On July 21, 2006 the shareholders, the CEO and the Supervisory Board of ABAS Software AG met for the shareholders' meeting in the Renaissance Hotel, Karlsruhe. Chairman of the Supervisory Board, Peter Walser, and Chairman of the Executive Board, Werner Strub, reported on the business trend of ABAS Software AG to the shareholders which were present.

The year 2005 which was characterized by a worldwide reflation, also was one of the most successful ones in the company history of the ABAS Software AG from Karlsruhe. The sales revenue, sales figures and the profit were increased considerably compared to the previous year. As in the past twelve years ABAS was again able to remain in the black in 2005. The overall performance of the Karlsruhe software provider rose by 8% to TEUR 8386 in 2005. The operating profit was increased by 170% to TEUR 754. The equity capital was increased by 15% and is now TEUR 3067. The equity capital amounts to a lofty 74% of the balance sheet total. In comparison: medium-sized business' in Germany have an average equity capital of only 18%. On the basis of excellent liquidity, ABAS is financially independent and finances itself using its own resources. Confidence in the CEO and the Supervisory Board was unanimously confirmed in the shareholders' meeting for 2005. The annual shareholders' meeting approved a distribution of company profits as follows: 8% for the common shares and 12% for the preferred shares.

The ABAS Software AG, IT specialist for medium-sized businesses, has founded a new French subsidiary company at the ADEC location in La Walck, near Strasbourg. ABAS-TI is located at the ADEC location in the Alsatian community of La Walck. ADEC means "Association pour le développement des entreprises et des compétences" (association for the advancement of businesses and competences). The association's main task is to advance the region Northern Alsace and to support business start-ups. ADEC in La Walck is a center for business start-ups for the IT sectory of industry.

The company ABAS-TI in La Walck currently employs 4 people under the direction of manager Gaston Steiner. ABAS-TI is responsible for the sales, implementation and suppport of the abas software. Target group are medium-sized companies from Alsace and the Paris region. ABAS-TI is the second sales partner of the abas group in France. Another abas partner, the company Soft Pro Industries S.A. is located in Rillieux-La-Pape and supports the region in and around Lyon.

When wanting to trade with the European Union once has to comply with the guidelines of producing industrial goods. The seminar held by ABAS Business Solutions (PRC) Ltd. in Hong Kong in mid-June was very well visited. The topics concerned were the EU regulations for the electronics industry. About 350 listeners informed themselves about the following guidelines:

• the WEEE guideline ("Waste Electrical and Electronic Equipment") and 
• the RoHS guideline ("Restriction of the use of certain Hazardous Substances in Electrical and Electronic Equipment").
  

ABAS Business Solutions (PRC) has developed expansions for abas ERP (WEEE and RoHS tools) which support companies when complying with and carrying out these guidelines, as well as when reporting to the European Union. All steps of the production process, including additionally bought materials and machines, are depicted in abas ERP respectively and the appropriate reports to the EU can be made for each step in production. HP Hong Kong, Diyixian.com and the magazine "Hi-tech Weekly" participated in the seminar.

The Czech abas sales partner amotlQ will exhibit on the 48. international mechanical engineering trade fair MSV in Brno / Czech Republic from September 18 - 22, 2006. The focus of the trade fair appearance is the flexibe business solution abas Business Software (ERP, PPC, MRP, eBusiness) for medium-sized businesses. Examples of applications and industry solutions for mechanical engineering will be presented, such as logistic tools (infosystems), warehouse management, process management, production planning and control, as well as eBusiness.

Hubner Manufacturing Corporation, which is located in Charlston, SC (USA), has also opted for the abas Business Software. With innovative products and services the company provides customized solutions to its customers. They develop and manufacture components and systems for railway vehicles, busses, airport technology, automotive, commercial vehicles, medical technology, recreation and sports. The company has about 1300 employees worldwide. The implementation, as well as the future support, will be carried out by ABAS-USA INC.

Kammel & Co. GmbH is a new customer of ABAS Systemhaus GmbH. Since 1960 the company, located in Wuppertal, has been producing and distributing cardboard packing solutions. The product range comprises, among other things, paxolin cores and coils. First 5 users will use the abas Business Software but the number of users will incresase constantly in the future. Shortly the production client in the Czech Republic will be also connected.

Zoller+Fröhlich GmbH is a new customer of the abas partner SteinhilberSchwehr AG. The medium-sized family business, which was founded in 1963, produces and distributes products of the ranges wire harness technology, automation technology, laser measurement technology as well as wire end ferrules, which were invented in 1960. In the future, 32 users will optimize their business processes by means of abas ERP.