Experts predict that the IT market across Europe, the Middle East and Africa (EMEA) will expand at 5.7 percent during calendar 2006, compared with almost 7.7 percent in 2005 ¹ Reflecting the increasing strategic importance of services, however, this sector is set to pick up pace over the same period, with growth rising from 3.8 percent in 2005 to 4.7 percent in 2006 ².

During the coming fiscal year, we plan to focus again on areas of profitable growth. By the end of fiscal 2008/2009, our target is to become a 10 billion euro revenue company, with a profit before tax of 250 million euros. Our 10 billion roadmap is focused on our two strategic pillars: Mobility and Dynamic Data Center. One of our key growth and profitability avenues lies in the rapid integration of the skills we have gained through the acquisition of Product Related Services (PRS) from Siemens SBS. Although we anticipate an initial dip in joint consolidated revenue and profitability, we expect our new Services Division to quickly contribute to both our top and bottom line. Our extended service capabilities position us as a major IT solutions player, also putting us in pole position to capitalize on the growth trends projected for the service sector.