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Strategies & Market Trends : The Thread Formerly Known as No Rest For The Wicked -- Ignore unavailable to you. Want to Upgrade?

To: JakeStraw who wrote (51983)	6/29/1999 10:25:00 AM
From: JakeStraw	Read Replies (1) \| Respond to of 90042

4Front Technologies, Inc. to Appear At First Union Capital Markets' 1999 Nantucket Conference LONDON--(BUSINESS WIRE)--June 29, 1999--4Front Technologies, Inc. (Nasdaq/Easdaq: FFTI) today confirmed its participation in First Union Capital Markets' 1999 Nantucket Conference, which runs from July 5 - 9, 1999. At the conference, Mark Ellis, Vice Chairman and President of 4Front Technologies, Inc., will review 4Front's track record of growth and will present 4Front's strategy for continued growth, including: •Establishing 4Front as a top 10 pan-European independent IT services provider•Continuing the expansion of its services range to embrace E-commerce and internet services, additional software offerings and consultancy•Expanding its present services throughout its European operations with particular focus on help desk, education and network services•Building on its successful track-record of winning larger-scale service contracts from European based blue-chip companies•Integrating acquired businesses to perform to the ''4Front standard'' of operating success Since its initial listing on the NASDAQ National Market in June 1996, 4Front has: •Grown the annual revenue run rate to $229m (based on Quarter Ended April 30, 1999) from $40m (based on Quarter Ended July 31, 1996)•Grown annual revenues 181% to $149m (FYE January 31, 1999) from $53m (FYE January 31, 1997)•Grown net income 839% to $5.8m (FYE January 31, 1999) from $618,000 (FYE January 31, 1997 excluding write downs)•Expanded its strong IT market presence from the UK to France, Italy and Belgium 4Front's Latest Financial Performance: For the first quarter ended April 30, 1999, total revenues increased 115% to $57.3 million, versus $26.7 million reported for the comparable year-ago quarter. Net income for the quarter increased 82% to $2.0 million, or $0.17 per share diluted (based on 11,886,235 shares), versus net income of $1.1 million, or $0.13 per share diluted (based on 8,652,926), for the comparable year-ago quarter. 4Front's Statement On Its Latest Financial Performance: Overall Performance ''The first quarter was another record quarter with revenues and earnings exceeding our targets once again. 4Front's performance reflects strong internal growth in our business as well as contributions from acquisitions made in the past year. Service revenues continued to grow rapidly, comprising 67% of total revenues in the quarter. Most importantly, margins, which in the previous quarter had been impacted by acquisitions made in Continental Europe, resumed their upward trend. EBITDA in the quarter rose to 8.0% as a percentage of revenues, versus 7.3% in the preceding quarter. The operating margin in the quarter rose to 5.9%, versus 5.5% in the preceding quarter. Targets We are ahead of schedule in our progress towards meeting the key calendar 2000 operating targets of $250 million annualized revenues and a 75/25 service/product sales mix, which we set at the time of our offering last July. In addition, targeted margin improvement has resumed in the quarter, as good progress has been made with the integration of recent acquisitions. Pan-European Strategy As 4Front consolidates its leading position in the UK, French, Italian and Belgian IT service markets, management has been working to identify opportunities which can strengthen its European network and broaden its geographic coverage. The integration of recent acquisitions is proceeding well. As we move into the second half of the year, when 4Front has historically been most active in terms of acquisition, our focus is on principal European markets where 4Front does not currently have a presence. It is 4Front's aim to have an IT services presence in all major European markets by the end of 1999.'' ------------------------------------------------------------------------ Contact: Investor Relations Contact: Jason Thompson (U.S. Investor Relations) Abernathy MacGregor Frank Tel: 212/371-5999 or Matthew Hooper (U.K. Investor Relations) Shandwick Consultants Tel: 011-44-171-329-0096 or Company Contact: Mark Ellis or Ken Newell 4Front Technologies, Inc. Tel: 011-44-171-269-5848