Q2 2007 Results

25 July 2007

 Temenos reports outstanding results:

• Excellent second quarter with strong sales and continuing business momentum
• Revenue grew by 32% and EBIT by 34% compared to Q2 06
• Revenue, EBIT, EBITDA and EPS outlook further increased for sixth consecutive quarter

For immediate release:
Geneva, Switzerland, Wednesday 25th July 2007, TEMENOS Group AG (SWX: TEMN), a provider of integrated core banking software, today announced its second quarter 2007 results.

Highlights – Second Quarter 2007

• Excellent second quarter with strong sales performance and business momentum. Revenues grew by 32% in the quarter and EBIT by 34% compared to Q2 06.
• Licence revenues for the last twelve months were 32% up, and in the quarter were flat compared to Q2 06, lapping an unusually high comparative quarter which included revenues from two large Tier 1 retail deals. Maintenance revenues growth for the quarter accelerated to 48% compared to Q2 06 as a result of our strong signings growth over the last 12 months. Service margin was at 3% for the quarter compared to -16% for Q2 2006 as we continue to benefit from our services initiatives.
• Business model significantly ahead of three year strategic plan – 12 month comparisons favourable and point to excellent top line and licence revenue growth, cost leverage and cash flow generation. In the 12 months to 30 June 07:
  • Revenues up 36%
  • Licence Revenues up 32%
  • Maintenance Revenues up 30%
  • Service Revenues up 48%
  • Operating costs up 33%
  • EBITDA up 47%
  • EBIT up 53%
  • Diluted EPS up 32%
  • Cash Flow from Operations more than tripled at US$44.0m compared to US$13.6m in the 12 months to 30 June 2006


• 2007 Outlook: Based on our continued business momentum we are increasing our 2007 outlook for revenues and profitability for the sixth consecutive quarter

Read the full Temenos Q2 2007 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