Datalex Plc Announces Interim Results For the Six Months Ended 30 June 2006.

DUBLIN, Ireland -- Datalex Plc (ISE: DLE)(OTC: DLEXY) today announced its interim results for the six months ended 30 June 2006

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Financial & Operational Highlights:

Profitability

The profit for the period amounted to $1.6 million ($1.0 million for H1 2005) giving a profit per ordinary share of $0.02 ($0.02 per share for H1 2005).

Revenues and Costs

Total revenues in the period were $12.4m ($14.4m in H1 2005).In line with expectations E-Business revenue reduced to $8.9 million ($11.5 million in H1 2005). The reduction in E-Business revenue was primarily due to our migration towards the transactional model which forfeits short term license revenue for potentially longer term earnings. TPF consulting revenue increased to $3.5 million ($2.9 million in H1 2005) due to an upturn in this market and tighter integration with the rest of the business.

The gross margin declined to 26.6% in H1 2006 from 39.4% in H1 2005. This was due to the predicted decline in E-business revenue and lower margins earned on the increased TPF consulting revenue coupled with an increased cost of sale. Operating costs reduced to $3.2 million from $4.8 million in H1 2005. This is primarily due to the increased capitalisation of development expenditure of $2.4 million ($1.1 million H1 2005). This additional expenditure reflects the group's ongoing investment in product development as we focus on accelerating the release of our Product Roadmap.

Commenting on the 2006 first half results, Cormac Whelan, Datalex CEO said:

"We have made considerable investment in the airline functionality of our product suite over the last eighteen months and are expanding our development to productise our 'leisure' based solutions. This focuses our efforts on expanding our functionality in the dynamic packaging and hosted price and inventory areas. As airlines and travel companies become more strategic about developing alternative distribution and revenue channels this becomes an important part of their infrastructure.

We continue to be successful in closing transaction revenue contracts but as noted previously these do not add to revenue in the short term. A number of significant customers are expected to 'go live' on the transaction based model in Q3 and Q4 2006."

About Datalex

Datalex is a leading provider of travel distribution software and solutions which enable global travel industry suppliers and distributors to deliver increased content and choice to their customers across multiple sales channels, and to dynamically package and price multiple travel products and services while saving on distribution costs. Datalex's customers represent the elite of the travel industry and include: Aer Lingus, ATA Airlines, Best Western International, Emirates Airline, Galileo, Japan Travel Bureau, KLM, Malaysia Airlines, Liberty Travel, GO GO Vacations, Saudi Arabian Airlines, Singapore Airlines, SNCF, SAS Airlines; South African Airways, STA Travel, Thomas Cook, Trailfinders, Transavia Airlines, Virgin Atlantic Airlines, Vail Resorts Inc, United Airlines.

Founded in 1985, the company is headquartered in Dublin, Ireland, and maintains offices across Europe, the USA and Asia-Pacific. Datalex is a publicly held company traded on the Irish Stock Exchange (symbol: DLE, and also OTC: DLEXY). For more information, please visit the company's Web site at www.datalex.com.

This press release contains certain forward-looking statements. Actual results may differ materially from those projected or implied in such forward-looking statements. Such forward-looking information involves risks and uncertainties that could significantly affect expected results.