Temenos announces new ILF contract signings for Q3 2004 at US$ 11.1 million, up 63% compared to last year

11 October 2004

London, 11th October 2004: TEMENOS Group AG, (SWX:TEMN) a leading provider of integrated core banking systems for the financial services industry, today announced new contract signings for the third quarter of 2004.

The value of Initial Licence Fees (ILF) for new contracts signed during the third quarter of 2004 amounted to US$ 11.1 million, an increase of 63.2% compared to the same period last year. During the third quarter TEMENOS delivered in line with its target of new signings of US$ 11.0 million bringing its ILF signings for the nine months to September 30th, 2004 ahead of its initial target by US$ 7.0 million (+19.4%) to US$ 43.0 million and ahead of last year by US$ 14.0 million (+ 48.3%), TEMENOS is maintaining its full year ILF target of US$ 68.0 million. TEMENOS must achieve Q4 2004 ILF signings of US$ 25.0 million instead of US$ 32.0 million as initially targeted in order to achieve its full year target of US$ 68.0 million. This represents an increase of 13.6% compared to the fourth quarter last year.

During the quarter, signings have continued to shift towards larger deals due to take up of TEMENOS T24, TEMENOS’ flagship product. Average deal size continued to increase with an average deal size of US$ 2.6 million for the quarter compared to US$ 2.2 million for the same period last year and an average of US$ 2.2 for the full year 2003. In the nine months to September, licences to retail banking accounted for 43% of the mix compared to 9% for the same period last year.

The growth in signings for the nine months is driven by strong performance across most regions. TEMENOS’ 12 months ILF signings running rate (ie signings achieved in the 12 months to September 30th, 2004) is now at US$ 65.0 million, its highest level ever, compared to US$ 51.0 million on December 31st 2003 and US$ 60.7 million on June 30th 2004.

Andreas Andreades, CEO, TEMENOS says: “I am delighted with our sales performance during the third quarter. We are focused and are executing to plan. Our growth of 48% in ILF signings for the nine months is clearly the best in the industry and confirmation of the strength of our business model and product offering. During the quarter we have witnessed an increase in new prospect in our target market and across most regions.”

Investor and Analyst Day
TEMENOS is holding an Investor and Analyst Day today in London, Hotel Dorchester, Park Lane, starting at 1.00pm GMT to 5.30pm GMT. All information that will be presented at the event will be available on our website at www.temenos.com at 1.00pm GMT.

Calendar
TEMENOS will hold a conference call on Wednesday the 27th of October 2004 at 2.30 pm CET to present its Third Quarter 2004 Results.

-ENDS-

About Temenos
Founded in 1993, Temenos Group AG is a provider of integrated modular core banking systems to over 590 financial institutions in 110 countries worldwide. Temenos software provides banks with a single, real-time view of the client across the enterprise, enabling banks to maximize returns while streamlining costs. Whether providing 24/7 functionality to the wholesale, retail and private or universal banking sectors, partnering with central banks on core system replacement, or working with the World Bank on solutions for the emerging markets, Temenos knows banking. The company has a transparent approach to its operations and brings to bear its experience, expertise, commitment and professionalism on every project. Headquartered in Geneva, Switzerland, the company has 43 offices in 33 countries and is listed on the main segment of the SWX Swiss Exchange (TEMN). For more information please visit www.temenos.com

For more information, contact:

Max Chuard
Temenos Director
Corporate Finance & IR
Member of the Executive Board
Tel: +41 (0) 22 708 1157
Email: mchuard@temenos.com

Ben Robinson
Temenos Investor Relations Manager
Tel: +44 (0) 207 290 3012
Email: brobinson@temenos.com

Bianca Morgan
Temenos PR Manager
Tel: +44 (0) 207 423 3751
Email: bmorgan@temenos.com

Chris Patmore
Team 660
Metia for TEMENOS
Tel: +44 (0) 20 3100 3596
Email: chris.patmore@metia.com