“Atos Origin first quarter revenues for 2005”

Paris, 13 May 2005

Strong organic revenue increase of 9.1% Atos Origin, a leading international information technology services provider, today announced that unaudited revenues for the three months ended March 31st, 2005 amounted to EUR 1,356 million, showing a 9.1% organic increase on a constant scope, exchange rate and accounting principles basis. Revenues for the period are reported under the new IFRS accounting standards.

The appendix to this statement provides an analysis of revenues by service line and geographic region.

Analysis of Revenue Performance
Total Group revenues for the first quarter ended March 31st, 2005 were EUR 1,356 million, compared with EUR 1,305 million for the equivalent period last year. Atos Origin has adopted IFRS standards with effect from January 1st, 2005. The comparative pro forma revenues of the Group in Q1 2004 were EUR 1,291 million and on that basis the statutory 2005 figures under IFRS were 5.0% higher. After adjusting for business disposals during the past twelve months, and at constant exchange rates, the Group produced organic growth of +9.1%. This is the third quarter-on-quarter increase, confirming a general improvement in market conditions.

Euro Millions

Q1 2005 revenues

Q1 2004 revenues

% change

Reported for Q1 2004

1,305

Less: IFRS impact

(14)

Statutory growth

1,356

1,291

+5.0%

Less: Disposals

(41)

Less: Exchange Rate impact

(7)

Organic growth (*)

1,356

1,243

+9.1%

(*) Organic growth at constant scope and exchange rates.

The three main service lines each recorded strong organic revenue growth. In Consulting there was a 10.3% organic increase in the first quarter, year-on-year. The confirmation of growth in consulting demand is an additional indicator of the market recovery.

Revenues in Systems Integration were 9.0% higher organically in the first quarter, which is the first quarterly revenue growth for more than two years and confirms the positive trend seen in 2004. The growth in Q1 was mainly due to volume increases. The Group has increased the amount of recurring revenues in this segment from application life cycle management contracts.

After adjusting for business disposals, mainly the US Cellnet business, organic revenue growth in Managed Operations was 9.0%, reflecting the steady inflow of orders which has accumulated during the past year.

On a regional basis, revenues in France were 1.8% higher than last year, benefiting from a strong performance in Consulting and Systems Integration, particularly from the new contract with Renault. Outsourcing, excluding Euronext, was stable as a number of contracts are finishing the transition phase and will enter into a normal run rate in Q2 and Q3. There was a decline in revenues at Euronext following the client's cost reduction activities, but we expect to benefit from an extension of the partnership with Liffe later this year

Elsewhere, good organic revenue growth was achieved in both The Netherlands (+4.4%) and in the United Kingdom (+7.7%), where the Group picked up additional work, especially in the Public Sector. Revenues in Germany-Central Europe recorded an exceptional 92% organic growth, mainly due to the KarstadtQuelle contract. In the rest of EMEA growth in Italy and Spain was encouraging, but in the Middle East revenues are still affected by political instability in the region.

After disposing of more than 50% of the business in the Americas in mid-2004, the remaining activity is now healthy and growing once again and recorded a year-on-year organic increase of 13.0% in the first quarter. The Asia-Pacific region also recorded strong organic growth of 15.1% in the first quarter of 2005.


Net debt

Net debt at the end of Q1 was EUR 518 million (EUR 504 million excluding restatement under IAS 32), compared with closing net debt of EUR 491 million at December 31st, 2004. This limited increase was in line with normal seasonal patterns. The Group remains confident of reducing net debt to EUR 350 million by the end of this financial year, excluding the proceeds of business disposals that we expect to complete during the course of 2005.

Refinancing program
Atos Origin yesterday signed with a consortium of nine banks a EUR 1.2 billion multi-currency revolving credit facility to be used for general corporate purposes, including the refinancing of the previous EUR 900 million syndicated facility, which was established in January 2004 following the Sema Group acquisition. The new facility will have a five-year maturity with two one-year extension options.

The new facility will reduce borrowing costs and increase the Group's financial resources in terms of total available financing. The repayment terms and conditions of the new agreement are considerably more flexible than under the previous facility.

IFRS transition impact
Pursuant to the internal calendar presented in the 2004 annual report and in line with the AMF recommendations issued on January 31st, 2005, the IFRS conversion program is as follows:

  • Revenues for the first quarter of 2005 are published today in accordance with the new IAS / IFRS rules and we have also released on the Group's web site fully audited details of how the new accounting standards affected Net Income and Group Equity in 2004.

  • The first full set of consolidated financial statements prepared in accordance with the new accounting standards will be reported in the Group's results for the six months ended June 30th, 2005, which will be announced on September 7th, 2005. This will include a full restatement of the Group's 2004 accounts.
  • The application of IFRS to the 2004 accounts resulted in an increase in Net Income from EUR 10.5 million to EUR 110.4 million, mainly as a result of removing the goodwill amortization charge, partly offset by a new charge for stock options. Group Equity increased from EUR 1,466 million to EUR 1,585 million, mainly due to reinstating goodwill.

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About Atos Origin
Atos Origin is an international information technology services company. Its business is turning client vision into results through the application of consulting, systems integration and managed operations. The company's annual revenues are more than EUR 5 billion and it employs over 46,000 people in 40 countries. Atos Origin is the Worldwide Information Technology Partner for the Olympic Games and has a client base of international blue-chip companies across all sectors .

Atos Origin is quoted on the Paris Eurolist Market and trades as Atos Origin, AtosEuronext, Atos Worldline and Atos Consulting.

Contact for Press:
Marie-Tatiana Collombert, Tel: +33 (0) 1 55 91 26 33,
marie-tatiana.collombert@atosorigin.com

Contact for Investors:
John White, Tel: +33 (0) 1 55 91 26 32, john.white@atosorigin.com

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ANALYSIS OF REPORTED REVENUE

By Service Line

3 Months ended March 31st, 2005

Euro Millions

2005

2004 IFRS

% change

% (*)

Consulting

106

97

+9.3%

+10.3%

Systems Integration

559

525

+6.6%

+9.0%

Managed Operations

690

669

+3.2%

+9.0%

Total

1,356

1,291

+5.0%

+9.1%

(*) Organic growth at constant scope and exchange rates

By Geographic Region

3 Months ended March 31st, 2005

Euro Millions

2005

2004 IFRS

% change

% (*)

France

354

348

+1.8%

+1.8%

United-Kingdom

299

283

+5.6%

+7.7%

The Netherlands

257

246

+4.4%

+4.4%

Germany + Central Europe

135

70

+92.5%

+92.4%

Rest of EMEA

233

235

-0.7%

+0.1%

Americas

43

73

-41.0%

+13.0%

Asia Pacific

35

36

-3.0%

+15.1%

Total

1,356

1,291

+5.0%

+9.1%

(*) Organic growth at constant scope and exchange rates