Press Release

06_03_2008   TOREX REPORTS SECOND QUARTER FISCAL YEAR 2008 RESULTS

Turnaround on track as company achieves profitability in first six months

DUNSTABLE, UK – 6th March 2008 – Torex Retail Holdings Limited (Torex™) the leading European-based global provider of software and solutions to the extended retail marketplace, today announced financial results for the second quarter ended December 31, 2007.

Revenue for the quarter was £56 million, an increase of 10% from the first quarter. Product sales for the quarter were £18.2 million compared to £17.1 million in Q1, an increase of 6%. Pro-forma EBITDA, excluding certain non-recurring transformation costs, was £2.3 million, up from a breakeven position in the prior quarter. Cash and cash equivalents as of December 31, 2007 was significantly ahead of plan at £46.8 million with a positive operating cash flow in the quarter.

“Since our acquisition of the company in June 2007, Torex has delivered strong and consistent financial performance, which is supported by our efforts to transform the company into a global retail solutions provider.  We are on track and delivering both positive earnings and operating cash flow,” said Mike Greenough, Chairman and CEO of Torex. 

In line with the company’s new solutions approach, many of the customer transactions that closed during the company’s second quarter included a combination of multiple products and services, including new agreements with Martin McColl, Signet, Condor Ferries and Siebel Juweliers. The first half of the year also included the previously announced McDonald’s agreement. “It is increasingly obvious that our customers recognise this transformation and the increased role that Torex plays in helping them to enhance and define their customer’s experience,” said Mr. Greenough.

 “To provide a necessary springboard for continued growth in selling to and supporting our customers, the company has transformed itself in several key areas,” added Graeme Cooksley, President and COO of Torex.  “These achievements include  a global restructuring of our executive personnel with sixteen senior appointments; a brand refresh; consolidating of R&D, services and support efforts to leverage expertise and best practice across the company; and delivering a global solutions strategy that customers are clearly endorsing.”

Torex Selected Financial Results
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