1. MEMBER OF SYNERGON GROUP October 18, 2004 Trends and challenges from a regional IT solution provider view Miklós Hoffmann, technical director

2. MEMBER OF SYNERGON GROUP 2 Content  Synergon group  ICT trends  Regional trends and challenges

3. MEMBER OF SYNERGON GROUP 3 Synergon Group

4. MEMBER OF SYNERGON GROUP 4 Evolution of Synergon High Product Content  Value added reselling  Communications  SW components Increased Service Content  System integration  Office automation  ERP systems Complex Projects  Customized SW Solutions  Turnkey SI Projects  Complex ERP projects  Supply Chain Management Regional activity  e-business  Remote management  IT & Business Consult.  Infrastructure management Optotrans- Rolitron merge Optotrans and Rolitron established Capital increase: 8 million USD IPO – BSE+ SEAQ Regional expansion: Span, Infinity, SAO 1999- 2001 2002 - 2005 Platform integration System & network integration Solutionintegration Solution integration Solution & business integration An active player of the IT and financial markets 1990 - 1996 1997 -1998

5. MEMBER OF SYNERGON GROUP 5 Synergon Group  Four countries:  Croatia  Czech Republic  Hungary  Slovakia  Five companies:  Synergon  Synergon Atos Origin  Fibex  Infinity  Span  550 qualified employees Budapest Praha Rijeka Brno Zagreb Pardubice Bratislava

6. MEMBER OF SYNERGON GROUP 6 Ownership structure Deutsche Bank (deposit) 0,55 % Financial investors below 5 percent of shares each 66,4 % Curdie Trust Corporation Limited 9,94 % Davon Kft. 5,03 % RCX Kft. 10 % Treasury shares 2,8% Berenberg Global Opportunity – Magyar Budapest Fund 5,31 %

7. MEMBER OF SYNERGON GROUP 7 Structure of Synergon Group BOARD EC  Equal companies in the Group  Common representation of regional goals Fibex 100% Span 68,1% Infinity 66,67% Synergon SAO 100% Companies in the group Fibex~5% Infinity~20% Span~6% Synergon + SAO+70%

8. MEMBER OF SYNERGON GROUP 8 IT cycle and Synergon’s portfolio  IT Projects  PM  HWSW  Networks  Application  Consulting  BPR  ERP  BI  e-business  Support  desktop  back-office  IT management  communication  datacenters  BPO Planning Building Operation

9. MEMBER OF SYNERGON GROUP 9 Market segments – sales revenue (Group, 2003) A SYNERGON CSOPORT TAGJA  Raiffeisen Bank  Hungarian Development Bank  HVB Bank Hungary  Erste Bank  K&H  Ministry of Informatics  MEH (Office of the Prime Minister  Hungarian Post  Hungarian Parliamanet  Český úřad zeměměřický a katastrál.  County Hospital of Mátészalka  National Library  BAUCONT Building Co.  County Hospital of Tolna  Mol Rt.  DÉMÁSZ  TIGÁZ  Paks Power Plant  Alcoa-Köfém  Skoda Auto a.s.  Invitel  MATÁV Rt.  Hungarian Radio  T-Mobil Telecom Rt.  Communications Authority TELEKOMMUNICATION BANK, INSURANCE PUBLIC SECTOR MANUFACTURING, TRADE, UTILITIES OTHERS

10. MEMBER OF SYNERGON GROUP 10 Sales revenue 1997-2003 USD million Key financials  Hungarian activity:  Synergon  Synergon Atos Origin  Fibex  Regional activity:  Span, Croatia  Infinity, Czech Republic  Infinity, Slovakia  Employees:  330 in Hungary  550 in the region

11. MEMBER OF SYNERGON GROUP 11 Mission and Values Innovation Employees Effectiveness Customers Team-work Social responsibility Synergon intends to become the most successful IT solution provider in Central Eastern Europe, playing determining role in the development of e-economy of the region.

12. MEMBER OF SYNERGON GROUP 12 ICT trends

13. MEMBER OF SYNERGON GROUP 13 Short & long term customer requirements Time Focus on: Transparency Reduction ROI Cost sinking phase Value network phase Focus on: Flexibility Teamwork Networking Consolidation

14. MEMBER OF SYNERGON GROUP 14 Important IT market trends 1.  IT plays key role in competitiveness  Higher quality with less resources  Outsourcing is a powerful tool to improve profitability  Integration reduces time to market  Within the enterprise  Between the enterprises 2. 3.

15. MEMBER OF SYNERGON GROUP 15 From PC to e-Commerce

16. MEMBER OF SYNERGON GROUP 16 Online technologies for internal processes

17. MEMBER OF SYNERGON GROUP 17 Processes of the extended enterprise

18. MEMBER OF SYNERGON GROUP 18 Perceived impacts of online selling

19. MEMBER OF SYNERGON GROUP 19 Planned expenditures on e-business

20. MEMBER OF SYNERGON GROUP 20 Regional trends and challenges

21. MEMBER OF SYNERGON GROUP 21 Regional effect Similar tasks and challenges in every NMS Similar IT tasks and projects Presence in several countries

22. MEMBER OF SYNERGON GROUP 22 Cross border projects in NMS LocalRegional Knowledge ☺ Language ☺ Message ☺ Workforce ☺☺

23. MEMBER OF SYNERGON GROUP 23 Associated candidate countries Similar road ahead of them Goal Help and support  Get credibility and trust  Remember what we have learned and done  Be there  Support locally, regional and EU level

24. MEMBER OF SYNERGON GROUP 24 Human capital eHealth eLearning  Infrastructure development  Services  Life long learning  Content development  Infrastructure/internet  CLBPS (Common List of Basic Public Services) ePublicServices

25. MEMBER OF SYNERGON GROUP 25 SME Goal: Concerns:  Lack of capital  Readiness  Capabilities to use these services To increase competitive strength on EU and global market Sector specific solutions  ERP  E-business  BI

26. MEMBER OF SYNERGON GROUP 26 Research & Development

27. MEMBER OF SYNERGON GROUP 27 Tenders and projects The source of funds The sooner – the better  On the learning path  Definition  Announcement  Responding  Decision making  (Project realization)  (Settlement)

28. MEMBER OF SYNERGON GROUP 28 Public procurement Competition: EU conform since May The actual test has to come  Multinational companies  Before May  After May  Regional & EU companies  Interest increases  Presence (not yet) visible

29. MEMBER OF SYNERGON GROUP 29 Information Society Society Economy State Wide spread of information products and services Quick, mass usage of information in everyday life IT helps to increase competitive position Cultural awareness of the society Legal & public service environment for the citizen Efficient business communication E-learning, home office Equal chances to every member of the society Competitive, efficient economy Developed, efficient information economy

30. MEMBER OF SYNERGON GROUP October 18, 2004 Thank you for your attention! Miklós Hoffmann, miklos.hoffmann@synergon.hu