2000 results to exceed market expectations - substantial acquisition in negotiation

Intec (LSE: ITL) expects to announce, in mid-November, results for the year ended 30 September 2000 that are materially in excess of previous expectations.

Strong trading in the fourth quarter, including the conclusion of two major PTT contracts and a number of other substantial deals, is anticipated to deliver revenues and profits that are materially in excess of market expectations.

"Whilst audited figures will not be available until mid-November, our initial analysis shows that we should report revenues in excess of £20 million, and earnings before interest, tax and exceptional flotation costs of around £3.5 million" said Kevin Adams, Chief Executive of Intec. "Strong licence sales, including a number of new customers, plus increasing contributions from service, support and upgrade revenues, have all contributed to an excellent performance. To put this in perspective, fourth quarter revenues alone will be close to our performance for the full year ended 30 September 1999.” Analysts’ revenue estimates for the year ended 30 September 2000 are in the range of £18 million to £19 million, with earnings before interest, tax and exceptional items in the range of £2.2 million to £2.7 million.

Intec also announces today that it is in advanced negotiations to make a substantial acquisition in the United States of a privately-owned software company in a related area in the same sector. The consideration for the acquisition is expected to be in the region of US$250 million. Due to the size of the transaction in relation to Intec, the UK Listing Authority will classify the transaction as a reverse takeover. The Company has therefore requested, and has been granted, a suspension of trading in its shares.

Further, the Company has substantively agreed terms for the acquisition of Inception to Implementation (M) SDN BHD, a private Malaysian based inter-carrier billing company, for consideration in the region of US$40 million, including deferred consideration.

Further announcements relating to the proposed acquisitions and the results will be made in due course.