KEYWARE TECH. (D) : Keyware realises 46% turnover growth

PRESS RELEASE 23 August 2012

Keyware realises 46% turnover growth

Brussels, Belgium - 23 August 2012 - Keyware (EURONEXT Brussels: KEYW) publishes its financial results today over the first six months of 2012 and the second quarter of 2012 ending on 30 June 2012.
Keyware confirms its growth trend with 46% turnover growth. Furthermore, Keyware realised a net profit of EUR 229 k for the first six months of 2012 compared with a profit of EUR 50 k for the same period in 2011. The net cash flow grew from EUR 301 k to EUR 698 k.
With its results for the second quarter, Keyware confirms the positive results realised in the first quarter of 2012. The first six months were concluded with a turnover of EUR 4,359 k compared with EUR 2,991 k last year and an increase in the net profit from EUR 50 k to EUR 229 k.
These results are in line with expectations and are due to the growth in demand for sector-
specific and combined rental of payment terminals with transaction subscriptions in Keyware's traditional markets. In addition, important companies in the middle segment such as retail chains, courier services and government services are also concluding long-term agreements whereby price, quality and innovation are the decisive factors.
The modernised and upgraded PayFix, PayAway and PayMobile range of payment terminals offer various additional options and optimal operational reliability, high processing speed and low operating costs to both new and existing customers.
As already announced, Keyware will be the first company in Belgium to offer its customers the opportunity to allow consumers to make contactless payments. This new payment solution will most likely contribute to an increase in turnover as from the second half of the year and will thus form the driver for Keyware's continued growth.
As far as transaction subscriptions are concerned, Keyware continues to offer the most innovative solutions. As a result, electronic payments are cheaper, more efficient, better organised and more flexible for its customers. By carrying out an as large as possible part of the payment processes in house, Keyware can quickly capitalise on new developments, whereby both the cost price and the quality of the settlement of the payment transactions can be guaranteed. Moreover, in this manner Keyware is able to maximise this rapidly increasing and recurrent flow of income.
Stéphane Vandervelde, CEO: "Our turnover and net profit growth are a reflection of our daily focus on the improvement of our payment solutions. In our role as innovator with regard to services and within the long-term relationship with our customers, Keyware is able to offer the optimal combination of quality, service and price to every customer."
Guido Van der Schueren, Chairman of the Management Board: "Today, Keyware is publishing the best results ever. For the next two quarters, 2012 also looks very promising! Not only do we continue to be very successful in acquiring new customers, our existing customers are also pleased to renew their long-term contracts. Add our recent innovations regarding contact-free payments and the further modernisation of our range of services later this year and 2012 will be an Olympic Year for Keyware!"

The figures

First six months of 2012:
- the Group realised a turnover of EUR 4,359 k in comparison with EUR 2,991 k for the same period in 2011, which represents an increase in turnover of 45.74%;
- the operating cash flow (EBITDA) for the first six months came to EUR 672, versus EUR
230 k for the first six months of 2011, which represents an increase of 192.17%;
- the net profit for the period amounted to EUR 229 k, compared with a net profit of EUR
50 k as at 30 June 2011;
- the net cash flow amounted to EUR 698 k, compared with EUR 301 k as at 30 June
2011, representing an increase of 131,89%;
- the gross profit margin declined from 82.85% to 73.59%.
Second quarter of 2012:
- the Group realised a turnover of EUR 2,216 k in comparison with EUR 1,537 k for the same period in 2011, which represents an increase in turnover of 44.18%;
- the operating cash flow (EBITDA) for the second quarter came to EUR 328 k,
compared with EUR 114 k for the second quarter of 2011;
- the net profit for the period amounted to EUR 125 k, in comparison with a net profit of
EUR 36 k for the second quarter of 2011;
- the net cash flow amounted to EUR 365 k in comparison with EUR 168 k for the second quarter of 2011;
- the gross profit margin declined from 81.06% to 73.87%.

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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