06.05.2004 – 08:14

JoWooD Productions Software AG

euro adhoc: JoWooD Productions Software AG
Quarterly or Semiannual Financial Statements
JoWooD reports stable result for the first quarter Fivefold year on year increase of group result Equity ratio increased to 73% (E)

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  The issuer is responsible for the content of this announcement.

JoWooD Productions Software AG a public company listed at the Vienna
Stock Exchange reported a posi-tive quarterly result for the sixth
time in a row. The group result (after minorities) for the first
quarter - which is typically the weakest quarter of the year -
amounted to 182,000 EUR. This corresponds to an increase of more than
400 % against the previous year.

This result becomes even more impressive when taking into account
that it was achieved from exploiting the strong existing catalogue
since no new titles were released in Q1.

JoWooD’s primary developement goal for the business year 2004 is to
position itself as a Multiplatform - Publisher. JoWooD expects from
entering the console market a significant increase of its world wide
market share. The first releases of console titles are scheduled for
the second quarter.

Last year’s result for Q1 included sales of approx. 6.7 Mio. EUR from
distribution activities. Adjusted sales from publishing activities
are at 1.8 Mio. EUR which corresponds to an increase of approx. 10%
as com-pared to the previous year. The positive result was made
possible by the downsizing of JoWooD’s corporate cost structure and
focusing on development and publishing activities.

As compared to the annual result the balance sheet total was reduced
by approx. 2 Mio. to 46.3 Mio. EUR. The first part of a debt/ equity
swap and the quarterly result contributed to an increase of
shareholder’s eq-uity and the equity ratio by 1.4 Mio. EUR (+ 4%) to
33.6 Mio. EUR and 73%, respectively.

Short term bank liabilities currently amount to 45,000 EUR. They are
down by more than 16 Mio. EUR as compared to last year’s Q1 and 1.4
Mio. EUR to the fiscal year end of 2003, respectively. Other short
term li-abilities are down from 17.4 Mio. in Q1 2003 to 4.9 Mio. EUR
which corresponds to a reduction of almost 2 Mio. EUR since year end.

As of March 31, 2004 JoWooD employs 177 persons, 49 of them are
free-lancers mainly of quality assur-ance. As compared to year end
2003, JoWooD was able to increase its quality assurance department by
18 free-lance employees.

JoWooD’s main issues for the first quarter were the optimization of
its long term strategy, the preparation of JoWooD’s entry into the
console market and intensive development work for the 2004, 2005 and
2006 cata-logues.

In the first quarter no new titles were released. The second quarter
will see the releases of Soldner, Trans-port Giant, Neighbors from
Hell II, Gorky Zero, Spellforce ADD On, the first of a series of YETI
Sports titles as well as of two other titles.

JoWooD’s current order book allows a very positive outlook for the
future:

The total current order backlog amounts to 29 Mio. EUR and is still
growing. Additional stimulus is expected from next weeks Electronic
Entertainment Exposition (E3) in Los Angeles, the industry’s biggest
trade fair.  Parts of the order backlog already related to titles
scheduled for 2005.

At the annual shareholder’s meeting on April 22, the company
presented its strategy for the coming years. The biggest challenges
will be entering the console market and increasing the market
presence in North America. The publishing of Electronic Games
requires significant marketing expenditures to strengthen the
awareness of a title.

JoWooD will develop the American market together with a strategic
US-partner who will acquire a non-controlling stake in the company
through a capital increase. A term sheet has been already signed with
the transaction is scheduled to take place in the next months.

~
Key Figures
in EUR 000                Jan-Mar04     Jan-Mar 03      Jan-Mar02
Sales                         1,771          8,444         13,952
Costs of goods sold            -444         -2,207         -1,413
Development costs              -175         -1,779         -8,558
Gross profit                  1,153          4,458          3,981
Result before restruct.         455          2,720            219
Result after restruct.          455            805            219
Ordinary result                 286            715           -144
Income before minorities        182            133           -166
Income after minorities         182             35           -182

Jan-Mar 04    Jan-Mar 03     Jan-Mar 02
Non- current assets           15,058        18,208         23,103
Current assets                31,209        26,482         49,401
Total assets                  46,266        44,690         72,504

Shareholders' equity          33,645        14,013         30,063
Minority interests                21        -8,016         -3,381
Longterm payables              7,967         5,188          2,099
Shortterm debts to banks          45        16,101         24,822
Other short term payable       4,588        17,405         18,901
thereof advanced payment         839            98            473

Number of Employees              177           225            274
~

end of announcement        euro adhoc 06.05.2004

Further inquiry note:

JoWooD Productions Software AG
Dr. Michael Pistauer, Vorstand.
Karin Kraberger, Investor Relations Manager.
Tel.: +43 (0)3614 2966 1015
mailo:investor@jowood.com
http://www.jowood.com

Branche: Software
ISIN: AT0000747357
WKN: 074735
Index: ATX Prime, ViDX, WBI
Börsen: Wiener Börse AG / official dealing
Berliner Wertpapierbörse / free trade
Bayerische Börse / free trade
Baden-Württembergische Wertpapierbörse / free trade
Frankfurter Wertpapierbörse / free trade