JoWooD confirms preliminary result for 2003 Annual revenue amounts to EUR 23 million Group result increased to over EUR 3.7 million Restructuring successfully completed 2003’s solid group result confirms the successful completion of the turnaround of JoWooD Productions Software AG, a company quoted on the Vienna Stock Exchange. EBIT reached EUR 7 million (2002: EUR – 42.8 million). The group result after minorities increased to EUR 3.7 million (2002: EUR –28.6 million). The decrease in preliminary sales from EUR 43.5 million in 2002 to EUR 23 million in 2003 is in line with the company’s new business model. The percentage of foreign sales has risen significantly in comparison to previous years. In 2002 the percentages of foreign sales and foreign sales excluding German speaking countries amounted to 55 percent and 27 percent, respectively. In 2003 these percentages increased to 74 percent and 40 percent, respectively. A further internationalization of JoWooD’s business is on the agenda for 2004. The balance sheet total of JoWooD Group was reduced to approx EUR 48 million in 2003. This corresponds to a reduction of approx. EUR 4 million compared to the previous year. The balance sheet’s active side holds a cash position exceeding EUR 10 million (2002: EUR 1 million). The equity ratio is approx. 67 percent (2002: approx. 11 percent). A second bank agreement led to a reduction of the company’s debt to approx. EUR 9 million (2002: approx. EUR 19 million) – approx. EUR 8 million thereof being long term debt. Short term liabilities were reduced from EUR 34.3 million in 2002 to EUR 7.7 million. Long term liabilities are down at EUR 8.2 million from EUR 12.3 million in the previous year. The corresponding total reduction of liabilities amounts to approx. EUR 31 million. In contrast to the preliminary result, the deconsolidation of Dynamic Systems Group, a distribution company of JoWooD, is accounted for in 2003’s final balance sheet. This transaction, which was originally scheduled to take place in 2004, consisted of a swap of minorities for equity. Equity after minority interest remains unaffected. JoWooD plans to release approx. 8 new titles in 2004. JoWooD’s strategy is to focus on titles with a high sales potential and console titles. Approximately 30 percent of 2004’s releases will be targeted at the fast expanding console market. The schedule includes another derivative of the highly successful Gothic series as well as Add-ons for the titles SpellForce, Soldner and Wildlife Park. The portfolio will also include a new sequel to the top-selling Giant series and console versions of Aquanox and Neighbours from Hell (incl. a sequel). Some further titles will be Pillage, Gorky Zero and a title based on a motion picture IP. JoWooD boasts an impressive line-up for 2005. Among 2005’s key titles will be Soldner II, SpellForce II, The Guild II, Star Gate SG1, another Giant title and a new sequel to the Gothic series. Against the background of on-going industry globalization, JoWooD is actively considering a number of options for improving its distribution power in order to utilize tap the full market potential of its attractive title portfolio. A decision is due for the first half of 2004. „2002 was a crisis year, 2003 was a year of restructuring, 2004 will be the year of JoWooD’s strategic repositioning. We have a great product-pipeline, a flexible cost structure and a good balance sheet structure and must now take the strategic decisions for the coming years. These decisions will be targeted at improving JoWooD’s distribution concept and will reflect the interests of all stake holders. We are presently evaluating a full array of options with no preference for a certain strategic concept“, said JoWooD’s executive board members, Andreas Tobler and Michael Pistauer.