Back to profitability and Revenues growth of +9%

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1 Back to profitability and Revenues growth of +9% Net result: 0,2 million (- 6,2 million in 2009) EBIT: 0,7 million (- 5,2 million in the red in 2009) EBITDA: 4,7 million (- 0,4 million in the red in 2009) Revenues: 54,4 million ( 50,1 million in 2009) Net Financial Position: + 0,7 million (- 7,2 million in 2009) In the board meeting held today, the Directors of TXT e-solutions S.p.A., an international company specialized in the supply of software solutions regarding Demand & Supply Chain Management, Media & Channel Integration as well as solutions for the Aeronautical and Financial sectors, chaired by Mr. Alvise Braga Illa, has approved the financial results for year ended 31 December CONSOLIDATED RESULTS AS OF 31 DECEMBER 2010 Mr. Marco Guida, Managing Director, TXT e-solutions, has stated: Measures relating to structural re-organization and a greater focus on business, undertaken in 2009, have led to a stronger profitability in addition to a sturdier economic and financial situation of the company. This positive result is evident in all the economic and financial indicators which are now pointing towards a significant reversal in trends, meaning a growth in revenues, profitability and cash flow, that in turn have led to a positive net financial position. The TXT Group can now pride itself on a more streamlined organizational structure and a higher degree of operating flexibility. Capitalizing on its market position, its in-house solutions and specializations coupled with an international client base further broadened in 2010, the TXT Group can now beam optimistically at the future even in the midst of an international economic and financial situation that appears volatile and uncertain.

2 Revenues were 54,4 million, a growth of +8,7% ( 50,1 million in 2009), can be broken down according to the following main sources: - licences and maintenance: a rise of +30% from 8,1 million in 2009 to 10,5 million, a share of 19,4% of revenues (16,2% in 2009); - TXT Perform: higher by +21%, from 17,5 million in 2009 to 21,1 million, a confirmation of the soundness of steps taken in relation to structural reorganization and business focus; - foreign subsidiaries: up +18,3% from 12,2 million in 2009 to 14,4 million, a share of 27% of Group revenues. EBITDA, stands at 4,7 million against the loss of 0,4 million in 2009; the positive performance has been generated by the following factors: Improvement in contribution margin (+ 2,3 million) stemming from the increase in revenues (+ 4,4 million) and in particular to the surge in licences and maintenance; a decrease of 12% in indirect costs (in all elements of R&D expenses, commercial, general and administrative expenses), amounting to 2,8 million. Operating result (EBIT) is equal to 0,7 million (in the red for - 5,2 million in 2009, after expensing 1,6 million of non recurring restructuring charges). Net Income was of 0,2 million (in the red for - 6,2 million in 2009). Net financial position, positive at 0,7 million, features a significant improvement over the negative figure of - 7,2 million registered in 2009), thanks to the cash flow stemming from operations and the fall in working capital. Net Financial position at 30 September 2010 was negative for - 2,3 million. Equity amounts to 17,1 million. Q RESULTS Net revenues during the fourth quarter in 2010 stand at 14,2 million, up +14,5% ( 12,4 million in 4Q 2009). EBITDA amounts to 0,8 million, compared to the loss of 0,3 million due to extraordinary items caused by restructuring to the amount of 1,0 million.

3 Pre-tax result is negative, - 0,3 million; 4Q 2009 was similarly in the red for 1,7 million. PERFORMANCE BY BUSINESS AREA TXT Perform TXT Perform division revenues in 2010 total 21,1 million, a growth of 20,6% ( 17,5 million in 2009). In particular, increased income has come from licences and maintenance: 6,5 million in 2009 and 8,6 million in 2010 in virtue of new contracts and projects with both our historical clients namely Louis Vuitton (F), Gerry Weber (D), Galderma (F), Geox e Safilo (I), Auchan (F), and 25 new large customers, including: Monoprix (F), Redcats (F), Camaieu (F), Celio (F), Eckes- Granini (D), Tom Tailor (D), Manor (CH), Ecco (DK), HMV (UK), Carphone Warehouse (UK, part of US Group Best Buy), Conad (I), HDS Retail (Canada, part of Group Lagardere), Scansource (USA). TXT Polymedia TXT Polymedia division revenues in 2010 total 18,4 million (a share of 34% of Group turnover), a drop of 2,8% against 19,0 million in 2009, mainly owing to the fluctuation in proceeds from funded research activities. Licences and maintenance have continued the upward spiral, a rise of 14,5% from 1,5 million to 1,7 million. Important new contracts have been signed in 2010, amongst which the implementation of Web TV for the RCS Group s Corriere and Gazzetta dailies; SKY Germany to develop a Web TV for its subscribers; a knowledge development project for Filas, a financial holding in Italy s Lazio region. TXT e-solutions was awarded a contract within the European Commission, worth approximately 10 million over a 4-year period, jointly with important international partners. TXT Next TXT Next division revenues in 2010 total 14,9 million (a share of 27% of Group turnover), a rise of 9,6% against 13,6 million in Positive trends have been registered both in Aerospace & Defence and in Banking & Finance. New contracts were signed during the year with Credito Valtellinese and Banca Popolare dell Emilia Romagna.

4 OUTLOOK FOR YEAR 2011 AND EVENTS SUBSEQUENT TO BALANCE-SHEET DATE The ongoing negotiation portfolio for the sale of new TXT Perform solutions is still yielding positive results. However, revenues from licenses are very unpredictable and are affected by the uncertainties of the trade negotiations with the new clients. The portfolio of service orders and projects can be forecasted better and has a lower degree of unpredictability, even though the sector s context is still marked by strong pressures on the tariffs and consolidation activities by the IT suppliers from our customers. No significant events have been registered after balance-sheet date. The Board of Directors has summoned an ordinary and extraordinary Shareholders Meeting in Milan, at company headquarters in via Frigia n.27, on 19 April 2011, at 1600 hours, in first call and if need be, in second call on 20 April 2011, at 1600 hours, same venue, to discuss and resolve upon the following Agenda: statutory and consolidated financial statements for period ended 31 December 2010, report of the Board of Directors on Operations and Report issued by the Board of Statutory Auditors, allocation of net results; related, contiguous and miscellaneous issues; examination of proposal for revoking clearance regarding purchase and disposal of maximum n own shares and its renewal for a period of 18 months; related resolutions; appointment of the Board of Directors and the Board of Statutory Auditors and definition of respective fees; fees of external auditors; update of company charter with provisions of Legislative Decree n. 27 dated 27 January The Director assigned with the drafting of the company s accounting documents, Dr. Paolo Matarazzo, herein states, pursuant to Article (a) of Finance Law, that accounting entries given in this press release reflect facts and figures recorded in the company s official papers, books and documents. The press release herein is now available on the company s website:. TXT e-solutions is a leading provider of strategic software products and solutions for industrial enterprises. Core business specializations: Demand & Supply Chain Management through TXT Perform, in particular for companies in the field of Fashion and Retail; Media & Channel Integration, through TXT Polymedia, in particular for companies in the field of Media, Telco and Publishing, offering multi-channel solutions for the online management of digital contents and videos; elaborate and high-security content software in the field of Aerospace&Defence, Banking&Finance through TXT Next. Listed in the Milan s Stock Exchange Star segment (TXT IM), TXT is based in Milan and has offices located in Italy, France, England, Germany and Spain. For further information: TXT e-solutions SpA IR TOP, Investor Relations Consulting

5 CFO Investor Relations & Financial Communication Paolo Matarazzo Floriana Vitale, Luca Macario Tel Tel /3 Annexes contain the following tables with key data: - Consolidated P&L Account as of 31 December Consolidated Net Financial Position as of 31 December Consolidated Balance Sheet as of 31 December Consolidated Statement of Cash Flows as of 31 December P&L Account, TXT e-solutions S.p.A. as of 31 December Balance Sheet, TXT e-solutions S.p.A. as of 31 December Statement of Cash Flows, TXT e-solutions S.p.A. as of 31 December 2010

6 Consolidated P&L Account as of 31 December /12/ /12/2009 Var. % Revenues ,5 Other Income ( ) (26,7) Total revenues and income ,7 Procurement of materials and services ( ) ( ) (8,3) Personnel costs ( ) ( ) ( ) 3,3 Other operating costs ( ) ( ) (12,8) EBITDA ( ) ,0 Amortization, depreciation and write-downs ( ) ( ) (14,9) Profit/losses from sale of non current assets ( ) (107,1) OPERATING RESULT (EBIT) ( ) (114,0) Financial income ( ) (43,6) Financial charges ( ) ( ) (41,5) Pre-tax result (EBT) ( ) 0 0,0 Taxes ( ) ( ) (54,7) Net Income ( ) (103,2) Profit/(Loss) per share ( ) 0,08 (2,42) Profit/(Loss) per share fully diluted ( ) 0,07 - Consolidated Net Financial Position as of 31 December /12/10 31/12/09 Var 30/09/10 thousand (a) (b) (a-b) Cash Short term debt (2.104) (7.700) (2.994) Current Net Financial Position (3.497) Long term debt (3.870) (3.750) (120) (4.397) Net Financial Position 657 (7.247) (2.331)

7 Consolidated Balance Sheet as of 31 December 2010 BALANCE SHEET ASSETS Var. NON-CURRENT ASSETS Intangible Assets ( ) - Goodwill (40.713) - R&D ( ) -Intangible as sets with a finite life Tangible Assets ( ) - Buildings, plants and machinery owned ( ) - Goods under financial leas e Other non-current assets (20.183) - Investments Sundry receivables and other non-curre (20.183) Assets for anticipated taxation TOTAL NON- RECURRENT ASSETS ( ) CURRENT ASSETS: Inventories ( ) Trade receivables ( ) Other current assets ( ) Sellable securities Cash and other liquid equivalents TOTAL CURRENT ASSETS ( ) TOTAL ASSETS ( ) BALANCE SHEET : LIABILITIES Var. SHAREHOLDERS EQUITY Share capital (0) Reserves Retained earnings (accumulated losses) ( ) ( ) ( ) Profit (loss) for the year ( ) TOTAL SHAREHOLDERS EQUITY NON-CURRENT LIABILITIES Non current financial liabilities Severance and other allocations for HR (43.211) Deferred tax fund (20.787) Provis ion for future risks and charges ( ) TOTAL NON-CURRENT LIABILITIES (68.146) CURRENT LIABILITIES Current financial liabilities ( ) Trade payables ( ) Tax payables Other current liabilities TOTAL CURRENT LIABILITIES ( ) TOTAL LIABILITIES ( ) TOTAL EQUITY AND LIABILITIES ( )

8 Consolidated Statement of Cash Flows as of 31 December 2010 thousand Operations Net result 197 (6.228) Non cash cos ts Amortization depreciation & write-downs Cash flows generated by operations before working capital (1.144) Trade recevables Inventories and work in progress Trade accounts (1.099) 345 Other current as set liabilities (200) (121) Severance and other al location for HR (43) 23 Tax payables (1.341) Cash flow from operating activities Investing activities Increase in fixed assets : -Tangible (598) (602) - Intangible (1.742) (2.911) - Financial - - Decrease in fixed ass ets : (137) 21 Uses of cash in investing activities (2.477) (3.492) Financial activities Increas e/decrease financial debts (5.456) 745 Other changes in net equity 324 (131) Cash flow from financial activities (5.132) 614 Increase/decrease in liquid bank assets Cash at beginning of the period Cash at the end of the period

9 P&L Account, TXT e-solutions S.p.A. as of 31 December 2010 thousand 31/12/ /12/2009 Var. Var% Revenues ,0 Other Income ( ) (19,0) Total revenues and income ,0 Procurement of materials and services ( ) ( ) ( ) 34,1 Personnel costs ( ) ( ) ( ) 58,5 Other operating costs ( ) ( ) (88.608) 5,4 EBITDA ( ) ,0 Amortization, depreciation and write-downs ( ) ( ) (43,7) Profit/losses from sale of non current assets (66.421) ( ) (92,4) ,0 OPERATING RESULT (EBIT) ( ) ( ) ,0 Financial income ( ) (52,9) Financial charges ( ) ( ) (51,7) Pre-tax result (EBT) ( ) ( ) 0 0,0 Current income taxes ( ) ( ) ( ) 321,25 Net profit ( ) ( ) (69,4)

10 Balance Sheet, TXT e-solutions S.p.A. as of 31 December 2010 BALANCE SHEET ASSETS 31/12/ /12/2009 Var. NON-CURRENT ASSETS Intangible Assets Goodwill R&D Intangible assets with a finite life ( ) Tangible Assets Buildings, plants and machinery owned Other tangible assets Goods under financial lease Other non-current assets ( ) - Investments ( ) - Sundry receivables and other non-current assets ( ) Assets for anticipated taxation TOTAL NON- RECURRENT ASSETS ( ) CURRENT ASSETS: Inventories ( ) Trade receivables Other current assets ( ) Sellable securities Cash and other liquid equivalents TOTAL CURRENT ASSETS TOTAL ASSETS BALANCE SHEET : LIABILITIES 31/12/ /12/2009 Var. SHAREHOLDERS EQUITY Share capital Reserves Retained earnings (accumulated losses) ( ) ( ) ( ) Profit (loss) for the year ( ) ( ) TOTAL SHAREHOLDERS EQUITY NON-CURRENT LIABILITIES Non current financial liabilities Severance and other allocations for HR Deferred tax fund Provision for future risks and charges Other non current liabilities (0) ( ) TOTAL NON-CURRENT LIABILITIES CURRENT LIABILITIES Current financial liabilities ( ) Trade payables ( ) Tax payables Other current liabilities TOTAL CURRENT LIABILITIES ( ) TOTAL LIABILITIES TOTAL EQUITY AND LIABILITIES

11 Statement of Cash Flows, TXT e-solutions S.p.A. as of 31 December /12/ /12/2009 Operations Net result ( ) ( ) Amortization depreciation Non cash costs Cash flows generated by operations before working capital ( ) Trade recevables Inventories and work in progress Trade accounts ( ) Tax payables ( ) Severance and other al location for HR (20.145) Other asset & liabilities ( ) Trade recevables ( ) Inventories and work in progress ( ) Trade accounts Tax payables ( ) Severance and other al location for HR Other asset & liabilities Cash flow from operating activities Investing activities Increase in fixed assets : - Intangible ( ) ( ) -Tangible ( ) ( ) -Financial (10.400) ( ) Decrease in intagible and intangibile fixed assets Increase in fixed assets : - Intangible ( ) -Tangible ( ) -Financial Decrease in intagible and intangibile fixed assets Uses of cash in investing activities ( ) ( ) Financial activities Increase/decrease financial debts ( ) ( ) Other changes in net equity ( ) Other changes in net equity ( ) Cash flow from financial activities ( ) ( ) Increase/decrease in liquid bank assets Cash at beginning of the year Cash at the end of the year