Micro Focus International plc Announces Period Trading Update and Agreement to Acquire Hal Knowledge Solutions SPA

Business Wire, Nov 6, 2006

LONDON & ROCKVILLE, Md. -- Micro Focus International plc ("Micro Focus" or "the Company"; LSE:MCRO.L) today announces an update on trading for the half year to 31 October 2006, ahead of management's expectations.

Following a successful end to the first half year, the Company expects to report total revenues in the range of US$76.0m - US$78.0m (six months to 31 October 2005: US$72.9m). With expenses reduced, as previously announced, profits are expected to improve significantly as against the prior year period. EBITDA excluding exceptional items and stock based compensation for the six months to 31 October 2006 is expected to be in the range of US$29.5m - US$31.5m (six months to 31 October 2005: US$20.5m).

Further detail will be provided in the interim results statement for the half year to 31 October 2006 on 8 December 2006.

Acquisition of HAL Knowledge Solutions SPA

In addition, Micro Focus announces that it has agreed to acquire HAL Knowledge Solutions SPA (HAL KS), a leading provider of Application Portfolio Management Software in order to enhance the Company's enterprise application modernization capabilities. HAL KS has been acquired by Micro Focus for a total consideration of US$3.5m in cash, subject to a net asset adjustment.

"We are encouraged by the progress we have made at Micro Focus over the past six months. Satisfactory revenue growth combined with a firm control of expenses, have resulted in a significant increase in profits as against the prior year period," said Stephen Kelly, chief executive officer at Micro Focus. "The acquisition of HAL Knowledge Systems SPA will increase the breadth and depth of our current assessment solution capabilities and its proven technology will fit well with our core business."

About HAL Knowledge Solutions SPA

HAL KS was founded in 1984 and is headquartered in Milan, Italy, with operations in a number of European countries. Its Application Portfolio Management solutions enable companies to design and plan large scale technology change programmes and regular core systems maintenance by allowing them to identify and expose business processes buried deep inside core systems, often written and added to over several years.

HAL KS provides its solutions both directly to end users and through global service partners, including existing Micro Focus partners such as IBM and EDS. Major blue chip customers include Alitalia, Banca Intesa, Barclays, HSBC, Renault Nissan, Telefonica and UBS.

About Micro Focus

Micro Focus provides innovative software that helps companies to dramatically improve the business value of their enterprise applications. Micro Focus Enterprise Application Modernization software enables customers' business applications to respond rapidly to market changes and embrace modern architectures with reduced cost and risk. For more information please visit www.microfocus.com.

Micro Focus is a registered trademark of Micro Focus. All other products mentioned in this announcement are trademarks of their respective owners.