Update on Investment

RNS Number : 1400U

Eurovestech PLC

12 May 2008

 

                                                                    12 May 2008


                               Eurovestech plc
                        ('Eurovestech' or 'the Company')


                              Update on investment

The Directors of Eurovestech wish to provide an update on the progress of
Magenta Corporation Ltd ('Magenta'), the UK based vendor of advanced software
solutions with development centres in Russia.

The Directors of Magenta are pleased with the recent customer response to its
Dynamic Scheduling systems, which are based on its proprietary multi-agent
technology.  As a result, Magenta has decided to extend its capability into
major new markets,  starting with online advertising.

In what constitutes an operational breakthrough, Magenta's  Dynamic Scheduling
system is now being  operated in the UK by one of the world's leading car rental
companies.   Dynamic Scheduling, which enables its users to make major
efficiency gains and savings by enabling a company to use its vehicles and
drivers more efficiently, delivering cost savings, revenue gains, reduction in
fuel consumption and consequent environmental benefits.

Magenta's Dynamic Scheduling has already delivered important gains for Addison
Lee, the leading London minicab, chauffeur and courier company, which has been
using the technology since December 2007. Addison Lee has been able to complete
an additional 1,000 jobs per week and expects to increase the number of jobs
fulfilled in 2008 by 10 per cent. while meeting its target of cutting fuel
emissions by 6 per cent.


At the same time, Magenta is developing Optrac,  an online tracking and
scheduling service for trucking and repair organisations, with GPS-based
tracking and continuous optimisation of the schedules.  This will be launched at
the CEMAT trade fair in Hanover this month. Magenta is examining the use of the
technology for other customers with scheduling needs, including electricity and
water companies, equipment installers, postal services, hospitals and emergency
services.


Magenta plans to develop its technology for use in a series of other industries,
including online advertising.  The Directors of Magenta believe that its
technology can help publishers and advertising networks to increase the revenues
from their websites significantly.  This 'Maxifier' technology  has the
potential to be a considerable new market  for Magenta. Live trials with major
publishers are due to begin later this year.


Magenta already operates in the UK and Russia (where  a second development
centre was recently opened), and has expanded to the USA and Germany.  Revenues
have increased by an average of 100pc a year since 2005.  Magenta's board
expects to achieve operating profitability in its core dynamic scheduling
business in the year ending 30 June 2008.

Its new Optrac and Maxifier offerings will be sold on the 'Software as a
Service' basis with the potential for recurring revenues.  Magenta  is confident
that investment in the unique propositions represented by Optrac and Maxifier
will deliver strong sales growth throughout 2008 and 2009.

Eurovestech owns 43.7 per cent of Magenta's fully diluted share capital.

Richard Bernstein, Eurovestech's chief executive, commented 'These developments
are highly significant not only to Magenta but to Eurovestech. The scaleability
of Magenta's offerings combined with the move into new markets is highly
promising'.

Frank Lee, Magenta's executive chairman, commented 'Our Dynamic Scheduling
system is a completely new value proposition which is defining a new niche
across many industries. The scheduling, economic and environmental benefits it
offers are attracting considerable interest '


Enquiries:

Eurovestech plc 020 7491 0770
Richard Bernstein

John East & Partners Limited 020 7628 2200
David Worlidge /Simon Clements

 

END

 

 

MSCQKLFBVEBZBBZ