CE Computer Equipment AG Reports Strong Growth in First Nine Months of 2000; CE's Turnover Up By 52.40% and EBIT By 84.51% compared With First Nine Months of 1999.

Business Editors

BIELEFELD, Germany--(BUSINESS WIRE)--Dec. 1, 2000

CE Computer Equipment AG, one of the world's leading suppliers of intelligent, knowledge-based document and information management, maintains its growth rate in the first nine months.

Turnover rose in the first nine months in comparison with the comparable period of time by 52.40% to 49.35 million Euros, the EBITDA by 106.24% to 13.72 million Euros and the EBIT by 84.51% to 6.98 million Euros. The group registers its highest order backlog received for the following year, about 50 million Euros above the company's expectations for the year 2001.

The group's pre-tax percentage return on sales amounted to 12.80%, and 16.68% before goodwill depreciation, with the group's net income for the period amounting to 3.51 million Euros (+83.44%) and 5.43 million Euros (+84.78%) before goodwill depreciation. The net earning per share rose to 0.18 Euros (+83.44%) and 0.27 Euros (+84.78%) before goodwill depreciation.

In the first nine months, 61% of the turnover was attributable to the licensing business, 23% to services, 10% to maintenance and 6% to other business.

A share of the overall turnover contemplated by the business plan for 2000 of 24.58% (25.45% in 1999) was achieved in the third quarter, as well as 34.02% of the EBITDA (18.85% in 1999) and 22.1% of the EBIT (19.93% in 1999).

The number of employees rose by 50.00% to 555 worldwide, compared to 370 employees in the comparable period last year. Personnel costs rose parallel by 47.92% to 19.44 million Euros, however.

The cash flow before tax on income and interest rose to 13.93 million Euros, compared with 6.78 million Euros in the comparable period last year (+105.51%). Research and development costs amounted to 18.38% of the turnover.

Insiders IM GmbH was consolidated into the quarterly report for two months. The goodwill depreciation of Insiders amounts to 0.56 million Euros for this period.

On the 17th of August, the company issued convertible bonds, which entitle holders to obtain a total of 827,765 shares (777,765 to employees, 50,000 to members of the management board).

CE Computer Equipment Aktiengesellschaft has been able to win valuable customers in the fourth quarter, including DBV-winterthur, Land Niedersachsen represented by Informatikzentrum Niedersachsen, Volkswagen AG and Volkswagen BKK (VW health insurance). Insiders IM GmbH was also able to win customers in the fourth quarter, including Axa Colonia and General Cologne Re.

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*At a glance
Group Statements Overview (IAS)

                  Jan. 1 - Sept. 30,    Changes     Jan. 1 - Sept. 30,
                       2000                               1999
----------------------------------------------------------------------
                 thousand  thousand               thousand    thousand
                   Euro       DM                    Euro         DM
----------------------------------------------------------------------
Sales             49,354    96,527       52.40%    32,385      63,339
----------------------------------------------------------------------
Personnel
 expenses         19,444    38,030       47.92%    13,146      25,711
----------------------------------------------------------------------
Depreciation       6,739    13,181      134.88%     2,869       5,612
----------------------------------------------------------------------
Other operating
 expenses         13,583    26,565       63.84%     8,290      16,214
----------------------------------------------------------------------
EBITDA            13,716    26,826      106.24%     6,651      13,007
----------------------------------------------------------------------
EBIT               6,977    13,646       84.51%     3,781       7,396
----------------------------------------------------------------------
EBT                6,318    12,356       67.51%     3,771       7,376
----------------------------------------------------------------------
Group period
 result            3,511     6,866       83.44%     1,914       3,743
----------------------------------------------------------------------
Cash-Flow before
 income tax and
 interest         13,933    27,250      105.51%     6,780      13,260
----------------------------------------------------------------------
Goodwill-
 Depreciation      1,915     3,746       87.30%     1,023       2,000
----------------------------------------------------------------------
DVFA/SG(a)-Result  3,511     6,866       83.44%     1,914       3,743
----------------------------------------------------------------------
DVFA/SG(a)-Result
 per share (given
 in Euro/DM) based
 on 20,008,175
 shares             0.18      0.34       83.44%      0.10        0.19
----------------------------------------------------------------------
Employees at the
 end of the
 quarter             555       555       50.00%       370         370
----------------------------------------------------------------------

----------------------------------------------------------------------
(a) DVFA=Deutsche Vereinigung fur Finanzanalyse und Anlageberatung
    e.v.
----------------------------------------------------------------------
      All financial information in this report was prepared in
accordance with International Accounting Standards (IAS).
----------------------------------------------------------------------

First signs of success for ASP business line

The business line for ASP providers set up this year has shown its first signs of success. In August, the application service provider (ASP) EINSTEINet AG decided to use the technology designed by CE Computer Equipment AG. The integration of the CE products into EINSTEINet AG's ASP concept will be completed in the spring of 2001.

EINSTEINet AG's ASP concept enables access at any time to the latest versions of CE Computer Equipment AG software. Customers can access the entire range of intelligent knowledge-based products. The user can utilize the prepared applications as and when required, thereby reducing his investment costs.

EINSTEINet AG, as a full service ASP, plans to invest approximately 300 million Euros by the end of 2001 in the construction of a computer center, networks and services. The first computer center is scheduled to be completed by the end of next year in Hamburg. Besides Hamburg, further computer centers are expected to be constructed.

According to the estimates of the Forrest Group, the worldwide turnover from the ASP area will reach 21 billion US dollars by the year 2002. Dataquest sees a potential in Europe alone of six billion dollars by the year 2003.

In September, Fujitsu Siemens Computers significantly extended their partnership with CE Computer Equipment AG. Both companies are mutually involved in the realization of a demonstration, training and testing area for CE solutions at the Fujitsu Siemens Computers ASP competence center in the German towns of Unterschleissheim and Paderborn.

Potential ASP customers will here have the opportunity to test the harmonized services offered by both companies under real conditions. The joint offer focuses on large customers and future application service providers, who decide to make use of Fujitsu Siemens hardware.

Share split in the ratio 1:5

The share split of CE Computer Equipment AG shares in the ratio 1:5 was executed on October 27, 2000 after the close of the Neuer Markt (Frankfurt stock exchange). Trading on an as-split-basis started on October 30, 2000.

This share split enabled the company to reduce the market price of its individual shares, thereby offering the private investor a more accessible investment opportunity in the growth Information Technology market sector document management systems and knowledge management.

Launch on the stock exchange of the subsidiary company GROUP Technologies AG

On November 21, 2000, the shares of the company GROUP Technologies AG (identification number 555,611) were traded on the Frankfurt stock exchange for the first time. CE Computer Equipment AG sold 40% of the GROUP Technologies AG shares.

On November 22, 2000, GROUP Technologies AG disclosed their positive business development over the first nine months of the year. The results for the first nine months exceeded the forecast for the entire year 2000, with an EBIT of 0.4 million German Marks by 112%, with an EBT of 0.4 million German Marks by 28% and with an EPS of 0.03 German Marks by 29% the forecasts for the entire year 2000.

Expansion of the board of directors

On December 1, 2000, Gerd Buhrig (43) will take over as member of the board of directors in the area of human resources. CE Computer Equipment AG is herewith reinforcing its board of directors through the appointment of an experienced member with a high level of international competence in the areas of management development and strategic use of personnel.

Gerd Buhrig joined Bertelsmann AG in 1991 as an internal consultant and executive trainer. He was responsible for numerous improvement projects within the company and instructed managers in their executive roles.

In his function as manager of the department for executive education at Bertelsmann AG in the last two years, he developed the revolutionary new concept of the "Bertelsmann Corporate University" for the top-level management of the globally active group.

Acquisition of TREEV, Inc.

CE's acquisition, in a stock-for-stock merger, of TREEV, Inc. (NASDAQ/NMS:TREV), a leading developer and marketer of document management technologies, is reaching its final stages.

CE's registration statement on Form F-4 which registers the up to 6,650,000 ordinary shares that CE will issue in the merger has been declared effective by the U.S. Securities and Exchange Commission, and the related proxy statement/prospectus was mailed to the stockholders of TREEV on November 27, 2000. TREEV has scheduled its stockholders meeting to vote on the acquisition for December 28, 2000.

The TREEV board of directors has unanimously approved the merger agreement and the transactions contemplated by the merger agreement, including the merger, and has recommended that holders of TREEV common shares vote in favor of the adoption of the merger agreement.

As of the time of the acquisition, CE Computer Equipment American Depositary Shares are to be listed on the Nasdaq National Market. The acquisition is expected to close in January 2001, subject to shareholder approval and customary closing conditions.

Bielefeld, November 2000 The Executive Board

Investors are urged to read the registration statement on Form F-4 and other relevant documents filed with the Securities and Exchange Commission (the "SEC") by CE Computer Equipment AG and the Schedule 14A and other relevant documents filed with the SEC by TREEV, Inc. in connection with the merger because they contain important information.

You may read and copy any documents filed by CE Computer Equipment AG and TREEV, Inc. at the SEC's public reference rooms in Washington, D.C., New York, New York and Chicago, Illinois. Please feel free to call the SEC at 1-800-SEC-0330 for further information on the public reference rooms.

You will also be able to obtain free copies of the documents filed with the Commission by TREEV, Inc. at the SEC's website http://www.sec.gov. TREEV investors will also be able to obtain free copies of the documents filed with the SEC by TREEV, Inc. and CE Computer Equipment AG by contacting Investor Relations at TREEV, Inc. at 703/476-2260 or at [e-mail].

This report contains both historical and forward-looking statements. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements.

These forward-looking statements are not based on historical facts, but rather reflect our current expectations concerning future results and events, and generally may be identified by the use of forward-looking words and phrases such as "planning", "expected", "estimate", "should" as well as similar words and phrases.

CE Computer Equipment AG takes no obligation to update or correct forward-looking statements. All statements are subject to various risks and uncertainties as a result of which the actual results could differ materially from the expected results. The forward-looking statements are made only as of the date of this report.

CE Computer Equipment AG, Bielefeld
Consolidated Balance Sheet September 30, 2000 (IAS)

                                   Sept. 30, 2000     Sept. 30, 1999
ASSETS                                        DM                 DM
----------------------------------------------------------------------

A. Fixed assets                    120,135,136.25     49,113,416.95

I. Intangible assets
 1.  Concessions, industrial
      property rights               12,021,006.42      5,654,859.74
 2.  Development costs              12,471,892.52      8,164,755.13
 3.  Goodwill                       63,750,618.48     29,284,442.18
                                   --------------------------------
                                    88,243,517.42     43,104,057.05

II.  Tangible assets
 1.  Real estate                     1,435,079.45      1,295,379.93
 2.  Factory and office
      equipments                     8,851,514.72      4,713,979.97
 3.  Payments on-account
      and construction
      in progress                   12,172,961.45              0.00
                                   --------------------------------
                                    22,459,555.62      6,009,359.90

III.  Financial assets
 1.  Shares                          3,633,774.45              0.00
 2.  Payments on-account             5,798,288.76              0.00
                                   --------------------------------
                                     9,432,063.21              0.00

B. Current assets                  138,154,916.72     95,269,761.69

1. Inventories
 1.  Raw materials,
      consumables and
      supplies                               0.00              0.00
 2.  Work in process                 4,986,694.45      4,850,530.71
 3.  Merchandise                     2,268,326.06      4,464,204.16
 4.  Advance payments                1,214,386.60              0.00
                                   --------------------------------
                                     8,469,407.11      9,314,734.87

II.  Receivables and
      other assets
 1.  Trade receivables              98,832,396.72     52,862,849.41
 2.  Receivables from
      leasing contracts                      0.00     11,815,242.83
 3.  Other assets                   16,184,524.48     13,978,833.79
                                   --------------------------------
                                   115,016,921.20     78,656,926.03

III. Cash in hand,
      bank balances                 14,668,588.41      7,298,100.79

C. Prepaid and deferred items          945,962.98        371,137.35
----------------------------------------------------------------------
                                   259,236,015.95    144,754,315.99
----------------------------------------------------------------------

CE Computer Equipment AG, Bielefeld
Consolidated Balance Sheet September 30, 2000 (IAS)

                                      Sept. 30, 2000    Sept. 30, 1999
Equity and Liabilities                           DM                DM
----------------------------------------------------------------------

A. Shareholder's equity               126,452,900.43    78,366,875.90

     I. Capital subscribed             39,132,588.91     7,543,919.91
    II. Capital reserve                70,016,716.28    63,833,635.28
   III. Profit brought forward         10,437,473.69     3,246,246.08
    IV. Net income for the Group        6,866,121.55     3,743,074.63


B. Minority interest                      467,615.65       115,117.72


C. Provisions on accrued
    liabilities                        24,851,956.47    15,803,368.36

     I. Provisions for pensions         3,655,324.99     3,894,222.00
    II. Provisions for taxes           15,544,645.84     7,988,808.14
   III. Other provisions                5,651,985.64     3,920,338.22

D. Liabilities                        106,935,280.28    50,394,275.45

     I. Liabilities to banks           81,202,670.58    33,478,365.65
    II. Payments received
         on-account of orders           2,582,087.18     1,699,578.20
   III. Trade payables                 14,313,010.76     5,045,770.71
    IV. Liabilities from
         leasing contracts                      0.00     2,080,902.76
     V. Other liabilities               8,837,511.76     8,089,658.13

E. Deferred revenue                       528,263.12        74,678.56

----------------------------------------------------------------------
                                      259,236,015.95   144,754,315.99
----------------------------------------------------------------------

CE Computer Equipment AG, Bielefeld
Consolidated Income Statement Jan. 1 - Sept. 30, 2000 (IAS)

                                       1.1.-30.09.2000 1.1.-30.09.1999
                                                   DM              DM
----------------------------------------------------------------------

1. Sales                                 96,527,301.08   63,338,675.74

2. Increase in work in process           -1,137,781.14      -52,652.50
3. Own work capitalized                   7,938,845.00    5,484,210.35
4. Other operation income                 3,069,206.94    2,813,533.20
    Gross performance                   106,397,571.88   71,583,766.79

5. Cost of materials
    a.) Cost of purchased merchandise     7,279,574.52   11,107,113.81
    b.) Cost of purchased services        7,696,175.51    5,544,047.19
    Gross profit                         91,421,821.85   54,932,605.79

6. Personnel expenses
   a.) Wages and salaries                32,519,336.72   22,053,663.64
   b.) Social security                    5,510,712.72    3,657,041.06
7. Depreciation                          13,180,614.45    5,611,666.31
8. Other operating expenses              26,565,465.05   16,214,441.66
    Operating Result                     13,645,692.91    7,395,793.12

9. Other interest and similar income        877,024.77      753,827.87
10. Interest and similar expenses         2,166,359.85      773,260.36
     Result from ordinary activities     12,356,357.83    7,376,360.63

11. Extraordinary expenses                        0.00            0.00
12. Taxes on income                       5,619,051.76    3,689,235.29
13. Other taxes                              45,936.32       15,120.00
    Net income for the period             6,691,369.75    3,672,005.34

    Minority interest                      -174,751.81      -71,069.28

----------------------------------------------------------------------
    Consolidated Net Income               6,866,121.56    3,743,074.62
----------------------------------------------------------------------

CE Computer Equipment AG, Bielefeld
Group Cash Flow Statement Jan. 1, 2000 - Sept. 30, 2000 (IAS)

                                    1.1.-30.09.2000    1.1.-30.09.1999
                                        Thousand DM        Thousand DM
     -----------------------------------------------------------------

     Net income for the Group                6,691              3,672
 +   Taxes on corporate income and
      business profits                       5,619              3,689
 +   Non-recurrent expenditures                  0                  0
+/-  Net interest                            1,289                 19
 +   Depreciation                           13,181              5,612
+/-  Changes to long-term reserves             295                268

----------------------------------------------------------------------
     Cash flow for the period               27,075             13,260
----------------------------------------------------------------------

+/-  Increase/decrease in
      short-term provisions                  3,540              3,093
+/-  Increase/decrease in inventories,
      trade receivables and other assets   -38,965            -32,576
+/-  Increase/decrease in accounts
      payable and other liabilities          7,674             -3,448
 -   Interest payments                      -2,166               -773
 +   Interest received                         877                754
 -   Taxes                                  -5,619             -3,689

----------------------------------------------------------------------
+/-  Net cash used for operating
      activities                            -7,584            -23,379
----------------------------------------------------------------------

 +   Proceeds from disposal or
      fixed assets                              85                  0
 -   Investment for the acquisition of
      affiliated companies                  -4,271             -2,900
 -   Out-payments for investment in
      tangible and intangible assets       -32,151             -9,864

----------------------------------------------------------------------
+/-  Net cash used for investing
      activities                           -36,337            -12,764
----------------------------------------------------------------------

 +   Income from capital increases          32,695             28,183
 -   Outflows for the repayment of loans         0                  0

----------------------------------------------------------------------
+/-  Net cash provided by
      financing activities                  32,695             28,183
----------------------------------------------------------------------

----------------------------------------------------------------------
 =   Changes in cash and cash equivalents  -11,226             -7,960
----------------------------------------------------------------------

 +   Cash and cash equivalents at the
      beginning of the period               25,720             15,258

----------------------------------------------------------------------
 =   Cash and cash equivalents
      at the end of the period              14,494              7,298
----------------------------------------------------------------------

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