EUROTECH S.p.A : RAPPORT 1er SEMESTRE 2007

(*) Accounting effects of the Price Allocation relating to acquisitions made since April 2006 with reference to the Arcom Group and Applied Data Systems Inc.

GROUP RESULTS

Revenues increased from €23.65 million in the first half of 2006 to €35.45 million in the first half of 2007, posting growth of 50.0%, i.e. €12.2 million.

During the half year in question, management pursued the plan for growth in size and internationalisation through the acquisition of Applied Data System Inc. which was executed on 8 January 2007.

Half-year figures show gross profit in absolute terms increasing by €6.13 million, rising from €11.84 million in the first half of 2006 to €17.97 million in the first half of 2007. This meant that profit accounted for 50.1% of revenues in the first half of 2006 and 50.7% in the first half of 2007. This percentage is slightly higher than the expectations of management for 2007, showing the absence of any particular retail price pressure.

EBITDA amounted to €882 thousand, net of €200 thousand due to price allocation for the business combination – recognised in the accounts using the method laid down by IFRS 3 – involving purchase of the Arcom Group and Applied Data Systems Inc.. Fixed operating costs, due to the seasonality of the business, were a significant portion of revenue, since this tends to be lower in the first half of the year with respect to the second half of the year. The increase in sales expected in the coming quarters will make it possible to better absorb these fixed costs.

EBIT, net of purchase price allocation, featured a decrease between the first half of 2006 and the first half of 2007, falling from €1.087 million in 2006 to €-186 thousand in 2007. This trend was strictly related to the trend in EBITDA and to higher depreciation & amortisation posted in 2007.

Financial management posted a positive change in absolute values of €1.147 million between the first half of 2006 and the first half of 2007, due largely to the proceeds from the cash availabilities pursuant to the increase in capital at July 2006 and the positive effect of exchange rate differences.

Profit before tax fell from €699 thousand in first half 2006 to €573 thousand in first half 2007, net of price allocation.

Group net income improved from €-77 thousand in the first half of 2006 to €-53 thousand in the first half of 2007, net of price allocation. In addition to reflecting the trend in pre-tax performance, this result was mainly due to the tax burden of the Group's various companies and, to a lesser extent, minority interest.

After the acquisition in early 2007, the Group still showed a positive financial position of approximately €60 million to use mainly toward external growth.

THE EUROTECH GROUP
Eurotech (ETH.MI) is a company active in the research, development, production and marketing of miniaturised computers (NanoPCs) and of computers featuring high-performance computing capability (HPCs).

EUROTECH SpA
www.eurotech.com

Contacts:

Investor relations
Massimo Mauri
Tel. 0433-485435
E-mail: [email protected]

Communication Department
Cristiana Della Zonca
Tel. 0433-485435
E-mail: [email protected]

Press Office:
Community
Communication consulting
Marco Rubino
Tel. 02-89404231
E-mail: [email protected]

ATTACHMENTS - FINANCIAL STATEMENTS

- CONSOLIDATED INCOME STATEMENT
- CONSOLIDATED INCOME STATEMENT – RECONCILIATION OF OPERATING AND REPORTED DATA
- CONSOLIDATED BALANCE SHEET
- NET FINANCIAL POSITION
- CASH FLOW
- NET WORKING CAPITAL