Synergon: Reformed Operation for the Reforming Market

The Synergon Group reached a sales revenue of 4,152
million HUF in the first three months of 2011, which is an 8% sales revenue
growth.

The growth is related to the first, successfully delivered stage of the fleet control and traffic management system development project of BKV that was launched in 2010, the final stage of the BKV Kassza project, and the project delivered to the Armament and Quartermaster
Office of the Hungarian Ministry of Defence.

In Q1 2011, the EBITDA was 160 million HUF in loss. The decrease was the result of the impairment of software licence cancelled by the Ministry of Rural Development and the agreement cancelled by the Fire Department of Budapest. The Q1 EBITDA calculated without
the effect of the two projects was 176 million HUF in profit.

The operating income of the Czech subsidiary Infinity a.s was 44 million HUF in the first three months of 2011, which is more than double of the 2010 result. The operating margin was 7%.

Dr. Zoltán Jeszenszky, Chairman of the Board of Directors of Synergon Information Technology Plc. explained,

‘Synergon Information Technology Plc. could not perform outstandingly in the first three months of this year; market recovery has been quite difficult. Because of the result of changing market behaviours, based on a proposal by the Board of Directors of the Company,
a comprehensive plan was prepared to determine the operational and structural transformation of Synergon and the strategy of 2011, which is expected to be put into practice in Q2 this year. The transformation might have a major effect on the life of the Synergon Group in the long run, as the new strategy prescribes that the Company should be
harmonized with the renewing market demands, that is to build a flexible, rapidly reacting, trade- and profit-oriented company.’