Temenos to aquire INFORMER's 49% minority shareholding in Temenos Eastern Europe Ltd and strengthen presence in Greece and Cyprus

20 September 2004

GENEVA, Switzerland – September 20th 2004, TEMENOS Group AG (SWX:TEMN), a provider of integrated core banking systems, and INFORMER, a long-standing business partner of TEMENOS, today announced they have agreed on a new model for future cooperation.

As a result of the agreement, TEMENOS will purchase INFORMER’s 49% shareholding in the joint venture company, TEMENOS EASTERN EUROPE Ltd (TEE). TEMENOS will be the 100% beneficial owner of TEE, which will become a wholly owned subsidiary of the TEMENOS group of companies. This new acquisition strengthens TEMENOS' commitment to the Eastern Europe market in more than a dozen countries including Hungary, Poland, Bulgaria, Romania and Egypt.

Furthermore the previous distribution agreement between both companies has been terminated. TEMENOS has strengthened its position in the Greek and Cypriot markets for its products and services by opening an office in Athens earlier this year. INFORMER will now act as an international system integrator for TEMENOS banking solutions.

TEMENOS will pay USD 15.5 million for the 49% minority shareholding. Payments will be spread over the next four years to match incremental cash inflows which will arise from this transaction.

Over the same four year period, TEMENOS anticipates that the incremental maintenance revenue stream from the existing client base in the affected countries will amount to approximately 50% of the consideration. In addition, double digit Eastern Europe software spending renders the territory very attractive to TEMENOS. For 2005, the company estimates that around 8-10% of total initial license fee (ILF) signings will come from this region. This is a significant improvement to the level attained in prior years.

Andreas Andreades, CEO of TEMENOS, says: “We are pleased with the growth opportunities that this transaction offers to us and I expect that this will create significant shareholder value over the next few years.”

The transaction is expected to be accretive and cash flow positive from year one.

-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