- Organic service revenue growth at 5.5% on continued strong momentum with international strategic clients and some national accounts

- Continued margin pressure resulted in the 2007 target EBITAE* margin range being adjusted downwards to between 3.0% and 3.5% (from 4.0% to 4.5% previously)

- Having recorded EUR 88 million impairment of goodwill in the UK, Iberia and the US, the company now expects a net loss for the full year 2007

- The launch of the MOVE campaign (Migration to Office, Vista and Exchange) has further strengthened our relationship with Microsoft

- The Authority for the Financial Markets (AFM) informed Getronics that the investigations which were carried out by the AFM have been completed, and that the AFM will neither transfer the file to the public prosecutor nor to the AFM department that imposes fines for violations of market abuse provisions


* EBITAE excluding defined items (for outlook purposes): EBITAE excluding one-off results in respect with employee benefit plans (curtailments, settlements and negative past service costs) and Breakout Programme restructuring costs.

Financial Highlights

- Following the divestments in 2006 and due to lower product revenues in 2007, total reported revenue decreased 2% to €1,280 million (H1 2006: €1,308 million); Reported Service revenue remained equal at €1,135 million (H1 2006: €1,130 million). Organic service revenue growth was 5.5%;
- EBITAE excluding defined items (for outlook purposes) decreased from €37 million to €34 million which equals 2.7% of total revenue in the first half of 2007. This compares to an EBITAE margin of 2.8% over the first half of 2006. The excluded items are one-off results with respect to employee benefit plans (curtailments, settlements and negative past service costs) and Breakout Programme restructuring costs;
- The Company has decided to record an impairment of goodwill of €50 million with respect to its US operations. The North America Ame American business performed below expectations in the first half of 2007. Towards the end of the second quarter it became evident that the anticipated improvements for the first half of 2007 would not come through completely, mainly due to delays encountered in closing new deals and continued margin pressure on large contracts. As the Company expects that these developments will have an effect on the future profitability and cash flows of the US operation, it has recorded an impairment of €50 million;
- Restructuring expenses from the Breakout Programme were €5 million in the first half of 2007. No one-off employee benefit results were included in the operating result in the first half of 2007, compared to a positive €3 million in 2006;
- The consolidated net loss for the first half of 2007 was €108 million, including €50 million impairment of goodwill in the US, €25 million impairment of goodwill in the United Kingdom as reported on 2 May 2007 and €13 million impairment of goodwill in Iberia as a result of the announced transaction with Tecnocom. Depending on the final outcome of the earn-out, this impairment could increase with an additional €15 million. Furthermore, the results include €10 million loss on sale of subsidiaries following the divestment of 70% of operations in Japan and the transaction in China/Hong Kong announced on 3 July 2007;
- Operating cash flow was €148 million negative, compared to €142 million negative in the first half of 2006. Total cash flow was €59 million negative, compared to €96 million negative in the first half of 2006; and
- Net borrowings amounted to €440 million at the end of the first half of 2007 (H1 2006: €461 million) and included an amount of €135 million of cumulative preference shares.


Business Highlights

- There is continued strong momentum with our international strategic clients and some important national accounts, resulting in 5.5% organic service revenue growth;
- Enhanced Remote Services offering well received by existing and new clients, creating opportunities to increase further efficiencies in service delivery;
- Creation of a strong strategic partnership with NTT Data Corporation for the Japanese market, and announcement of a proposed partnership in Iberia with Tecnocom; and
- The launch of the MOVE campaign (Migration to Office, Vista and Exchange) has further strengthened our relationship with Microsoft.


Market developments
In the first half of 2007, the global Information and Communication Technology (ICT) market continued to benefit from favourable economic conditions in most regions, resulting in increased demand for ICT products and services. In Europe, most of the ICT markets showed growth, while the North American market experienced some weakening as economic growth decelerated. Many emerging markets continued to show excellent growth.

Demand for professional services showed sustained growth across Europe, resulting in a further increased shortage of skilled resources. The professional services market includes consulting services, transformation services, migration services as well as staff augmentation services. The managed services market, including infrastructure and application management, followed a more moderate growth path, presenting a mixed picture across the European region and across verticals.

The outsourcing trend continues to drive demand for more managed services from external ICT providers at the expense of in-house ICT departments, particular in North-West Europe. The demand for outsourcing is driven by organisations implementing strategies to reduce operational costs, but increasingly also by organisations that have identified improved service levels, ICT innovation and process support as a way to gain organisational efficiencies, shorten response times, improve time-to-market and increase competitiveness. As a consequence, the focus of most managed services providers in the industry has shifted from efficiently running machines and applications to increasing end-user and workforce productivity and providing business-ready functionality.

Business developments
The Company recorded 5.5% organic growth in service revenues due to continued strong momentum with international strategic clients and major national accounts. Important wins in the first half of 2007 included NXP Semiconductors, Kodak, Campina, Port of Rotterdam, Ford Motor Company and Netherlands Railways (NS), with promising deals currently in the contract pipeline.

Getronics created a valuable partnership with NTT Data Corporation in Japan and is establishing a partnership with Tecnocom in Iberia, in line with earlier alliances in France, Italy and Eastern Europe. These local partnerships provide an optimal fit with our remote capabilities from Getronics global service centres in Budapest, Mexico City and Singapore. The hybrid model of global service paired with local support through strong partnerships has been a key factor in winning international business.

Getronics' enhanced remote services offering has been well received by existing and new clients, creating opportunities to further increase efficiencies in service delivery. Getronics has redesigned and focused its services portfolio to capitalise on opportunities on the market for remote services, one of the strongest growing segments in IT. With its global-local hybrid model and a highly educated workforce, Getronics is well positioned to continue this growth in the coming years.

The Company's relationship with Microsoft was further strengthened by the launch of our MOVE campaign (Migration to Office, Vista and Exchange). MOVE is a consultative and collaborative approach to assist companies in making the transition to the next generation of Microsoft products. Getronics was also recognised in the applications area and received a Microsoft Partner of the Year Award for its application re-platforming services, a tailor made approach for moving business critical applications to a Windows environment, delivering significant cost efficiencies and increased application performance.

Divestments and partnerships
As a provider of global ICT services, Getronics understands the need for continuous and consistent service wherever required by clients. Today's ICT service industry relies heavily on the ability to establish and sustain effective networks of global delivery centres and strong local partners. Getronics' divestments in the first half year reflect this philosophy. With each geographic divestment, Getronics builds further on lasting relationships with local service partners that ensure the Company's clients continue to experience the same high level of service.

Japan
During the first half of 2007, Getronics formed a strategic partnership with NTT Data Corporation, a leading ICT service provider. Getronics announced on 9 May the completion of the sale of 70% of its shares in Getronics Japan to NTT Data Corporation, marking the re-branding of Getronics Japan to NTT Data Getronics Corporation. The partnership enables Getronics to expand its workspace management activities in Japan and increase international client business with NTT Data Corporation. As part of the transaction, Getronics received €33 million gross cash proceeds from NTT Data Corporation and will retain a 30% share in the new partnership.

The alliance combines the considerable strengths of both companies in the financial services sector in Japan, drawing upon NTT Data's extensive local service network and Getronics' expertise in workspace management services. In addition, NTT Data Corporation and Getronics will work together closely to ensure the new partnership benefits fully from Getronics' Global Service Delivery Model, enabling the two companies to extend their collaboration beyond Japan.

Iberia
On 15 June 2007, Getronics announced that Tecnocom, a listed Spanish ICT services company (IBEX Ticker: CIB) had made a binding offer to purchase Getronics' operations in Spain and Portugal, creating a strategic partnership with Getronics across the Iberian Peninsula. The offer involves the transfer of 100% of Getronics' operations in Iberia to Tecnocom. The partnership creates a strong player in the Iberian market that has access to the extensive capabilities and resources of Getronics' Iberian operations in application and workspace management services.

The received and accepted binding offer of €95 million includes a €15 million earn-out. The earn-out is subject to agreed performance targets to be met in the first half of 2007, on which the audit and formal agreement still has to be finalised. The offer breaks down into 60% in cash paid at closing and 40% deferred, either paid in cash or in Tecnocom shares. If the deferred payment is made in shares, Getronics will potentially obtain an equity stake of more than 10% in Tecnocom. The deal is expected to be completed in Q4 2007, depending on conclusive due-diligence, finalisation of the partnership agreement and antitrust approval.

China/Hong Kong
After approval by the Supervisory Board at the end of June, on 3 July 2007 Getronics announced its intention to acquire a 30% stake in ServiceOne Limited; a well established ICT services company headquartered in Hong Kong, with an extensive presence in mainland China. Over the years, ServiceOne has been recognised by Getronics clients as one of the Company's long standing partners in this important region. The proposed transaction involves the transfer of 100% of Getronics' Infrastructure Services operations in Hong Kong, China and Macau into the new entity, to be named ServiceOne Getronics. The new company, with over 1,000 staff, will offer sound technical expertise and wide geographical coverage in the Chinese ICT services market with direct presence across the People's Republic of China.

As part of the same announcement, the intention to acquire Getronics' application services business line, based in Hong Kong, was announced by Hyro Limited (ASX ticker: HYO), an Asia Pacific specialist applications developer. The transaction ensures clients and employees continued investment in innovative application services, leveraging Hyro's strong regional position in creative business solutions. The proposed transactions are expected to be completed in the second half of 2007.


Outlook
As a result of the sale of the Iberian activities, cost pressure experienced in the Dutch labour market and postponement of large expected deals in the US, Getronics now expects to record an EBITAE margin in 2007 between 3.0% and 3.5%, excluding defined items (for outlook purposes) such as Breakout Programme restructuring costs and curtailment gains and barring unforeseen circumstances. Having recorded impairments of goodwill in the United Kingdom, Iberia and the US, the Company now expects a net loss for the full year 2007.

Given the joint announcement of Getronics and KPN of 30 July 2007 on the intended and recommended cash offer on Getronics shares by KPN, Getronics abstains from any outlook statement beyond 2007.


Regulatory matters
In addition to the regular requests for information that any company listed on Euronext Amsterdam receives from the AFM, in December 2006 and June 2007 the AFM started investigations on compliance by Getronics with the applicable market abuse provisions (timely public disclosure of price sensitive information). In its letter dated 27 August 2007 the AFM informed Getronics that the investigations which were carried out by the AFM have been completed, and that the AFM will neither transfer the file to the public prosecutor nor to the AFM department that imposes fines for violations of market abuse provisions. The findings of the investigations will be discussed in a meeting between representatives of Getronics and the AFM in the near future.