SOURCE: EUROTECH S.p.A

September 27, 2007 11:30 ET

EUROTECH S.p.A : 2007 FIRST HALF REPORT

AMARO, ITALY--(Marketwire - September 27, 2007) - PRESS RELEASE

EUROTECH: 2007 FIRST HALF REVENUES SURGE 50% OVER 2006 TO EUR 35.45 MILLION

- Total consolidated revenues up 50% from EUR 23.65 million to EUR 35.45 million

- Consolidated EBITDA down from EUR 1.676 million to EUR 882 thousand

- Consolidated EBIT down from EUR 1.087 million to EUR -186 thousand

- Consolidated profit before income taxes down from EUR 699 thousand to EUR 573 thousand

- Consolidated net financial position: positive at EUR 59.83 million

Amaro (UD), 26 September 2007.

Today, the Board of Directors approved the Consolidated Half-Year Interim Report as at 30 June 2007.

Increased sales for the Eurotech Group, a company active in the research, development, production and marketing of miniaturised computers (NanoPCs) and of computers featuring high-performance computing capability (HPCs).

+-------------------------+-----------+--------------------+--------------------+
|Consolidated Highlights  |30/06/2006 |30/06/2006 NET OF   |30/06/2007 NET OF   |
|(€'000)                  |           |PRICE ALLOCATION    |PRICE ALLOCATION    |
+-------------------------+-----------+--------------------+--------------------+
|SALES                    |    23,650 |23,650              |35,454              |
+-------------------------+-----------+--------------------+--------------------+
|EBITDA                   |     1,194 |1,676               |882                 |
+-------------------------+-----------+--------------------+--------------------+
|EBIT                     |       230 |1,087               |(186)               |
+-------------------------+-----------+--------------------+--------------------+
|FINANCE INCOME/EXPENSE   |     (388) |(388)               |759                 |
+-------------------------+-----------+--------------------+--------------------+
|PROFIT (LOSS) BEFORE     |     (158) |699                 |573                 |
|INCOME TAXES             |           |                    |                    |
+-------------------------+-----------+--------------------+--------------------+

+-------------------------+---------+--------------------+-----------+
|Consolidated Highlights  |% Change |Acquisition purchase|30/06/2007 |
|(€'000)                  |         |price allocation (*)|           |
+-------------------------+---------+--------------------+-----------+
|SALES                    |   49.9% |-                   |    35,454 |
+-------------------------+---------+--------------------+-----------+
|EBITDA                   |  -47.4% |(200)               |       682 |
+-------------------------+---------+--------------------+-----------+
|EBIT                     | -117.1% |(1,270)             |   (1,456) |
+-------------------------+---------+--------------------+-----------+
|FINANCE INCOME/EXPENSE   |  295.6% |-                   |       759 |
+-------------------------+---------+--------------------+-----------+
|PROFIT (LOSS) BEFORE     |  -18.0% |(1,270)             |     (697) |
|INCOME TAXES             |         |                    |           |
+-------------------------+---------+--------------------+-----------+
(*) Accounting effects of the Price Allocation relating to acquisitions made since April 2006 with reference to the Arcom Group and Applied Data Systems Inc.

GROUP RESULTS

Revenues increased from EUR 23.65 million in the first half of 2006 to EUR 35.45 million in the first half of 2007, posting growth of 50.0%, i.e. EUR 12.2 million.

During the half year in question, management pursued the plan for growth in size and internationalisation through the acquisition of Applied Data System Inc. which was executed on 8 January 2007.

Half-year figures show gross profit in absolute terms increasing by EUR 6.13 million, rising from EUR 11.84 million in the first half of 2006 to EUR 17.97 million in the first half of 2007. This meant that profit accounted for 50.1% of revenues in the first half of 2006 and 50.7% in the first half of 2007. This percentage is slightly higher than the expectations of management for 2007, showing the absence of any particular retail price pressure.

EBITDA amounted to EUR 882 thousand, net of EUR 200 thousand due to price allocation for the business combination - recognised in the accounts using the method laid down by IFRS 3 - involving purchase of the Arcom Group and Applied Data Systems Inc.. Fixed operating costs, due to the seasonality of the business, were a significant portion of revenue, since this tends to be lower in the first half of the year with respect to the second half of the year. The increase in sales expected in the coming quarters will make it possible to better absorb these fixed costs.

EBIT, net of purchase price allocation, featured a decrease between the first half of 2006 and the first half of 2007, falling from EUR 1.087 million in 2006 to EUR -186 thousand in 2007. This trend was strictly related to the trend in EBITDA and to higher depreciation & amortisation posted in 2007.

Financial management posted a positive change in absolute values of EUR 1.147 million between the first half of 2006 and the first half of 2007, due largely to the proceeds from the cash availabilities pursuant to the increase in capital at July 2006 and the positive effect of exchange rate differences.

Profit before tax fell from EUR 699 thousand in first half 2006 to EUR 573 thousand in first half 2007, net of price allocation.

Group net income improved from EUR -77 thousand in the first half of 2006 to EUR -53 thousand in the first half of 2007, net of price allocation. In addition to reflecting the trend in pre-tax performance, this result was mainly due to the tax burden of the Group's various companies and, to a lesser extent, minority interest.

After the acquisition in early 2007, the Group still showed a positive financial position of approximately EUR 60 million to use mainly toward external growth.

THE EUROTECH GROUP

Eurotech (ETH.MI) is a company active in the research, development, production and marketing of miniaturised computers (NanoPCs) and of computers featuring high-performance computing capability (HPCs).

EUROTECH SpA

www.eurotech.com

Contacts:

Investor relations

Massimo Mauri

Tel. 0433-485435

E-mail: m.mauri@eurotech.com

Communication Department

Cristiana Della Zonca

Tel. 0433-485435

E-mail: c.dellazonca@eurotech.com

Press Office:

Community

Communication consulting

Marco Rubino

Tel. 02-89404231

E-mail: marco.rubino@communitygroup.it

ATTACHMENTS - FINANCIAL STATEMENTS

- CONSOLIDATED INCOME STATEMENT

- CONSOLIDATED INCOME STATEMENT - RECONCILIATION OF OPERATING AND REPORTED DATA

- CONSOLIDATED BALANCE SHEET

- NET FINANCIAL POSITION

- CASH FLOW

- NET WORKING CAPITAL

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