BSB INTERNATIONAL : BSB announces a financial loss in 2012. Difficult start to 2012; significant year-end recovery

PRESS RELEASE

BSB announces a financial loss in 2012 A difficult start to 2012 followed by a significant year-end recovery

Louvain-la-Neuve, 29 March 2013. - Regulated information

BSB, the provider of financial software solutions for the insurance and wealth management industries, has announced a loss for the financial year 2012, of EUR -
6.17 million and revenues of EUR 32.6 million. The results reflect the continuing economic downturn. BSB customers, principally operating within the world of finance, reacted strongly and IT budgets were once again cut drastically in 2012.
The first half of the year was challenging (loss of EUR -4.3 million) but the second half improved significantly but still remained negative (EUR -1.9 million including provisions of EUR 864,000). At year-end, BSB signed two major contracts with partners who are leaders in their sectors: the Belgian insurer AG Insurance, and the French bank Banque Privée 1818 / Sélection 1818.
To minimise the impact of the year's challenges, BSB took action at three levels:
1. In June, the company implemented a capital increase of EUR 5 million, which was subscribed by Vermeg Group, a provider of software solutions. Vermeg also subscribed to a subordinated loan of EUR 2 million.
2. BSB reviewed its business model to boost its recurring revenue to cope with prolonged periods of recession. This includes a comprehensive action plan to reduce our software production costs, the opening of a development centre in Tunisia and measures to boost recurring revenue through our Solfia subsidiary which offers SaaS solutions based on BSB's Solife and Soliam software packages.
3. BSB also launched several new services, including a special SaaS package for insurance companies that want to outsource the costly management of closed books by transferring their run-off portfolios to an appropriate structure. We also re-launched the SAP activity in Belgium and Luxembourg, and appointed a new manager to head up the department and develop strong synergies with the rest of BSB.
These measures are in progress and should start showing results during the first half of 2013.
"2012 was a year of uncertainty and change," says Jean Martin, CEO, BSB. "We took
action at three levels to strengthen our position: we increased the company's equity
significantly, we conducted a significant review of our business model, and we fine-

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Boulevard Baudouin 1er, 25 1348 Louvain-la-Neuve Phone [phone] Fax [phone] [e-mail] www.bsb.com

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tuned our range of products and services to make them more relevant in times of recession. Thanks to these measures and to several new contracts, we have started
2013 in a far stronger position than at the comparable period last year."

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For further information, please contact Euan Sellar, Corporate & Marketing
Communication. Tel. [phone]; [e-mail]

About BSB

BSB is a provider of business solutions and IT services for the life insurance, wealth and asset management industries. It has 100 customers in 23 European countries.

BSB's solutions create efficiency by increasing automation, standardising processes, lowering costs and shortening time to market. They are simple to use and integrate easily into complex IT environments. BSB's flagship products are Solife for life, pension and healthcare policy administration and Soliam for institutional asset management and private client wealth management. A subsidiary, Solfia, offers SaaS, ASP and middle-office BPO services.

BSB exists since 1995, employs 350 people and has its headquarters in Belgium. It has offices in Belgium, France, Ireland, Luxembourg, the Netherlands, and the United Kingdom.

www.bsb.com

BSB Belgium sa

Boulevard Baudouin 1er, 25 1348 Louvain-la-Neuve Phone [phone] Fax [phone] [e-mail] www.bsb.com

TVA BE 0456.861.783 RPM Nivelles IBAN BNP Paribas Fortis BE14 2710 6167 77 83 BIC GEBABEBB