Agilisys Announces Fourth Quarter Results and Completes First Year in Business

Fourth Quarter Results Continue to Show Strong Revenue and Earnings Growth as Agilisys Ends its First Year in Business

ATLANTA, July 2 -- Agilisys a global provider, with a strong vertical focus in enterprise business solutions to select manufacturing industries, announced today its fourth quarter and end-of-year results for fiscal year 2003. The quarter and the year, which ended on May 31st, signifies a profitable and exciting time with expanded customer relationships and client wins, new product launches and key strategic acquisitions.

Agilisys ended its first year in business demonstrating overall growth in profitability, cash flow, EBITDA and total revenue. The company experienced continued growth in license fees from both existing customers and new accounts. Total revenues for the quarter were $28.2 million. Earnings before Interest, Taxes, Depreciation, and Amortization (EBITDA) for the 4th quarter was 19.1% or $5.4 million, and free cash flow from operations was $5.0 million. Additionally, all vertical solution business units delivered improved profitability levels from those achieved in Q3.

The year was characterized by several key milestones including the acquisition of BRAIN Industries and Future Three Software, Inc., positioning Agilisys as the global leader in supply chain software for the automotive industry. "Future Three adds 400 product installations to Agilisys' 2,000 existing installations and gives Agilisys 70% market share of the Tier .5 automotive supply base," said Kevin Mixer, Research Director with AMR Research. Agilisys ends its first year of operation with a strong balance sheet, proven business model, and a scalable organizational structure to support their aggressive growth strategy. In addition, Agilisys firmly established itself as a global supply chain software provider with 50% of revenues coming from outside North America.

"We have engineered our business around our deep vertical focus enabling us to solve the essential challenges that are of vital nature to our customers' business. Our financial results validate our vertical strategy of delivering specific solutions our competitors cannot," said Jim Schaper, Chairman and CEO of Agilisys. "We are committed to aggressive growth and profitability as we continue to focus on key strategic acquisitions that will ensure we sustain a leadership position in the vertical industries we serve."

  4th Quarter 2003 Highlights

  Customer Wins and Expanded Relationships

This quarter features several customer wins and expanded relationships across all the vertical industries Agilisys serves. These include S & A Foods Limited, Twin City Foods, Flint Ink, Kerry Foods, Magna Donnelly, TRW, Risdon Pharma, CarnaudMetalbox, Collins & Aikman, Hayes-Lemmerz, Corus, Egana, Elbe Stahlwerk, Hoermann, Garador, TLT and Frischeis. This provides further proof that Agilisys solutions remain unmatched for their focus on addressing industry specific challenges and reputation for delivering rapid supply chain benefits to companies in targeted industries.

Successful Implementations

Numerous implementations were completed, including BAF, Cumberland Packing, Meridian Automotive, PAR Industries, MiCO Industries, CarnaudMetalbox, Risdon Pharma, Steinbeiss China, Spinner and Silhouette.

About Agilisys: (www.agilisys.com )

Agilisys is a global provider of business solutions to the manufacturing industries. What sets Agilisys apart is our focus on selected verticals, which translates directly into value and competitive advantage for our customers. The Agilisys solutions are best-in-class, industry-specific solutions that provide collaborative supply chain planning, Internet commerce, relationship management, and ERP capabilities to serve select industries including the automotive, food, beverage, chemical, pharmaceutical, consumer packaged goods, and biotechnology industries. Agilisys provides business solutions to some of the world's best known and respected companies and brands, including Cargill, Unilever, Heinz, Heineken, Godiva, Organon, Valvoline, GlaxoSmithKline, Bristol Myers Squibb, TRW, ArvinMeritor and Meridian.