SYSTRAN : First Quarter 2008 Revenue Release

Published:

Sales of 1,758 KEUR : -21.6% compared with the same reporting period in 2007

May 9th, 2008 - SYSTRAN, the leading provider of language translation technologies, today announced its consolidated financial results for the first quarter ended March 31, 2008.

+----------------------+------+-------+------+-------+--------------+
|        In KEUR       |2008  |  %    |2007  |  %    |Annual change |
+----------------------+------+-------+------+-------+--------------+
|                      |      |       |      |       |  2008 / 2007 |
+----------------------+------+-------+------+-------+--------------+
|Software Publishing   |1,450 | 82.5% |1,861 | 83.0% |     - 22.1 % |
+----------------------+------+-------+------+-------+--------------+
|Professional Services |  308 | 17.5% |  381 | 17.0% |     - 19.2 % |
+----------------------+------+-------+------+-------+--------------+
|Consolidated Sales    |1,758 |100.0% |2,242 |100.0% |     - 21.6 % |
+----------------------+------+-------+------+-------+--------------+
+----------------------+------+-------+------+-------+--------------+

First Quarter 2008 Activities

During the first quarter, total sales amounted to 1,758 KEUR as compared with 2,242 KEUR for the first quarter of 2007, representing a decline of 21.6% and 15.5 % at a constant exchange rate.

License sales amounted to 1,450 KEUR as compared with 1,861 KEUR in 2007 and represent 82.5% of total sales for the first quarter of 2008. This decrease is the result of a decline in sales of Desktop products which benefited from a successful release during the first semester of 2007.

SYSTRAN received fewer orders from the US Federal Government because of the ongoing negotiations for contract renewal. As a result, sales for the Professional Services business unit decreased by 19.2% when compared with same period last year.

During the first quarter of 2008 SYSTRAN launched the new version 6 of its family of Server Products. Version 6 provides major technological advances in SYSTRAN's software such as improvement in translation quality, a dictionary lookup and many new features to help customers rapidly create multilingual documents.

This launch occurred at the end of the quarter, too late to have any impact on first quarter revenues.

2008 Outlook

SYSTRAN's efforts are now focused on the commercial release of its version 6 Server Products expected to drive revenue growth from Corporate customers.

SYSTRAN currently expects that net income for the first half of 2008 will be lower than the first semester of 2007 due to the negative impact of the foreign exchange rate and the business forecast for the second quarter.

About SYSTRAN

SYSTRAN is the market leading provider of language translation software products and solutions for the desktop, enterprise and Internet that facilitate communication in 52 language combinations and in 20 vertical domains. With over three decades of expertise and research and development, SYSTRAN's software is the choice of leading global corporations, portals including AltaVista(TM), Yahoo!®, and Microsoft®, and public agencies like the US Intelligence Community and the European Commission.

Use of SYSTRAN products and solutions enhance multilingual communication and increase user productivity and time-savings for B2E, B2B and B2C market segments as they deliver real-time language solutions for search, content management, online customer support, intra or inter company collaboration, and eCommerce.

SYSTRAN is headquartered in Paris, France with a North American office located in San Diego, California, USA.

SYSTRAN (Code ISIN FR0004109197, Bloomberg: SYST NM, Reuters: SYTN.LN) is listed on EuroNext Paris, Compartiment C. For more information, visit www.systransoft.com

Contact

Dimitris SABATAKAKIS, Chairman & CEO

Telephone: +33 (0)1 47 96 86 86 Fax: +33 (0)1 46 98 00 59

Email: sabatakakis@systran.fr

Results for the first semester of 2008 will be announced on August 1st, 2008.

This Press Release is available for download at:

http://www.systransoft.com/index/About-Systran/Investors/Financial-Releases

This information is provided by HUGIN