Double-digit Growth Rate

Upward Adjustment to Targeted Goals for 2000 - 2002

Tübingen, February 24th 2000.
transtec AG, the B2B system manufacturer, has increased turnover by 23% to 175.0 million Euro (142.6 million Euro in 1998) according to the provisional 1999 figures. The IAS result shows 4.0 million Euro, a plus of 18% in comparison with 3.4 million Euro in the previous year. On 31/12/1999, the IT direct vendor, listed on the Neuer Markt,
employed 350 people in the corporate group, 103 more than in 1998 (247).

transtec sees the future of the company in two different business areas. On the one hand, the transtec brand product area will be further expanded. The high-end systems made an important contribution to the qualitative growth of the company. Thus, for example, the turnover with fail-safe RAID systems rose from 2.8 million Euro by 85% to 5.3 million Euro. The server area too improved in terms of value from 5.1 million Euro by 48% to 7.6 million Euro.

On the other hand, the trendsetting Virtual Warehouse Project will continue to be driven on. The Virtual Warehouse currently bundles more than 25,000 IT products as an Internet procurement pool on which transtec B2B customers can fall back. Online business with this merchandise is to contribute to a strong growth in the coming years.

Upward adjustment to targeted goals
Based on the excellent starting position, transtec made a perceptive upward adjustment to the targeted turnover goals for 2000 - 2002. Turnover shall increase from 239.5 million Euro in 2000 to 348.6 million Euro in 2001 (instead of the previously planned 270.6 million Euro) to 511.2 million Euro in 2002.

transtec will publish full details of the 1999 business year during the press
conference on financial statements to be held on 28 March 2000 in Stuttgart.