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PRESS RELEASE 21 August 2014 First half of 2014: Keyware's net profit increases by 86% Brussels, Belgium - 21 August 2014 - Keyware (EURONEXT Brussels: KEYW) publishes its financial results today over the first six months of 2014 and the second quarter of 2014 ending on 30 June 2014.

During the first half of 2014, Keyware has generated a net profit of EUR 631 k compared to a net profit of EUR 339 k during the first half of 2013, which represents an increase of 86.14%.
In comparison to the first half of 2013, revenues decreased by 5.39% primarily as a result of a continued focus on higher quality customers and less risk bearing market segments.
The partnership with WorldLine resulted during the first six months of 2014 in the successful installation of more than 2.000 payment terminals. Additionally an increase in the installed base of payment terminals can be observed triggered by a steady increase in the amount of transaction agreements. As rental agreements are concluded with authorisation agreements, an increase in the volume of payment transactions is triggered as a result.
The continuously growing customer base triggers an increase in recurring revenues, both in rental revenues as in authorisation revenues, and enhances Keyware's visibility on the market.
For the second half of 2014 Management expects at least a consolidation of the net profit of the first half, if not a further improvement of the result.

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The figures

Six months ending on 2nd quarter

Key figures for the period 30.06,2014 30.06.2013 30.06.2014 30.06.2013

ending on 30 June kEUR kEUR kEUR kEUR

(unaudited) (unaudited) (unaudited) (unaudited)

Revenues

4,265 4,508 2,129 2,315

Profit/(loss) for the period

631 339 412 180

EBITDA

Net cash flow

906 708 490 342

1,224 1,050 664 552

First six months of 2014:

- the Group generated revenues of EUR 4,265 k compared to EUR 4,508 k for the same period in 2013, which represents an decrease in revenues of EUR 243 k or 5.39%;
- the operating cash flow (EBITDA) for the first six months came to EUR 906 k, versus EUR
708 k for the first six months of 2013, which represents an increase of EUR 198 k or
27.97%;
- the net profit for the period amounted to EUR 631 k compared to a net profit of EUR
339 k as at 30 June 2013 which represents an improvement of EUR 292 k or 86.14%;
- the net cash flow amounted to EUR 1,224 k compared to EUR 1,050 k as at 30 June
2013, representing an increase of EUR 174 k or 16.57%;

Second quarter of 2014:

- the Group generated revenues of EUR 2,219 k compared to EUR 2,315 k for the same period in 2013, which represents a decrease in revenues of 8.03%. During the first quarter of 2014 the decrease amounted to 2.60 % which results in a decrease of 5.39% for the aggregate first half of 2014;
- operating cash flow (EBITDA) for the second quarter came to EUR 490 k, compared to EUR 342 k for the second quarter of 2013 which represents an improvement of EUR 148 k; during the first quarter of 2014 the improvement already amounted to EUR 50 k;
- net profit for the period amounted to EUR 412 k compared to a net profit of EUR 180 k, which represents an increase of EUR 232 k for the second quarter. During the first quarter an improvement of EUR 60 k was already recorded;
- net cash flow amounted to EUR 664 k in comparison to EUR 552 k for the second quarter of 2013 which represents an increase of EUR 112 k; during the first quarter of
2014 an increase of EUR 62 k had already been recorded;

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About Keyware

Keyware (EURONEXT Brussels: KEYW) is a leading supplier of electronic-payment solutions, loyalty systems, identity applications and related transaction management. Keyware is based in Zaventem, Belgium. More information is available on www.keyware.com.

For additional information, please contact:

Mr. Stéphane Vandervelde
President & CEO Keyware Technologies
Tel: +32 (0)2 346.25.23 ir@keyware.com www.keyware.com

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