Altium Exceeds Market Expectations and Delivers Record Results.

Business/Technology Editors

SYDNEY, Australia--(BUSINESS WIRE)--Sept. 13, 2001

Altium Limited (ASX: ALU), leading developer of Windows-based electronic design software, today announced its results for the financial year ending 30 June 2001. The company has continued its consistent solid growth, producing sales revenue of A$53.1 million and profit after tax of A$12.6 million. These results significantly exceed the expectations of key financial analysts and clearly illustrate the underlying strength of Altium--a strength undiminished by the current adverse economic climate.

Kayvan Oboudiyat, Joint CEO of Altium Limited, commented on the results:

We are very pleased to be able to again announce a strong increase in sales revenue and profits. Totaling A$53.1 million for the past year, our sales revenue has increased by more than 60% over the previous year and we have now delivered compound annual revenue growth above 45% for five consecutive years. Our performance reflects our ongoing focus on research and development that ensures the continuous enhancement and expansion of our entire product range. With our strong operating cashflows, it is particularly pleasing to announce a final, fully franked dividend of 4.5 cents per share taking the full-year dividend to 8 cents, an increase of 33% over last year.

Sales revenue

Defying challenging global economic conditions, Altium's strong revenue growth reflects the company's underlying strength in its business model and core products. This year saw a continued increase in organic growth and market share, with a clear boost in sales of its existing products.

The final quarter of the financial year also saw the company broaden its technology base with the successful acquisition and integration of TASKING BV, a Dutch-based supplier of embedded software development tools. This acquisition not only contributed to an immediate broadening of Altium's product offerings but also represented the addition of embedded software design technology and the move into a new market. The strategy behind the acquisition was outlined in the company's 1999 IPO prospectus, and the acquisition itself provides one of the most important components needed to achieve the company's vision of building and providing engineers with the complete electronic design system.

While revenues from sales surpassed expectations and totaled A$53.1 million, the company's total revenue amounts to A$57.9 million. This includes additional income from interest earned, exchange rate gains and other one-off transactions previously disclosed.

Operating performance

Consistent with historical operating margins the company reports "earnings before interest, tax, depreciation and amortization" of A$23.6 million. With an effective tax rate of over 37%, which is higher than the Australian tax rate due mainly to nondeductibility of amortization of goodwill, the company has achieved a profit after tax of A$12.6 million, an increase of 57% over the previous year's result. This is a continuation of the trend set in recent years that has seen the company delivering strong profit growth at a compound rate of over 50% for each of the last four years. The operating performance is also reflected in the strong operating cashflow growth--up 65% to A$14.5 million.

Continued investment in technology

Altium's strong operating cash flows have fueled the continued and active investment in the acquisition and development of new complementary technology. During this period, the company has made a succession of smaller targeted technology acquisitions including intellectual property (IP) acquired from Evatronics, Silicore, ICS, CAST and CUPL. These technologies will form components of planned new products for both circuit board and programmable chip design that will ensure that our customers remain at the cutting edge of their professions and secure a strong future for Altium products in the marketplace.

Total funds invested in new technologies during the period, excluding the acquisition of TASKING, was over A$5 million. The company is currently working to integrate these technologies with current and newly developed in-house intellectual property to enhance existing products and to produce new products that will add to the future growth of the company.

Dividend

As a consequence of Altium's strong results, the company has declared a final dividend of 4.5 cents per share. This dividend will be fully franked and takes the full-year dividend payment to 8 cents per share, representing an increase of 33% on last year's return. The record date for entitlements has been set as 21 September 2001.

Outlook

As Altium further expands and develops its product offerings, and transforms the recent technology investments and in-house research and development into new products, the company expects the strong growth trend seen over the past years to continue. At the rate of growth consistent with its recent past, management expects revenues for 2002 to be in excess of A$80 million. Margins of profit after tax earned on this revenue base are also expected to be consistent with historical performance.

Financial summary

                                 Actual           Actual      Increase
                              30 June 2001     30 June 2000

Sales revenue (A$'000)           53,120           32,352        64%
EBITDA (A$'000)                  23,642           12,498        89%
Earnings after tax (A$'000)      12,597            8,018        58%

Earnings per share (cents)        16.4             12.8         28%
Earnings   per  share,
 excluding   the  effects
 of amortization of
 goodwill (cents)                 19.3             13.8         40%
Dividend per share (cents)         8.0              6.0         33%

Gross profit margin                94%              92%
EBITDA margin                      45%              39%
Effective tax rate                 37%              29%

Key highlights

-- Sales revenue up 64% to A$53.1 million, significantly exceeding market expectations.

-- Profit after tax increased 58% to A$12.6 million.

-- Earnings per share up 28% to 16.4 cents.

-- Excluding amortization of goodwill, earnings per share up 40%

to 19.3 cents.

-- Annual dividends increased by 33% to 8 cents per share (including final dividend of 4.5 cents fully franked).

About Altium Limited

Altium Limited (ASX: ALU), trading as Protel International Limited (ASX: PRI) prior to 6 August 2001, is a leading global developer and supplier of desktop electronic design automation (EDA) software for the Microsoft Windows environment.

Since the company's foundation in 1985 and its release of the world's first Microsoft Windows-based EDA tool in 1991, Altium has continued to apply the most advanced software design methods to provide powerful, easy-to-use and affordable design software to engineers and electronics designers worldwide.

Altium's current product brands include Protel, P-CAD, TASKING, Accolade, CircuitMaker and CAMtastic!. These products offer tailored solutions covering a range of hardware and software design processes.

Altium is headquartered in Sydney, Australia, and operates a number of sales and support offices in Australia, the United States, Japan and Europe--as well as maintaining a large reseller network in all other major markets. More information about the company and its products and services may be obtained from our new website at http://www.altium.com.

Altium and the Altium logo are registered trademarks of Altium Limited. Protel, P-CAD, TASKING, Accolade, CircuitMaker and CAMtastic! and their respective logos are trademarks or registered trademarks of Altium Limited. All other brand or product names are trademarks or registered trademarks of their respective companies.