Corporate news

Revenues of first quarter below expectations

Ad-hoc Notice

•    EBIT as planned
•    According to first estimates revenue of 9.3 Mio. EUR about 5% less than previous year
•    Total annual revenue expected to be at previous year's level
•    Strained situation in US retail market puts pressure on business

Berlin, 11 January 2008 – According to first estimates the revenues of MAGIX AG (ISIN DE0007220782) during the first quarter of the financial year 2007/2008 of EUR 9.3 million will be approx. 5% below the previous year's. In contrast, the expected EBIT is within the frame of the established budget.

The burden on the company's business due to the strained situation in the US retail market was greater than expected as CompUSA, one of the most important sales partners in the US, ceased its operations entirely. In addition, delays in the relocation of MAGIX servers to a new data center resulted in a loss of sales in the Portal business.

As these are one-off developments in the online sector, however, the executive board of MAGIX AG still expects the same total annual revenue as in the previous year and does not await any difficulties in reaching the forecasted EBIT of EUR 2 million. If required the management will adapt the planned marketing measures to the current business developments.