Intec Telecom Systems PLC (“Intec” or “the Company”), a supplier of software solutions to the global telecoms industry, announces its unaudited results for the six months ended 31 March 2006 (“H1 2006”), prepared under IFRS1. The company has demonstrated excellent organic growth resulting from solid trading across all aspects of the business, as well as good cash generation. Increased momentum, in both new business wins and sales into our existing customer base, particularly with multi-product deals, has been a feature of the period. Intec has maintained its policy of investing in both products and delivery capability to meet demand, resulting in a solid earnings performance.

Financial highlights
– Revenue increased by 18% to £57.6m (six months ended 31 March 2005 (“H1 2005”): £48.7m)
– New licence revenue increased 29% to £10.3m (H1 2005: £8.0m)
– Profit before tax increased 29% to £2.5m (H1 2005: £1.9m)
– Cash generated by operations of £10.7m (H1 2005: £4.0m). Net cash inflow of £6.0m
– Operating profit increased 32% to £2.1m (H1 2005: £1.6m)
– Earnings per ordinary share of 0.43p (H1 2005: 0.45p) following increased H1 tax charge
– Net cash of £27.5m (30 September 2005: £21.5m) after deducting debt of £2.2m

Operational highlights
– Strong organic growth across all aspects of the business, with key new customer wins in the US, UK, Western Europe, Russia, Africa, Asia and Latin America
– New, award winning solutions brought to market for wireless/MVNO, IPTV, wholesale and error management applications
– Increase in ratio of multi-product deals from growing product portfolio
– Intec now has 616 installations at 384 companies (H1 2005: 566 installations at 353 companies)
– Ongoing investment in global delivery capability, including offshore facilities, to meet demand

Commenting on today’s results, Kevin Adam, Intec’s Chief Executive Officer, said, “Intec is generating organic growth across the business as the adoption of our BSS/OSS solutions among major carriers continues to accelerate. We are able to deliver both solid earnings and cash generation, whilst making the investment necessary to match this growth and the ongoing competitive pressure in our industry. Taking these factors into account, we expect our full year performance to be in line with current market expectations.”