RS2 Software plc - Interim Directors’ Statement

On 16 May 2011 RS2 Software plc published its Interim Directors’ Statement covering the first three months of 2011. The IT Group stated that following the positive results for 2010, RS2 continued to reap the benefits of its investments in the United States and Philippines. During the first quarter of 2011 the company concluded contracts with new clients in each of these regions further increasing its client base and extending its global footprint. RS2 reassured investors that with these new contracts, its targets in terms of new licences for 2011 have already been met. Meanwhile, the company continues to work hard to attain further new business. RS2 stated that it continues to concentrate on providing the best service to its existing clients particularly in Europe and the Middle East.

The Directors explained that the company now has clients in 28 countries servicing banks and institutions in all regions of the world. Rs2 reported that each new client brings on board its particular requirements, depending on its business model, the region of the world it operates in and the legal framework which regulates it. The Directors stated that this is especially true with clients in countries or regions which are new for RS2 as is the case with the new clients achieved so far this year. RS2 stated that working with new and existing clients allows it to continue enhancing the BANKWORKS product, ensuring that it remains at the forefront and continually complying with industry standards.

The Directors also stated that they expect 2011 to continue building on the success of the past years, particularly that of 2010. RS2 provides services to banks, service providers and other financial institutions that are critical to their operations. During the downturn in 2009 RS2 believed that the slowdown in requests for services was a reflection of delays in spending by clients, but not of cancellations of business. They explained that the improvements seen since the second half of 2010 to date support this assessment and they look to 2011 with optimism.

The Directors concluded by stating that construction on the new premises in Mosta commenced in January 2011 and is progressing on schedule with completion targeted for the third quarter of 2012. These new premises will provide the much needed space and infrastructure to support the expected growth of the Company.