IXOS Makes Two Key Acquisitions

Jan 28, 2003

IXOS SOFTWARE AG, a European provider of ECM solutions, has purchased Swiss-based Obtree Technologies Inc. and the operating business of PowerWork AG. Obtree Technologies Inc. is a European supplier of content management solutions and offers a product range that can be integrated into systems environments of SAP, Microsoft, and others. The company increased sales in 2002 by 60% to €12.0 million. IXOS is acquiring Obtree with a total of 86 employees in return for the cash purchase of the company's shares. IXOS is buying 96.4% of the company's 14,790,347 ordinary shares at a price of SFR 0.52 (0.36 Euros) per share. This corresponds to a purchase price of SFR 7.7 million (5.3 million Euros) for a 100% interest. The transfer of beneficial ownership is scheduled to take place on February 1, 2003. IXOS' advisors on the transaction are the Technology Group at Commerzbank Securities.

In the case of the German non-listed PowerWork AG, which is also privately held, IXOS is acquiring its entire operating assets plus 24 employees in return for 1.2 million Euros in cash, effective as of January 1, 2003 retroactively. PowerWork is a software company that supplies process management and workflow technologies in Germany, Austria, and Switzerland. As a result of the acquisitions, revenue growth for the current fiscal year 2002/2003 will exceed the forecast 10%. In addition, IXOS is expecting revenue growth to increase substantially in the coming fiscal year 2003/2004. Due to these M&A transactions, IXOS will postpone publication of its full results for the second quarter and the first half of fiscal year 2002/03 (31.12.02) to February 4, 2003; the quarterly report will be published before the start of trading on the Frankfurt Stock Exchange.

(http://www.ixos.com), (http://www.obtree.com), (http://www.powerwork.de)