Interim results for the six months ended 31 July 2006.

Interim revenues increase 36.5%

eg solutions plc (AIM: EGS), the IT software and services company, announces interim results for the six months ended 31 July 2006.

Financial highlights:

• Turnover up 36.5% to £3.43m (2005: £2.51m)
• Adjusted operating profit* increased 10.5% to £0.63m (2005: £0.57m)
• Profit before tax £0.67m (2005: £0.10m)
• Adjusted earnings per share** of 4.8p (2005: 5.2p)
• Earnings per share were 3.7p (2005: 0.7p)
• Interim dividend of 0.6p per share
• Strong cash generation of £1.3m
• Contracted sales for the year £5.6m (2005: £4.1m)

Business Highlights:

• Second major general insurer has agreed to roll out following successful pilot
• Appointment of Ian Wright as Chief Operating Officer
• Hosted application service developed for eg’s software suite and first client secured
• Investment in additional resources to support fulfilment
• International business development progressing in Scandinavia

* Adjusted operating profit (see Note 3)
** Adjusted earnings per share (see Note 4)

Elizabeth Gooch, Chief Executive Officer, eg solutions said:

“We have made good progress since we listed on AIM in June last year with sales up by 36.5% and good growth in profits.

“We have built on our strong position in the financial services sector by winning new contracts and are now taking our software and operations management methodology into new sectors and new international markets, both in the UK and Scandinavia. We are currently on target to meet our expectations for the full year.”

Click here to read the full announcement.

Enquiries

eg solutions
Elizabeth Gooch, Chief Executive Officer
David Blain, Finance Director
Today Tel +44 (0) 20 7457 2020
Thereafter Tel +44 (0) 1785 715772

College Hill
Carl Franklin/Ben Way
Tel +44 (0) 20 7457 2020