MISYS plc INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 NOVEMBER 2007

Misys revenue and profit improvement on track

Misys plc, the global application software and services company, today (24 January 2008) announces its interim results for the six months ended 30 November 2007.

• Major partnerships announced – iMedica, SAP, HCL, Wipro, Digital China
• Cost take out programme firmly on track – full year target £10m net savings
• Margin improvement achieved, enabling reinvestment
• Positioned for growth in key target markets – India, China, Middle East
• Balance sheet de-leveraged and asset base aligned to strategy
• Accountable management team in place and delivering results

• Like for like revenue up 3%: £230m (2006: £223m) 
• Operating profit up 19%: £25m (2006: £21m)
• Like for like operating profit¹ up 27%: £35m (2006: £27m)
• Total order intake up 3%: £110m (2006: £107m)
• Adjusted basic earnings per share^2: 6.3p (2006: 6.4p)
• Adjusted basic from continuing operations³: 5.1p (2006: 3.4p)
• Interim dividend: 2.96p, up 5%
• Net funds: £27m (2006: net debt £136m)

• Albaraka Banking Group (ABG), one of the world’s foremost Islamic Banking specialists, signed an agreement to use Misys Equation (Islamic) to streamline operations, improve the retail and Islamic banking services it provides its customers, and to enable expansion into new territories. The Misys solution will be implemented in three of ABG’s subsidiary offices in Bahrain over the next twelve months and in Beirut and Durban thereafter, rolling it out at the same time across the three countries’ branch networks. Misys Equation (Islamic) will provide the bank with the ability to satisfy the increasing demand of ABG’s customers for products and services that strictly conform to the principles of the Shari’a. 

• With the objective of automating its retail banking processes while minimising operational risk Public Bank Berhad in Colombo, Sri Lanka (PBSL) selected Misys Equation 3.82, the latest version of the core banking system, which was implemented at the bank in record time, just 3 weeks. As well as providing PBSL with an automated system to manage branch and product expansion, Misys Equation 3.82 was able to improve system performance and security.

• SOYUZ Bank, one of the fastest growing universal banks in Russia, chose Misys Equation having evaluated several solutions in the market, including one from Infosys. The bank selected Misys because of its many implementation successes in the region, the level of localisation of the solution and the experienced Global Services staff that are ensuring the project success. This solution, together with Misys Trade Innovation, will enable SOYUZ Bank to support the whole of its universal banking business, significantly reducing operating costs and improving reporting and analytical facilities.

• Norddeutsche Landesbank Girozentrale, one of Germany’s most prestigious banking groups,has chosen Misys Midas Plus as its strategic core banking platform and it will initially run the group’s banking operations in London, New York, Singapore and Shanghai, with the plan that every subsidiary within the bank’s worldwide operation will be run on Misys Midas Plus. 

• Following a multiple vendor evaluation including Temenos, Infosys and China Systems, Indian Overseas Bank in Singapore selected Misys Midas Plus, to introduce new products and client services to support business expansion, deliver new levels of customer satisfaction and improve operational performance while enabling market leading international standards in accounting and regulatory compliance and controls. The bank will benefit from a market proven suite of fully integrated banking application modules, including Misys Trade Innovation for trade finance, Integrated Finance Manager (IFM) for internet banking, cashier for branch teller services and sophisticated capabilities for Watch List Checking and Suspicious Activity Monitoring.

• Following the launch of our strategic partnership with HCL Technologies in October 2007 Misys announced that Maybank, Malaysia’s largest bank and leading trade finance service provider, has introduced online trade finance services via Maybank2e.net by implementing Misys Trade Portal. This provides greater convenience and will increase productivity and efficiency to businesses for their trade financing needs. HCL has a strong presence in Malaysia, and will deliver integration services and first line local support for Maybank, which is critical to their objectives. Maybank chose HCL’s services capabilities and Misys’ world-class solution over solutions from China Systems and specialist Trade Finance vendors, such as Surecomp, ACI and CSI BankTrade.

• Gnupur, an Icelandic investment company has signed a deal with Misys, to implement Misys Summit ASP (Application Service Provider) hosted service. Misys Summit ASP is the web-hosted version of the Misys Summit FT treasury solution and offers rapid delivery along with sophisticated trader tools and risk management for handling all instrument classes front-to-back. The solution will enable the wealth management firm to automate processing and provide complete management over the trade lifecycle. Automating the trade process will reduce the operational risks associated with manual data entry.

• In September we announced that Kazkommertsbank, the largest bank in Kazakhstan, had purchased Misys Summit in a strategic move to establish an integrated system for cross-asset and front-to-back processing of a range of financial instruments. A further rollout in Russia is also planned. The decision to purchase a sophisticated, high-end solution responds to growing market needs for monitoring credit and market risk limits, as well as to improve automation in generating confirmations and SWIFT Messages. As a long-term investment the bank is also looking to introduce more complex products like derivatives and hybrids in the future and needed a solution that would meet these future needs.

• Bank of Communications, Hong Kong Branch extended its relationship with Misys to create full straight through processing (“STP”) in front, middle and back office operations handling credit derivatives, fixed income and structured products. The bank will increase its utilisation of Misys Summit, by introducing new modules in FX and Money Markets for front office operations and additional modules for derivatives, fixed income and all structured products across its middle and back offices. The deal signifies a move to operate all asset classes on a common platform in the future and strengthens the bank’s ability to meet regulatory compliance requirements and increase operational effectiveness.

• The Philippines’ largest bank, Metropolitan Bank and Trust Company (Metrobank) signed a new deal with Misys to upgrade the core treasury system at its central treasury dealing room in Manila. Metrobank will upgrade its existing system Misys Opics, with Misys’s new best of breed solution, Misys Opics Plus. It will also license the latest advanced risk and portfolio management tool Misys Opics Risk Plus, and specialist monitoring solution, Misys Eagleye, to boost internal controls and compliance. With regulatory changes easing restrictions on foreign exchange trading and the use of hedging instruments, the bank is seeking to reduce transaction costs, increase automation and boost risk management as it processes higher volumes resulting from a more free flow of capital. Prior to the new deal the Bank had also identified significant manual processing in some of its non-core treasury activities which it plans to simplify and automate as part of the upgrade.

• Bohai Bank, the first national joint stock bank to be set up in China since 1996, went live in July with Misys Opics Risk Plus at its head office in Tianjin. Misys Opics Risk Plus will provide a complete risk management tool for the bank helping it to reduce treasury costs and increase returns through improved accuracy of market valuations within the bank’s portfolio.

• Also in China, China Merchants Bank (CMB), one of China’s leading financial institutions, went live with Misys Opics Risk Plus at its head office in Shenzhen. CMB became one of the first banks in China to install a first generation Misys Opics solution in 2004. As the risk management mandate has continued to evolve, CMB needed a more complex risk management solution and chose to leverage its strategic relationship with Misys.

• In November, Landesbank Baden-Württemberg (LBBW) implemented Misys Opics Plus. LBBW has been seeking to expand coverage in Over the Counter (OTC) complex options, a key product type in the bank’s growth strategy for financial markets, and following a strategic review, chose to work with Misys as a beta customer for the new complex options module. Completing the implementation will now greatly strengthen LBBW’s product offering to its customers. The bank also sought to strengthen its back office technology for improved STP and decided to become one of the first institutions globally to upgrade to Misys Opics Plus 1.6, an award-winning front-to-back, cross-asset solution that processes a wide range of financial instruments. The Misys Opics Plus solution handles vanilla and complex derivatives, fixed income, and equity and treasury trades and enables higher volume trading, better risk management, and increased margins through greater operational efficiencies. In LBBW it will be used as platform for all Money Market and FX transactions.

• The Southview Medical Group, PC, a 28-physician multi-specialty group on the campus of St. Vincent’s Hospital in Birmingham, Alabama which recently purchased Misys Vision, Misys EMR, and Misys Payerpath as an integrated solution delivering practice management, EMR, and claims management capabilities. Misys beat numerous practice management and EMR vendors to win this contract based on a demonstrated ability to match practice workflows. 

• Greater Metropolitan Orthopaedics in Clinton, Maryland, selected Misys EMR as a complement to its existing Misys Tiger practice management system. The competitive win was based on Misys EMR’s point-of-care clinical abilities – a primary consideration for the four orthopaedic practice locations – as well as Misys’s reputation, stability and strong presence in Maryland. 

• The Transylvania Community Hospital, in Brevard, NC, selected Misys Tiger and Misys EMR as the start of a multi-phase community vision that will enable stakeholders to share health information and improve efficiencies in the healthcare delivery system. The hospital and its physicians chose Misys as their strategic IT partner for outpatient physician offices because of the preference for Misys in existing practices. The investment will support the community vision of integrating physicians and serve as the foundation for creating a longitudinal community EMR to support patient care. 

• Abingdon Physician Partners, the 16-provider, multi-specialty practice in Abingdon, Virginia, will be deploying Misys Vision as its enterprise-grade practice management system.

• The Hospital of Saint Raphael, New Haven, Connecticut, is deploying US$0.6m of Misys systems and services as part of a grant from the Center for Community Health Leadership. Focused on Misys EMR and building a connected data-sharing community that will link EMR systems with the hospital’s Electronic Health Record (EHR) capabilities, Saint Raphael’s plans to establish an ASP environment to support practices which prefer not to manage the required technical complexities. The initial phase of the comprehensive project will automate the data collection of clinical information in the hospital’s clinics and provide access to community health information for faculty physicians in the Saint Raphael Healthcare System, as well as those private physician practices electing to implement Misys EMR capabilities. 

• Blount Memorial Hospital in Maryville, Tennessee expanded its Misys relationship with the award of a contract for Misys EMR. The 304-bed community-owned facility, with more than 160 active medical staff physicians, based its decision on the long-standing level of service and support received from Misys in previous years.