IBS -

IBS Group Announces its Unaudited Results for the 9 Months of FY'2009

IBS Group announces its unaudited results for the 9 months of FY'2009 (April 1 – December 31, 2009).

Consolidated revenue of the Group for the 9 months of FY'2009 totalled $402.5 million, a 29% decrease from the same period in FY'2008 ($566.9 million) (both numbers are exclusive of DEPO Computers, which was divested in September 2009).

According to IDC, the global research firm, the IT services market in Russia fell by approx. 49 per cent in calendar year 2009.

Earnings before interest, taxes, depreciation and amortization (EBITDA) for the 9 months of FY'2009 reached $42.4 million, a 38% increase from the same period in FY'2008 ($30.7 million). EBITDA margin for the 9 months of FY'2009 reached 10.5%, compared with 5.4% in the 9 months of FY'2008.

In the 9 months of FY'2007, EBITDA margin of IBS Group was at 11.5%. Thus, EBITDA margin at IBS Group came close to the pre-crisis level.

$ million, US GAAP

	9m FY'2009	9m FY'2008	Change
*Revenue of the Group (unaudited)**	402.5	566.9	- 29%
EBITDA	42.4	30.7	+38%
EBITDA margin	10.5%	5.4%

Note: The Revenue of the Group for the 9 mo. periods of FY'2008 and FY'2009 is exclusive of DEPO Computers (divested in September 2009).

IBS Group substantially reduced its debt load over the reporting period:

The total debt load fell to $44.7 million, a nearly threefold reduction since December 31, 2008.

In his comments on the results of operations for the 9 months of FY'2009, Anatoly Karachinsky, President and CEO of IBS Group said:

"We are happy with the performance of our management team over the 9 months of this financial year.

Our revenue was decreasing at a notably lower rate compared with the rest of the market.

In this period we attracted a good number of new customers across our business segments and tapped into new markets.

Top Russian and international research firms have yet again acknowledged leadership of our companies in their respective markets.

A comprehensive range of cost control efforts secured substantial EBITDA growth and improved our profit margins.

We feel the incipient recovery of both Russian and global markets and hope that this trend will continue."