RS2 Software plc – Approval of Interim Financial Statements ending 30 June 2009

August 19, 2009

RS2 Software plc announced that at the meeting held on the August 18, 2009, the Board of Directors approved the Half-Yearly Financial Statements for the period ended June 30, 2009.

The Group registered a decline of over EUR 2.15 million in its Profit after tax in the first half of 2009, from EUR 2.35 million in 2008 to EUR 200,829 in 2009. The Group stated that “since the revenue mix has a significant impact on profit margins, the reduction of licence and service fees recognised during the period is a direct contributor to the decline in profit for the period.”

Revenue for the first six months of 2009 decreased by 49.62%, to EUR 2.68 million. The Group said that “this reduction is a direct result of the timing and nature of the contracts achieved during the two periods, involving different accounting treatment. In 2008, the Group concluded two licence contracts in the first half of the year, while in 2009 the Group concluded two comprehensive package agreements, the first effective in June 2009, whilst the second contract will become effective in October 2009. In addition, as previously anticipated in light of the international economic conditions, the Group is experiencing a slow down in requests for services from its current customers.”

Earnings per share for the period decreased from EUR 0.072 to EUR 0.005. No interim dividend is being recommended.

To view the Interim Financial Statements, Click Here.