Cranes Software's Q1FY 2006 consolidated revenues higher by 30.92%

Net Profit higher by 33.52% at Rs. 129.6 million.

Bangalore, July 28, 2005: Cranes Software International Ltd. (Cranes Software), a global scientific and engineering software solutions provider, today announced its audited results for the quarter ended July 28, 2005.

Commenting on the performance, Asif Khader, Managing Director, Cranes Software International Limited, said:

Cranes Software delivered another sterling performance in the quarter under review, with strong growth in revenues and profitability. Our business is now creating multi-dimensional opportunities, which have contributed to steady business and operational expansion across the world. In the U.S., the large base of existing users of our software products suite provides the opportunity to sell multiple software upgrades and vertical modules to a captive audience. In Europe, our expanded sales team has delivered growth by targeting specific user segments for our technical software and aligning with focal co-ordinating bodies in the academic sector. In India, we have recently initiated sales of our proprietary products to the corporate sector and research institutions. Overall, the pipeline is robust and we expect to deliver ongoing growth over the coming quarter".



Cranes Software Group performance review:

Corresponding quarter performance review:

Q1 FY 2006 (April - June 2005) v/s Q1 FY 2005 (April - June 2004)

• Operating revenues grow 30.92% to Rs. 471.50 million compared to Rs.360.2 million.
• Operating profit increased 67.42% at Rs. 284.4 million from Rs. 169.9 million.
• Net profit after tax higher by 33.52% to Rs. 129.6 million from Rs. 97.1 million.

• Operating revenues expanded by 41.82% to Rs. 395.4 million compared to Rs. 278.8 million.
• Operating profit was up 80.42% at Rs. 270 million from Rs. 149.7 million.
• Net profit after tax higher by 47.22% to Rs. 128.6 million from Rs. 87.4 million.

• Acquisition of EMRC
  Cranes Software announced acquisition of Engineering Mechanics Research Corporation (EMRC) in India with its customers, brand names, trademarks, ongoing contracts, personnel and fixed assets. EMRC is the developer of NISA suite of products and a pioneer in the field of Computer Aided Engineering(CAE). The Company provides consulting services and customised software in this domain. The consideration for this acquisition is part of a deal of US $ 1.5 million including the US arm of the EMRC operation, currently waiting some statutory clearances in US.
  
  The acquisition will immediately give access to Cranes Software to diversify into an expanded market in the scientific and engineering software specifically in the Engineering Services domain. It provides comprehensive CAE-related capabilities through a high quality products suite, many years of product experience and extensive global usage backed by a worldwide sales and support organization.
  
  The acquisition is in line with the Company's strategy of purchasing undervalued assets that provide substantial growth potential by leveraging existing strengths and capabilities. In addition to statistics and data visualization, the Company's portfolio now also addresses the mechanical, civil, automobile, aerospace and electrical engineering markets, thus extending the range of software that it takes to scientists and engineers globally.
  
  
• Systat Software Inc. and Cytel Software forge Strategic Alliance
  As yet another product development initiative, the Company is in the process of working on Strategic Alliance partnerships with several leading global companies. Last quarter, Cranes' subsidiary, Systat Software Inc., forged strategic partnership with Cytel Software Corporation, a leading provider of statistical software and services for optimized clinical trial design and analysis. Systat will license the components of Cytel's award winning StatXact software to create a new module for SYSTAT specializing in exact statistical tests. The integrated module will be marketed under the SYSTAT brand and distributed by Systat in 2006.
  
  
• Ongoing product version launches in India through alliances
  During the quarter, Cranes Software, along with The MathWorks Inc., announced the availability of SimPowerSystems 4 in India. SimPowerSystems 4, which enables engineers in a host of industries to use Model-Based Design to model and simulate electrical circuits and power systems within Simulink®. In the same quarter under review, Cranes Software along with dSPACE GmbH. launched dSPACE RapidPro in India. dSPACE RapidPro is a hardware product embedded with dSPACE software which helps in configuring signal conditioning and power stage circuits that can be used in the automotive sector and the test laboratories.
  
  The new versions are available for Indian users through Cranes Software's nationwide product distribution network.
  
  
• Cranes Software relocates Registered Office
  The registered offices of Cranes Software International Ltd. and its 100 % subsidiaries Systat Software Asia Pacific Ltd. and EMRC Engineering Mechanics Research India Ltd. was relocated to 4th Floor, Block 1, Shankar Narayana Building, # 25, M.G Road, Bangalore. The new office will help consolidate Cranes Software's corporate operations into one centralized location and increase the development center work place by over 50 percent.