RNS Number:2715N
Staffware PLC
08 July 2003

8 July 2003



                                 Staffware plc
                  Quarter 2 and First Half 2003 Trading Update
       Best ever half year revenues and significant improvement in EBITDA

Staffware ("The Company"), a leader in Business Process Management (BPM)
software, today announces an update on its trading performance in respect of the
second quarter and first half of 2003.

-          The Company is expected to achieve a significant improvement in
           EBITDA:

                 - approximately #1.6 million for Q2 (Q2 2002: #1.4 million), an
                   increase of approximately 12% 
                 - approximately #2.0 million for the H1 (H1 2002:  
                   #1.1 million), an increase of approximately 76%

-          Sales revenues for Q2 have increased by 18% to approximately #12
           million (Q2 2002: #10.1 million).  Q2 sales have increased by 32% 
           over the previous quarter.

-          Sales revenues for H1 have increased by 15% to approximately #21
           million, a record for any half year (H1 2002: #18.2 million).

-          Licence sales for Q2 increased by 21% to approximately #7.0 million,
           representing 59% of total sales revenues (Q2 2002: #5.8 million, 
           representing 57% of total sales revenues).

-          Licence sales for H1 have increased by 17% to approximately #11.6
           million, representing 55% of total sales revenues (H1 2002: #9.9 
           million, representing 54% of total sales revenues).

-          In Q2 sales of our BPM software, the iProcess Engine, increased by
           122% to approximately #6.0 million or 50% of total sales revenues 
           (Q2 2002: #2.7 million or 26% of total sales revenues).  We have sold 
           approximately #21.0 million since its launch in Q4 2001.

-          Cash balances were approximately #21 million at the end of June 2003,
           with no material debt (30 June 2002: #20.2 million).

-          Recurring support revenues on an annualised basis, have increased by
           19.7% to approximately #13.4 million since the beginning of the 
           financial year (2002: #11.2 million).

-          10 notable contracts of over #250,000 were signed in Q2 (Q2 2002: 6)
           including:

                -          Netherlands: ABN Amro; KPN; Nuon
                -          UK: A major bank*
                -          USA: ADP Financial Services Inc (approximately 
                           #700,000 expected to be delivered and recognised in 
                           H2) and a major bank*
                -          South Africa: Mutual & Federal
                -          Spain: Gobierno de Canarias
                -          India: A major organisation*
                -          Australia: Aon Consulting

John O'Connell, Chairman and CEO of Staffware plc, commented:

"These excellent results build on last year's record performance and we are
delighted to announce that our growth rate has accelerated compared to the first
quarter of the year. The increase in licence sales is especially noteworthy in a
market which is still cautious about making any significant commitments to
Enterprise Software.  During the second quarter we received 10 orders in excess
of #250,000, including the largest single contract in the company's history from
a major UK bank, together with an important win in the USA from ADP Financial
Services.

 "The combination of our top line sales growth, the successful launch of Version
2 of our BPM software in April this year and our prominence in recent IT
industry surveys, most notably the Gartner 'Magic Quadrant' on pure play BPM
vendors (Staffware identified as a leader along with only 3 other companies),
positions us well to capitalise on commercial and government opportunities going
forward.  As demonstrated by these results, Staffware is consistently proving
that its technology can achieve real benefits and efficiencies for its customers
at a time when other Enterprise Software solutions are failing to deliver.
Despite the generally cautious environment for most IT investments, we are
confident that Staffware can continue to build on this success."

Note: Figures reported are unaudited


* Contract prohibits publicity



                                      Ends



For further information please see www.staffware.com, or call:

Staffware plc +44 (0) 1628 786 800
John O'Connell, Chairman and CEO
Tim Perks, CFO

Citigate Dewe Rogerson +44 (0) 20 7638 9571
Toby Mountford, Sara Batchelor, Fiona Bradshaw



                      This information is provided by RNS
            The company news service from the London Stock Exchange
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