Trading Statement

Anite PLC 12 November 2007 For immediate release 12 November 2007 Anite plc Strategic Partnership with Agilent Half Year Trading Update Anite plc ('Anite' or 'the Company'), the international software and solutions company, today announces: •a strategic partnership between Anite and Agilent Technologies Inc. ('Agilent'); and •a trading update for the six months ended 31 October 2007. Strategic Partnership with Agilent Introduction and background Agilent and Anite, two leading providers in the global wireless handset and network testing market, have entered into a strategic partnership to deliver market leading test solutions for the design of next generation mobile communications products conforming to the new 3GPP Long Term Evolution (LTE) standard. In the absence of acceptable alternatives being available in the market place, Anite has pursued a strategy of developing its own in house hardware platforms in respect of the LTE standard. This strategic partnership between Agilent, a leading hardware provider, and Anite, a leading software provider, will enhance development of best of breed solutions, making a clear business case for Anite to cease its in house development. The strategic partnership Under the terms of the partnership, and by bringing together the combined strengths of the two companies, Agilent and Anite plan to provide a broad, comprehensive portfolio of solutions that address the entire product lifecycle, from early development through production test. It entails combined development activity, adoption of each other's software and hardware, and sharing of know how. Customers of both companies, many of whom are the same, will benefit from the combined resource and common platform. LTE has the potential to enhance 3G networks and enable significant new service opportunities in relation to mobile TV and video. Its commercial success requires the early availability of testing solutions that parallel the standard's development. Through its strategic partnership, Agilent and Anite are well positioned to comprehensively address this need, while better servicing customer requirements across the entire development lifecycle. The combined solutions, which are anticipated to be market leading, will become available in 2008. Financial impact on Anite The partnership is expected to result in improved revenue opportunities and reduced research and development and third party costs for Anite, with Wireless having ceased development of its own hardware platform, Nevis. The impact of asset write downs, cash settlement of exiting the current Nevis development and restructuring costs are expected to be in the region of £3m. The principal financial benefits of the agreement are expected to be derived in Anite's financial year commencing 1 May 2008 and are expected to be ongoing. Half Year Trading Update Anite's performance for the six months ended 31 October 2007 has been broadly in line with that indicated at the time of issuing its first Interim Management Statement (IMS) on 19 September 2007 and consistent with the Board's expectations. The period has been characterised by Anite's customary seasonality and slow start to the financial year, with profitability and order intake as a whole being weighted to the latter weeks of the half year, reflecting normal trading patterns in the Company's businesses, especially Wireless. In overall terms, orders and revenues are up and profits marginally down compared to the same period last year. Despite a strong October performance, profits in Wireless have been impacted by the tightness being experienced in certain customers' budgets (as referred to in the IMS) together with the planned increase in development spending in that division. Nemo has performed strongly. Travel was significantly ahead of last year and Local Government benefited from the continuing reduction in Pericles losses, reporting an overall first half profit for the first time in two years. SIS profits were down year on year as anticipated. We are managing the business assuming the weakness in the Wireless market continues. Consequently we have taken some cost reduction actions, which together with the financial benefits of the Agilent agreement outlined above should mitigate some of the likely financial impact in the second half. Commenting, Steve Rowley, Anite's Chief Executive said: 'We believe that the financial and operating benefits to be derived from the strategic partnership with Agilent will be significant. Despite the current weakness in Wireless we remain confident about the prospects and strategic positioning of this division within its market.' -Ends- A Conference call for analysts and investors will be held at 8.30am today; please call Will Henderson at Smithfield for details (020 7360 4900) Anite plc www.anite.com Steve Rowley, Chief Executive 01753 804000 Christopher Humphrey, Group Finance Director Smithfield 020 7360 4900 Reg Hoare/Will Henderson Print resolution images are available for the media to view and download from www.vismedia.co.uk Notes to editors Anite is an international software and solutions company whose primary business is the provision of industry-specific solutions based on its deep sector knowledge of the wireless telecoms, public sector, and travel markets. These solutions almost always include at their core the supply of Anite-owned software products. Anite offers a comprehensive service to its customers, including implementation, systems integration, maintenance and managed services, enabling it to maximise customer satisfaction and financial returns. Headquartered in the UK, Anite and its subsidiary companies now employs around 1,200 staff across Europe, America, and Asia Pacific. Anite solutions are recognised as market leaders in their fields: • all the leading global mobile phone manufacturers use Anite software; • more than 400 public sector organisations, including all UK police forces and 75% of local authorities use our solutions; and • around 40% of UK package holiday bookings were made using Anite software and managed services. Wireless (formerly Telecoms) Anite provides specialist systems and software for testing mobile phone handsets and networks. Our customers are global technology developers, mobile phone manufacturers, test houses and mobile phone operators. Public Sector Anite is a market leader in software and solutions to key parts of local government, such as local tax collection, benefits payments, housing management and social care solutions - as well as an important supplier of secure information solutions (SIS) to the criminal justice markets. Travel Anite is the UK's leading travel technology solution providers for tour operators, air fare consolidators, and cruise, ferry, motor and rail inclusive operators in the UK and Europe. This information is provided by RNS The company news service from the London Stock Exchange
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