ITO Intechnology

RNS Number:7652H
InTechnology PLC
31 July 2001

31 July 2001

InTechnology

AGM Statement

At the AGM of premier data storage specialist InTechnology, Chairman Lord
Parkinson made the following statement to shareholders:

"InTechnology has an established position in the data storage marketplace, an
exceptionally skilled workforce, a management team with an 18 year track
record of success and a strong set of new products and services.

The company's strategy is to build on its firm base as a centre of excellence
in data technology services, to bring to market a new generation of products
which are already demonstrating the potential to become industry standards.

Supported by partnerships with the major IT vendors and with the reseller
channel, InTechnology has been able to move rapidly to build turnover of its
new and established products. Currently the company has 40 signed contracts
for online data services, with 30 operational and a further 10 in the
installation process.

The recently announced sales and marketing partnership with Compaq, gives
access to Compaq's huge customer base and sales force, and should ensure the
rapid adoption of VBAK, InTechnology's revolutionary backup and restore
service. Significant sales opportunities are already materialising.

Our maiden results to 31 March 2001 beat expectations with a 60% increase in
turnover and 39% increase in underlying profits.

Group turnover in the first quarter of this financial year was up 8% on the
same period last year, with revenue in the established SSS Division up nearly
6%, a robust performance given current market conditions.

We have utilised part of the funds raised in July 2000 to develop operations
in Europe. Our newly formed subsidiary, InTechnology AG, has a sales office
and a data centre in Munich, and has already commenced installations of VBAK
in the German marketplace. Future potential partnership arrangements in France
and Italy are also being explored.

Analysts forecast continued growth in the market for data storage products and
services and our Online Data Services will benefit from this predicted growth.

We have recently launched two new services to join VBAK in the Online Data
Services family: VBAK Plus and Managed Storage Utilities.

VBAK Plus is an extension to VBAK and opens up the UNIX market, handling in
excess of 1TB of data with an average contract size of #10k per month,
compared to the VBAK average contract size of #3.25k per month. Both services
generate recurring revenues for the future, with a minimum contract period of
three years.

The first products in the Managed Storage Utilities suite are based around
real time data replication, from the customer's site to one of our secure data
centres. Other products in the pipeline will allow remote management of
Storage Area Networks, a real growth area in data storage. Managed Storage
Utilities offers an exciting opportunity for revenue generation, with average
three year contracts being worth in the region of #50k per month.

In sales of these new products and services, as in the more traditional areas
of data storage, InTechnology's technical authority is of key importance,
commanding the confidence of customers, securing sales successes and building
shareholder value.

From these secure foundations and achievements, I look ahead to a period of
further rapid growth for InTechnology."

The Rt. Hon. Lord Parkinson
Non-Executive Chairman
InTechnology plc

For further details please contact:

Peter Wilkinson, Chief Executive
01423 850 000

Ann-marie Wilkinson / Susan Frost, Beattie Financial     020 7398 3300

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