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FOR IMMEDIATE RELEASE
MICRO FOCUS ANNOUNCES FINANCIAL YEAR-END UPDATE AND ACQUISITION OF ACUCORP INC.
LONDON and ROCKVILLE, Md., May 4, 2007 - Micro Focus International plc ("Micro Focus" or "the Group", LSE: MCRO.L) announces a positive update on trading for the full year to April 30, 2007.
Following a successful end to the financial year, in which a higher than expected number of larger value transactions were closed, Micro Focus expects to report total revenues, including revenues from the HAL Knowledge Solutions acquisition announced on Nov. 3, 2006, of approximately US$170 million (2006: US$143.7 million). Group EBITDA, excluding exceptional items and stock based compensation, for the twelve months to April 30, 2007 is expected to be approximately US$65 million (2006: US$38.8 million).
Further details will be provided in the preliminary results statement for the full year to April 30, 2007 to be announced on June 28, 2007.
Acquisition of Acucorp Inc.
In addition, Micro Focus announces that it has agreed to acquire Acucorp Inc. ("Acucorp") for a total cash consideration of US$40.7 million, paid in full on completion, plus a working capital adjustment capped at a maximum value of US$250,000.
Acucorp's technology is highly complementary to Micro Focus' core business and the acquisition provides the opportunity for Micro Focus to expand its reach into the small and medium-sized enterprise ("SME") market.
In the year to December 2006, Acucorp generated an operating profit of US$3.0 million and its gross assets as at December 31, 2006 were US$13.1 million. Following the acquisition, Micro Focus plans to restructure the business and aims to increase margins over time to a level consistent with Micro Focus' existing business. The consequent restructuring charge is expected to be approximately US$8.0 million in the financial year to April 30, 2008.
"We are encouraged by the progress that we have made across the Group in our first full year of trading under the new management team," said Stephen Kelly, chief executive officer at Micro Focus. "Solid revenue growth, combined with a firm control of expenses, has resulted in a significant increase in profits compared with the prior year period. This performance has exceeded our expectations thanks to better than anticipated closure rates of larger value transactions in the final quarter. We remain firmly focused on sales execution going forward.
"The acquisition of Acucorp is consistent with Micro Focus' strategy of expanding our core areas of expertise. We anticipate that the acquisition of Acucorp will contribute revenues of approximately $17 million in FY2008."
About Micro Focus
Micro Focus, a member of the FTSE 250, provides innovative software that allows companies to dramatically improve the business value of their enterprise applications. Micro Focus Enterprise Application Modernization and Management software enables customers' business applications to respond rapidly to market changes and embrace modern architectures with reduced cost and risk. For additional information please visit www.microfocus.com.
About Acucorp Inc.
Acucorp provides innovative technologies for the modernization and enhancement of business-critical applications. In addition to both modernizing and enhancing existing assets, Acucorp's innovative software solutions provide interoperability and portability to more than 600 different computing platforms. The company, founded in 1988, has headquarters in San Diego, California, regional offices throughout Europe and distributors around the world.
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Micro Focus is a registered trademark of Micro Focus. All other products mentioned in this announcement are trademarks of their respective owners.


