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IFRS Revenues (€ millions)	HY1 2009	HY1 2010	% change	% change at constant exchange rates
Southern Europe	39.0	36.2	(7.2%)	(7.2%)
Northern Europe	15.9	13.4	(15.9%)	(17.6%)
North America	18.0	18.5	3.1%	2.8%
Asia	1.7	1.7	(1.7%)	(1.7%)
TOTAL	74.6	69.8	(6.4%)	(6.9%)

Neuilly-sur-Seine, France, 28 July 2010: Linedata (LIN:FP), the global provider of specialised solutions for the asset management, insurance and credit industries, reports revenues of € 69.8 million for the 1^st half of 2010, a decline of 6.4% compared to the 1^st half of 2009, representing a decline of 6.9% at constant exchange rates.

During the 2^nd quarter of 2010, Linedata achieved sales of € 35.5 million, compared to € 37.6 million in the 2^nd quarter of 2009, representing a decline of 5.6% at actual exchange rates and a decline of 7.9% at constant exchange rate. This is a more moderate decline in revenues than that seen during the 1^st quarter of 2010. The Group closed 44 new deals (of which 9 with new customers) with a total contract value of € 18 million.

Analysis of performance by geographical region:

SOUTHERN EUROPE (Q1: € 17.9 million, down 9.1%; Q2: € 18.3 million, down 5.2%)

This region showed good resistance thanks to the high level of revenue recurrence of the Linedata Noee and Linedata Chorus products and growth in the insurance division. The Credit and Finance segment, which had recognised significant perpetual licence revenue in the 1^st half of 2009, declined by 12.8% over the same period in 2010.

NORTHERN EUROPE (Q1: € 6.9 million, down 11.5%; Q2: € 6.4 million, down 20.1%)

The decline in sales in this region was due to delayed contract signings and the non-renewal of certain contracts with traditional funds. Linedata has, nonetheless strengthened its sales team and continued its product development efforts, in order to prepare for a business recovery in this region.

NORTH AMERICA (Q1: € 8.5 million, down 1.7%; Q2: € 10.0 million, up 7.6%)

The US business was driven by the buoyant Linedata Longview and Linedata Compliance offerings thanks to successful sales activity which included 3 major contracts signed during the second quarter.

Linedata is benefiting in this region in 2010 from the positive effects of the many contracts signed over the last few years, which provide a sound and growing revenue basis.

ASIA (Q1: € 0.9 million, up 20.5%; Q2: € 0.8 million, down 19.4%)

Linedata is continuing its efforts to establish its business in this region with a high growth potential.

Outlook:

In this context of a decline in revenues during the first half of the year, Linedata continued to implement cost cutting steps necessary to increase its profit margins. As a result, a further improvement in profitability levels is expected over the 1^st half of 2010.

The Research and Development effort was unaffected by these reductions in costs.

Shareholders’ agenda: publication of 2010 half-year results: 8 September after close of trading.

Key areas for consideration are:

• Does the product support for alternative strategies, including full asset class coverage, full product lifecycle support, real-time P&L, strategy attribution and trade allocation?
• Does it provide operational control over multi prime workflows, including an understanding of how the system consolidates and presents information and the provision of auditable data trails and consistent views?
• Can the vendor support your business: Are they financially stable? do they have the staff and operational infrastructure to provide a service which truly meets your current and future needs?

A Technology Guide for Hedge Funds

Michael J Liccar & Co, a Chicago-based independent full service public accounting firm which specializes in the hedge fund and securities/futures industry, had grown, increasing its areas of business, and needed a more sophisticated system to maintain its high service levels for an expanding client base of over 200 on- and off-shore funds, while keeping overheads stable. They required a system which would assist them in passing their SAS70 audit and which could handle the wide variety of clients on their books, including hedge funds, commodity pools, commodity trading advisors, broker/dealers, introducing brokers and futures commission merchants.

Considerations during the thorough selection process were comprehensive and fully integrated US partnership and master feeder accounting capabilities; system flexibility and scalability, plus market presence and expertise. Michael J Liccar, Managing Director, explains: “Linedata’s solution handled every scenario we threw at it, for every type of fund and instrument, during the assessment process. It was intuitive to use and easy to adapt. We particularly liked the elegant design of the Partnership Allocations module, which should save time and eliminate spreadsheets. Most importantly, this is an established solution backed up by a responsive and knowledgeable team, with whom we can build a long-term relationship. We bring a high margin of value to our clients and Linedata’s accounting and reporting solution will enhance our client offering and support our growth.”

Michael J Liccar & Co were also impressed with the rapid implementation timescales for Linedata Mfact, Linedata Mshare and the reporting solution, allowing for a quicker return on investment (ROI) and the instigation of a new reporting service for their clients to offer out, driven by Linedata Reporting. They plan to have all of their funds live on the Linedata solution by end of year.

“We are delighted that Michael J Liccar & Co has selected Linedata Mfact, Linedata Mshare and Linedata Reporting”, said Peter Muldoon, Executive Vice President for Linedata’s mutual and hedge fund back-office products. “This integrated platform is a truly unique proposition for firms operating in the back-office area: administrators, accountants and custodians can now choose a single scalable, robust platform for their fund accounting and transfer agency requirements, minimizing manual intervention and maximizing efficiency – all backed by Linedata’s experience and expertise.”

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ABOUT LINEDATA

Linedata is a global solutions provider with 700 clients operating in 50 countries. With more than 840 employees across the globe, Linedata is dedicated to the investment management and credit community. Linedata has been at the service of the financial industry from day one, and applies its market and client insight to provide innovative and tailored mission-critical software and services that help its clients grow. As a pioneer for over 10 years with the set up of ASP infrastructure for the financial industry, Linedata has preached and spread this model throughout the global financial community, for its full range of products. Headquartered in France, Linedata achieved revenues of EUR 144.5 million in 2009. This company is listed on Euronext Paris FR0004156297-LIN – Reuters LDSV.LN – Bloomberg LIN:FP.

“Firms that have two separate systems for shareholder accounting and partnership allocations can reduce costs and operational risk by consolidating onto Linedata Mshare,” said Peter Muldoon, Executive Vice President for Linedata Services’ mutual and hedge fund back-office products in North America. “This new innovation in investor accounting also makes obsolete the need for ongoing proving and reconciliation associated with maintaining investor information in multiple spreadsheets.”

Linedata Mshare now integrates partnership accounting functionality making it a true investor accounting solution. Combined with the new graphical interface, which makes it easier to build relationships in the system, the new version of Linedata Mshare makes users more productive, reduces risk while significantly reducing their costs.

Linedata Mshare’s innovative data visualization technology allows users to build fund structures using a unique graphical interface. This interface lets users plot the relationship between different entities on screen in a format similar to a flow chart, while Linedata Mshare automatically creates the mathematical relationships behind the scenes. This approach significantly reduces risk for firms supporting complex investor relationships.

This new functionality is the latest in a series of user-interface innovations by Linedata. Linedata was the first to integrate Microsoft’s Windows Presentation Foundation (“WPF”) into the Linedata LongView platform in 2007, pioneering intuitive data visualization for buy-side trading, and it recently updated that product with touchscreen functionality in April 2010.

“Linedata was the first in this space to migrate products in its front-to-back solution to WPF. This has given our developers the ability to build intuitive user interfaces that are miles ahead of anything else in the market,” said Gavin Little-Gill, head of global asset management product strategy for Linedata. “In the front-office, this new technology has allowed us to provide touchscreen functionality, data visualization and views to traders and portfolio managers that nobody else can provide. In the back office, with Linedata Mshare, we have created a brand new way of building fund structures that provides an intuitive, time-saving interface for users.”

__________________________________________________________________________________________

ABOUT LINEDATA

Linedata is a global solutions provider with 700 clients operating in 50 countries. With more than 840 employees across the globe, Linedata is dedicated to the investment management and credit community. Linedata has been at the service of the financial industry from day one, and applies its market and client insight to provide innovative and tailored mission-critical software and services that help its clients grow. As a pioneer for over 10 years with the set up of ASP infrastructure for the financial industry, Linedata has preached and spread this model throughout the global financial community, for its full range of products. Headquartered in France, Linedata achieved revenues of EUR 144.5 million in 2009. Linedata is listed on Euronext Paris FR0004156297-LIN – Reuters LDSV.LN – Bloomberg LIN:FP.

For more information, please contact:

Linedata
Liz Fidler
TEL +44 207 469 8725
liz.fidler@uk.linedata.com

CJP
Kelsea Michael
TEL +1 212.279.3115 x231
kmichael@cjpcom.com

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