euNetworks Reports Second Quarter and Half Year Results

Second Quarter 2010

•  Total revenue of €9.4 million
• Recurring Revenue of €8.8 million
• Gross profit of €7.5 million
• Adjusted EBITDA of €0
• 16 new customers gained in the quarter

First Half 2010

• €17.4 million total revenue for 1H 2010, up 21% from 1H 2009
• Gross profit increased by 20% to €13.9 million for 1H 2010
• Adjusted EBITDA loss of €1.7 million
• 29 new customers

London, UNITED KINGDOM – 13 August 2010 – euNetworks Group Limited, announced quarterly growth in total revenue of 29% against 2Q 2009, achieving €9.4 million revenue. The Group achieved €8.8 million in recurring revenue in 2Q 2010, with €0.6 million in one offs, and grew total revenue by 16% against 1Q 2010. Gross margin was 80% in the quarter, flat from 1Q 2010 and similar to 2009. Gross profit increased by 27% from 2Q 2009 to €7.5 million, and adjusted EBITDA broke even against a loss of €0.8 million. Net loss for the period was €14.4 million after an exceptional charge of €2.6 million related to the redemption of the balance of the 2012 bond. For 1H 2010, total revenue was €17.4 million, growing 21% from 1H 2009. Gross profit increased by 20% to €13.9 million, with gross margin of 80%. Adjusted EBITDA loss increased to €1.7 million against €0.6 million. Net loss for the first half 2010 was €22.8 million after exceptional charges of €2.6 million related to the redemption of the balance of the 2012 bond in 2Q 2010.