Changed margin forecast for 2007


Changed margin forecast for 2007

IBS will not reach its margin forecast for full-year 2007. The revision is based
on an assessment made by the Board of Directors and management of the effects of
increased costs combined with lower license revenue during the first five months
of the year, compared with the year-earlier period.

During the first five months of the year, IBS' costs were higher than planned.
The cost deviations were mainly related to personnel. Planned restructuring
measures, pertaining mainly to a consolidation of offices and off-shoring of
parts of customer related programming and product development, have been
implemented at a lower-than-expected pace, which means that the favorable
effects on costs of such actions will not impact on earnings for 2007 to the
extent required to achieve the previously announced earnings forecast of an
operating margin of approximately 7% for the full-year 2007. 

The Board of Directors and management will during the following weeks analyze
and plan possible measures to accelerate the restructuring program further. The
conclusions of this work will be presented in the interim report for the period
January-June that will be published on July 19, 2007. 

IBS' long-term financial objective of an operating margin of at least 10% stands
firm. 



For further information, please contact:

Erik Heilborn, President and Chief Executive Officer, IBS AB
Mobile: +46 (0)70 242 52 30 

John Womack, Senior Vice President Communications and IR, IBS AB
Tel: +46 (0)8 627 24 99
Mobile: +46 (0)70 678 24 99











IBS AB, (XSSE: IBS B) is a world-leading provider of supply chain management
solutions for distribution, demand-driven manufacturing, financials and business
intelligence with group revenue of EUR 255 m. IBS' primary focus is large and
mid-sized distributors as well as sales and manufacturing companies in
international groups http://www.ibs.net

Attachments

06252005.pdf