DICOM Group plc Interim Results 2006 - Six Months to 31 December 2005.

BASINGSTOKE, England -- Record Second Quarter; Strong Pipeline

DICOM Group plc ("DICOM Group"), (LSE:DCM) a global leader of Information Capture and Communications solutions, today announced financial results for the six months to 31 December 2005 under International Financial

Financial Highlights

Group results

--Significant organic growth in all key metrics in Q2, following weak performance in Q1

--Revenue up 18% to GBP 102.9m (H1 FY2005: GBP 86.9m), organic growth of 10%

--Gross profit margins of 41.6% (41.5%)

--Adjusted* operating profit of GBP 7.1m (GBP 7.6m)

--Profit before tax of GBP 4.6m (GBP 7.5m)

--Adjusted* earnings per share of 5.9p (6.6p)

--Strong operating cash flow of GBP 8.1m (GBP 6.0m)

--Proposed interim dividend up 15% to 0.61p (0.53p)

Results of IC Division, representing 90% (92%) of Group adjusted operating profits

--Turnover up 15% to GBP 76.4m (GBP 66.4m), organic growth of 4%

--IC own products and services account for 65% (58%) of IC sales

--Own product sales up 17% (up 7% on a like-for-like basis), services grew 42% (17% on a like-for-like basis)

--Gross profit margins increased to 52.2% (50.5%)

--Adjusted* operating profits of GBP 6.4m (GBP 7.0m)

Other Highlights

--Major customer wins

--Reorganisation largely completed

--Reseller agreements with Interwoven and non-disclosed major ECM vendor

--INDICIUS 5.0 selected as finalist for Information Management Award

* Adjusted profit is the profit after adding back the amortisation of intangibles, costs of restructuring and share-based payment charges. Further details are set out in note 3 to the financial statements.

Commenting, Arnold von Buren, Chief Executive Officer of DICOM Group said:

"We are pleased with our second quarter financial performance, which shows significant growth across all key financial metrics including adjusted EPS growth of 18% in the second quarter. The Board believes that DICOM Group is now back on track for future growth. I feel very fortunate to have been able to contribute to the direction and growth of DICOM Group for the past twelve years. I am proud to leave an excellent management team and a flourishing business, and I am delighted to hand over my role to Rob Klatell whose experience in leading a truly global company will be invaluable."

Regarding Prospects, Otto Schmid, Chairman of DICOM Group said:

"We continue to believe that the expansion into the Business Process Automation market provides excellent opportunities for additional growth. Based on the strong Q2 performance, together with the growing sales pipeline, we expect adjusted operating profits for the full year to show an increase compared to last year. "