (debt)/cash position was Euro (415) million as of June 30, 2008, compared with Euro (30) million as of March 31, 2008. The increase in net debt of Euro (385) million primarily reflects an increase in non operating working capital requirements mainly related to the bonus payments which were concentrated in the second quarter, cash outflow related to restructuring plans (Euro (166) million), our cash contribution to pensions (Euro (112) million) and a slightly higher-than-anticipated cash income tax payment (Euro (48) million). Based on the above outlook for revenue and adjusted operating margin, Alcatel-Lucent expects its year-end 2008 net debt to be materially reduced compared to the level at the end of June 2008.

The funded status of pensions and other post retirement benefits (OPEB) amounted to a surplus of Euro 2.848 billion as of June 30, 2008, up from Euro 2.609 billion as of as of March 31, 2008.

Key figures Adjusted Profit & Loss Second Second % change, First % change Statement quarter quarter y-o-y quarter q-o-q In Euro million except for 2008 2007 (% or pt) 2008 (% or pt) EPS Revenues 4,101 4,326 -5.2% 3,864 6.1% Gross profit 1,433 1,447 -1.0% 1,399 2.4% in % of revenues 34.9% 33.4% 1.5 pt 36.2% -1.3 pt Operating income (1) 93 -19 Nm 36 158.3% in % of revenues 2.3% -0.4% 2.7 pt 0.9% 1.3 pt Net income (loss) (Group -222 -336 Nm -95 Nm share) EPS diluted (in Euro) -0.10 -0.15 Nm -0.04 Nm E/ADS* diluted (in USD) -0.16 -0.20 N -0.07 Nm Number of diluted shares 2259.1 2252.6 0.3% 2259.1 0.0% (million)

*E/ADS calculated using the US Federal Reserve Bank of New York noon Euro/dollar buying rate of USD 1.5748 as of June 30, 2008, of USD 1.3502 as of June 30, 2007 and of USD 1.5805 as of March 31,2008.

Segment breakdown Second Second % change, First % change of revenues quarter quarter y-o-y quarter q-o-q (In Euro million) 2008 2007 (% or pt) 2008 (% or pt) Carriers 2,811 3,104 -9.4% 2,700 4.1% Enterprise 386 376 2.7% 382 1.0% Services 818 750 9.1% 679 20.4% Other & eliminations 86 96 -10.4% 103 -16.2% Total group revenues 4,101 4,326 -5.2% 3,864 6.1% Breakdown of segment Second Second % change, First % change operating income (1) (loss) quarter quarter y-o-y quarter q-o-q (in Euro million) 2008 2007 (% or pt) 2008 (% or pt) Carriers 11 -73 Nm -34 Nm In % of revenues 0.4% -2.3% 2.7 pt -1.2% 1.6 pt Enterprise 29 23 24.8% 16 80.8% In % of revenues 7.4% 6.1% 1.3 pt 4.2% 3.2 pt Services 71 29 143.8% 19 266.3% In % of revenues 8.6% 3.9% 4.8 pt 2.8% 5.8 pt Other & eliminations -18 2 Nm 35 Nm Segment op. income (loss) 93 -19 Nm 36 154.7% Cash Flow highlights Second First Second quarter quarter quarter In Euro million 2008 2008 2007 Net (debt)/cash at beginning of period -30 271 -48 Adjusted operating income 93 36 -19 Depreciation & Amort; OP non cash; other 177 209 335 Operating Cash Flow * 270 245 316 Change in operating & other WCR -150 -114 -118 Interest -16 -108 -13 Taxes -48 -38 -18 Dividends received & other 41 0 39 Cash contribution to pension & OPEB -112 -118 -72 Restructuring cash outlays -166 -119 -99 Cash flow from operating activities -181 -252 35 Capital expenditures (incl. R&D cap.) -203 -196 -200 Free Cash Flow -384 -448 -165 Disposals, Discontinued, Cash from financing & Forex -1 147 434 Change in net(debt)/cash position -385 -301 269 Net (debt)/cash at end of period -415 -30 221 * Before changes in working capital, interest/tax paid, restructuring cash outlay and pension & OPEB cash outlay Balance sheet - Assets June 30, March 31, June 30, In Euro million 2008 2008 2007 Total non-current assets 18,348 19,299 24,457 of which Goodwill & intangible assets, net 10,004 10,835 15,232 of which Prepaid pension costs 3,129 3,244 3,573 of which Other non-current assets 5,215 5,220 5,589 of which marketable securities 0 0 63 Total current assets 12,595 12,889 13,620 of which OWC assets 6,902 6,769 6,906 of which other current assets 1,284 1,364 1,237 of which marketable securities, cash & cash equivalents 4,409 4,756 5,477 Total assets 30,943 32,188 38,077 Balance sheet - Liabilities and shareholders' June 30, March 31, June 30, equity In Euro million 2008 2008 2007 Total shareholders equity 9,957 11,031 15,451 of which attributable to the equity holders of the parent 9,445 10,519 14,976 of which minority interests 512 512 475 Total non-current liabilities 9,801 9,942 12,180 of which pensions, and other post-retirement benefits 3,967 4,117 4,634 of which long term debt 3,649 3,621 4,982 of which other non-current liabilities 2,185 2,204 2,564 Total current liabilities 11,185 11,215 10,446 of which provisions 2,545 2,375 2,658 of which short term debt 1,194 1,211 328 of which OWC liabilities 5,394 5,350 5,512 of which other current liabilities 2,052 2,279 1,948 Total liabilities and shareholder's equity 30,943 32,188 38,077 Business Commentary

Please note that the all the following business comments are based on a year-over-year comparison at constant Euro/USD exchange rate, unless otherwise specified.

Carrier Operating Segment

For the second quarter 2008, revenues for the Carrier operating segment were Euro 2,811 million compared to Euro 3,104 million in the year-ago quarter, a 9.4% decrease at current exchange rate and a 3% decrease at constant rate. Adjusted2 operating1 profit was Euro 11 million, an operating margin of 0.4% compared to a loss of Euro (73) million or a negative operating margin of (2.3%) in the year ago period.

Key highlights: - Fixed access revenue decreased at a double-digit rate, due to the ongoing decline in new subscribers to copper-based broadband access. Alcatel-Lucent shipped 7.7 million xDSL ports in the quarter, down 20% from the demanding basis of the year-ago quarter but up 16% sequentially. The year-over-year decline in xDSL revenue was only partially compensated by the very strong growth in FTTx revenue. Dell'Oro confirmed Alcatel-Lucent as the clear leader in the GPON-based FTTH segment, with a four-quarter rolling market share of 48% in the first quarter 2008. - In data networking, growth in edge routing was softer this quarter than in the first one, which is essentially attributable to a demanding year-over-year comparison as well as the timing of deliveries at certain large customers. The ATM switching business continued on its structural decline path in the second quarter 2008, albeit at a more moderate rate than in the first quarter. - Optical networking enjoyed strong double-digit growth this quarter, essentially driven by submarine activities and wireless transmission while terrestrial optical networks grew at a mid single-digit rate. - In mobile networks, our GSM business grew at a double-digit rate in the second quarter, which was driven by network expansions in China, India, the Middle East and Africa. W-CDMA revenue grew very strongly, benefiting from the ramp-up in revenues at several key clients, including AT&T Mobility, Bouygues and SFR and sustained growth at other accounts such as Orange, SKT and KTF. CDMA revenue declined sharply year-over-year, hurt by the significant reduction in the capital expenditure of a key customer in North-America. - Our core switching activities contracted at a moderate rate in the second quarter, as the ongoing decline in legacy TDM voice was almost entirely offset by the strong, double-digit growth in Fixed and mobile NGN. It must be noted that our NGN activity is now close in size to our TDM activity. - Our applications activities grew in excess of twenty percent the second quarter, a sharp contrast to the moderate growth rate achieved in the first quarter, due to a pick-up in revenues from Messaging applications and a stabilisation in our legacy IN (Intelligent Networks) business. Enterprise Operating Segment

For the second quarter 2008, revenues for the Enterprise operating segment were Euro 386 million compared to Euro 376 million in the year-ago quarter, an increase of 2.7% at current exchange rate and of 7% at constant rate. Adjusted2 operating income1 was Euro 29 million, or 7.4% of revenues compared to Euro 23 million or 6.1% in the year ago quarter.

Key Highlights: - Enterprise Solutions grew in the high single-digit range, with a particularly strong performance in data networking but also good growth in IP Telephony. The division also showed progress in Security solutions, driven by recent successes in firewalls and additional orders for its Laptop Guardian product. From a geographic standpoint, growth remained solid in North America and was strong in APAC. - Genesys, the contact centre software activity, enjoyed another quarter of double-digit growth, driven by a strong performance in Europe and good resilience in North America. - The adjusted operating margin of the Enterprise operating segment increased both year-over-year and on a sequential basis. This is attributable for the most part to higher volumes, a positive shift in the product and geographic mix and solid progress in the product costs reduction programs. Services Operating Segment

For the second quarter 2008, revenues for the Services operating segment were Euro 818 million compared to Euro 750 million in the year-ago quarter, an increase of 9.1% at current exchange rate and of 16% at constant rate. Adjusted2 operating income1 was Euro 71 million or 8.6% of revenues compared to Euro 29 million or 3.9% of revenues in the year ago quarter.

Key Highlights: - Network operations grew very strongly, as a result of some of the very large contracts won in 2007 and in 2008. Alcatel-Lucent announced two large managed services contracts in the second quarter, including Reliance Communications in India and Sunrise in Switzerland. - Network integration also enjoyed another quarter of very strong growth which was driven by several large and complex projects for the design, integration and optimisation of networks in Asia and North America. - Growth in professional services - which includes the integration of software applications either from Alcatel-Lucent or third parties - was more moderate this quarter than in the first one, which is mainly due to a much more demanding comparison basis. For the first half, however, this business grew in the high single-digit range. - Finally, Maintenance returned to growth this quarter, due to sustained growth in multivendor maintenance combined with an unusually strong quarter in legacy maintenance. - The segment enjoyed a material improvement in profitability year-over-year, due to a very favourable mix, a material increase in the gross margin in Network operations, Network integration and Professional services and an overall better absorption of fixed costs.

Alcatel-Lucent will host an audio webcast at 1:00 p.m. CET, which can be accessed at http://www.alcatel-lucent.com/2q2008

Notes All adjusted figures are unaudited.

1- Operating income (loss) is the Income (loss) from operating activities before restructuring costs, impairment of assets, gain (loss) on disposals of consolidated entities and post-retirement benefit plan amendment.

2- "Adjusted" refers to the fact that it excludes the main impacts from Lucent's purchase price allocation (See annex for detailed information).

2008 Upcoming Events/ Announcements October 30 Third quarter 2008 results About Alcatel-Lucent

Alcatel-Lucent (Euronext Paris and NYSE: ALU) provides solutions that enable service providers, enterprises and governments worldwide, to deliver voice, data and video communication services to end-users. As a leader in fixed, mobile and converged broadband networking, IP technologies, applications and services, Alcatel-Lucent offers the end-to-end solutions that enable compelling communications services for people at home, at work and on the move. With operations in more than 130 countries, Alcatel-Lucent is a local partner with global reach. The company has the most experienced global services team in the industry, and one of the largest research, technology and innovation organizations in the telecommunications industry. Alcatel-Lucent achieved revenues of Euro 17.8 billion in 2007 and is incorporated in France, with executive offices located in Paris. For more information, visit Alcatel-Lucent on the Internet: http://www.alcatel-lucent.com/

SAFE HARBOR FOR FORWARD LOOKING STATEMENTS

Except for historical information, all other information in this press release consists of forward-looking statements within the meaning of the US Private Securities Litigation Reform Act of 1995, as amended. These forward looking statements include statements regarding the future financial and operating results of Alcatel-Lucent such as (i) expected revenues for the third quarter and for the fourth quarter 2008, (ii) expected revenues, adjusted gross margin and adjusted operating margin for full year 2008. Words such as "expects," "anticipates," "targets," "projects," "intends," "plans," "believes," "estimates," variations of such words and similar expressions are intended to identify such forward-looking statements which are not statements of historical facts. These forward-looking statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions that are difficult to assess. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements. These risks and uncertainties are based upon a number of important factors including, among others: our ability to operate effectively in a highly competitive industry with many participants; our ability to keep pace with technological advances and correctly identify and invest in the technologies that become commercially accepted; difficulties and delays in achieving synergies and cost savings; fluctuations in the telecommunications market; exposure to the pricing pressures in the regions in which we sell; the pricing, cost and other risks inherent in long-term sales agreements; exposure to the credit risk of customers; reliance on a limited number of contract manufacturers to supply products we sell; the social, political and economic risks of our global operations; the costs and risks associated with pension and postretirement benefit obligations; the complexity of products sold; changes to existing regulations or technical standards; existing and future litigation; difficulties and costs in protecting intellectual property rights and exposure to infringement claims by others; compliance with environmental, health and safety laws; whether Alcatel-Lucent can execute against and obtain benefits from its three-year plan to improve gross margin, cut operating expenses, and turn around underperforming businesses in order to achieve an improved operating margin, and whether these efforts will achieve their expected benefits; the economic situation in general (including exchange rate fluctuations) and uncertainties in Alcatel-Lucent's customers' businesses in particular; customer demand for Alcatel-Lucent's products and services; control of costs and expenses; international growth; conditions and growth rates in the telecommunications industry; and the impact of each of these factors on sales and income. For a more complete list and description of such risks and uncertainties, refer to Alcatel-Lucent's Form 20-F for the year ended December 31, 2007, as well as other filings by Alcatel-Lucent with the US Securities and Exchange Commission. Except as required under the US federal securities laws and the rules and regulations of the US Securities and Exchange Commission, Alcatel-Lucent disclaims any intention or obligation to update any forward-looking statements after the distribution of this news release, whether as a result of new information, future events, developments, changes in assumptions or otherwise.

Alcatel-Lucent

CONTACT: Alcatel-Lucent Press Contacts, Regine Coqueran, Tel:
+33(0)1-40-76-49-24, regine.coqueran@alcatel-lucent.com; Mary Ward, Tel:
+1-908-582-7658, mary.ward@alcatel-lucent.com; Alcatel-Lucent Investor
Relations, Remi Thomas, Tel: +33(0)1-40-76-50-61,
remi.thomas@alcatel-lucent.com; Tom Bevilacqua, Tel: +1-908-582-79-98,
bevilacqua@alcatel-lucent.com; Tony Lucido, Tel: +33(0)1-40-76-49-80,
alucido@alcatel-lucent.com; Don Sweeney, Tel: +1-908-582-6153,
dsweeney@alcatel-lucent.com

Alcatel-Lucent Announces Chairman Serge Tchuruk and CEO Pat Russo to Step DownBoard to Commence Search for New CEOCEO Russo to Remain at Helm Until Successor is Named to Ensure Business ContinuityBoard of Directors Announces Plans to Reorganize and Change Composition

PARIS, July 29 /PRNewswire-FirstCall/ -- Alcatel-Lucent (Euronext Paris and NYSE: ALU) today announced changes to its leadership and Board of Directors. The company also announced its quarterly results and demonstrated improvements to its operational results for the third straight quarter. The Company reported that it is making steady progress on the strategy the company laid out last fall.

To pave the way for a fully aligned governance and management model going forward, the company announced the following changes to its management team and Board of Directors:

- Non-Executive Chairman Serge Tchuruk has decided to step down on October 1, 2008. - CEO Pat Russo has decided to step down no later than the end of the year, and at the Board's request will continue to run the company until a new CEO is in place to effect a smooth transition and maintain the continuity of the company's business. - The Board will commence a search for a new non-executive Chairman and CEO immediately. - The Board is also initiating a process to change the composition of the Board to a smaller group that will include new members.

"The merger phase is now behind us. I am proud that Alcatel-Lucent has become a world leader in a technology which is transforming our society. It is now time that the company acquires a personality of its own, independent from its two predecessors. The Board must also evolve and the Chairman should give the first example, which I have decided to do," said Serge Tchuruk.

"I am very pleased with the progress we are making especially in light of a difficult market environment," said Pat Russo. "Our strategy is taking hold and our results are demonstrating good operational progress. That said, I believe it is the right time for me to step down. The company will benefit from new leadership aligned with a newly composed Board to bring a fresh and independent perspective that will take Alcatel-Lucent to its next level of growth and development in a rapidly changing global market. I have every desire to ensure a smooth transition of leadership within the company and I have informed the Board of my determination to work closely with them until the end of the year or sooner if a successor is named, and we are in agreement on this approach. I have great confidence in Alcatel-Lucent and believe this to be a company with tremendous potential," said Russo.

Now that the company has moved beyond the transitional phase of the merger, the Board has determined to restructure itself in a way consistent with the company's needs going forward. As part of this process the Board will reduce the size of its membership over time while adding several new members with strong industry expertise. To initiate this process, Henry Schacht announced that he will resign from the Board immediately believing that, being a former CEO, he should not remain beyond the transitional stage of the merger. Mr. Schacht was the CEO of Lucent Technologies prior to Ms. Russo becoming CEO in January 2002.

Alcatel-Lucent will host an audio webcast at 1:00 p.m. CET to discuss the leadership changes and the company's second quarter financial results. The webcast can be accessed at http://www.alcatel-lucent.com/2q2008

About Alcatel-Lucent

SAFE HARBOR FOR FORWARD LOOKING STATEMENTS

Except for historical information, all other information in this press release consists of forward-looking statements within the meaning of the US Private Securities Litigation Reform Act of 1995, as amended. These forward looking statements include statements regarding the future financial and operating results of Alcatel-Lucent. Words such as "expects," "anticipates," "targets," "projects," "intends," "plans," "believes," "estimates," variations of such words and similar expressions are intended to identify such forward-looking statements which are not statements of historical facts. These forward-looking statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions that are difficult to assess. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements. These risks and uncertainties are based upon a number of important factors including, among others: our ability to appoint a new non-executive chairman and a new chief executive officer, as well as to locate additional board members with industry expertise, within the expected timeframes; our ability to operate effectively in a highly competitive industry with many participants; our ability to keep pace with technological advances and correctly identify and invest in the technologies that become commercially accepted; difficulties and delays in achieving synergies and cost savings; fluctuations in the telecommunications market; exposure to the pricing pressures in the regions in which we sell; the pricing, cost and other risks inherent in long-term sales agreements; exposure to the credit risk of customers; reliance on a limited number of contract manufacturers to supply products we sell; the social, political and economic risks of our global operations; the costs and risks associated with pension and postretirement benefit obligations; the complexity of products sold; changes to existing regulations or technical standards; existing and future litigation; difficulties and costs in protecting intellectual property rights and exposure to infringement claims by others; compliance with environmental, health and safety laws; whether Alcatel-Lucent can continue to obtain product cost improvements and to implement cost cutting and restructuring programs, and whether these efforts will achieve their expected benefits; the economic situation in general (including exchange rate fluctuations) and uncertainties in Alcatel-Lucent's customers' businesses in particular; customer demand for Alcatel-Lucent's products and services; control of costs and expenses; international growth; conditions and growth rates in the telecommunications industry; and the impact of each of these factors on sales and income. For a more complete list and description of such risks and uncertainties, refer to Alcatel-Lucent's Form 20-F for the year ended December 31, 2007, as well as other filings by Alcatel-Lucent with the US Securities and Exchange Commission. Except as required under the US federal securities laws and the rules and regulations of the US Securities and Exchange Commission, Alcatel-Lucent disclaims any intention or obligation to update any forward-looking statements after the distribution of this news release, whether as a result of new information, future events, developments, changes in assumptions or otherwise.

Alcatel-Lucent

CONTACT: Alcatel-Lucent Press Contacts: RÃƒÂ©gine Coqueran, Tel:
+33(0)1-40-76-49-24, regine.coqueran@alcatel-lucent.com; Mary Ward, Tel:
+1-908-582-7658, mary.ward@alcatel-lucent.com; Alcatel-Lucent Investor
Relations: RÃƒÂ©mi Thomas, Tel: +33(0)1-40-76-50-61,
remi.thomas@alcatel-lucent.com; Tom Bevilacqua, Tel: +1-908-582-79-98,
bevilacqua@alcatel-lucent.com; Tony Lucido, Tel: +33(0)1-40-76-49-80,
alucido@alcatel-lucent.com; Don Sweeney, Tel: +1-908-582-6153,
dsweeney@alcatel-lucent.com

SAP Reports Strong Growth in Software and Software-Related Service Revenues and Refines Annual Outlook to Reach Upper-End of Range

WALLDORF, Germany, July 29 /PRNewswire-FirstCall/ -- SAP AG today announced its preliminary financial results for the second quarter and six months ended June 30, 2008.

HIGHLIGHTS - Second Quarter 2008 SAP - Second Quarter 2008* U.S. GAAP Non-GAAP** % change constant euro million % % currency Q2/2008 Q2/2007 change Q2/2008 Q2/2007 change *** Software revenues 898 716 25 898 716 25 34 Software and software- related service revenues 2,061 1,704 21 2,113 1,704 24 32 Total revenues 2,858 2,421 18 2,910 2,421 20 28 Operating income 593 581 2 711 594 20 30 Operating margin (%) 20.7 24.0 -3.3pp 24.4 24.5 -0.1pp 0.5pp Income from continuing operations 411 453 -9 497 461 8 - Net income 408 449 -9 494 457 8 - Basic EPS from cont. operations (euro) 0.34 0.37 -8 0.42 0.38 11 - * All figures are preliminary and unaudited and are based on the current status of the purchase price allocation for the Business Objects acquisition which is not yet final. ** Revenue line items are adjusted for the Business Objects support revenue that Business Objects would have recognized had it remained a standalone entity but that SAP is not permitted to recognize as revenue under U.S. GAAP as a result of business combination accounting rules. Adjustments in the operating expense line items are for acquisition-related charges. See Appendix at the end of the financial section of the press release for explanations of the Non-GAAP measures used in this press release and for related reconciliations to U.S. GAAP. *** Constant currency Non-GAAP revenue and operating income figures are calculated by translating Non-GAAP revenue and Non-GAAP operating income of the current period using the average exchange rates from the previous year's respective period instead of the current period. Constant currency period-over-period changes are calculated by comparing the current year's Non-GAAP constant currency numbers with the Non-GAAP number of the previous year's respective period. See Appendix at the end of the financial section of press release for details. Revenues

-- Second quarter 2008 U.S. GAAP software and software-related service revenues were 2.06 billion euro (2007: 1.70 billion euro), representing an increase of 21% compared to the second quarter of 2007. Non-GAAP software and software-related service revenues, which exclude a non-recurring deferred support revenue write-down from the acquisition of Business Objects of 52 million euro, for the second quarter of 2008 were 2.11 billion euro (2007: 1.70 billion euro). This represents an increase of 24% (32% at constant currencies) compared to the second quarter of 2007. If SAP's reporting currency was the U.S. Dollar, Non-GAAP software and software-related service revenues for the second quarter would have increased 44% compared to the same period one year ago.

-- Excluding the contribution from Business Objects, SAP's business contributed 16 percentage points to the constant currency growth of the Non- GAAP software and software-related service revenues for the second quarter of 2008.

-- U.S. GAAP total revenues for the 2008 second quarter were 2.86 billion euro (2007: 2.42 billion euro), which was a year-over-year increase of 18%. Non-GAAP total revenues, which exclude a non-recurring deferred support revenue write-down from the acquisition of Business Objects of 52 million euro for the second quarter of 2008, were 2.91 billion euro (2007: 2.42 billion euro), which is an increase of 20% (28% at constant currencies) compared to the second quarter of 2007.

-- Second quarter 2008 U.S. GAAP software revenues were 898 million euro (2007: 716 million euro), representing an increase of 25% (34% at constant currencies) compared to the second quarter of 2007.

Income

-- U.S. GAAP operating income for the second quarter was 593 million euro (2007: 581 million euro), which was an increase of 2% compared to the second quarter of 2007. Second quarter Non-GAAP operating income, which excludes a non-recurring deferred support revenue write-down from the acquisition of Business Objects and acquisition-related charges totaling 118 million euro, was 711 million euro (2007: 594 million euro), which was an increase of 20% (30% at constant currencies) compared to the second quarter of 2007.

-- The U.S. GAAP operating margin for the second quarter of 2008 was 20.7% (2007: 24.0%). The second quarter Non-GAAP operating margin was 24.4% (2007: 24.5%), or 25.0% at constant currencies. Both the U.S. GAAP and the Non-GAAP operating margins were impacted by 1) 24 million euro expensed in the second quarter of 2008 for the settlement of a litigation and, 2) one-time expenses associated with the integration of Business Objects (which are not acquisition-related charges) of approximately 11 million euro.

-- U.S. GAAP income from continuing operations for the second quarter of 2008 was 411 million euro (2007: 453 million euro), representing a decrease of 9% compared to the second quarter of 2007. Non-GAAP income from continuing operations, which excludes a non-recurring deferred support revenue write-down from the acquisition of Business Objects and acquisition-related charges totaling 86 million euro, was 497 million euro (2007: 461 million euro), representing an increase of 8% compared to the second quarter of 2007. Second quarter 2007 U.S. GAAP and Non-GAAP income from continuing operations were positively impacted by an effective tax rate of 25.5% and 25.8%, respectively, partly resulting from non-recurring tax effects.

-- U.S. GAAP earnings per share from continuing operations for the second quarter of 2008 was 0.34 euro (2007: 0.37 euro), which was a decrease of 8% compared to the same period in 2007. Non-GAAP earnings per share from continuing operations for the second quarter of 2008 was 0.42 euro (2007: 0.38 euro), which was an increase of 11% compared to the same period in 2007.

Core Enterprise Applications Vendor Share

SAP reported its tenth consecutive quarter of share gains. Based on U.S. GAAP second quarter 2008 software and software-related service revenues on a rolling four-quarter basis, SAP's worldwide share of Core Enterprise Applications vendors, which account for approximately $38.1 billion in software and software-related service revenues as defined by the Company based on industry analyst research, was 33.7% for the four-quarter period ended June 30, 2008. This represents an increase of 1.1 percentage points compared to the four-quarter period ended March 31, 2008 and a 7.7 percentage point increase compared to the four quarter period ended June 30, 2007, of which approximately 4.5 percentage points came from organic growth and 3.2 percentage points from the acquisition of Business Objects.

"We performed very well in the second quarter, in which our 32% growth in Non-GAAP software and software-related service revenues at constant currencies marked our 18th consecutive quarter of double-digit growth," said Henning Kagermann, co-CEO of SAP. "Our organic growth, which excludes the contribution from Business Objects, was just as impressive, contributing 16 percentage points to the constant currency growth of software and software- related service revenues. We can attribute our strong performance to good overall execution and the continued strength in all three core areas of our business, the established business, the midmarket and business user solutions."

Mr. Kagermann continued, "SAP is unique in that we provide a truly open business process platform, with a fully integrated suite of software solutions built on top, along with a very dynamic ecosystem developing solutions around it. Our unique offering puts us on a short list of strategic solutions for CEO's whether they are seeking efficiencies, compliance or growth for their companies."

Cash Flow

Operating cash flow from continuing operations for the first six months of 2008 was 1.37 billion euro (2007: 1.02 billion euro). Free cash flow for the first six months of 2008 was 1.20 billion euro (2007: 828 million euro), which was 23% of total revenues (2007: 18%). At June 30, 2008, the Company had total group liquidity of 1.5 billion euro (December 31, 2007: 2.8 billion euro), which includes cash and cash equivalents, restricted cash and short term investments.

Share Buyback

In the second quarter of 2008 the Company bought back 3.8 million shares at an average price of 32.58 euro (124.2 million euro). Of the total shares purchased in the second quarter, 265,971 shares were subsequently acquired from the Company by employees who exercised stock options under SAP's share- based compensation programs. The number of shares bought back in the second quarter of 2008 represented 0.31% of the total shares outstanding. At June 30, 2008, the Company held Treasury Stock in the amount of 57.9 million shares (approximately 4.6% of total shares outstanding) at an average price of 35.31 euro. For the first six months of 2008, the Company invested 382.6 million euro buying back approximately 11.8 million shares at an average price of 32.31 euro.

HIGHLIGHTS - Six Months 2008 Business Objects is included in the results from January 21, 2008 onwards. SAP - Six Months 2008* U.S. GAAP Non-GAAP** % change constant euro million % % currency H1/2008 H1/2007 change H1/2008 H1/2007 change *** Software revenues 1,520 1,278 19 1,520 1,278 19 27 Software and software- related service revenues 3,797 3,219 18 3,896 3,219 21 28 Total revenues 5,318 4,583 16 5,417 4,583 18 25 Operating income 952 1,017 -6 1,200 1,041 15 26 Operating margin (%) 17.9 22.2 -4.3pp 22.2 22.7 -0.5pp 0.1pp Income from continuing operations 658 765 -14 842 780 8 - Net income 650 759 -14 834 774 8 - Basic EPS from cont. operations (euro) 0.55 0.63 -13 0.71 0.64 11 - * All figures are preliminary and unaudited and are based on the current status of the purchase price allocation for the Business Objects acquisition which is not yet final. ** Revenue line items are adjusted for the Business Objects support revenue that Business Objects would have recognized had it remained a standalone entity but that SAP is not permitted to recognize as revenue under U.S. GAAP as a result of business combination accounting rules. Adjustments in the operating expense line items are for acquisition-related charges. See Appendix at the end of the financial section of the press release for explanations of the Non-GAAP measures used in this press release and for related reconciliations to U.S. GAAP. *** Constant currency Non-GAAP revenue and operating income figures are calculated by translating Non-GAAP revenue and Non-GAAP operating income of the current period using the average exchange rates from the previous year's respective period instead of the current period. Constant currency period-over-period changes are calculated by comparing the current year's Non-GAAP constant currency numbers with the Non-GAAP number of the previous year's respective period. See Appendix at the end of the financial section of press release for details. Revenues

-- Six months 2008 U.S. GAAP software and software-related service revenues were 3.80 billion euro (2007: 3.22 billion euro), representing an increase of 18% compared to the first half of 2007. Non-GAAP software and software-related service revenues, which exclude a non-recurring deferred support revenue write-down from the acquisition of Business Objects of 99 million euro, for the first six months of 2008 were 3.90 billion euro (2007: 3.22 billion euro). This represents an increase of 21% (28% at constant currencies) compared to the first half of 2007. If SAP's reporting currency was the U.S. Dollar, Non-GAAP software and software-related service revenues for the first half would have increased 40% compared to the same period one year ago.

-- Excluding the contribution from Business Objects, SAP's business contributed 14 percentage points to the constant currency growth of the Non- GAAP software and software-related service revenues for the first half of 2008.

-- U.S. GAAP total revenues for the 2008 first half were 5.32 billion euro (2007: 4.58 billion euro), which was a year-over-year increase of 16%. Non- GAAP total revenues, which exclude a non-recurring deferred support revenue write-down from the acquisition of Business Objects of 99 million euro for the first six months of 2008, were 5.42 billion euro (2007: 4.58 billion euro), which is an increase of 18% (25% at constant currencies) compared to the first half of 2007.

-- First Half 2008 U.S. GAAP software revenues were 1.52 billion euro (2007: 1.28 billion euro), representing an increase of 19% (27% at constant currencies) compared to the first six months of 2007.

Income

-- U.S. GAAP operating income for the 2008 six-month period was 952 million euro (2007: 1.02 billion euro), which was a decrease of 6% compared to the same period for 2007. First-half Non-GAAP operating income, which excludes a non-recurring deferred support revenue write-down from the acquisition of Business Objects and acquisition-related charges totaling 248 million euro, was 1.20 billion euro (2007: 1.04 billion euro), which was an increase of 15% (26% at constant currencies) compared to the first half of 2007.

-- The U.S. GAAP operating margin for the 2008 six-month period was 17.9% (2007: 22.2%). The first-half Non-GAAP operating margin was 22.2% (2007: 22.7%), or 22.8% at constant currencies. Both the U.S. GAAP and the Non-GAAP operating margins were impacted by 1) 24 million euro expensed in the second quarter of 2008 for the settlement of a litigation and, 2) one-time expenses associated with the integration of Business Objects (which are not acquisition-related charges) of approximately 18 million euro.

-- U.S. GAAP income from continuing operations for the first half of 2008 was 658 million euro (2007: 765 million euro), representing a decrease of 14% compared to the same period for 2007. Non-GAAP income from continuing operations, which excludes a non-recurring deferred support revenue write-down from the acquisition of Business Objects and acquisition-related charges totaling 184 million euro, was 842 million euro (2007: 780 million euro), representing an increase of 8% compared to the first half of 2007. Six-month 2007 U.S. GAAP and Non-GAAP income from continuing operations were positively impacted by a 2007 second quarter effective tax rate of 25.5% and 25.8%, respectively, partly resulting from non-recurring tax effects.

-- U.S. GAAP earnings per share from continuing operations for the first half of 2008 was 0.55 euro (2007: 0.63 euro), which was a decrease of 13% compared to the same period in 2007. Non-GAAP earnings per share from continuing operations for the 2008 six-month period was 0.71 euro (2007: 0.64 euro), which was an increase of 11% compared to the same period in 2007.

BUSINESS OUTLOOK

The Company is providing the following outlook for the full-year 2008, which has changed from the previous outlook provided on April 30, 2008. The Company has refined the outlook for Non-GAAP software and software-related service revenues at constant currencies and Non-GAAP operating margin at constant currencies.

-- The Company reaffirmed that it expects full-year 2008 Non-GAAP software and software-related service revenue, which excludes a non-recurring deferred support revenue write-down from the acquisition of Business Objects of approximately 180 million euro, to increase in a range of 24% - 27% at constant currencies (2007: 7.428 billion euro), but the Company now expects to reach the upper end of the range. The Company reaffirmed that SAP's business, excluding the contribution from Business Objects, is expected to contribute 12 - 14 percentage points to this growth, but the Company now expects the contribution to reach the upper end of the range.

-- The Company reaffirmed that it expects the full-year 2008 Non-GAAP operating margin at constant currencies, which excludes a non-recurring deferred support revenue write-down from the acquisition of Business Objects and acquisition-related charges, to be in the range of 28.5% - 29.0% (2007 non-GAAP operating margin: 27.3%), but the Company now expects to reach the upper end of the range.

-- The Company continues to project an effective tax rate of 31.0% to 31.5% (based on U.S. GAAP income from continuing operations) for 2008.

KEY EVENTS - Second Quarter 2008

-- In the second quarter of 2008, SAP closed major contracts in several key regions including Carlsberg Breweries A/S, Comet Group Plc, Fiat Services S.p.A., GDF SUEZ, Saudi Electricity Company (SEC) in EMEA; AmerisourceBergen Corporation, Brown Shoe Company, Freeman, Marisa Lojas Varejistas Ltda, The City of Edmonton in Americas; and China Petroleum & Chemical, KPIT Cummins Infosystems Ltd, Neptune Orient Lines Ltd, India Oil and Natural Gas Corporation, Shanxi Electric I/E Power Corp., SUMISHO COMPUTER SYSTEMS in the Asia Pacific Japan region.

-- On June 17, 2008, SAP announced its intent to acquire Visiprise, Inc. With the addition of Visiprise, SAP will deliver on its "Perfect Plant" strategy to bring together core SAP solutions with the software, hardware and services offerings of ecosystem partners to drive innovation for discrete manufacturers.

-- On May 20, 2008, SAP announced Unilever's implementation of SAP NetWeaver Master Data Management (SAP NetWeaver MDM) component to support five countries in the Asia/AMET (Africa, Middle-East and Turkey) region. Unilever requires a unified view of master data to remain agile and quickly address changing business needs while maintaining strong local market performance.

-- On May 19, 2008, SAP announced that it will support Daimler AG as a global IT solution provider in order to drive Daimler's comprehensive IT harmonization strategy.

-- On May 19, 2008, SAP announced that Bayer MaterialScience selected the latest version of the SAP Customer Relationship Management (SAP CRM) application, SAP CRM 2007, to help enable its global sales force to deliver superior value to its customers.

-- On May 19, 2008, SAP announced new CRM functionality in the SAP Business All-in-One solution. CRM functionality in SAP Business All-in-One will considerably enhance SAP's midsize customers' ability to pursue new customer strategies and manage entire end-to-end business processes with preconfigured best practices.

-- SAP's international customer conference SAPPHIRE 2008, held in Orlando, Florida, May 4-7 and Berlin, Germany May 19 - 21 focused on "Business Beyond Boundaries." During SAPPHIRE 2008, customers from throughout the world showed how they utilize and benefit from SAP solutions to build "business beyond boundaries."

-- On May 5, 2008, SAP and Satyam Computer Services Ltd. announced a new partnership to help businesses accelerate co-innovation and improve their return on investment. Under a new agreement, Satyam has become an SAP global services partner to help companies worldwide to reliably and rapidly implement SAP solutions and transform business processes.

-- On May 5, 2008, SAP announced that it would further extend its partnership with IBM for SAP Business All-in-One solutions.

-- On May 5, 2008, SAP announced that Infosys signed up to the SAP Global Service Partner Program. This announcement marked an important milestone in the relationship between the two organizations, which have been working together for more than five years to help companies realize information technology (IT) and business results from their investments in SAP applications.

-- On May 2, 2008, SAP and Research In Motion (RIM) announced a co- innovation partnership to usher in a new era in enterprise mobility. Both companies have joined forces to change the way people work, by enabling anytime, anywhere mobile access to SAP enterprise applications through the widely adopted BlackBerry(R) platform.

-- On April 2, 2008, SAP announced the appointment of SAP Deputy CEO Leo Apotheker as the company's co-CEO alongside SAP CEO Henning Kagermann. The supervisory board also appointed to the SAP Executive Board three new members, effective July 1, 2008: Corporate Officers Erwin Gunst, Bill McDermott and Jim Hagemann Snabe.

Use of Non-GAAP Financial Measures

This press release contains certain financial measures such as Non-GAAP revenues, Non-GAAP operating income, Non-GAAP operating margin, free cash flow, constant currency revenue and operating income measures, as well as U.S. Dollar based Non-GAAP revenue numbers. These measures are not prepared in accordance with U.S. GAAP and therefore are considered non-GAAP financial measures. Our non-GAAP financial measures may not correspond to non-GAAP financial measures that other companies report. The non-GAAP financial measures that we report should be considered as additional to, and not as a substitute for or superior to revenue, operating margin or our other measures of financial performance prepared in accordance with U.S. GAAP. See the Appendix at the end of the financial section of this press release for additional information regarding the Non-GAAP measures included in this press release and for the reconciliations to the corresponding U.S. GAAP measures.

Core Enterprise Applications Vendor Share

The Company provides share data based on the vendors of Core Enterprise Applications solutions, which account for approximately $38.1 billion in software and software-related service revenues as defined by the Company based on industry analyst research. For 2008, industry analysts project approximately 7% year-on-year growth for Core Enterprise Applications vendors. For its quarterly share calculation, SAP assumes that this approximate 7% growth will not be linear throughout the year. Instead, quarterly adjustments are made based on the financial performance of a sub set of (approximately 25) Core Enterprise Application vendors.

Webcast/Supplementary Financial Information

SAP senior management will host a conference call today at 3:00 pm (CEDT) / 2:00 pm (BST) / 9:00 am (EDT) / 6:00 am (PDT). The conference call will be Webcast live on the Company's Web site at http://www.sap.com/investor and will be available for replay purposes as well. Supplementary financial information pertaining to the quarterly results can be found at http://www.sap.com/investor.

About SAP

SAP is the world's leading provider of business software(*), offering applications and services that enable companies of all sizes and in more than 25 industries to become best-run businesses. With around 75,000 customers (includes customers from the acquisition of Business Objects) in over 120 countries, the company is listed on several exchanges, including the Frankfurt stock exchange and NYSE, under the symbol "SAP." (For more information, visit http://www.sap.com/)

(*) SAP defines business software as comprising enterprise resource planning and related applications.

Any statements contained in this document that are not historical facts are forward-looking statements as defined in the U.S. Private Securities Litigation Reform Act of 1995. Words such as "anticipate," "believe," "estimate," "expect," "forecast," "intend," "may," "plan," "project," "predict," "should" and "will" and similar expressions as they relate to SAP are intended to identify such forward-looking statements. SAP undertakes no obligation to publicly update or revise any forward-looking statements. All forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materially from expectations. The factors that could affect SAP's future financial results are discussed more fully in SAP's filings with the U.S. Securities and Exchange Commission ("SEC"), including SAP's most recent Annual Report on Form 20-F filed with the SEC. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates.

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For more information, press only: Herbert Heitmann, +49 (6227) 7-61137, herbert.heitmann@sap.com, CEDT Christoph Liedtke, +49 6227 7-50383, christoph.liedtke@sap.com, CEDT Andy Kendzie, +1 (202) 312-3919, andy.kendzie@sap.com, EDT For more information, financial community only: Stefan Gruber, +49 (6227) 7-44872, investor@sap.com, CEDT Martin Cohen, +1 (212) 653-9619, investor@sap.com, EDT Appendix - Financial Information to Follow CONSOLIDATED INCOME STATEMENT (U.S. GAAP, Non-GAAP* and Non-GAAP at Constant Currency**) Preliminary and unaudited euro millions, unless otherwise stated Three months ended June 30, 2008 Non- GAAP Curr constant U.S. Non- ency Curr GAAP Adj.* GAAP* Impact** ency** Software revenue 898 0 898 63 961 Support revenue 1,099 52 1,151 69 1,220 Subscription and other software- related service revenue 64 0 64 2 66 Software and software-related service revenue 2,061 52 2,113 134 2,247 Consulting revenue 628 0 628 39 667 Training revenue 114 0 114 7 121 Other service revenue 26 0 26 2 28 Professional services and other service revenue 768 0 768 48 816 Other revenue 29 0 29 2 31 Total revenue 2,858 52 2,910 184 3,094 Cost of software and software- related services -418 45 -373 Cost of professional services and other services -581 0 -581 Research and development -421 1 -420 Sales and marketing -681 20 -661 General and administration -169 0 -169 Other operating income/expense, net 5 0 5 Total operating expenses -2,265 66 -2,199 -121 -2,320 Operating income 593 118 711 63 774 Other non-operating income/expense, net 19 0 19 Financial income/expense, net -13 0 -13 Income from continuing operations before income taxes 599 118 717 Income taxes -188 -32 -220 Minority interests 0 0 0 Income from continuing operations 411 86 497 Loss from discontinued operations, net of tax -3 0 -3 Net income 408 86 494 Earnings per Share (EPS) EPS from continuing operations - basic in euro 0.34 0.42 EPS from continuing operations - diluted in euro 0.34 0.42 EPS from net income - basic in euro 0.34 0.41 EPS from net income - diluted in euro 0.34 0.41 Weighted average number of shares*** 1,191 1,191 Key Ratios Operating margin 20.7% 24.4% 25.0% Effective tax rate from continuing operations 31.4% 30.7% euro millions, unless otherwise stated Three months ended June 30, 2007 % change Non- GAAP constant U.S. Non- U.S. Non- Curr GAAP Adj.* GAAP* GAAP GAAP* ency** Software revenue 716 0 716 25 25 34 Support revenue 944 0 944 16 22 29 Subscription and other software-related service revenue 44 0 44 45 45 50 Software and software-related service revenue 1,704 0 1,704 21 24 32 Consulting revenue 556 0 556 13 13 20 Training revenue 104 0 104 10 10 16 Other service revenue 28 0 28 -7 -7 0 Professional services and other service revenue 688 0 688 12 12 19 Other revenue 29 0 29 0 0 7 Total revenue 2,421 0 2,421 18 20 28 Cost of software and software-related services -305 11 -294 37 27 Cost of professional services and other services -524 0 -524 11 11 Research and development -353 1 -352 19 19 Sales and marketing -535 1 -534 27 24 General and administration -127 0 -127 33 33 Other operating income/expense, net 4 0 4 25 25 Total operating expenses -1,840 13 -1,827 23 20 27 Operating income 581 13 594 2 20 30 Other non-operating income/expense, net -4 0 -4 -575 -575 Financial income/expense, net 34 0 34 -138 -138 Income from continuing operations before income taxes 611 13 624 -2 15 Income taxes -156 -5 -161 21 37 Minority interests -2 0 -2 N/A N/A Income from continuing operations 453 8 461 -9 8 Loss from discontinued operations, net of tax -4 0 -4 -25 -25 Net income 449 8 457 -9 8 Earnings per Share (EPS) EPS from continuing operations - basic in euro 0.37 0.38 -8 11 EPS from continuing operations - diluted in euro 0.37 0.38 -8 11 EPS from net income - basic in euro 0.37 0.38 -8 8 EPS from net income - diluted in euro 0.37 0.38 -8 8 Weighted average number of shares*** 1,208 1,208 Key Ratios Operating margin 24.0% 24.5% -3.3pp -0.1pp 0.5pp Effective tax rate from continuing operations 25.5% 25.8% * adjustments in the revenue line items are for the Business Objects support revenue that Business Objects would have recognized had it remained a stand-alone entity but that SAP is not permitted to recognize as revenue under U.S. GAAP as a result of business combination accounting rules. Adjustments in the operating expense line items are for acquisition-related charges. See Appendix for details ** constant currency revenue and operating income figures are calculated by translating revenue and operating income of the current period using the average exchange rates from the previous year's respective period instead of the current period. Constant currency period-over- period changes are calculated by comparing the current year's Non-GAAP constant currency numbers with the Non-GAAP number of the previous year's respective period. See Appendix for details *** in millions, treasury stock excluded CONSOLIDATED INCOME STATEMENT (U.S. GAAP, Non-GAAP* and Non-GAAP at Constant Currency**) Preliminary and unaudited euro millions, unless otherwise stated Six months ended June 30, 2008 Non- GAAP Curr constant U.S. Non- ency Curr GAAP Adj.* GAAP* Impact** ency** Software revenue 1,520 0 1,520 106 1,626 Support revenue 2,157 99 2,256 123 2,379 Subscription and other software- related service revenue 120 0 120 3 123 Software and software-related service revenue 3,797 99 3,896 232 4,128 Consulting revenue 1,215 0 1,215 71 1,286 Training revenue 218 0 218 13 231 Other service revenue 51 0 51 4 55 Professional services and other service revenue 1,484 0 1,484 88 1,572 Other revenue 37 0 37 2 39 Total revenue 5,318 99 5,417 322 5,739 Cost of software and software- related services -785 93 -692 Cost of professional services and other services -1,148 0 -1,148 Research and development -838 15 -823 Sales and marketing -1,278 41 -1,237 General and administration -321 0 -321 Other operating income/expense, net 4 0 4 Total operating expenses -4,366 149 -4,217 -213 -4,430 Operating income 952 248 1,200 109 1,309 Other non-operating income/expense, net 18 0 18 Financial income/expense, net -15 0 -15 Income from continuing operations before income taxes 955 248 1,203 Income taxes -297 -64 -361 Minority interests 0 0 0 Income from continuing operations 658 184 842 Loss from discontinued operations, net of tax -8 0 -8 Net income 650 184 834 Earnings per Share (EPS) EPS from continuing operations - basic in euro 0.55 0.71 EPS from continuing operations - diluted in euro 0.55 0.71 EPS from net income - basic in euro 0.54 0.70 EPS from net income - diluted in euro 0.54 0.70 Weighted average number of shares*** 1,194 1,194 Key Ratios Operating margin 17.9% 22.2% 22.8% Effective tax rate from continuing operations 31.1% 30.0% euro millions, unless otherwise stated Six months ended June 30, 2007 % change Non- GAAP constant U.S. Non- U.S. Non- Curr GAAP Adj.* GAAP* GAAP GAAP* ency** Software revenue 1,278 0 1,278 19 19 27 Support revenue 1,858 0 1,858 16 21 28 Subscription and other software-related service revenue 83 0 83 45 45 48 Software and software-related service revenue 3,219 0 3,219 18 21 28 Consulting revenue 1,074 0 1,074 13 13 20 Training revenue 198 0 198 10 10 17 Other service revenue 56 0 56 -9 -9 -2 Professional services and other service revenue 1,328 0 1,328 12 12 18 Other revenue 36 0 36 3 3 8 Total revenue 4,583 0 4,583 16 18 25 Cost of software and software-related services -592 21 -571 33 21 Cost of professional services and other services -1,029 0 -1,029 12 12 Research and development -692 1 -691 21 19 Sales and marketing -1,013 2 -1,011 26 22 General and administration -246 0 -246 30 30 Other operating income/expense, net 6 0 6 -33 -33 Total operating expenses -3,566 24 -3,542 22 19 25 Operating income 1,017 24 1,041 -6 15 26 Other non-operating income/expense, net -7 0 -7 -357 -357 Financial income/expense, net 70 0 70 -121 -121 Income from continuing operations before income taxes 1,080 24 1,104 -12 9 Income taxes -313 -9 -322 -5 12 Minority interests -2 0 -2 N/A N/A Income from continuing operations 765 15 780 -14 8 Loss from discontinued operations, net of tax -6 0 -6 33 33 Net income 759 15 774 -14 8 Earnings per Share (EPS) EPS from continuing operations - basic in euro 0.63 0.64 -13 11 EPS from continuing operations - diluted in euro 0.63 0.64 -13 11 EPS from net income - basic in euro 0.63 0.64 -14 9 EPS from net income - diluted in euro 0.63 0.64 -14 9 Weighted average number of shares*** 1,211 1,211 Key Ratios Operating margin 22.2% 22.7% -4.3pp -0.5pp 0.1pp Effective tax rate from continuing operations 29.0% 29.2% * adjustments in the revenue line items are for the Business Objects support revenue that Business Objects would have recognized had it remained a stand-alone entity but that SAP is not permitted to recognize as revenue under U.S. GAAP as a result of business combination accounting rules. Adjustments in the operating expense line items are for acquisition-related charges. See Appendix for details ** constant currency revenue and operating income figures are calculated by translating revenue and operating income of the current period using the average exchange rates from the previous year's respective period instead of the current period. Constant currency period-over- period changes are calculated by comparing the current year's Non-GAAP constant currency numbers with the Non-GAAP number of the previous year's respective period. See Appendix for details *** in millions, treasury stock excluded Revenue in U.S. Dollar Preliminary and unaudited Three months ended June 30, Software and Software Software-Related Revenue Service Revenue % % 2008 2007 change 2008 2007 change U.S. GAAP Revenue in Euro 898 euro 716 euro 25% 2,061 euro 1,704 euro 21% Respective Measure in U.S. Dollar $1,397 $961 45% $3,214 $2,293 40% Adjustment* 0 0 - $81 0 - U.S. Dollar Non-GAAP Revenue $1,397 $961 45% $3,295 $2,293 44% * adjustments in the revenue line items are for the Business Objects support revenue that Business Objects would have recognized had it remained a stand-alone entity but that SAP is not permitted to recognize as revenue under U.S. GAAP as a result of business combination rules. Six months ended June 30, Software and Software Software-Related Revenue Service Revenue % % 2008 2007 change 2008 2007 change U.S. GAAP Revenue in Euro 1,520 euro 1,278 euro 19% 3,797 euro 3,219 euro 18% Respective Measure in U.S. Dollar $2,355 $1,704 38% $5,844 $4,286 36% Adjustment* 0 0 - $154 0 - U.S. Dollar Non-GAAP Revenue $2,355 $1,704 38% $5,998 $4,286 40% * adjustments in the revenue line items are for the Business Objects support revenue that Business Objects would have recognized had it remained a stand-alone entity but that SAP is not permitted to recognize as revenue under U.S. GAAP as a result of business combination rules. CONDENSED CONSOLIDATED BALANCE SHEETS (U.S. GAAP) Preliminary and unaudited June 30, December 31, euro millions 2008 2007 Assets Cash and cash equivalents 1,411 1,608 Restricted cash 3 550 Short-term investments 99 598 Accounts receivable, net 2,874 2,895 Other assets 513 541 Deferred income taxes 148 125 Prepaid expenses/deferred charges 143 76 Assets classified as held for disposal 15 15 Current assets 5,206 6,408 Goodwill 4,911 1,423 Intangible assets, net 1,200 403 Property, plant, and equipment, net 1,359 1,316 Investments 101 89 Accounts receivable, net 2 3 Other assets 646 555 Deferred income taxes 160 146 Prepaid expenses/deferred charges 26 23 Noncurrent assets 8,405 3,958 Total assets 13,611 10,366 June 30, December 31, euro millions 2008 2007 Liabilities, Minority interests and Shareholders' equity Accounts payable 654 715 Income tax obligations 377 341 Other liabilities 1,287 1,456 Provisions 203 154 Deferred income taxes 53 47 Deferred income 1,396 477 Liabilities associated with assets classified as held for disposal 11 9 Current liabilities 3,981 3,199 Accounts payable 5 10 Income tax obligations 98 90 Other liabilities 2,691 79 Provisions 429 369 Deferred income taxes 176 73 Deferred income 37 42 Noncurrent liabilities 3,436 663 Total liabilities 7,417 3,862 Minority interests 2 1 Common stock, no par value 1,246 1,246 Treasury stock -2,044 -1,734 Additional paid-in capital 342 347 Retained earnings 7,214 7,159 Accumulated other comprehensive loss -566 -515 Shareholders' equity 6,192 6,503 Total liabilities, Minority interests and Shareholders' equity 13,611 10,366 Days Sales Outstanding 68 66 CONSOLIDATED STATEMENTS OF CASH FLOWS (U.S. GAAP) Preliminary and unaudited euro millions Six months ended June 30 2008 2007 Net income 650 759 Net loss from discontinued operations 8 6 Minority interests 0 2 Income from continuing operations before minority interests 658 767 Adjustments to reconcile income from continuing operations before minority interests to net cash provided by operating activities: Depreciation and amortization 271 120 Losses from equity investees 1 1 Losses on disposal of intangible assets and property, plant, and equipment 1 0 Gains on disposal of investments -9 -2 Writeups/downs of financial assets 0 0 Allowances for doubtful accounts 35 0 Impacts of hedging for cash-settled share-based payment plans 12 13 Stock-based compensation including income tax benefits 14 10 Excess tax benefit from share-based compensation -8 0 Deferred income taxes -44 1 Change in accounts receivable 225 153 Change in other assets -65 -309 Change in accrued and other liabilities -626 -484 Change in deferred income 906 754 Net cash provided by operating activities from continuing operations 1,371 1,024 Acquisition of minority interests in subsidiaries 0 -48 Business combinations, net of cash and cash equivalents acquired -3,689 -345 Repayment of acquirees' debt in business combinations -450 0 Purchase of intangible assets and property, plant, and equipment -171 -196 Proceeds from disposal of intangible assets and property, plant, and equipment 20 12 Cash transferred to restricted cash -451 0 Reduction of restricted cash 1,000 0 Purchase of investments -14 -512 Sales of investments 504 538 Purchase of other financial assets -7 -7 Sales of other financial assets 7 7 Net cash used in investing activities from continuing operations -3,251 -551 Dividends paid -594 -556 Purchase of treasury stock -383 -506 Proceeds from reissuance of treasury stock 45 42 Proceeds from issuance of common stock (share-based compensation) 8 13 Excess tax benefit from share-based compensation 8 0 Proceeds from short-term and long-term debt 3,859 18 Repayments of short-term and long-term debt -1,260 -13 Proceeds from the exercise of equity-based derivative instruments (STAR hedge) 66 75 Purchase of equity-based derivative instruments (hedge for cash- settled share-based payment plans) -55 0 Net cash used in financing activities from continuing operations 1,694 -927 Effect of foreign exchange rates on cash and cash equivalents -3 -7 Net cash used in operating activities from discontinued operations -8 -8 Net cash used in investing activities from discontinued operations 0 0 Net cash used in financing activities from discontinued operations 0 0 Net cash used in discontinued operations -8 -8 Net change in cash and cash equivalents -197 -469 Cash and cash equivalents at the beginning of the period 1,608 2,399 Cash and cash equivalents at the end of the period 1,411 1,930 REVENUE BY REGION (U.S. GAAP, Non-GAAP* and Non-GAAP at Constant Currency**) Preliminary and unaudited euro millions Three months ended June 30, 2008 Non- GAAP Curr constant U.S. Non- ency curr GAAP Adj.* GAAP* Impact** ency** Software revenue by region*** EMEA 444 0 444 14 458 Americas 306 0 306 38 344 Asia Pacific Japan 148 0 148 11 159 Total 898 0 898 63 961 Software and software-related service revenue by region*** Germany 353 2 355 0 355 Rest of EMEA 758 20 778 29 807 Total EMEA 1,111 22 1,133 29 1,162 United States 472 24 496 79 575 Rest of Americas 190 2 192 8 200 Total Americas 662 26 688 87 775 Japan 89 1 90 0 90 Rest of Asia Pacific Japan 199 3 202 18 220 Total Asia Pacific Japan 288 4 292 18 310 Total 2,061 52 2,113 134 2,247 Total revenue by region*** Germany 524 2 526 0 526 Rest of EMEA 1,009 20 1,029 36 1,065 Total EMEA 1,533 22 1,555 36 1,591 United States 703 24 727 116 843 Rest of Americas 249 2 251 10 261 Total Americas 952 26 978 126 1,104 Japan 115 1 116 0 116 Rest of Asia Pacific Japan 258 3 261 22 283 Total Asia Pacific Japan 373 4 377 22 399 Total 2,858 52 2,910 184 3,094 euro millions Three months ended June 30, 2007 % change Non- GAAP constant U.S. Adj. Non- U.S. Non- curr GAAP * GAAP* GAAP GAAP* ency** Software revenue by region*** EMEA 350 0 350 27 27 31 Americas 259 0 259 18 18 33 Asia Pacific Japan 107 0 107 38 38 49 Total 716 0 716 25 25 34 Software and software-related service revenue by region*** Germany 319 0 319 11 11 11 Rest of EMEA 597 0 597 27 30 35 Total EMEA 916 0 916 21 24 27 United States 415 0 415 14 20 39 Rest of Americas 152 0 152 25 26 32 Total Americas 567 0 567 17 21 37 Japan 82 0 82 9 10 10 Rest of Asia Pacific Japan 139 0 139 43 45 58 Total Asia Pacific Japan 221 0 221 30 32 40 Total 1,704 0 1,704 21 24 32 Total revenue by region*** Germany 454 0 454 15 16 16 Rest of EMEA 812 0 812 24 27 31 Total EMEA 1,266 0 1,266 21 23 26 United States 643 0 643 9 13 31 Rest of Americas 208 0 208 20 21 25 Total Americas 851 0 851 12 15 30 Japan 111 0 111 4 5 5 Rest of Asia Pacific Japan 193 0 193 34 35 47 Total Asia Pacific Japan 304 0 304 23 24 31 Total 2,421 0 2,421 18 20 28 * adjustments in the revenue line items are for the Business Objects support revenue that Business Objects would have recognized had it remained a stand-alone entity but that SAP is not permitted to recognize as revenue under U.S. GAAP as a result of business combination accounting rules. Adjustments in the operating expense line items are for acquisition-related charges. See Appendix for details ** constant currency revenue and operating income figures are calculated by translating revenue and operating income of the current period using the average exchange rates from the previous year's respective period instead of the current period. Constant currency period-over- period changes are calculated by comparing the current year's Non-GAAP constant currency numbers with the Non-GAAP number of the previous year's respective period *** based on customer location REVENUE BY REGION (U.S. GAAP, Non-GAAP* and Non-GAAP at Constant Currency**) Preliminary and unaudited euro millions Six months ended June 30, 2008 Non- GAAP Curr constant U.S. Non- ency Curr GAAP Adj.* GAAP* Impact** ency** Software revenue by region*** EMEA 736 0 736 24 760 Americas 523 0 523 65 588 Asia Pacific Japan 261 0 261 17 278 Total 1,520 0 1,520 106 1,626 Software and software-related service revenue by region*** Germany 655 3 658 0 658 Rest of EMEA 1,374 37 1,411 50 1,461 Total EMEA 2,029 40 2,069 50 2,119 United States 885 48 933 144 1,077 Rest of Americas 340 4 344 10 354 Total Americas 1,225 52 1,277 154 1,431 Japan 175 2 177 1 178 Rest of Asia Pacific Japan 368 5 373 27 400 Total Asia Pacific Japan 543 7 550 28 578 Total 3,797 99 3,896 232 4,128 Total revenue by region*** Germany 977 3 980 0 980 Rest of EMEA 1,846 37 1,883 63 1,946 Total EMEA 2,823 40 2,863 63 2,926 United States 1,338 48 1,386 213 1,599 Rest of Americas 451 4 455 12 467 Total Americas 1,789 52 1,841 225 2,066 Japan 227 2 229 1 230 Rest of Asia Pacific Japan 479 5 484 33 517 Total Asia Pacific Japan 706 7 713 34 747 Total 5,318 99 5,417 322 5,739 euro millions Six months ended June 30, 2007 % change Non- GAAP constant U.S. Non- U.S. Non- curr GAAP Adj.* GAAP* GAAP GAAP* ency** Software revenue by region*** EMEA 587 0 587 25 25 29 Americas 507 0 507 3 3 16 Asia Pacific Japan 184 0 184 42 42 51 Total 1,278 0 1,278 19 19 27 Software and software-related service revenue by region*** Germany 590 0 590 11 12 12 Rest of EMEA 1,077 0 1,077 28 31 36 Total EMEA 1,667 0 1,667 22 24 27 United States 834 0 834 6 12 29 Rest of Americas 300 0 300 13 15 18 Total Americas 1,134 0 1,134 8 13 26 Japan 144 0 144 22 23 24 Rest of Asia Pacific Japan 274 0 274 34 36 46 Total Asia Pacific Japan 418 0 418 30 32 38 Total 3,219 0 3,219 18 21 28 Total revenue by region*** Germany 862 0 862 13 14 14 Rest of EMEA 1,485 0 1,485 24 27 31 Total EMEA 2,347 0 2,347 20 22 25 United States 1,262 0 1,262 6 10 27 Rest of Americas 404 0 404 12 13 16 Total Americas 1,666 0 1,666 7 11 24 Japan 199 0 199 14 15 16 Rest of Asia Pacific Japan 371 0 371 29 30 39 Total Asia Pacific Japan 570 0 570 24 25 31 Total 4,583 0 4,583 16 18 25 * adjustments in the revenue line items are for the Business Objects support revenue that Business Objects would have recognized had it remained a stand-alone entity but that SAP is not permitted to recognize as revenue under U.S. GAAP as a result of business combination accounting rules. Adjustments in the operating expense line items are for acquisition-related charges. See Appendix for details ** constant currency revenue and operating income figures are calculated by translating revenue and operating income of the current period using the average exchange rates from the previous year's respective period instead of the current period. Constant currency period-over- period changes are calculated by comparing the current year's Non-GAAP constant currency numbers with the Non-GAAP number of the previous year's respective period *** based on customer location SHARE-BASED COMPENSATION (U.S. GAAP and Non-GAAP) Preliminary and unaudited euro millions Six months ended June 30, 2008 2007 % change Share-based compensation per expense line item (both U.S. GAAP and Non-GAAP): Cost of software and software- related services 4 4 0% Cost of professional services and other services 10 11 -9% Research and development 15 15 0% Sales and marketing 15 9 67% General and administration 8 10 -20% Other operating income/expense, net 0 0 0% Total Share-Based Compensation 52 49 6% FREE CASH FLOW Preliminary and unaudited euro millions Six months ended June 30, 2008 2007 % change Net cash provided by operating activities from continuing operations 1,371 1,024 34% Purchase of long-lived assets excluding additions from business combinations -171 -196 -13% Free Cash Flow 1,200 828 45% HEADCOUNT Preliminary and unaudited in Full-Time-Equivalents - from June 30, December 31, June 30, continuing operations 2008 2007 2007 Headcount by Region Germany 15,503 14,749 14,395 Rest of EMEA 11,035 8,905 8,641 Total EMEA 26,538 23,654 23,036 United States 9,293 7,832 7,594 Rest of Americas 4,491 2,797 2,547 Total Americas 13,784 10,629 10,141 Japan 1,477 1,344 1,267 Rest of Asia Pacific Japan 9,648 8,234 7,292 Total Asia Pacific Japan 11,125 9,578 8,559 Total 51,447 43,861 41,736 Headcount by Functional Area Software and software related services 6,517 5,831 5,494 Professional services and other services 14,057 12,785 12,268 Research and development 15,148 12,951 12,330 Sales and marketing 10,794 8,282 7,865 General and administration 3,367 2,797 2,635 Infrastructure 1,564 1,215 1,144 Total 51,447 43,861 41,736 MULTI QUARTER SUMMARY (U.S. GAAP and Non-GAAP) Preliminary and unaudited euro millions, unless stated otherwise Q2/2008 Q1/2008 Q4/2007 Q3/2007 Q2/2007 Q1/2007 Software revenue (U.S. GAAP) 898 622 1,415 714 716 562 Revenue adjustment* 0 0 0 0 0 0 Software revenue (Non-GAAP) 898 622 1,415 714 716 562 Support revenue (U.S. GAAP) 1,099 1,058 1,005 975 944 914 Revenue adjustment* 52 47 0 0 0 0 Support revenue (Non-GAAP) 1,151 1,105 1,005 975 944 914 Subscription and other software-related service revenue (U.S. GAAP) 64 56 53 46 44 39 Revenue adjustment* 0 0 0 0 0 0 Subscription and other software-related service revenue (Non-GAAP) 64 56 53 46 44 39 Software and software- related service revenue (U.S. GAAP) 2,061 1,736 2,473 1,735 1,704 1,515 Revenue adjustment* 52 47 0 0 0 0 Software and software- related service revenue (Non-GAAP) 2,113 1,783 2,473 1,735 1,704 1,515 Total revenue (U.S. GAAP) 2,858 2,460 3,240 2,419 2,421 2,162 Revenue adjustment* 52 47 0 0 0 0 Total revenue (Non-GAAP) 2,910 2,507 3,240 2,419 2,421 2,162 Operating income (U.S. GAAP) 593 359 1,109 606 581 436 Revenue adjustment* 52 47 0 0 0 0 Expense adjustment* 66 83 19 18 13 11 Operating income (Non-GAAP) 711 489 1,128 624 594 447 Operating margin (U.S. GAAP) 20.7% 14.6% 34.2% 25.1% 24.0% 20.2% Operating margin (Non-GAAP) 24.4% 19.5% 34.8% 25.8% 24.5% 20.7% Effective tax rate from continuing operations (Non-GAAP) 30.7% 29.0% 33.8% 35.1% 25.8% 33.5% EPS from continuing operations - basic in euro (U.S. GAAP) 0.34 0.21 0.63 0.34 0.37 0.26 EPS from continuing operations - diluted in euro (U.S. GAAP) 0.34 0.21 0.63 0.34 0.37 0.26 EPS from continuing operations - basic in euro (Non-GAAP) 0.42 0.29 0.64 0.35 0.38 0.26 EPS from continuing operations - diluted in euro (Non-GAAP) 0.42 0.29 0.64 0.35 0.38 0.26 Headcount** 51,447 51,274 43,861 42,601 41,736 40,318 * adjustments in the revenue line items are for the Business Objects support revenue that Business Objects would have recognized had it remained a stand-alone entity but that SAP is not permitted to recognize as revenue under U.S. GAAP as a result of business combination accounting rules. Adjustments in the operating expense line items are for acquisition-related charges. See Appendix for details ** in Full-Time-Equivalents - from continuing operations APPENDIX Explanation of Non-GAAP Measures

This document discloses certain financial measures, such as Non-GAAP revenues, Non-GAAP operating income, Non-GAAP operating margin, free cash flow, a constant currency revenue and operating income measures as well as U.S. Dollar based revenue numbers, that are not prepared in accordance with U.S. GAAP and are therefore considered non-GAAP financial measures. Our non- GAAP financial measures may not correspond to non-GAAP financial measures that other companies report. The non-GAAP financial measures that we report should be considered as additional to, and not as substitutes for or superior to, revenue, operating income, cash flows, or other measures of financial performance prepared in accordance with U.S. GAAP. Our non-GAAP financial measures included in this press release are reconciled to the nearest U.S. GAAP measure in the tables on the pages F1 to F9 above.

Non-GAAP Revenues, Non-GAAP Operating Income and Non-GAAP Operating Margin

We believe that it is of interest to investors to receive certain supplemental historical and prospective financial information used by our management in running our business - in addition to financial data prepared in accordance with U.S. GAAP. Beginning in 2008 we use both Non-GAAP revenues and Non-GAAP operating income / Non-GAAP operating margin as defined below consistently in our planning, forecasting, reporting, compensation and external communication.

Non-GAAP revenue: Revenues in this document identified as "Non-GAAP revenue" have been adjusted from the respective U.S. GAAP numbers by including the full amount of Business Objects support revenues that would have been reflected by Business Objects had it remained a stand-alone entity but are not permitted to be reflected as revenues under U.S. GAAP as a result of fair value accounting for Business Objects support contracts in effect at the time of the Business Objects acquisition.

Under U.S. GAAP we record at fair value the Business Objects support contracts in effect at the time of the acquisition of Business Objects. Consequently, our U.S. GAAP support revenues, our U.S. GAAP software and software-related service revenues and our U.S. GAAP total revenues for periods subsequent to the Business Objects acquisition do not reflect the full amount of support revenue that Business Objects would have recorded for these support contracts absent the acquisition by SAP. Adjusting revenue numbers for this one-time revenue impact provides additional insight into our ongoing performance because the support contracts are typically one-year contracts and renewals of these contracts are expected to result in revenues that are not impacted by the business combination-related fair value accounting.

We believe that our Non-GAAP revenue numbers have limitations, particularly as the eliminated amounts may be material to us. We therefore do not evaluate our growth and performance without considering both Non-GAAP revenues and U.S. GAAP revenues. We caution the readers of this document to follow a similar approach by considering our Non-GAAP revenues only in addition to, and not as a substitute for or superior to, revenues or other measures of our financial performance prepared in accordance with U.S. GAAP.

Non-GAAP operating income / Non-GAAP operating margin: Operating income and operating margin in this document identified as "Non-GAAP operating income" or "Non-GAAP operating margin" have been adjusted from the respective operating income and operating margin numbers as recorded under U.S. GAAP by including the full amount of Business Objects support revenues to be included in Non-GAAP revenue, and by excluding acquisition-related charges. Acquisition related charges in this context comprise: Â· -- Amortization expense of intangibles acquired in business combination and standalone acquisitions of intellectual property Â· -- Expense from purchased in-process research and development Â· -- Restructuring expenses as far as incurred in connection with a business combinations and accounted for under SFAS 146 in SAP's U.S. GAAP financial statements

Although acquisition-related charges include recurring items from past acquisitions, such as amortization of acquired intangible assets, they also include an unknown component, relating to current-year acquisitions. We cannot accurately assess or plan for that unknown component until we have finalized our purchase price allocation. Furthermore acquisition-related charges may include one-time charges that are not reflective of our ongoing operating performance.

We believe that our Non-GAAP financial measures described above have limitations, particularly as the eliminated amounts may be material to us. We therefore do not evaluate our growth and performance without considering both Non-GAAP operating income / Non-GAAP operating margin numbers and U.S. GAAP operating income and margin numbers. We caution the readers of this document to follow a similar approach by considering our Non-GAAP operating income / Non-GAAP operating margin numbers only in addition to, and not as a substitute for or superior to, revenues or other measures of our financial performance prepared in accordance with U.S. GAAP.

Free Cash Flow

We believe that free cash flow is a widely accepted supplemental measure of liquidity. Free cash flow measures a company's cash flow remaining after all expenditures required to maintain or expand the business have been paid off. We calculate free cash flow as operating cash flow from continuing operations minus additions to long-lived assets excluding additions from acquisitions. Free cash flow should be considered in addition to, and not as a substitute for or superior to, cash flow or other measures of liquidity and financial performance prepared in accordance with U.S. GAAP.

Constant Currency Period-over-Period Changes

We believe it is important for investors to have information that provides insight into our sales. Revenue measures determined under U.S. GAAP provide information that is useful in this regard. However, both sales volume and currency effects impact period-over-period changes in sales revenue. We do not sell standardized units of products and services, so we cannot provide relevant information on sales volume by providing data on the changes in product and service units sold. To provide additional information that may be useful to investors in breaking down and evaluating changes in sales volume, we present information about our revenue and various values and components relating to operating income that are adjusted for foreign currency effects. We calculate constant currency year-over-year changes in revenue and operating income by translating foreign currencies using the average exchange rates from the previous (comparator) year instead of the report year.

We believe that data on constant currency period-over-period changes have limitations, particularly as the currency effects that are eliminated constitute a significant element of our revenues and expenses and may severely impact our performance. We therefore limit our use of constant currency period-over-period changes to the analysis of changes in volume as one element of the full change in a financial measure. We do not evaluate our results and performance without considering both constant currency period-over-period changes on the one hand and changes in revenues, expenses, income, or other measures of financial performance prepared in accordance with U.S. GAAP on the other. We caution the readers of this document to follow a similar approach by considering data on constant currency period-over-period changes only in addition to, and not as a substitute for or superior to, changes in revenues, expenses, income, or other measures of financial performance prepared in accordance with U.S. GAAP.

U.S. Dollar-based Non-GAAP Revenue Measures

Substantially all of our major competitors report their financial performance in U.S. Dollars. Thus changes in exchange rates, particularly in the U.S. Dollar to Euro rates, affect the financial statements of our competitors differently than our Euro-based financial statements. We therefore believe that U.S. Dollar-based revenue numbers for SAP provide investors with useful additional information that enables them to better compare SAP's revenue growth with SAP's competitors' revenue growth irrespective of movements in exchange rates.

Our U.S. Dollar Non-GAAP Revenue numbers are determined as if SAP's reporting currency was the U.S. Dollar. In fact, the reporting currency of our U.S. GAAP and IFRS consolidated financial statements as filed in Germany and in the U.S. with the U.S. Securities and Exchange Commission (SEC) is the Euro. Additionally, our U.S. Dollar Non-GAAP Revenue numbers have been adjusted from the respective U.S. GAAP revenue numbers by the same support revenue fair value adjustment than our Non GAAP Revenue numbers explained above.

SAP's management uses our U.S. Dollar Non-GAAP Revenue numbers to gain a better understanding of SAP's operating results compared to SAP's major competitors.

We believe that our U.S. Dollar Non-GAAP Revenue numbers have limitations, particularly because the impact of currency exchange rate fluctuations and the eliminated amounts may be material to us. We therefore do not evaluate our growth and performance without considering both Non-GAAP revenues and Euro- based U.S. GAAP revenues. We caution the readers of this document to follow a similar approach by considering our U.S. Dollar Non-GAAP Revenue numbers only in addition to, and not as a substitute for or superior to, revenues or other measures of our financial performance prepared in accordance with U.S. GAAP and reported in Euro.

SAP AG

CONTACT: Press, Herbert Heitmann, +49 (6227) 7-61137,
herbert.heitmann@sap.com, Christoph Liedtke, +49 6227 7-50383,
christoph.liedtke@sap.com, Andy Kendzie, +1-202-312-3919,
andy.kendzie@sap.com, or financial community, Stefan Gruber,
+49 (6227) 7-44872, investor@sap.com, or Martin Cohen, +1-212-653-9619,
investor@sap.com

Web site: http://www.sap.com/
http://www.sap.com/investor

Second Quarter 2008 Revenue in Line With Guidance - Full Year 2008 Outlook Confirmed

PARIS, July 29 /PRNewswire/ --

- Key Highlights for the Quarter

- Revenues of Euro 4.101 billion, up 6.1% Sequentially

- Adjusted(2) Gross Profit of Euro 1.433 Billion or 34.9% of Revenues

- Adjusted(2) Operating Income(1) of Euro 93 Million or 2.3% of Revenues

- Adjusted(2) Net Loss (Group Share) of Euro (222) Million or Euro (0.10) per Diluted Share

- Goodwill Impairment Charge of Euro (810) Million Related to CDMA

- Reported Net Loss (Group Share) of Euro (1,102) Million or Euro (0.49) per Diluted Share

- Chairman Serge Tchuruk and CEO Pat Russo to Step Down (see separate press release)

Note: 2nd quarter 2008 reported and adjusted income statement is enclosed in Annex, click here: http://www1.alcatel-lucent.com/2q2008/pdf/annex_E.pdf

Alcatel-Lucent's Board of Directors (Euronext Paris and NYSE: ALU) reviewed and approved reported results for the second quarter 2008.

Executive commentary

Patricia Russo, CEO, commented:

Market and outlook

"At the same time, we are seeing a stronger-than-expected demand for GSM/W-CDMA mobile access in emerging markets, especially in Asia. In addition, we feel positive about our prospects in China, both in 2G and 3G (including CDMA EV-DO) for the fourth quarter and next year. Finally, we now see a stronger than initially expected demand in Services, especially in network operations and network integration. Against this mixed backdrop, we continue to anticipate that the global telecommunications equipment and related services market should be flat in 2008 at constant currency."

Reported results

Adjusted results

Balance sheet and pension status

The funded status of pensions and other post retirement benefits (OPEB) amounted to a surplus of Euro 2.848 billion as of June 30, 2008, up from Euro 2.609 billion as of as of March 31, 2008.

Key figures

Adjusted Profit & Loss Second Second % change, First % change Statement quarter quarter y-o-y quarter q-o-q In Euro million except for 2008 2007 (% or pt) 2008 (% or pt) EPS Revenues 4,101 4,326 -5.2% 3,864 6.1% Gross profit 1,433 1,447 -1.0% 1,399 2.4% in % of revenues 34.9% 33.4% 1.5 pt 36.2% -1.3 pt Operating income (1) 93 -19 Nm 36 158.3% in % of revenues 2.3% -0.4% 2.7 pt 0.9% 1.3 pt Net income (loss) (Group share) -222 -336 Nm -95 Nm EPS diluted (in Euro) -0.10 -0.15 Nm -0.04 Nm E/ADS* diluted (in USD) -0.16 -0.20 Nm -0.07 Nm Number of diluted shares (million) 2259.1 2252.6 0.3% 2259.1 0.0%

Breakdown of segment Second Second % change, First % change operating income (1) (loss) quarter quarter y-o-y quarter q-o-q (in Euro million) 2008 2007 (% or pt) 2008 (% or pt) Carriers 11 -73 Nm -34 Nm In % of revenues 0.4% -2.3% 2.7 pt -1.2% 1.6 pt Enterprise 29 23 24.8% 16 80.8% In % of revenues 7.4% 6.1% 1.3 pt 4.2% 3.2 pt Services 71 29 143.8% 19 266.3% In % of revenues 8.6% 3.9% 4.8 pt 2.8% 5.8 pt Other & eliminations -18 2 Nm 35 Nm Segment op. income (loss) 93 -19 Nm 36 154.7%

Cash Flow highlights Second First Second quarter quarter quarter In Euro million 2008 2008 2007 Net (debt)/cash at beginning of period -30 271 -48 Adjusted operating income 93 36 -19 Depreciation & Amort; OP non cash; other 177 209 335 Operating Cash Flow * 270 245 316 Change in operating & other WCR -150 -114 -118 Interest -16 -108 -13 Taxes -48 -38 -18 Dividends received & other 41 0 39 Cash contribution to pension & OPEB -112 -118 -72 Restructuring cash outlays -166 -119 -99 Cash flow from operating activities -181 -252 35 Capital expenditures (incl. R&D cap.) -203 -196 -200 Free Cash Flow -384 -448 -165 Disposals, Discontinued, Cash from financing & Forex -1 147 434 Change in net(debt)/cash position -385 -301 269 Net (debt)/cash at end of period -415 -30 221 * Before changes in working capital, interest/tax paid, restructuring cash outlay and pension & OPEB cash outlay

Balance sheet - Assets June 30, March 31, June 30, In Euro million 2008 2008 2007 Total non-current assets 18,348 19,299 24,457 of which Goodwill & intangible assets, net 10,004 10,835 15,232 of which Prepaid pension costs 3,129 3,244 3,573 of which Other non-current assets 5,215 5,220 5,589 of which marketable securities 0 0 63 Total current assets 12,595 12,889 13,620 of which OWC assets 6,902 6,769 6,906 of which other current assets 1,284 1,364 1,237 of which marketable securities, cash & cash equivalents 4,409 4,756 5,477 Total assets 30,943 32,188 38,077

Balance sheet - Liabilities and shareholders' June 30, March 31, June 30, equity In Euro million 2008 2008 2007 Total shareholders equity 9,957 11,031 15,451 of which attributable to the equity holders of the parent 9,445 10,519 14,976 of which minority interests 512 512 475 Total non-current liabilities 9,801 9,942 12,180 of which pensions, and other post-retirement benefits 3,967 4,117 4,634 of which long term debt 3,649 3,621 4,982 of which other non-current liabilities 2,185 2,204 2,564 Total current liabilities 11,185 11,215 10,446 of which provisions 2,545 2,375 2,658 of which short term debt 1,194 1,211 328 of which OWC liabilities 5,394 5,350 5,512 of which other current liabilities 2,052 2,279 1,948 Total liabilities and shareholder's equity 30,943 32,188 38,077

Business Commentary

Please note that the all the following business comments are based on a year-over-year comparison at constant Euro/USD exchange rate, unless otherwise specified.

Carrier Operating Segment

Key highlights:

- Fixed access revenue decreased at a double-digit rate, due to the ongoing decline in new subscribers to copper-based broadband access. Alcatel-Lucent shipped 7.7 million xDSL ports in the quarter, down 20% from the demanding basis of the year-ago quarter but up 16% sequentially. The year-over-year decline in xDSL revenue was only partially compensated by the very strong growth in FTTx revenue. Dell'Oro confirmed Alcatel-Lucent as the clear leader in the GPON-based FTTH segment, with a four-quarter rolling market share of 48% in the first quarter 2008.

- In data networking, growth in edge routing was softer this quarter than in the first one, which is essentially attributable to a demanding year-over-year comparison as well as the timing of deliveries at certain large customers. The ATM switching business continued on its structural decline path in the second quarter 2008, albeit at a more moderate rate than in the first quarter.

- Optical networking enjoyed strong double-digit growth this quarter, essentially driven by submarine activities and wireless transmission while terrestrial optical networks grew at a mid single-digit rate.

- In mobile networks, our GSM business grew at a double-digit rate in the second quarter, which was driven by network expansions in China, India, the Middle East and Africa. W-CDMA revenue grew very strongly, benefiting from the ramp-up in revenues at several key clients, including AT&T Mobility, Bouygues and SFR and sustained growth at other accounts such as Orange, SKT and KTF. CDMA revenue declined sharply year-over-year, hurt by the significant reduction in the capital expenditure of a key customer in North-America.

- Our core switching activities contracted at a moderate rate in the second quarter, as the ongoing decline in legacy TDM voice was almost entirely offset by the strong, double-digit growth in Fixed and mobile NGN. It must be noted that our NGN activity is now close in size to our TDM activity.

- Our applications activities grew in excess of twenty percent the second quarter, a sharp contrast to the moderate growth rate achieved in the first quarter, due to a pick-up in revenues from Messaging applications and a stabilisation in our legacy IN (Intelligent Networks) business.

Enterprise Operating Segment

Key Highlights:

- Enterprise Solutions grew in the high single-digit range, with a particularly strong performance in data networking but also good growth in IP Telephony. The division also showed progress in Security solutions, driven by recent successes in firewalls and additional orders for its Laptop Guardian product. From a geographic standpoint, growth remained solid in North America and was strong in APAC.

- Genesys, the contact centre software activity, enjoyed another quarter of double-digit growth, driven by a strong performance in Europe and good resilience in North America.

- The adjusted operating margin of the Enterprise operating segment increased both year-over-year and on a sequential basis. This is attributable for the most part to higher volumes, a positive shift in the product and geographic mix and solid progress in the product costs reduction programs.

Services Operating Segment

Key Highlights:

- Network operations grew very strongly, as a result of some of the very large contracts won in 2007 and in 2008. Alcatel-Lucent announced two large managed services contracts in the second quarter, including Reliance Communications in India and Sunrise in Switzerland.

- Network integration also enjoyed another quarter of very strong growth which was driven by several large and complex projects for the design, integration and optimisation of networks in Asia and North America.

- Growth in professional services - which includes the integration of software applications either from Alcatel-Lucent or third parties - was more moderate this quarter than in the first one, which is mainly due to a much more demanding comparison basis. For the first half, however, this business grew in the high single-digit range.

- Finally, Maintenance returned to growth this quarter, due to sustained growth in multivendor maintenance combined with an unusually strong quarter in legacy maintenance.

- The segment enjoyed a material improvement in profitability year-over-year, due to a very favourable mix, a material increase in the gross margin in Network operations, Network integration and Professional services and an overall better absorption of fixed costs.

Alcatel-Lucent will host an audio webcast at 1:00 p.m. CET, which can be accessed at http://www.alcatel-lucent.com/2q2008

Notes

All adjusted figures are unaudited.

2- "Adjusted" refers to the fact that it excludes the main impacts from Lucent's purchase price allocation (See annex for detailed information).

2008 Upcoming Events/ Announcements

October 30 Third quarter 2008 results

About Alcatel-Lucent

SAFE HARBOR FOR FORWARD LOOKING STATEMENTS

Alcatel-Lucent

Alcatel-Lucent Press Contacts, Régine Coqueran, Tel: +33(0)1-40-76-49-24, regine.coqueran@alcatel-lucent.com; Mary Ward, Tel: +1-908-582-7658, mary.ward@alcatel-lucent.com; Alcatel-Lucent Investor Relations, Rémi Thomas, Tel: +33(0)1-40-76-50-61, remi.thomas@alcatel-lucent.com; Tom Bevilacqua, Tel: +1-908-582-79-98, bevilacqua@alcatel-lucent.com; Tony Lucido, Tel: +33(0)1-40-76-49-80, alucido@alcatel-lucent.com; Don Sweeney, Tel: +1-908-582-6153, dsweeney@alcatel-lucent.com

Alcatel-Lucent Announces Chairman Serge Tchuruk and CEO Pat Russo to Step Down

PARIS, July 29 /PRNewswire/ --

- Board to Commence Search for New CEO

- CEO Russo to Remain at Helm Until Successor is Named to Ensure Business Continuity

- Board of Directors Announces Plans to Reorganize and Change Composition

Alcatel-Lucent (Euronext Paris and NYSE: ALU) today announced changes to its leadership and Board of Directors. The company also announced its quarterly results and demonstrated improvements to its operational results for the third straight quarter. The Company reported that it is making steady progress on the strategy the company laid out last fall.

To pave the way for a fully aligned governance and management model going forward, the company announced the following changes to its management team and Board of Directors:

About Alcatel-Lucent

SAFE HARBOR FOR FORWARD LOOKING STATEMENTS

Except for historical information, all other information in this press release consists of forward-looking statements within the meaning of the US Private Securities Litigation Reform Act of 1995, as amended. These forward looking statements include statements regarding the future financial and operating results of Alcatel-Lucent. Words such as "expects," "anticipates," "targets," "projects," "intends," "plans," "believes," "estimates," variations of such words and similar expressions are intended to identify such forward-looking statements which are not statements of historical facts. These forward-looking statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions that are difficult to assess. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements. These risks and uncertainties are based upon a number of important factors including, among others: our ability to appoint a new non-executive chairman and a new chief executive officer, as well as to locate additional board members with industry expertise, within the expected timeframes; our ability to operate effectively in a highly competitive industry with many participants; our ability to keep pace with technological advances and correctly identify and invest in the technologies that become commercially accepted; difficulties and delays in achieving synergies and cost savings; fluctuations in the telecommunications market; exposure to the pricing pressures in the regions in which we sell; the pricing, cost and other risks inherent in long-term sales agreements; exposure to the credit risk of customers; reliance on a limited number of contract manufacturers to supply products we sell; the social, political and economic risks of our global operations; the costs and risks associated with pension and postretirement benefit obligations; the complexity of products sold; changes to existing regulations or technical standards; existing and future litigation; difficulties and costs in protecting intellectual property rights and exposure to infringement claims by others; compliance with environmental, health and safety laws; whether Alcatel-Lucent can continue to obtain product cost improvements and to implement cost cutting and restructuring programs, and whether these efforts will achieve their expected benefits; the economic situation in general (including exchange rate fluctuations) and uncertainties in Alcatel-Lucent's customers' businesses in particular; customer demand for Alcatel-Lucent's products and services; control of costs and expenses; international growth; conditions and growth rates in the telecommunications industry; and the impact of each of these factors on sales and income. For a more complete list and description of such risks and uncertainties, refer to Alcatel-Lucent's Form 20-F for the year ended December 31, 2007, as well as other filings by Alcatel-Lucent with the US Securities and Exchange Commission. Except as required under the US federal securities laws and the rules and regulations of the US Securities and Exchange Commission, Alcatel-Lucent disclaims any intention or obligation to update any forward-looking statements after the distribution of this news release, whether as a result of new information, future events, developments, changes in assumptions or otherwise.

Alcatel-Lucent

Alcatel-Lucent Press Contacts: Régine Coqueran, Tel: +33(0)1-40-76-49-24, regine.coqueran@alcatel-lucent.com; Mary Ward, Tel: +1-908-582-7658, mary.ward@alcatel-lucent.com; Alcatel-Lucent Investor Relations: Rémi Thomas, Tel: +33(0)1-40-76-50-61, remi.thomas@alcatel-lucent.com; Tom Bevilacqua, Tel: +1-908-582-79-98, bevilacqua@alcatel-lucent.com; Tony Lucido, Tel: +33(0)1-40-76-49-80, alucido@alcatel-lucent.com; Don Sweeney, Tel: +1-908-582-6153, dsweeney@alcatel-lucent.com

Sify Technologies Selects Redline's Products for Multi-city WiMAX Network in India

TORONTO and CHENNAI, India, July 29 /PRNewswire/ --

- Sify to install RedMAX(TM) networks in 5 cities to meet demand for business-class Internet services

Redline Communications Group Inc. ("Redline") (TSX and AIM: RDL), a leading provider of WiMAX and broadband wireless infrastructure products, and Sify Technologies Limited ("Sify") (NASDAQ:SIFY), a leader in Consumer, Internet and Enterprise Services in India with global delivery capabilities, today announced that Sify has selected Redline's WiMAX Forum Certified(TM) RedMAX products for its multi-city WiMAX network in India.

Sify has deployed Redline's RedMAX products in Delhi and Mumbai with the capacity to deliver business-class Internet services to enterprise users. Sify has also begun its WiMAX network expansion to Bangalore, Hyderabad and Chennai. The initial WiMAX network deployment in these regions is scheduled for completion in 2008.

"The launch of our WiMAX services in these five cities will further our mission of being an enabler and catalyst of the Internet for positive change in India," said Arvind Mathur, Chief Architect, Sify Technologies Limited. "Redline's proven WiMAX technologies and reliable high-speed connections with the ability to support hundreds of users per base station will ensure we deliver reliable, standards-driven, managed last mile solutions to enterprise customers that support business critical applications over Sify's IP-MPLS network. Redline's solutions meet the stringent requirements of our customers who include major banks, retailers, manufacturers and other enterprises that require the highest levels of performance, reliability and security for their communications networks."

Sify selected Redline's 3.3-3.4 GHz RedMAX products after a rigorous three-month evaluation process that included a number of broadband wireless solutions. The criteria for WiMAX equipment selection included WiMAX Forum Certification(TM), high subscriber capacity, support for Service Level Agreements, security, ease of installation and cost-effectiveness.

"Sify is recognized as a pioneer in wireless and corporate networking in India, with an innovative and successful model for offering communications services," said Kevin Suitor, Vice President, Marketing and Business Development, Redline Communications Inc. "With its professional approach to its network and business models, Sify is well positioned to meet its expansion targets with RedMAX."

Redline's RedMAX(TM) Family

Redline's RedMAX(TM) family of WiMAX solutions includes the world's first complete system to receive the WiMAX Forum Certified(TM) mark for conformance to the WiMAX standards for performance and interoperability. Redline's carrier-class RedMAX(TM) Base Station (AN-100U) supports voice, video, and prioritized data traffic, enabling long-range, high-capacity wireless broadband networks. Redline's WiMAX products also include the RedMAX(TM) Indoor Subscriber Unit (SU-I) and Outdoor Subscriber Unit (SU-O) designed for enterprise and residential services. The RedMAX(TM) Management Suite enables operators to monitor and control the network, ensuring high service availability. Redline is maintaining its WiMAX leadership with the expansion of its RedMAX(TM) family to include products for additional frequency bands, applications and standards.

RedMAX 4C(TM) Mobile WiMAX

The RedMAX 4C(TM), which is based on the WiMAX industry's 802.16e-2005 standards for mobile WiMAX, supports a wide range of fixed, portable and mobile wireless services including support Voice and Video over IP, broadband Internet access used to support highly valued education, medical, transportation and municipal applications, VPNs (Virtual Private Networks) and other advanced communications services. The RedMAX 4C(TM) Mobile WiMAX platform is designed to enable operators to maximize the reach and customer density required for a profitable carrier business model. The RedMAX 4C(TM) includes a modular, standardized (micro)TCA (micro Telecommunications Computing Architecture) chassis base station that is small, lightweight and easy to deploy. RedMAX 4C(TM) will also include a suite of indoor and outdoor fixed and portable end-user devices including laptops, mobile handsets and PDAs. Redline's new WiMAX offering is also designed to facilitate the integration of its existing RedMAX(TM) products with its RedMAX 4C(TM) technologies, providing operators a path to true mobility.

About Sify

Sify is among the largest Managed Enterprise and Consumer Internet Services companies in India, offering end-to-end solutions with a comprehensive range of products delivered over a common telecom data network infrastructure reaching 481 cities and towns in India. A significant part of the company's revenue is derived from Corporate Services, which include corporate connectivity, network and communications solutions, security, network management services, enterprise applications and hosting. Sify is recognized as an ISO 9001:2000 certified service provider for network operations, data center operations and customer support, and for provisioning of VPNs, Internet bandwidth, VoIP solutions and integrated security solutions, and BS7799 certified for Internet Data Center operations. Sify has licenses to operate NLD (National Long Distance) and ILD (International Long Distance) services and offers VoIP back haul to long distance subscriber telephony services. The company is India's first enterprise managed services provider to launch a Security Operations Center (SOC) to deliver managed security services. A host of blue chip customers use Sify's corporate service offerings.

Consumer services include broadband home access, dial up connectivity and the e-port cyber café chain across 180 cities and towns. Sify.com the consumer portal of Sify has sub portals like http://www.samachar.com, http://www.walletwatch.com, http://www.sifymax.com and http://www.chennailive.in, http://www.bangalorelive.in, http://www.mumbailive.in, http://www.hyderabadlive.in the city based live video on the web. The content is available in 5 Indian languages, which include Hindi, Malayalam, Telugu, Kannada and Tamil. For more information about Sify, visit http://www.sifycorp.com.

About Redline Communications

Redline Communications (http://www.redlinecommunications.com) is the leading provider of fixed and mobile standards-based wireless broadband solutions. Redline's RedMAX(TM) WiMAX Forum Certified(TM) system, RedMAX 4C Mobile WiMAX(TM) products, and its award-winning RedCONNEX(TM) and RedACCESS(TM) families of broadband wireless infrastructure products enable service providers and other network operators to cost-effectively deliver high-bandwidth services, including voice, video and data communications. Redline is committed to maintaining its wireless industry leadership with the continued development of WiMAX and other advanced wireless broadband products. With more than 100,000 installations in 85 countries, and a global network of over 170 partners, Redline's experience and expertise helps service providers, enterprises and government organizations roll out wireless broadband networks to support advanced communications.

NOTE: All registered and unregistered trademarks mentioned in this release are the property of their respective owners.

Certain statements in this release constitute forward-looking statements or forward-looking information within the meaning of applicable securities laws and are made pursuant to the "safe harbour" provisions of such laws. Statements related to potential benefits of, and demand for, Redline's products including statements with respect to the features and benefits that may be achieved through the use of Redline's products and the relative position of these products vis-à-vis competitive offerings in the industry are forward-looking statements which are subject to certain assumptions, risks and uncertainties. These risks and uncertainties include such factors as rapid technological changes, long uncertain sales cycles, demand for our products, the introduction of competing technologies, meeting industry standards, regulatory risk, dependent on key partners and resellers and other similar factors that may cause the actual results, performance or achievements of Redline to differ materially from the results, performance, achievements or developments expressed or implied by such forward-looking statements. Readers are cautioned not to place undue reliance on such statements. Redline assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

For further information: Redline Communications, Carolyn Anderson, canderson@redlinecommunications.com, Tel: +1-905-479-8344; Equicom Group, Craig Armitage, Vanessa Beresford, carmitage@equicomgroup.com, vberesford@equicomgroup.com, +1-416-815-0700; Canaccord Adams, Neil Johnson, Andrew Chubb, Tel: +44(0)20-7050-6500

Redline Communications Group Inc.

For further information: Redline Communications, Carolyn Anderson, canderson@redlinecommunications.com, Tel: +1-905-479-8344; Equicom Group; Craig Armitage, Vanessa Beresford, carmitage@equicomgroup.com, vberesford@equicomgroup.com, +1-416-815-0700; Canaccord Adams, Neil Johnson, Andrew Chubb, Tel: +44(0)20-7050-6500

DOCDATA N.V.: Realisation of Strategy 'Vision 2010: Gear to Growth' Full on Course

WAALWIJK, The Netherlands, July 29 /PRNewswire/ --

- Revenue Increases 8% to EUR 35.7 Million

- Combined Revenue of Commerce, Payments and Fulfilment Activities Internet Service Company docdata Increases With More Than 50%

- All Divisions Contribute to Operating Profit (EBIT)

- Strong Order Portfolio IAI Will for the Largest Part be Delivered in the Second Half-Year 2008

Results and Financial position half-year 2008 (unaudited)

Half-year ended at (in millions, except 30 June 2008 30 June 2007 percentage figures and per share data) EUR % EUR % Revenue Internet service company 33.1 92.8 28.2 85.3 docdata Technology company IAI 2.6 7.2 4.8 14.7 Total 35.7 100.0 33.0 100.0 Gross profit 9.4 26.4 8.0 24.3 Operating profit (EBIT) Internet service company 1.3 4.1 0.3 0.8 docdata Technology company IAI 0.1 2.3 1.3 27.3 Total 1.4 4.0 1.6 4.7 Result after tax from - - 0.2 0.6 discontinued operation Profit for the half-year 1.0 2.9 1.6 4.9 Basic earnings per share 0.15 0.23 Diluted earnings per share 0.15 0.22 Balance sheet total 40.7 39.6 Equity 19.3 22.3 Solvency ratio (Equity / 47.4% 56.3% Balance sheet total)

Major features of the first half-year 2008

The Internet service company docdata continues to show strong growth. This growth has been realised by new customers, as well as through growth of existing customers. The total online shopping market has grown for years and will continue to grow. A large group of product categories sold online is consumer electronics, clothing and shoes, hardware, books, music, DVD's and tickets. The number of consumers that buy online increases, but also the total order value keeps rising. It is also expected that more and more brands and retailers will open online shops.

All four divisions of the Internet service company docdata have contributed in the first half-year 2008 to the operating profit. The integration of the various companies that have been acquired in the previous year is well on course. The different organisations are ready for a further growth, mainly autonomous, that will be realised in the coming six months. Also, costs will be incurred in the coming months to realise geographical growth in 2009, possibly through acquisitions.

Michiel Alting von Geusau: "Presently, we process over one million transactions per month for our customers. These transactions consist of realised orders through our web solutions, successfully processed payments by end consumers and shipped orders for our customers. We expect the number of transactions that we process to grow further in the coming years."

As most deliveries by Technology company IAI are scheduled for the second half-year 2008, this has resulted in a lower revenue and operating profit for the first half-year. During the first half of 2008, IAI has worked hard to ensure that the ordered systems can be successfully delivered in the second half of 2008. The final delivery for the Ukraine has successfully taken place in July.

IAI has developed new applications in the first half of 2008, for example the ability to use inkjet printing for a colour photograph in the personalisation process of passports. Also, IAI started the development and delivery of systems that can be used in the production process of solar cells, and contacts have been established with several big players in the solar market. IAI will continue this in the second half of 2008 to acquire a position in this market. Furthermore, IAI continues to search for companies that can support or accelerate the entrance in the solar market.

The cash flow statement in the Appendix to the attached enclosure 'Financial Information for the half-year ended 30 June 2008' shows that DOCDATA N.V. has realised net cash from operating activities of EUR 1.0 million in the first half-year 2008. The cash surplus position of EUR 3.5 million at 31 December 2007 has decreased in the first half-year 2008 to a net debt position of EUR 2.1 million at 30 June 2008. An amount of EUR 6.6 million has been spent during the first half-year 2008 to finance:

- acquisition of subsidiaries: in total EUR 1.3 million for the acquisition of (additional) share interests of 20% in docdata commerce B.V. in Waalwijk, 40% in Pegasus e-Business GmbH (concerning docdata fulfilment) in MÃ¼nster, Germany, and 61.2% in Hitura Limited (post-acquisition named 'docdata commerce Limited') in London, United Kingdom;

- investments in property, plant & equipment and intangibles (EUR 1.5 million);

- distribution to the shareholders of dividend from the 2007 profit (EUR 1.9 million);

- own shares bought (EUR 1.9 million).

DOCDATA N.V. has maintained its strong financial position with a solvency ratio of 47.4% at 30 June 2008 (31 December 2007: 52.3%).

Outlook

Michiel Alting von Geusau: "Through the combination of markets on which we operate, revenue and result of DOCDATA are less sensitive to the current negative climate with respect to the general economic situation and the declining consumer trust. We remain positive about the developments within our company and are convinced that we offer unique and reliable solutions to our customers."

Results by segment

Internet service company docdata

In the first half of 2008, docdata commerce, docdata payments and docdata fulfilment have shown strong growth. The fact that docdata can offer an integrated solution to companies that want to sell through the Internet has absolutely contributed to this growth. At this moment, docdata is more and more "recognised" in the market as the Internet service company; also thanks to the new Corporate Identity.

Docdata further invested in the first half-year of 2008 in the development of web based IT systems, through which optimal services can be offered to customers. Additional investments were done in a substantial increase of our fulfilment capacity, in the Netherlands, Germany, as well as in the United Kingdom.

Important new contracts with customers have been signed in the first half-year of 2008 which will contribute to revenue and results in the second half-year of 2008. Two examples of such contracts are V&D and TNT. V&D has chosen docdata fulfilment for the distribution of online sales. Docdata fulfilment is pleased with this development. Next to the existing products, docdata fulfilment will now also start processing fashion and related products. With this, docdata fulfilment has realised two of its goals for 2008: expansion of the service portfolio to (r)etailers and becoming a well known player in the fashion sector. Both V&D and TNT have chosen the online payment solutions of docdata payments.

Technology company IAI

The peak in the installation and delivery of systems in the order portfolio is in the second half-year of 2008. Installation and delivery dates are mainly determined at request of the client and IAI only has limited possibilities to spread the deliveries over the year. Revenue and results of IAI in the first half-year of 2008 are therefore lower than those for the comparable period in 2007, but the second half of 2008 will show a different picture.

In the course of 2008, system orders in the Security Printing market have been received for Algeria, South Africa and Sweden. In all cases, these orders relate to recently developed systems or systems in development: BookMaster One systems for the personalisation of passports with a polycarbonate holder page, BookMaster One systems for the personalisation of passports with a paper holder page, and the new SheetMaster Flex and WebMaster Flex systems, which are capable of processing documents printed in sheets or on roll. The sales focus lies with new systems, which confirms the acceptance of IAI's product diversification for the Security Printing market. The deliveries related to these orders have been partly scheduled for the second half of 2008.

In relation to 'Vision 2010: Gear to growth' it was announced that IAI would become active in the production equipment market for solar energy. IAI has established many contacts in this new market in the first half-year of 2008. Through these contacts, IAI wants to deliver systems in this market in order to realise autonomous growth. Furthermore, IAI aims to identify parties in this market that can be considered for intensive cooperation and/or acquisition to realise an additional growth impulse.

Accounting principles

As of 1 January 2005 DOCDATA N.V. has adopted the International Financial Reporting Standards as adopted by the European Union (hereafter IFRS) in preparing the consolidated financial statements. For an overview of the significant accounting policies under IFRS, please refer to the 2007 Annual Report that is available at the Company and can also be downloaded from the Company's website, http://www.docdata.com, under Corporate.

The half-year financial report has been prepared in accordance with IAS 34 (Interim Financial Reporting).

Audit

The financial statements and reconciliations included in this half-year report and its enclosures have not been audited by the external auditors. Enclosure with financial information

For a detailed review of the 2008 half-year results please refer to the attached enclosure 'Financial Information for the half-year ended 30 June 2008' with Appendix.

Meeting for financial press and analysts

Today, 29 July 2008, management of DOCDATA N.V. will discuss the 2008 half-year results in a meeting for which both financial press and analysts have been invited, to be held at 10.30AM Amsterdam time in the Mercurius room of the Financieel Nieuwscentrum Beursplein 5 of NYSE Euronext Amsterdam (Beursplein 5, 1012 JW Amsterdam, +31-20-5505505).

DOCDATA N.V. is listed at the NYSE Euronext since 1997 and exists of two different organisations, docdata and Industrial Automation Integrators.

Internet service company docdata (http://www.docdata.com) is an European market leader with a strong basis in The Netherlands, Germany and the United Kingdom, and exists of four divisions:

- docdata commerce

- docdata payments

- docdata fulfilment

- docdata media

Technology company Industrial Automation Integrators (http://www.iai.nl) is a high tech engineering company specialised in developing and building machines for very accurate and high speed processing of all kinds of products and materials. IAI delivers clients globally in the following sectors:

- securing and personalising of security documents

- processing of packaging materials

- processing of solar cells

- processing of other materials (such as motion picture subtitling)

Financial Information

The financial information is prepared in accordance with International Financial Reporting Standards as adopted by the European Union (hereafter IFRS).

Revenue

(in thousands, except percentage figures) Half-year 2008 Half-year 2007 Revenue by company EUR % EUR % Internet service company docdata 33,118 92.8 28,161 85.3 Technology company IAI 2,575 7.2 4,835 14.7 Total 35,693 100.0 32,996 100.0

- Revenue of Internet service company docdata increased EUR 5.0 million (18%) in the half-year ended 30 June 2008 compared to the half-year ended 30 June 2007. Excluding revenue of the docdata media division of EUR 15.6 million in the half-year ended 30 June 2008 (HY2007: EUR 16.6 million), the total revenue of the three other divisions docdata commerce, docdata payments and docdata fulfilment increased EUR 6.0 million (52%) in the half-year ended 30 June 2008 compared to the half-year ended 30 June 2007. The acquisitions docdata commerce Ltd. (formerly named 'Hitura Ltd.') and Pegasus e-Business GmbH, which were not yet consolidated in the financial statements for the half-year ended 30 June 2007, and docdata payments B.V. (formerly named 'Triple Deal B.V.') that was only included in the consolidation for the half-year ended 30 June 2007 for one month after acquiring the controlling share interest per 25 May 2007, have together contributed for EUR 2.6 million to this revenue increase, while revenue increased for EUR 3.4 million (30%) due to autonomous growth.

- Technology company IAI's lower revenue is caused by lower revenue from (completed contract) deliveries of security systems in the half-year ended 30 June 2008 compared to the half-year ended 30 June 2007, first-time revenue from business in the solar market in the half-year ended 30 June 2008, in combination with a changed mix of revenues from deliveries of subassemblies, service, packaging contract research and development, and production royalties in the passport market segment. Most deliveries of security systems in 2008 are planned for the second half-year of 2008.

Gross profit

(in thousands, except percentage figures) Half-year 2008 Half-year 2007 Gross profit (margin) by company (margin as % of revenue by company) EUR % EUR % Internet service company docdata 8,583 25.9 6,134 21.8 Technology company IAI 848 32.9 1,897 39.2 Total 9,431 26.4 8,031 24.3

- Internet service company docdata realised an increase in gross profit of EUR 2.4 million (40%) in the half-year ended 30 June 2008 compared to the half-year ended 30 June 2007. The effect of changes in the consolidation for the two comparable half-years (Note: changes described under revenue) on gross profit was EUR 1.4 million, leaving EUR 1.0 million (16%) due to autonomous growth. Gross profit and gross profit margin for the three divisions docdata commerce, docdata payments and docdata fulfilment have improved predominantly by a higher activity and revenue level, enabling efficiency improvements through economies-of-scale. Also the docdata media division contributed to the increase in gross profit for a small part, through realising growth in gross profit margin from 14.6% in the half-year ended 30 June 2007 to 16.0% in the half-year ended 30 June 2008. This proves that docdata media is still successful in controlling production costs (including material expenses for polycarbonate and DVD-production royalties, personnel expenses, depreciation expenses and overheads) in relation to developments in the average sales prices for CD and DVD.

- Gross profit of Technology company IAI decreased EUR 1.0 million in the half-year ended 30 June 2008 compared to the half-year 30 June 2007. The gross profit margin decreased, predominantly caused by the difference in the sales mix of security systems delivered in both half-years, as well as in the mix of the other revenue categories for the previous year.

Operating profit before financing result (EBIT) and Selling & Administrative expenses

(in thousands, except percentage figures) Half-year 2008 Half-year 2007 Operating profit (margin) by company (margin as % of revenue by company) EUR % EUR % Internet service company docdata 1,354 4.1 234 0.8 Technology company IAI 58 2.3 1,319 27.3 Total 1,412 4.0 1,553 4.7 Selling & Administrative expenses (as % of revenue) Selling expenses 2,336 6.5 1,791 5.4 Administrative expenses 5,670 15.9 4,772 14.5 Total 8,006 22.4 6,563 19.9 Selling & Administrative expenses by company (as % of revenue by company) Internet service company docdata 7,216 21.8 5,985 21.3 Technology company IAI 790 30.7 578 12.0 Total 8,006 22.4 6,563 19.9

- Operating profit of Internet service company docdata increased EUR 1.1 million in the half-year ended 30 June 2008 compared to the half-year ended 30 June 2007. This increase is the combined effect of an increase in gross profit of EUR 2.4 million and an increase in selling and administrative expenses of EUR 1.3 million. The effect of changes in the consolidation for the two comparable half-years (Note: changes described under revenue) on selling and administrative expenses was EUR 1.5 million, resulting in a combined decrease in selling and administrative expenses of the other subsidiaries in this company of EUR 0.2 million. The increased selling expenses and administrative expenses reflect the execution of the new strategy 'Vision 2010: Gear to Growth', where higher personnel expenses and organisational costs have been incurred to enable growth of the activity and business levels for the divisions docdata commerce, docdata payments and docdata fulfilment. In general, the increase in expenses can be explained by required investments in personnel, organisational improvements, development of IT solutions, and design and implementation of e-Solutions for new customers.

- Operating profit of Technology company IAI decreased EUR 1.2 million (96%) in the half-year ended 30 June 2008 compared to the half-year ended 30 June 2007. This decrease is the combined effect of a decrease of EUR 1.0 million in gross profit and an increase in selling and administrative expenses of EUR 0.2 million. The lower EBIT margin is due to the different sales mix for both comparable half-years, with a lower gross profit margin of the revenue in the half-year ended 30 June 2008, in combination with higher selling and administrative expenses in the half-year ended 30 June 2008. This increase in expenses is fully in line with our plans for 2008, in which we communicated higher personnel expenses and higher consultancy costs, related to the strategic entrance into the solar market.

Net financing income / (expenses)

Net financing expenses in the half-year ended 30 June 2008 amounted to EUR 0.1 million compared to a small net financing income in the half-year ended 30 June 2007. This decrease of EUR 0.1 million is predominantly caused by higher bank interest expenses in relation to the usage of the credit facilities to finance the Braywood acquisition and to finance working capital for docdata fulfilment and the Pegasus acquisition. Furthermore, the financial expenses in the half-year ended 30 June 2008 include a EUR 0.1 million higher foreign currency exchange loss due to the euro becoming stronger against the British pound in the second half-year 2007 and the first half-year 2008.

Income tax expense

DOCDATA's effective tax rate for the half-year ended 30 June 2008 was 20% with an income tax expense of EUR 0.3 million on a profit before income tax of EUR 1.3 million. For the half-year ended 30 June 2007 the profit from continuing operations before income tax amounted to EUR 1.7 million and the income tax expense amounted to EUR 0.3 million (effective tax rate: 17%).

The income tax expense of EUR 0.3 million in the half-year ended 30 June 2008 is the combined result of the following tax treatments of the results per country:

- In the Netherlands, a tax charge has been recorded at a corporate income tax rate of 25.5% on the taxable income for the Dutch fiscal entity as well as for the Dutch subsidiaries that are not part of this fiscal entity.

- In the United Kingdom, income taxes are recorded against a corporate income tax rate of 28.0% (2007: 30.0%).

- In Germany, a tax charge has been recorded at a corporate income tax rate of in general 30.0% on taxable income for the German entities, taking into account lower income tax rates for some regions in Germany when and where applicable.

Profit from discontinued operation (net of income tax)

The profit from discontinued operation (net of income tax) of EUR 0.2 million for the half-year ended 30 June 2007 resulted from the reassessment of all existing risks at that time in relation to the termination of the former French activities of the Media Group, which were accounted for at net realisable value in the consolidated balance sheet at 31 December 2006 and were reported under assets and liabilities classified as held for sale. Reference is made to section 5.6 Discontinued operation of the Notes to the Consolidated Financial Statements for further information.

Liquidity and capital resources

The General Annual Meeting of Shareholders held on 15 May 2008 approved the proposal to distribute a dividend of EUR 0.25 per ordinary share outstanding (excluding own shares held by the Company), which had a decreasing impact of EUR 1.9 million on retained earnings within the equity of the Company in the half-year ended 30 June 2008. Furthermore, the shareholders approved in that same meeting the proposal to withdraw 308,850 shares to bring the issued share capital down to 7,000,000 shares. Completion of the procedure to formally realise this withdrawal is expected in September 2008.

In the half-year ended 30 June 2008 16,030 personnel options were exercised; 13,850 options from the 2003 series at a price of EUR 2.68 per share, and 2,180 options from the 2004 series at a price of EUR 4.48 per share. The underlying shares have been delivered by the Company from the number of own shares in possession of the Company. The proceeds of EUR 47 thousand have been credited to equity under reserves, as the purchase of own shares has been charged to reserves in the past. In addition, 20,741 shares were granted to the CEO in May 2008, following the approval by the General Meeting of Shareholders on 15 May 2008 of the Remuneration Report 2007. Furthermore, the Company purchased 291,584 own shares in the half-year ended 30 June 2008, for a total purchase price of EUR 1.9 million, to bring the number of own shares owned up to 694,502 (9.50%) shares as per 30 June 2008; the Company owns this same number of shares today.

In addition to the EUR 1.9 million dividend payment and the EUR 1.9 million share buy-back, the Group has invested a total amount of EUR 2.8 million in the half-year ended 30 June 2008: EUR 1.0 million in property, plant and equipment (mainly wareÂhousing equipment and investment in IT infrastructure); EUR 0.6 million for the acquisition of an additional share interest of 20% (bringing the share interest to 80%) in docdata commerce B.V. (formerly named 'DOCdata e-Commerce Solutions B.V.'), EUR 0.4 million for the acquisition of an additional share interest of 40% (bringing the share interest to 70%) in Pegasus e-Business GmbH, EUR 0.3 million for the acquisition of a controlling share interest of 61.2% in Hitura Limited (post-acquisition name 'docdata commerce Ltd.'), and EUR 0.5 million in intangibles (predominantly IT development costs). These payments and investments for a total of EUR 6.6 million were for EUR 1.0 million financed from the Group's net cash flow from operating activities in the half-year ended 30 June 2008 (HY2007: EUR 2.5 million), including total depreciation and amortisation expenses of EUR 1.8 million (HY2007: EUR 1.9 million), for EUR 0.5 million from bank overdrafts and other borrowings and for EUR 5.1 million from the Group's net cash position. As a result of this, the Group's net cash position of EUR 3.5 million at 31 December 2007 has turned in the half-year ended 30 June 2008 into a net debt position of EUR 2.1 million.

Consolidated Financial Statements

1. Consolidated Balance Sheets

Balance sheets before appropriation of profit.

30 31 June December 2008 2007 (in thousands) EUR EUR Assets Property, plant and equipment 7,168 7,508 Intangible assets 11,030 9,856 Investments in associates 154 459 Other investments 100 100 Trade and other receivables 169 230 Deferred tax assets 959 1,046 Total non-current assets 19,580 19,199 Inventories 5,202 3,884 Income tax receivables 996 407 Trade and other receivables 14,612 13,379 Cash and cash equivalents 300 5,586 Total current assets 21,110 23,256 Total assets 40,690 42,455 Equity Share capital 731 731 Share premium 16,854 16,854 Translation reserves (541) (49) Reserve for own shares (3,288) (1,625) Retained earnings 5,318 5,932 Total equity attributable to equity 19,074 21,843 holders of the parent Minority interest 226 344 Total equity 19,300 22,187 Liabilities Interest-bearing loans and other 1,008 1,057 borrowings Employee benefits 186 343 Deferred tax liabilities 571 653 Total non-current liabilities 1,765 2,053 Bank overdrafts 2,352 2,110 Interest-bearing loans and other 135 76 borrowings Income tax payable 256 54 Trade and other payables 16,841 15,853 Provisions 41 122 Total current liabilities 19,625 18,215 Total liabilities 21,390 20,268 Total equity and liabilities 40,690 42,455

2. Consolidated Income Statements

Half-year 2008 Half-year 2007 (in thousands, except earnings EUR % EUR % per share and average shares outstanding) Continuing operations Revenue 35,693 100.0 32,996 100.0 Cost of sales (26,262) (73.6) (24,965) (75.7) Gross profit 9,431 26.4 8,031 24.3 Other operating income 21 0.1 164 0.5 Selling expenses (2,336) (6.5) (1,791) (5.4) Administrative expenses (5,670) (15.9) (4,772) (14.5) Other operating expenses (34) (0.1) (79) (0.2) Operating profit before financing 1,412 4.0 1,553 4.7 result Financial income 203 0.6 171 0.5 Financial expenses (327) (0.9) (167) (0.5) Net financing income / (expenses) (124) (0.3) 4 - Share of profits of associates 21 0.1 173 0.5 Profit before income tax 1,309 3.7 1,730 5.2 Income tax expense (267) (0.8) (292) (0.9) Profit from continuing operations 1,042 2.9 1,438 4.3 Discontinued operation Profit from discontinued - - 177 0.6 operation (net of income tax) Profit for the period 1,042 2.9 1,615 4.9 Attributable to: Equity holders of the parent 1,044 2.9 1,626 4.9 Minority interest (2) - (11) - Profit for the period 1,042 2.9 1,615 4.9 Weighted average number of shares 6,725,000 7,120,000 outstanding Weighted average number of shares 6,985,000 7,301,000 (diluted) Earnings per share Basic earnings per share 0.15 0.23 Diluted earnings per share 0.15 0.22 Continuing operations Basic earnings per share 0.15 0.20 Diluted earnings per share 0.15 0.20

3. Consolidated Statements of Cash Flows

Half-year Half-year 2008 2007 (in thousands) EUR EUR Cash flows from operating activities Profit for the year 1,042 1,615 Adjustments for: Depreciation and amortisation 1,847 1,918 Costs share options and delivered shares 184 131 Financial expenses 327 167 Financial income (203) (171) Share of profits of associates (21) (173) Income tax expense 267 292 Cash flows from operating activities before changes in working capital and provisions 3,443 3,779 Increase / decrease in trade and other receivables and assets held for sale (1,073) 4,860 Increase / decrease in inventories (1,318) 1,343 Increase / decrease in trade and other payables and liabilities held for sale 978 (7,094) Decrease / increase in provisions and employee (238) 295 benefits Cash generated from the operations 1,792 3,183 Interest paid (210) (167) Interest received 195 171 Income taxes paid (800) (673) Net cash from operating activities 977 2,514 Cash flows from investing activities Acquisition of subsidiaries (1,318) (1,846) Acquisition of property, plant and equipment (990) (1,079) Acquisition of intangible assets (479) (144) Acquisition of associates and other (66) - investments Proceeds from sale of property, plant and 11 14 equipment Net cash from investing activities (2,842) (3,055) Cash flows from financing activities Own shares bought (1,894) (642) Dividends paid (1,892) (1,418) Proceeds from bank overdrafts 377 131 Proceeds from / repayment of other borrowings 110 (72) Proceeds from exercise of share options 47 110 Loans provided to associates - - Net cash from financing activities (3,252) (1,891) Net (decrease) increase in cash and cash (5,117) (2,432) equivalents Cash and cash equivalents at the beginning of 5,586 5,831 the period Effect of exchange rate fluctuations on cash (169) (31) held Cash and cash equivalents at the end of the 300 3,368 period

4. Consolidated Statements of Shareholders' Equity

Total equity attributable to equity holders of Share Share Retained the parent Minority Total capital premium earnings interest equity Reserves (in EUR EUR EUR EUR EUR EUR EUR thousands) Equity Statement 2007 Balance at 1 731 16,854 625 3,978 22,188 226 22,414 January 2007 Dividend - - - (1,435) (1,435) (9) (1,444) distribution Shares bought - - (1,994) - (1,994) - (1,994) Exercised - - 129 - 129 - 129 share options Delivered - - 92 - 92 - 92 shares for remuneration Costs share - - 87 - 87 - 87 options Translation - - (613) - (613) - (613) difference Consolidation - - - - - 128 128 former associate Profit for - - - 3,389 3,389 (1) 3,388 the period Balance at 731 16,854 (1,674) 5,932 21,843 344 22,187 31 December 2007 Equity Statement 2008 Balance at 1 731 16,854 (1,674) 5,932 21,843 344 22,187 January 2008 Dividend - - - (1,658) (1,658) (234) (1,892) distribution Shares bought - - (1,894) - (1,894) - (1,894) Exercised - - 47 - 47 - 47 share options Delivered - - 135 - 135 - 135 shares for remuneration Costs share - - 49 - 49 - 49 options Translation - - (492) - (492) - (492) difference Consolidation - - - - - 118 118 former associate Profit for - - - 1,044 1,044 (2) 1,042 the period Balance at 731 16,854 (3,829) 5,318 19,074 226 19,300 30 June 2008

5. Notes to the Consolidated Financial Statements

5.1 Accounting principles

As of 1 January 2005 DOCdata N.V. (referred to as "DOCDATA" or the "Company") has adopted the International Financial Reporting Standards as adopted by the European Union ("IFRS") in preparing the consolidated financial statements.

For a summary of the significant accounting policies under IFRS, please refer to the Company's Annual Report for the financial year ended 31 December 2007.

This interim financial report has been prepared in accordance with IAS 34 (Interim Financial Reporting).

5.2 Audit

The financial statements and reconciliations included in this report and its enclosures have not been audited by the external auditors.

5.3 Management representations

In the opinion of the management, these financial statements include all adjustments necessary for a fair presentation of the financial position, operating results and cash flows of all reporting periods herein. All such adjustments are of a normal recurring nature.

The results of the operations for the half-year ended 30 June 2008 are not necessarily indicative of the results for the entire financial year ending 31 December 2008.

5.4 Organisation structure and segmentation

From 1 January 2008 onwards, DOCDATA has changed the organisation structure from a country organisation to a divisional structure. Starting the financial year 2008, DOCDATA identifies for the purpose of preparing financial statements the following two segments: Internet service company docdata (consisting of the following four divisions: docdata commerce, docdata payments, docdata fulfilment and docdata media) and Technology company IAI. The segmentation for the comparable financial statements for the half-year ended 30 June 2007 has been adjusted accordingly.

5.5 Consolidation

In the consolidated financial statements for the half-year ended 30 June 2008, the following acquisitions have been consolidated as of the acquisition dates mentioned:

- Pegasus e-Business GmbH: DOCDATA has increased its share interest in Pegasus e-Business GmbH in MÃ¼nster (Germany; formerly named 'Pegasus Dienstleistungen GmbH') from 30% to 70%, through the exercise of the call option on 40% of the issued share capital which was part of the original sale and purchase agreement from September 2006. The balance sheet and income statement of Pegasus e-Business GmbH has been included in the DOCDATA consolidation starting 1 January 2008;

- docdata commerce Limited (formerly named 'Hitura Limited'): DOCDATA has acquired an interest of 61.2% in the issued share capital of Hitura Ltd. in London (England), with an agreement on the purchase of the remaining minority shares between 2008 and 2013. The balance sheet and income statement of Hitura Ltd. have been included in the DOCDATA consolidation starting 1 February 2008.

In the consolidated financial statements for the half-year ended 30 June 2007, the following acquisition has been consolidated as of the acquisition date mentioned:

- docdata payments B.V. (formerly named 'Triple Deal B.V.') as of 25 May 2007 (70% share interest). The consolidated income statement for the half-year ended 30 June 2007 includes revenue and results of this subsidiary as of acquisition date. The minority interest of 30% in the equity of this subsidiary, which minority interest is owned by Conclusion Consultants B.V. for 20% and by Syllion B.V. for 10%, has been accounted for in the consolidated balance sheet under minority interest within total equity.

5.6 Discontinued operation

In the consolidated financial statements for the half-year ended 30 June 2007 and for the year ended 31 December 2007, the assets, liabilities and activities of Optical Disc de France S.A.S., (DOCdata France) formerly part of the Media Group, have been accounted for as discontinued operation. In the consolidated balance sheet at 31 December 2006, all assets and liabilities of DOCdata France have been accounted for at net realisable value and have been reported under assets classified as held for sale and liabilities classified as held for sale. In the consolidated income statements for the half-year ended 30 June 2007 and the year ended 31 December 2007, the results after income tax of DOCdata France for those periods have been reported under profit/(loss) from discontinued operation (net of income tax).

In the consolidated balance sheet at 31 December 2007, a provision for remaining risks related to the termination of the French activities was accounted for under current liabilities (EUR 87 thousand). In the half-year ended 30 June 2008, this provision has been fully used for required and expected final payment of remaining liabilities. No further expenses have been accounted for in the income statement for the half-year ended 30 June 2008, and neither have any new accruals or provisions been accounted for in the balance sheet at 30 June 2008.

5.7 Property, plant and equipment

30 June 31 December 2008 2007 (in thousands) EUR EUR Land and buildings 1,554 1,552 Machinery and equipment 3,581 3,725 Other 2,019 1,896 7,154 7,173 Under construction 14 335 Total 7,168 7,508

The book value for property, plant and equipment has decreased with EUR 0.3 million in the half-year ended 30 June 2008, resulting from depreciation charges for EUR 1.5 million exceeding capital expenditure of EUR 1.2 million (inclusive of EUR 0.2 million for property, plant and equipment acquired through new participations).

5.8 Intangible assets

30 June 31 December 2007 2008 (in thousands) EUR EUR Goodwill 7,424 6,212 Customer contracts 806 899 IT platforms 2,436 2,605 10,666 9,716 Under construction 364 140 Total 11,030 9,856

The book value for intangible assets has increased with EUR 1.2 million in the half-year ended 30 June 2008, due to the following:

- goodwill paid (EUR 1.5 million) for the acquisitions of the majority share in Pegasus e-Business GmbH and Hitura Limited, as well as for the acquisition of an additional 20% share interest in docdata commerce B.V.;

- additions for the development of IT platforms (EUR 0.5 million, including under construction);

- amortisation charges for customer contracts and IT platforms (EUR 0.4 million in total);

- foreign currency loss (EUR 0.4 million) on the valuation of the intangible assets with an original value in British pounds (i.e. related to the Braywood and Hitura acquisitions).

5.9 Investments in associates

The book value for investments in associates has decreased with EUR 0.3 million in the half-year ended 30 June 2008, predominantly as a result from the consolidation of Pegasus e-Business GmbH starting 1 January 2008. In the consolidated balance sheet at 31 December 2007 the DOCDATA share interest of 30% at that time in Pegasus was valued at cost of EUR 0.3 million under investments in associates.

PRN NLD

docdata N.V.

Further information: DOCDATA N.V., M.F.P.M. Alting von Geusau, CEO, Tel. +31-416-631-100

Manpower Inc. Celebrates First Anniversary in Second LifeEvent Convenes Second Life Gurus to Discuss Opportunities to Further Real Life Social Responsibility Efforts in Virtuality

MILWAUKEE, July 29 /PRNewswire-FirstCall/ -- Manpower Inc. announces the worldwide celebration of the company's one-year anniversary in Second Life. The celebration kicked-off with a multi-media convening of virtual world gurus on Manpower Island to reflect on the ways leading brands can attract a creative and diverse pool of talent and leverage virtual worlds to further real-world social responsibility programs.

(Photo: http://www.newscom.com/cgi-bin/prnh/20080729/AQTU522) (Logo: http://www.newscom.com/cgi-bin/prnh/20060221/CGTU012LOGO)

"The World of Virtual Work is morphing into something that will become very productive and an integral part of how companies get work done, and we are excited to be at the forefront, defining this new frontier," said Jeff Joerres, Manpower Inc. Chairman and CEO. "By treating virtual worlds like Second Life as a platform for R&D, we can focus on real issues related to the world of work, such as multiculturism, improved access and flexibility for geographically dispersed workforces."

Virtual worlds were initially viewed as a creative escape, but now many people are taking them more seriously. Avatars of prominent collaborators who participated in Manpower's celebration included Philip Rosedale, Founder of Second Life, George Kell, Executive Director for the United Nations Global Compact, Lynda Applegate, Distinguished Professor at Harvard Business School, Rita King, Carnegie Council Fellow, among others.

"Second Life offers a new world of opportunity for job seekers and for companies looking for a cost-effective, innovative and environmentally friendly way to recruit talent from around the world," said Philip Rosedale, Founder and Chairman of the Board, Linden Lab. "The virtual world is changing the way business is done -- from recruiting to conferencing to market research -- and Manpower's success in-world is a testament to the growing importance of Second Life to the enterprise."

"Our presence in virtual worlds is a key element in our innovation strategy, as we engage with the Net Generation and workforce of the future," said Tammy Johns, Manpower Inc. Senior Vice President of Global Workforce Strategy. "Our mission is to explore and understand what's next, and we continue to further define work practices, helping clients and candidates navigate the World of Virtual Work."

Thousands have visited Manpower Island, and typical visitors average nine years of work experience, hail from more than 50 countries and speak more than 40 languages. The most frequent question asked by avatars visiting the Island is, "How can I get a job in the virtual world?"

"Although resident avatars may arrive at our virtual office wearing halos, horns or smokestacks on their heads, these alter-egos who visit Manpower Island are artistic, collaborative, tech-savvy and represent some of the most in-demand job candidates around the world," said Johns. "We have learned that people in virtual worlds have skills that have been developed and grown from a social and personal perspective that can evolve into real life job skills. The flexibility that is created by virtual worlds allows people of certain demographics -- such as women, students and retirees -- to work on more flexible terms."

As part of the month-long celebration, held on Manpower Island, the company has released several machinima videos and a special report on the Power of Collaboration, which highlights lessons learned in Second Life, and the potential for virtual world programs to further social responsibility efforts. The event replay / highlights, videos and report are available at http://www.manpower.com/SecondLife

Manpower Island was developed as a place where job seekers, employers and entrepreneurs can come together in an interactive forum to learn about and explore the World of Virtual Work. The island features a variety of virtual work resources, including an orientation trail to teach "newbies" how to move around, interact and teleport around Second Life; and a series of work-related stations offering advice on creating a virtual resume, preparing for both Real Life and Second Life job interviews, obtaining appropriate attire and finding a job in the virtual world. Manpower Island is staffed by full-time Manpower employees who maneuver avatars and welcome visitors to the Island, personally answering questions about Manpower and the World of Virtual Work.

Second Life (http://www.secondlife.com/) is an online virtual community where residents live and work in a variety of 3D environments. An avatar is a person's digital altar-ego; a machinima is a computer-generated three-dimensional film.

About Manpower Inc.

Manpower Inc. is a world leader in the employment services industry; creating and delivering services that enable its clients to win in the changing world of work. Celebrating its 60th anniversary in 2008, the $21 billion company offers employers a range of services for the entire employment and business cycle including permanent, temporary and contract recruitment; employee assessment and selection; training; outplacement; outsourcing and consulting. Manpower's worldwide network of 4,500 offices in 80 countries and territories enables the company to meet the needs of its 400,000 clients per year, including small and medium size enterprises in all industry sectors, as well as the world's largest multinational corporations. The focus of Manpower's work is on raising productivity through improved quality, efficiency and cost-reduction across their total workforce, enabling clients to concentrate on their core business activities. Manpower Inc. operates under five brands: Manpower, Manpower Professional, Elan, Jefferson Wells and Right Management. More information on Manpower Inc. is available at http://www.manpower.com/.

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CONTACT: Britt Zarling of Manpower Inc., +1-414-906-7272, mobile,
+1-414-526-3107, Britt.Zarling@manpower.com

Web site: http://www.manpower.com/

Egencia to Launch Full-Service Travel Offering in AustraliaWorld-class technology platform combined with localized service strengthens company's global footprint

SYDNEY, Australia and LOS ANGELES, July 29 /PRNewswire/ -- Egencia, an Expedia, Inc. company, today announced the launch of service in Australia. Companies doing business in Australia will have access to fully localized service and content combined with the company's industry leading suite of online booking and travel management tools. A strong in-country account management team will provide dedicated client service.

Australia is yet another step in Egencia's expanding global footprint on top of recent launches in China, Ireland and the Netherlands. The company's approach to international expansion includes an emphasis on strong local service and deep supplier relationships to support their customers in key markets, helping them maintain a global business edge.

"Our unwavering focus on quality means we do not enter a market unless we can provide a level of service that is truly reflective of our commitment to clients," says Jean-Pierre Remy, president of Egencia. "To this aim, we look forward to offering corporations with offices in Australia strong travel management service that is localized to meet the unique needs of their market."

Egencia(TM) will provide Australian corporations and travellers with: -- Access to the company's industry leading self-booking platform including custom-defined destinations -- Dedicated local account management and customer service teams -- Strong business intelligence capabilities including unused ticket tracking and customisable Lowest Logical Fare reporting -- Access to Egencia's broad global supply network including localized hotel and air content such as major low-cost carriers -- User friendly policy and trip approval controls -- Direct access and control of their data through the company's global reporting functionality

These offerings contain benefits for travellers, travel managers and executives, all in one system. The addition of an Australian point of sale allows Egencia to more efficiently service larger companies with global travel management needs.

About Egencia, an Expedia, Inc. Company

Egencia is the fifth largest travel management company in the world. As part of Expedia, Inc., , the world's largest travel marketplace, Egencia helps business get ahead by offering the only truly integrated corporate travel service. Egencia's industry expertise and the partnerships the company has built help drive results that matter, delivering meaningful advancements that have a real impact. By combining a powerful offline and online service, Egencia delivers a complete corporate travel offering supported by global market expertise and a best-in-class technology platform.

Expedia, Egencia and the Egencia logo are either registered trademarks or trademarks of Expedia, Inc. in the U.S. and/or other countries. Other logos or product and company names mentioned herein may be the property of their respective owners.

Egencia, an Expedia, Inc. company

CONTACT: Jordan Rittenberry of Edelman, +1-312-240-1226,
Jordan.rittenberry@edelman.com, for Egencia, an Expedia company

Web site: http://www.expediacorporate.com/

Microsoft Extends Award-Winning Automotive PlatformA new era of growth and expansion includes software plus services.

REDMOND, Wash., July 29 /PRNewswire-FirstCall/ -- Microsoft Corp. today announced it will expand its automotive offering beyond software to include services. Microsoft's Automotive Business Unit (ABU) continues to enhance in-vehicle experiences by providing automakers with new and innovative ways to meet increasing consumer expectations. As a key part of these innovations, Microsoft announces the immediate availability of Microsoft Live Search for Devices, the first of many new services for its automotive platforms. Live Search for Devices enables partners to develop applications, including local search services, for in-vehicle infotainment. Live Search for Devices will be available for easier implementation in Microsoft's automotive platforms, Windows Automotive and future releases of Microsoft Auto.

(Logo: http://www.newscom.com/cgi-bin/prnh/20000822/MSFTLOGO)

Microsoft has a history of delivering award-winning software platforms for in-vehicle systems that offer fresh and innovative infotainment experiences for consumers worldwide. As one of the fastest-growing businesses at Microsoft, Microsoft Auto and Windows Automotive help partners reduce time-to-market, control costs and provide flexible solutions for in-vehicle infotainment. Best known for providing the software that powers Ford SYNC in North America, Fiat Auto Group's Blue&Me in Europe and South America, and state-of-the-art navigations solutions developed by world-leading Japanese manufacturers, Microsoft is a committed software technology partner for the automotive industry. ABU is developing a platform targeted for release in 2009 that enhances Microsoft's current in-vehicle products into an integrated automotive solution.

In what is a challenging time for the automotive industry, Microsoft is increasing its investment in the Automotive Business Unit by more than 30 percent this fiscal year. The commitment includes expanding its engineering resources for the in-vehicle software platforms that deliver new levels of partner innovation and create engaging, exciting experiences for consumers.

As Microsoft accelerates its development of in-vehicle platforms and enters into a new era of growth with software-plus-services solutions, ABU is transitioning from incubation to a maturing business with volume growth and expansion. As Martin Thall, who has guided ABU through the start-up period, moves on to take on a new challenge, Tom Phillips has been named the general manager of ABU to lead the business in the next phase. Thall has been an excellent leader during ABU's entrepreneurial phase and has established Microsoft as a trusted global partner to the automotive industry.

"I want to thank Martin for the phenomenal job he has done. His leadership and business-development acumen were exactly what ABU needed to establish the platform and break through to the next level," said Tom Gibbons, corporate vice president, Specialized Devices and Applications Group (SDA) at Microsoft. "As the business evolves, we look to Tom Phillips, with his expertise in bringing new software and services businesses to maturity, to continue to grow and expand the business."

Phillips has been with Microsoft for 16 years, including senior roles in software development, hardware development and field sales. Since joining Microsoft, Phillips has shipped more than 20 products, including a number of platforms, and has been responsible for bringing several new businesses to maturity. In his new role, Phillips will lead both ABU and SDA's Microsoft Global Services Group.

About Microsoft Automotive Business Unit

The Microsoft Automotive Business Unit is a dedicated partner to the auto industry, providing innovative technologies and flexible software platforms to help deliver simple, more reliable and cost-effective in-car infotainment systems. Developed closely with automakers and automotive suppliers, the award-winning Microsoft Auto and Windows Automotive software platforms connect drivers with a wide range of devices, services and technology while on the go, including hands-free communication, mobile device integration, customized navigation and high-fidelity digital entertainment. More information can be found at http://www.microsoft.com/auto.

About Microsoft

Founded in 1975, Microsoft is the worldwide leader in software, services and solutions that help people and businesses realize their full potential.

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CONTACT: Mark Burfeind of Weber Shandwick, +1-425-452-5426,
mburfeind@webershandwick.com, for Microsoft Corp.

Web site: http://www.microsoft.com/

SI International and Arrowpoint to Terminate Proposed Acquisition of Arrowpoint Corporation

RESTON, Va., July 28 /PRNewswire-FirstCall/ -- SI International, Inc. , an information technology and network solutions (IT) company, announced today, that the company and Arrowpoint Corporation have mutually agreed to terminate the Agreement and Plan of Merger dated July 15, 2008 that related to the proposed acquisition of Arrowpoint by the company. As a result, the acquisition of Arrowpoint by SI International will not be consummated.

About SI International: SI International, a member of the Russell 2000 and S&P SmallCap 600 indices, is a provider of information technology and network solutions (IT) primarily to the federal government. The Company combines technology and industry expertise to provide a full spectrum of state-of-the- practice solutions and services, from design and development to documentation and operations, to assist clients in achieving their missions. SI International is ranked as the 44th largest Federal Prime IT Contractor by Washington Technology and has approximately 4,500 employees. More information about SI International can be found at http://www.si-intl.com/.

The above-referenced statements may contain forward-looking statements that are made pursuant to the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. Expressions of future goals, financial information or reporting, and similar expressions reflecting something other than historical fact are intended to identify forward-looking statements, but are not the exclusive means of identifying such statements. These forward- looking statements may involve a number of risks and uncertainties, which are described in the Company's filings with the Securities and Exchange Commission. These risks and uncertainties include: changes in Federal government (or other applicable) procurement laws, regulations, policies and budgets; risks relating to contract performance; changes in the competitive environment (including as a result of bid protests); and the important factors discussed in the Risk Factors section of the annual report on Form 10-K filed by the Company with the Securities and Exchange Commission and available directly from the Commission at http://www.sec.gov/. The actual results may differ materially from any forward-looking statements due to such risks and uncertainties. The Company undertakes no obligations to revise or update any forward-looking statements in order to reflect events or circumstances that may arise after the date of this release.

Contact: Alan Hill SI International 703-234-6854 alan.hill@si-intl.com

SI International, Inc.

CONTACT: Alan Hill of SI International, +1-703-234-6854,
alan.hill@si-intl.com

Web site: http://www.si-intl.com/

Microsoft Extends Award-Winning Automotive Platform

REDMOND, Washington, July 29 /PRNewswire/ --

- A new era of growth and expansion includes software plus services.

Microsoft Corp today announced it will expand its automotive offering beyond software to include services. Microsoft's Automotive Business Unit (ABU) continues to enhance in-vehicle experiences by providing automakers with new and innovative ways to meet increasing consumer expectations. As a key part of these innovations, Microsoft announces the immediate availability of Microsoft Live Search for Devices, the first of many new services for its automotive platforms. Live Search for Devices enables partners to develop applications, including local search services, for in-vehicle infotainment. Live Search for Devices will be available for easier implementation in Microsoft's automotive platforms, Windows Automotive and future releases of Microsoft Auto.

(Logo: http://www.newscom.com/cgi-bin/prnh/20000822/MSFTLOGO)

In what is a challenging time for the automotive industry, Microsoft is increasing its investment in the Automotive Business Unit by more than 30 per cent this fiscal year. The commitment includes expanding its engineering resources for the in-vehicle software platforms that deliver new levels of partner innovation and create engaging, exciting experiences for consumers.

About Microsoft Automotive Business Unit

The Microsoft Automotive Business Unit is a dedicated partner to the auto industry, providing innovative technologies and flexible software platforms to help deliver simple, more reliable and cost-effective in-car infotainment systems. Developed closely with automakers and automotive suppliers, the award-winning Microsoft Auto and Windows Automotive software platforms connect drivers with a wide range of devices, services and technology while on the go, including hands-free communication, mobile device integration, customised navigation and high-fidelity digital entertainment. More information can be found at http://www.microsoft.com/auto.

About Microsoft

Founded in 1975, Microsoft (Nasdaq: MSFT) is the worldwide leader in software, services and solutions that help people and businesses realise their full potential.

About Microsoft EMEA (Europe, Middle East and Africa)

Microsoft has operated in EMEA since 1982. In the region Microsoft employs more than 16,000 people in over 64 subsidiaries, delivering products and services in more than 139 countries and territories.

This material is for informational purposes only. Microsoft Corp disclaims all warranties and conditions with regard to use of the material for other purposes. Microsoft Corp shall not, at any time, be liable for any special, direct, indirect or consequential damages, whether in an action of contract, negligence or other action arising out of or in connection with the use or performance of the material. Nothing herein should be construed as constituting any kind of warranty.

Web site: http://www.microsoft.com

Microsoft Corp

Mark Burfeind of Weber Shandwick, +1-425-452-5426, mburfeind@webershandwick.com, for Microsoft Corp; NOTE TO EDITORS: If you are interested in viewing additional information on Microsoft in EMEA, please visit http://www.microsoft.com/emea or the EMEA Press Centre at http://www.microsoft.com/emea/presscentre. Web links, telephone numbers and titles were correct at the time of publication, but may since have changed. For additional assistance, journalists and analysts may contact the appropriate contacts listed at http://www.microsoft.com/emea/presscentre/contactus.mspx. If you are interested in viewing additional information on Microsoft Corp, please visit the Microsoft web page at http://www.microsoft.com/presspass on Microsoft's corporate information pages; Photo: NewsCom: http://www.newscom.com/cgi-bin/prnh/20000822/MSFTLOGO, AP Archive: http://photoarchive.ap.org, PRN Photo Desk photodesk@prnewswire.com.

Microsoft étend sa plate-forme automobile primée

REDMOND, Washington, July 29 /PRNewswire/ --

- Une nouvelle ère de croissance et d'expansion inclut les services en plus de l'offre logicielle.

Microsoft Corp a annoncé aujourd'hui l'élargissement de son offre automobile en allant au-delà de la fourniture logicielle pour proposer aussi des services. L'Automotive Business Unit (ABU) de Microsoft continue d'améliorer les expériences de conduite en fournissant aux fabricants automobiles de nouvelles méthodes innovantes leur permettant de répondre aux attentes croissantes des consommateurs. Un des aspects clé de ces innovations est l'annonce par Microsoft de la disponibilité immédiate de Microsoft Live Search for Devices, le premier des nombreux nouveaux services destinés à ses plates-formes automobiles. Live Search for Devices donne aux partenaires la possibilité de développer des applications, y compris des services de recherche locale pour l'inforécréation embarquée. Live Search for Devices sera disponible pour une mise en oeuvre simplifiée dans les plates-formes automobiles de Microsoft que sont Windows Automotive et les prochaines versions de Microsoft Auto.

(Logo: http://www.newscom.com/cgi-bin/prnh/20000822/MSFTLOGO)

Microsoft peut faire valoir des antécédents dans la fourniture de plates-formes logicielles primées destinées aux systèmes automobiles et offrant aux consommateurs du monde entier des expériences d'inforécréation inédites. Comptant parmi les activités les plus dynamiques de Microsoft, Microsoft Auto et Windows Automotive aident les partenaires à réduire la durée de commercialisation, à contrôler les coÃ»ts et à fournir des solutions flexibles pour l'inforécréation embarquée. Célèbre pour avoir fourni le logiciel activant le système Ford SYNC en Amérique du Nord, le système Blue&Me du groupe automobile Fiat en Europe et en Amérique du Sud, et les solutions de navigation d'avant-garde développées pour les plus importants fabricants automobiles japonais, Microsoft veut Ãªtre le partenaire du secteur automobile en technologie logicielle. ABU développe une plate-forme, dont le lancement est prévu pour 2009, qui améliore les produits embarqués actuels de Microsoft en les transformant en une solution automobile intégrée.

Malgré une conjoncture difficile pour l'industrie automobile, Microsoft augmente ses investissements dans Automotive Business Unit de plus de 30 % au cours de l'exercice fiscal actuel. Cette augmentation vise les ressources en ingénierie des plates-formes logicielles embarquées afin de fournir de nouveaux niveaux d'innovation pour les partenaires et de créer des expériences stimulantes pour le plaisir des consommateurs.

Tandis que Microsoft accélère le développement de ses plates-formes automobiles embarquées et entre dans une nouvelle ère de croissance avec ses solutions logiciels-plus-services, ABU effectue sa mutation du stade d'activité bourgeonnante à celui d'entreprise établie en accroissant son volume et en élargissant ses activités. Martin Thall, qui a dirigé ABU au cours de cette période de démarrage, part relever de nouveaux défis et Tom Phillips le remplace en tant que directeur général d'ABU à l'orée d'une nouvelle phase de croissance. M. Thall a su diriger ABU avec talent pendant sa phase d'émergence et a favorisé l'établissement de Microsoft en tant que partenaire mondial respecté de l'industrie automobile.

<< Je tiens à remercier Martin pour sa contribution inestimable. Ses qualités de dirigeant et son sens du développement d'entreprise correspondaient idéalement à ce dont ABU avait besoin pour établir la plate-forme et se préparer à l'étape suivante >>, estime Tom Gibbons, vice-président, responsable de la division applications et appareils spécialisés (SDA) chez Microsoft. << Pour cette nouvelle phase, nous faisons confiance au savoir-faire de Tom Phillips dans l'accompagnement de nouveaux logiciels et de nouveaux services vers la maturité afin de poursuivre la croissance de cette activité. >>

M. Phillips travaille chez Microsoft depuis 16 ans et a occupé des postes de cadre supérieur en développement logiciel, en développement de matériel et pour les ventes sur le terrain. Depuis son arrivée chez Microsoft, M. Phillips a livré plus de 20 produits, y compris plusieurs plates-formes, et a aussi mené à maturité plusieurs nouvelles activités. Dans son nouveau rôle, M. Phillips dirigera à la fois ABU et le Microsoft Global Services Group pour SDA.

Ã€ propos de Microsoft Automotive Business Unit

Microsoft Automotive Business Unit est un partenaire qui consacre ses efforts à l'industrie automobile en fournissant des plates-formes technologiques innovantes et adaptables afin de proposer des systèmes embarqués d'inforécréation plus fiables et plus économiques. Développées en collaboration étroite avec les fabricants et les équipementiers automobiles, les plates-formes logicielles primées Microsoft Auto et Windows Automotive connectent, pendant leurs déplacements, les conducteurs à un large éventail de dispositifs, de services et de technologies, y compris les communications mains libres, l'intégration des dispositifs mobiles, la navigation personnalisée et le divertissement numérique haute fidélité. Pour plus de renseignements, veuillez consulter le site http://www.microsoft.com/auto.

Ã€ propos de Microsoft

Fondée en 1975, Microsoft (Nasdaq: MSFT) est le leader mondial en matière de services et de solutions informatiques visant à aider le public et les entreprises à atteindre leur potentiel maximum.

Ã€ propos de Microsoft EMEA (Europe, Moyen-Orient, Afrique)

La présence de Microsoft dans les territoires de l'EMEA remonte à 1982. Microsoft y compte plus de 16 000 employés répartis dans plus de 64 filiales et offre ses produits et services dans plus de 139 pays et régions.

Ce communiqué est émis uniquement à titre d'information. Microsoft Corp se dégage de toute responsabilité concernant l'utilisation de ce communiqué à d'autres fins. Microsoft Corp ne pourra, à aucun moment, Ãªtre tenue responsable des dommages directs, indirects ou consécutifs, ayant été occasionnés au cours d'une action contractuelle, d'une négligence, ou de toute autre action découlant de l'utilisation ou liée au présent document. Aucun des propos contenus dans le présent communiqué ne peut Ãªtre interprété comme une forme quelconque de garantie.

Site Web : http://www.microsoft.com

Microsoft Corp

Mark Burfeind de Weber Shandwick, +1-425-452-5426, mburfeind@webershandwick.com, pour Microsoft Corp ; REMARQUE A L'ATTENTION DES RÃ‰DACTEURS : pour de plus amples informations à propos de Microsoft dans la région EMEA, veuillez consulter le site http://www.microsoft.com/emea ou le centre de presse EMEA à l'adresse http://www.microsoft.com/emea/presscentre. Les liens hypertextes, les numéros de téléphones et les titres étaient exacts au moment de la publication mais sont susceptibles d'avoir changé. Pour plus de renseignements, les journalistes et les analystes peuvent contacter les personnes appropriées répertoriées dans la page http://www.microsoft.com/emea/presscentre/contactus.mspx. Pour de plus amples informations à propos de Microsoft Corp, veuillez consulter la page Web de Microsoft, http://www.microsoft.com/presspass sur les pages d'information d'entreprise de Microsoft ; Photo: NewsCom: http://www.newscom.com/cgi-bin/prnh/20000822/MSFTLOGO, Archive AP : http://photoarchive.ap.org, PRN Photo Desk photodesk@prnewswire.com

Perot Systems Reports Second Quarter 2008 Financial Results

PLANO, Texas, July 28 /PRNewswire-FirstCall/ -- Perot Systems Corporation today announced second quarter 2008 financial results:

-- Revenue was $705 million, an increase of 11% year-to-year over second quarter 2007 revenue of $635 million.

-- Earnings per share (diluted) was $.24, an increase of 33% over second quarter 2007 earnings per share (diluted) of $.18.

-- Operating profit margin expanded year-to-year by one percentage point to 6.7% for the second quarter of 2008.

-- New contract signings totaled $261 million for the second quarter of 2008, bringing the total value of new contracts signed during the past twelve months to $1.8 billion.

-- Operating Cash Flow and Capital Expenditures for the second quarter of 2008 totaled $60 million and $13 million, respectively. Trailing twelve month Operating Cash Flow and Capital Expenditures were $220 million and $54 million, respectively.

-- As of June 30, 2008, Cash totaled $196 million. During the second quarter of 2008, Perot Systems reduced amounts outstanding on its line of credit by $30 million. Debt totaled $186 million as of June 30, 2008.

"On a foundation of strong client relationships, solutions that address market needs, and a sound operating model, our business continues to prosper," said Peter Altabef, president and CEO of Perot Systems. "Revenue, earnings, profit margins, and cash flow increased during the quarter as we continue to win new business and expand existing relationships. Overall, it was a productive quarter where we continued to advance our business."

Trend Information and Business Outlook

For the third quarter of 2008, Perot Systems expects revenue to range from $700 million to $715 million. Perot Systems expects to realize a revenue contribution between the second quarter and third quarter from new sales and recent acquisitions, partially offset by slightly higher pass-through revenue in the second quarter of 2008. Earnings per share (diluted) for the third quarter of 2008 is expected to range from $.23 to $.25.

Conference Call

Perot Systems will hold a conference call to review second quarter 2008 results of operations on July 29, 2008, at 10:15 a.m. EDT. Parties interested in participating may join the conference call via the Internet at http://www.perotsystems.com/. Additionally, Perot Systems has published a downloadable summary of its second quarter 2008 financial results at http://www.perotsystems.com/.

Perot Systems Corporation Condensed Consolidated Income Statements For the Three Months Ended June 30, 2007 and 2008 (Millions of USD, except per share amounts) Unaudited Three Months Ended June 30 2007 2008 Revenue $635 $705 Direct cost of services 529 585 Gross profit 106 120 Selling, general & admin 70 73 Operating income 36 47 Other income, net 1 1 Interest expense, net (1) (1) Income before taxes 36 47 Provision for income taxes 13 17 Net income $23 $30 Earnings per share (diluted) data: Earnings per share (diluted) $.18 $.24 Shares outstanding (diluted) 125 121 Perot Systems Corporation Revenue Summary For the Three Months Ended June 30, 2008 (Millions of USD) Unaudited Revenue 2Q 2007 $635 Growth/(Decrease) Related to: New contracts 22 TTM acquisitions 1) 20 Accounts 4 Industry Solutions 46 Government Services 16 Existing operations 2) 15 TTM acquisitions 3) 2 Consulting & Applications Solutions, gross 2) 17 Inter-segment eliminations 4) (9) 2Q 2008 $705 Year-to-Year Revenue Growth % of Total Healthcare $328 3% 46% Commercial 154 30% 22% Industry Solutions 1) 482 11% 68% Government Services 161 11% 23% Consulting and Applications Solutions, gross 2) 3) 92 23% 13% Inter-segment eliminations 4) (30) 43% (4%) Total $705 11% 100% Perot Systems Corporation Condensed Consolidated Balance Sheets As of December 31, 2007 and June 30, 2008 (Millions of USD) Unaudited As of As of 12/31/2007 6/30/2008 Cash and cash equivalents $187 $196 Short-term investments 23 --- Accounts receivable, net 477 487 Prepaid expenses and other 70 97 Total current assets 757 780 Property, equip. & software, net 235 225 Goodwill 713 727 Other non-current assets 195 208 Total assets $1,900 $1,940 Current liabilities $330 $347 Long-term liabilities 327 319 Stockholders' equity 1,243 1,274 Total liabilities & stockholders' equity $1,900 $1,940 Perot Systems Corporation Condensed Consolidated Statements of Cash Flows For the Three Months Ended June 30, 2007 and 2008 (Millions of USD) Unaudited Three Months Ended 6/30/2007 6/30/2008 Net income $23 $30 Depreciation and amortization 26 28 Changes in assets and liabilities (net of effects from acquisitions of businesses) and other non-cash items (33) 2 Net cash provided by operating activities 16 60 Purchases of property, equipment & software (27) (13) Acquisitions of businesses, net (8) (21) Proceeds from sale of short-term investments, net 21 --- Other investing, net 1 (1) Net cash used in investing activities (13) (35) Repayment of long-term debt 5) --- (32) Proceeds from issuance of common stock 5 4 Proceeds from issuance of treasury stock --- 3 Other financing activities 3 --- Net cash provided by (used in) financing activities 8 (25) Effect of exchange rate changes on cash 2 (5) Net cash flow $13 ($5) Footnotes

1. During the past twelve months, Perot Systems acquired JJWild, Inc. (JJWild) and HighQ-IT for the manufacturing industry GmbH (HighQ-IT). These acquisitions contributed $20 million of revenue for the second quarter of 2008, which is reported in the Industry Solutions line of business. Within Industry Solutions, JJWild is reported in Healthcare, and HighQ-IT is reported in Commercial.

2. Gross revenue measures all services provided by Consulting and Applications Solutions, both direct-to-market and through our other lines of business.

3. During the past twelve months, Perot Systems acquired Original Solutions Limited. This acquisition contributed $2 million of revenue for the second quarter of 2008, which is reported in the Consulting and Applications Solutions line of business.

4. Inter-segment eliminations relate to the revenue associated with services provided by Consulting and Applications Solutions to our other lines of business.

5. During the second quarter of 2008, Perot Systems made payments to reduce amounts outstanding on its line of credit by $30 million. The remaining reduction to debt relates to other debt repayment in the ordinary course of business.

About Perot Systems

Perot Systems is a worldwide provider of information technology services and business solutions. Through its flexible and collaborative approach, Perot Systems integrates expertise from across the company to deliver custom solutions that enable clients to accelerate growth, streamline operations and create new levels of customer value. Headquartered in Plano, Texas, Perot Systems reported 2007 revenue of $2.6 billion. The company has more than 23,000 associates located in the Americas, Europe, Middle East and Asia Pacific. Additional information on Perot Systems is available at http://www.perotsystems.com/.

This press release contains forward-looking statements that are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements. For factors that could affect our business and cause actual results to differ materially, please refer to our Annual Report on Form 10-K for the fiscal year ended December 31, 2007, as filed with the U.S. Securities and Exchange Commission and available at http://www.sec.gov/, as updated in our Quarterly Reports on Form 10-Q filed after such Form 10-K, for additional information regarding risk factors. We disclaim any intention or obligation to revise any forward-looking statements whether as a result of new information, future developments, or otherwise.

MEDIA CONTACTS: PEROT SYSTEMS CORPORATION Joe McNamara +1 972 577-6165 joe.mcnamara@ps.net INVESTOR CONTACT: John Lyon +1 972 577-6132 +1 972 577-6791 fax john.lyon@ps.net

Perot Systems Corporation

CONTACT: Media, Joe McNamara, +1-972-577-6165, joe.mcnamara@ps.net, or
Investors, John Lyon, +1-972-577-6132, or fax, +1-972-577-6791,
john.lyon@ps.net, both of Perot Systems Corporation

Web site: http://www.perotsystems.com/

Company News On-Call: http://www.prnewswire.com/comp/122686.html

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