MISYS plc INTERIM MANAGEMENT STATEMENT

Misys turnaround making progress, total revenue for the first quarter up 6%

Misys plc, the global application software and services company, today (19 September 2007) publishes its first Interim Management Statement, as required by the UK Listing Authority’s Disclosure and Transparency Rules. Misys plc interim results will be announced on 24 January 2008 and a brief guidance note will be issued on 13 December 2007.

“We are pleased with revenue performance in the first quarter and we are on track with our cost take out and margin improvement work. Despite the significant seasonality traditional in our business, Banking delivered strong ILF growth driven by a number of valuable contracts and Treasury & Capital Markets performed ahead of the budget we set. It is too early to see any material change in Healthcare but we have right-sized the business and have partnered to fill our identified product gaps and get new solutions into the marketplace. We continue to move to a solution orientation and are ramping up our global services business to increase the value we deliver to our customers.  

We have rebalanced our portfolio to focus on higher growth areas of the markets we serve. We completed the sale of Sesame and announced the sale of both our CPR Business and our Diagnostic Information Business.

One of our key strategic imperatives is to develop winning partnerships and we are executing on that as evidenced by our agreement with iMedica in Healthcare and with SAP in global banking where we will work jointly to build, integrate and market applications that deliver exceptional value for customers. 

We are pleased with our performance but there is a lot of work to do. We continue to focus on executing our strategy and this is one data point which demonstrates that we are making progress.”

• Group revenue up 6%¹ to £104m in first quarter
• Strategic partnerships announced with SAP and iMedica
• Global Services business continues to ramp up
• On track for cost take out and margin improvement
• Sesame disposal completed; disposal of Diagnostic Information and CPR businesses agreed
• Senior management team complete

¹ On a like for like basis - like for like data is at constant exchange rates and excludes disposals, discontinued operations (Sesame, Diagnostics and CPR) and non comparable periods in respect of acquisitions.

Further information on the results for the period under review on both an as reported and like for like basis is contained in the Notes to this trading statement. Unless otherwise stated all figures in the paragraphs below refer to like for like data.

In the first quarter, like for like Group revenues at £104m were up 6% on the comparable period last year, driven principally by a strong performance from Banking. Traditionally, the first quarter of our financial year accounts for approximately 10%-15% of our annual ILF revenues and does not provide a reliable indicator of our full year performance. Net debt was £159m at the period end. We expect the sale of our Diagnostic Information Business and our CPR Business to complete by early October and we should receive gross proceeds of approximately $415m in total. 

As part of our growth strategy for Banking and Treasury & Capital Markets we have announced the formation of a new region to focus on emerging markets, principally China, India, Middle East and Africa. We have executives in place and they are beginning to execute against their focused plans.  

We have completed our senior management team, with the appointments of Jim Malone as EVP, CFO; Bruce King as EVP, HR; Bob Barthelmes as EVP and General Manager of our Open Source business; and Cory Eaves as EVP, CTO & CIO.

Total first quarter revenues at £31m were up 19% on the comparable period last year. ILF revenues increased to £5m from £2m, professional services revenues grew 21% to £8m and maintenance revenues rose 3% to £18m. The ILF revenue performance in Banking is ahead of our internal budgets for the first quarter.

The strong improvement in ILF revenue was driven by interest across our product suite and, in particular, two new Misys Equation customers. We are once again beginning to win against leading competitors. The strategic partnership we announced with SAP is a significant endorsement of our Misys BankFusion strategy and will drive value for new and existing customers over the long term. As part of this partnership Misys and SAP will work together to build and market integrated solutions for banks. Misys will integrate SAP components into BankFusion and SAP will certify BankFusion to run on the SAP Business Process Platform for Banking; Misys will integrate SAP’s CRM solution into our retail banking solutions and SAP will endorse the market leading Misys Trade Innovation solution for its Banking solution set.

Treasury & Capital Markets

Total first quarter revenues at £27m were up 6% on the comparable period last year. For the first quarter ILF revenue decreased by 16% to £6m, against a particularly strong comparator period. Professional services revenues increased by 58% to £5m and maintenance revenues increased by 5% to £13m; transaction processing revenues were flat at £3m. 

Treasury & Capital Markets performed ahead of our budget and continues to win contracts with tier 1 clients. To date, we have not seen any material impact from the volatility in the financial markets on our financial performance or pipeline, although this could change as markets stabilise and IT investment decisions are reviewed. Treasury & Capital Markets is a growth area for us and, in line with our strategy, we are investing here to accelerate that growth and enhance our leading market position. Our recent purchase of a proprietary book-building platform for the primary loan market from Dresdner Kleinwort, which will deliver further functionality for existing and new customers demonstrates that we are taking action.

Total first quarter revenues at £46m were down 2% but ahead of our budget assumptions. ILF revenues were down 16% to £5m and professional services revenues decreased by 20% to £3m. Maintenance revenues increased by 6% to £18m. We continue to penetrate our customer base with our Payerpath product driving transaction processing revenues 8% higher to £18m.

While the business met our budget expectations for the quarter, there has been no material improvement in revenue performance. It is too early to see results from the actions we are taking to drive revenue growth, however we are making good progress with the cost take out. We recently announced a partnership with iMedica which will fill the product gaps we previously identified. Misys will license iMedica’s innovative electronic health record and practice management solutions as the foundation for a new family of physician offerings focused on small-sized practices. We expect to have offerings in the marketplace by the end of November. 

Total revenues, included in the business unit numbers listed above, were £16m up 18%. We are making investments to grow our services business, we are executing against our plans and continue to ramp up. We are building both our service offerings and capacity as well as scaling up our integrated on-shore / off-shore delivery model. Our recently launched global service offerings are Optimisation Services; MisysAcademy; Global Integration Services; Premium Support and the Upgrade Solution Centre.

A conference call for analysts and investors will be held at 8.00am BST today. To access this call please dial +44 (0) 1452 555566; Passcode 17383305. The call will be available for replay from later today until 3 October 2007 on +44 (0) 1452 550000; Passcode 17383305#.

ANALYST/INVESTOR ENQUIRIES

Misys plc (FTSE: MSY.L) provides integrated, comprehensive solutions that deliver significant results to organisations in the financial services and healthcare industries. We maximise value for our customers by combining our deep knowledge of their business with our commitment to their success. 

In banking and treasury & capital markets, Misys is a market leader, with over 1,200 customers, including all of the world’s top 50 banks. In healthcare, Misys is a market leader, serving more than 110,000 physicians in 18,000 practice locations and 600 home care providers. Misys employs around 5,000 people who serve customers in more than 120 countries.

We aspire to be the world’s best application software and services company, delivering results for the most important industries in the world.

Misys: Experience, Solutions, Results

Contact us today, visit: www.misys.com

These Notes are provided to assist assessment of the performance of the Group from this trading statement.

All figures below are unaudited and are prepared in accordance with IFRS. The data below has been provided on both an as reported basis and on a like for like basis. In this trading update the like for like numbers illustrate the underlying trading performance of the Group in the period under review. The like for like results exclude the results of the businesses disposed of, those classified as discontinued operations (Diagnostics, CPR and Sesame) and the incremental benefit of acquisitions. Like for like figures are quoted in sterling using average exchange rates for the three months ending 31 August 2007. 

Treasury & Capital Markets

Healthcare (excluding Diagnostic Information and CPR businesses)

Global Services (included as professional services above)

The principal foreign exchange rates used by the Group are detailed in the table below.