The sales revenue performance of 2010 was influenced negatively partly by the information technology investment stop imposed by the austerity and savings measures in the governmental administration sector, and partly by the loss of assignments arising from the cost-reduction of local governments and the public service providers under their authority because of the local elections in the autumn.

While Synergon’s Czech subsidiary’s, Infinity a.s., operating income was 158 million HUF in 2010, which is 39% higher than the result of the same period in 2009, the Group’s consolidated operating income exceeded 500 million HUF deficit. The impairment recorded in connection with a software and the depreciation recorded in connection with the planned transfer of the company seat affected the results of the Company negatively; however it did not have an impact on the cash flow. The consolidated, 12-month total of the 2010 EBITDA value was 322 million HUF.

Company CEO Róbert Litauszki said,

’In harmony with preliminary expectations, the last three months of the year still did not bring a breakthrough for the Hungarian information technology market and the Synergon Group. The public administration and the local government sector were still characterized by a stand-by on the whole. The moderate investment flow of the private sector did not change either, despite the fact that the developments concerning corporate and IT efficiency and IT security will be indispensable on the long run.’

Synergon Information Systems Plc.

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