Press Release

SYSTRAN : Third Quarter 2008 Revenue Release

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Posted 06 November 2008 @ 12:48 pm ET

PARIS -- (Marketwire) -- 11/06/08 -- SYSTRAN, the leading provider of language translationtechnologies today announced its consolidated revenue for the third quarterended September 30, 2008.



+---------------------+------------+------+------------+------------+-----+|Consolidated and | | | | | ||unaudited (in KEUR) | | | | | |+---------------------+------------+------+------------+------------+-----+| |3rd quarter | | |Year-to-date| |+---------------------+------------+------+------------+------------+-----+| | 2008 | 2007 | Variation | 2008| 2007|+---------------------+------------+------+------------+------------+-----+| | | |2008 / 2007 | | |+---------------------+------------+------+------------+------------+-----+|Software Publishing | 1,248 |1,318 | (5.3 )% | 4,175|5,334|+---------------------+------------+------+------------+------------+-----+|Professional Services| 475 | 438 | + 8.4 % | 1,185|1,520|+---------------------+------------+------+------------+------------+-----+|Consolidated Sales | 1,723 |1,756 | (1.9) % | 5,360|6,854|+---------------------+------------+------+------------+------------+-----++---------------------+------------+|Consolidated and | ||unaudited (in KEUR) | |+---------------------+------------+| | |+---------------------+------------+| | Variation |+---------------------+------------+| |2008 / 2007 |+---------------------+------------+|Software Publishing | (21.7) % |+---------------------+------------+|Professional Services| (22.0) % |+---------------------+------------+|Consolidated Sales | (21.8) % |+---------------------+------------+

Third Quarter 2008 Activities

Consolidated sales for the third quarter were 1,723 KEUR , representing aslight decline as compared with the same period last year. Consolidatedsales for the first nine months of the year were 5,360 KEUR as comparedwith 6,854 KEUR for the same period last year. Sales generated fromsoftware licenses totaled 4,175 KEUR , a decrease of 21.7 % as comparedwith 2007. This decrease is the result of a decline in sales of DesktopProducts, a segment which benefited from a successful new version releaseduring the first semester of 2007. Professional Services sales amounted to1,185 KEUR as compared with 1,520 KEUR for the same period last year, adecrease of 22.0 %. These results reflect fewer orders received from the USFederal Government in 2007. Since the beginning of this year SYSTRANSoftware, Inc. renewed its contract with the US Federal Government andtotal work orders amounted to 2,231 KUSD as compared with 382 KUSD atSeptember 30th, 2007. The license agreement with Microsoft Corporationexpired on September 30th 2008, and was not renewed.

Outlook

SYSTRAN's sales efforts are now focused on the commercial release of theversion 6 Server Products expected to drive revenue growth from Corporatecustomers. Development of SYSTRAN's version 7 products has commenced. Theprimary goal of this version is to improve translation quality with newtranslation engines. Due to the depressed global economic environment andthe present level of activity, SYSTRAN currently expects sales andoperating income for the second half of 2008 to be similar to the firstsemester of 2008. During the past quarter the variation in the Euro / US

Dollar exchange rate had a positive impact on net income. Nevertheless, itis difficult to predict the impact for the full year due to the highvolatility of the global markets.

Dispute with the European Commission

To date, the oral procedure has not started in the case of SYSTRAN vs. theEuropean Commission.

About SYSTRAN

SYSTRAN is the market leading provider of language translation softwareproducts and solutions for the desktop, enterprise and Internet thatfacilitate communication in 52 language combinations and in 20 verticaldomains. With over three decades of expertise and research and development,SYSTRAN's software is the choice of leading global corporations, portalsincluding AltaVista, Yahoo!, and Apple, and public agencies like the USIntelligence Community and the European Commission. Use of SYSTRAN productsand solutions enhance multilingual communication and increase userproductivity and time-savings for B2E, B2B and B2C market segments as theydeliver real-time language solutions for search, content management, onlinecustomer support, intra or inter company collaboration, and eCommerce.SYSTRAN is headquartered in Paris, France with a North American officelocated in San Diego, California, USA. SYSTRAN (Code ISIN FR0004109197,Bloomberg: SYST NM, Reuters: SYTN.LN) is listed on EuroNext Paris,Compartiment C. For more information, visit www.systransoft.com

Revenue for the fourth quarter 2008 ending on December 31st, 2008 andannual results for 2008 will be announced on February 13th, 2009.

This Press Release is available for download at:http://www.systran.co.uk/translation/systran/investors/press-releases

This information is provided by HUGIN

Contact:Dimitris SABATAKAKISChairman & CEOTelephone: +33 (0)1 47 96 86 86Fax: +33 (0)1 46 98 00 59Email: Email Contact


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