GLOBAL GRAPHICS SA, experts in developing technology for open document and print solutions, issues guidance for the financial year ending 31 December 2005 In 2005 the Company expects that: Revenues will be in the range of Euro 20.5 million and Euro 21.0 million compared with Euro 19.2 million in 2004; EBITA will be between Euro 7.8 million and Euro 8.2 million compared with Euro 6.5 million in 2004, which would represent a 20.0% to 26.2% increase over 2004; Pro forma EPS will be between Euro 0.74 and Euro 0.78 per share before income tax compared with Euro 0.59 per share in 2004, which would represent a 25.4% to 32.2% increase over 2004, and between Euro 0.89 and Euro 1.00 per share after income tax compared with Euro 0.81 per share in 2004, or a 9.9% to 23.5% increase over 2004. Guidance is based on the exchange rates ranging between 1.285 and 1.300 USD for 1 Euro and between 1.895 and 1.915 USD for 1 GBP. In 2004, corresponding average exchange rates were 1.243 USD for 1 Euro and 1.833 USD for 1 GBP respectively. The Company expects to record a deferred tax benefit for 2005 ranging between Euro 1.5 million and Euro 2.2 million (compared with Euro 2.1 million in 2004), or Euro 0.15 to Euro 0.22 a share. The amount recognized in 2005 consists of the portion of the outstanding capital losses the Company expects to use in 2006 and which can be carried forward by its UK subsidiary to offset future taxable profit made in that jurisdiction, and of the surrender value of the R&D tax relief that the Company was recently granted for innovative research and development work undertaken by its UK subsidiary. Jim Freidah, chief operating officer added, "We are pleased to make more precise guidance available having made public our consultancy agreement with Microsoft which enables us to explain the anticipated impact on our business operations. "I must underline that our guidance for 2005 is based on existing customer contracts and our existing pipeline. Our underlying recurring business from our traditional graphic arts customer base continues to be steady. Sales into our new market segments of digital print and electronic documents are gathering pace, and, at the core of this growth are digital print customers, such as HP, Sharp and KonicaMinolta, who are now shipping previously contracted products. Sales into Japan and Asia, where a high proportion of printer and copier manufacturers are based, continue to perform well. In 2005 we expect that the impact on our revenues from the digital print industry resulting from our work with Microsoft will be limited to one-off consultancy services to prospective adopters of the "Metro" print path and document format.