Service provider plans expansion

HEXMAC: popular Internet software provides a chance of profits on the Neuer Markt.

WERTPAPIER, 21.09.2000

Backed by the private banks HypoVereinsbank and Delbr�ck & Co., HEXMAC Software Systems AG, founded in 1993 in Leonberg near Stuttgart will list on the Neuer Markt on October 2.

This provider of Internet infrastructure software wants to expand its position on the global market by way of takeovers and strategic partnerships. The company will move into the Scandinavian, Great British, Asian and American markets.

The number of websites will skyrocket in the coming years and the market for content management and e-business will double this year. Hexmac's software product HPS 3.0 is top of its class for constructing platforms on the Internet, because more than 20 percent of all page impressions in Germany are generated by HPS customers.

Already today, 5 of the top 25 of the most frequently visited websites are among HEXMAC's customers. Among these are Internet sites such as FOCUS Online, TV TODAY, Direkt Anlage Bank, DGZ-Deka, CNN Norway, Chip, Payback and eJay.

Up until last year the company generated profits. The pretax an pre-interest profit in the ongoing year, including IPO costs, is estimated at minus DM 4.9 million. For 2001, the worst case scenario forecasts figures in the red of DM 8.7 million.

Finance Director Michael K�hnl explains the loss with start-up costs. The development of sales structures in foreign countries costs money, as to date the only marketing has been done internally.

Sales are planned to rise dynamically from DM 1.8 million in 1999 to DM 7.1 million (2000) and DM 19.3 million (2001) up to DM 42.2 million in 2002.

Up to 1,281,500 shares will be placed, of which 281,500 come from the current stakeholders. 40% of the stocks will be held privately. The retention period for the existing shareholders has been extended to 12 months.

As there are no direct competitors with the same range of products and services, this share has potential. We forecast a listing price of around 25 euros. Exact information on the IPO will be published on September 25.

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AT A GLANCE

Industry: Internet software WKN: 522761

Subscription period: Sept. 26-28

Listing date: October 2
Banks: HypoVereinsbank, Delbrück & Co.

Tier: Neuer Markt