Cranes Software’s Q1 consolidated revenues increases 166% to Rs. 360 million

Net Profit grows by 168% to Rs. 97 million
Operating margin have increase from 36% to 47% sequentially

Bangalore, July 22, 2004: Cranes Software International Ltd., a global scientific and engineering software solutions provider, today announced its unaudited results for the quarter ended June 30, 2004.

Commenting on the performance for Q1 FY 2005, Mr. Asif Khader, Managing Director, Cranes Software International Limited, said:

"There are several business growth initiatives under implementation at Cranes Software that have enabled us to maintain our growth momentum and report another stellar set of numbers in the first quarter.

During the quarter, we launched the SYSTAT 11, representing the next opportunity in our rapidly growing proprietary products business. We have added to our leadership team Dr. Manju Bansal who has joined us as an Independent Director on the Board and Shankar our newly appointed CFO. We plan to increase our head count by 150 over a period of one year, supporting our status as a strong player in the global technical software market.

Our vision is to create an organization that is recognized globally as a leading enabler of research innovation, straddling a wide technology spectrum, forging strong relationships with customers and partners and delivering a steady pipeline of products for scientists and outperformance for our investors".


Group performance review:

Corresponding quarter performance review:

Q1 FY 2005 (April - June 2004) v/s Q1 FY 2004 (April - June 2003)

• Operating revenues grow 166% to Rs. 360.1 million compared to Rs. 135.6 million.
• Operating profit increased 135% at Rs. 159.7 million from Rs. 67.8 million.
• Net profit after tax higher by 168% to Rs. 97.1 million from Rs. 36.3 million.

• Operating revenues rises 146% to Rs. 278.8 million compared to Rs. 113.2 million.
• Operating profit increased 122% at Rs. 149.7 million from Rs. 67.6 million.
• Net profit after tax higher by 138% to Rs. 87.4 million from Rs. 36.7 million.

• Launch of SYSTAT Version 11.0
  Cranes Software' subsidiary Systat Software, Inc. launched Version 11.0 of its flagship product SYSTAT during the quarter, providing advanced statistical and graphical capabilities to statisticians and professional researchers worldwide. SYSTAT 11.0, the latest product developed by the Cranes Software' team of 60 researchers headed by eminent statistician Dr. T. Krishnan, is already seeing very encouraging response from the targeted global community of scientists and engineers. Previously, Cranes Software has successfully leveraged its captive base of 200,000 licensed users as well as its sales and marketing presence in 38 countries to achieve substantial growth across the portfolio of its technical products.

• Sigma Product Line
  During this quarter, the company has made significant changes at operational levels and has done a fair amount of consolidation in sales and marketing for the Sigma product line. This has impacted the EBIDTA margins positively. The EBIDTA margin for the quarter has sequentially increased from 36% in Q4 FY '04 to 47 % this quarter.

• Sales and marketing perspective
  Cranes Software has followed the strategy of accessing the global technical community through a combination of direct offices and distributor relationships. Cranes Software now has offices in the U.S., U.K., Germany, India and Singapore and distributors in 33 countries.
  
  Conventional selling methods have further been supplemented by web-based sales through the www.systat.com. The website allows potential users to experience the products through limited period trial versions and has extended the sales reach beyond the brick and mortar distribution network especially in unrepresented geographies.

• Customer acquisition
  Cranes Software added several marquee clients to its already impressive list of customer relationships. Key additions included NASA Johnson Space Center, Astra Zeneca, John Hopkins University, Bayer HealthCare and Novartis Animal Health Australia.

• H. Shankar appointed CFO at Cranes Software
  Cranes Software appointed Mr. H. Shankar as Executive Vice President and Chief Financial Officer. Shankar brings with him over thirty years of corporate experience in financial and operations management. He joins Cranes Software from the Saint-Gobain, India, Group of Companies. At Saint Gobain, as Managing Director of one of their Indian Companies, Shankar successfully completed the acquisition and integration processes. Under his leadership, the unit of Saint- Gobain achieved 35% growth in two years time by improving internal efficiencies.

• Redemption of outstanding preference shares
  During the quarter the Company redeemed 200,000 preference shares of Rs. 100 each. The redemption was at par value and involved a cash outflow of Rs. 20 million. With this redemption of the outstanding preference shares, the paid-up share capital of the Company stands at Rs. 101.7 million comprising 10166797 equity shares of Rs. 10 each.