SDL plc (“SDL” or “the Group”), the world’s leading provider of translation services and technology solutions, is pleased to announce its interim results for the six months ended 30 June 2004.

 Highlights:

• Operating profit before goodwill and intangible asset amortisation increased by 42% to £2.1 million (H1 2003: £1.5 million)
• Turnover at £30.7 million, up 4% at constant exchange rates
• Net funds of £7.7 million (H1 2003: £4.6 million)
• Basic earnings per share before goodwill and intangible asset amortisation of 2.98 pence (increase of 83%)
• Knowledge-based Translation System launched in April 2004 – major contracts with Case New Holland and Best Western hotel group
  
  

Commenting on these results, Mark Lancaster, Chief Executive, said today:

“For the first half of 2004 profits before goodwill, intangibles amortisation and tax have increased by 42%, we believe this to be a strong result for the Group.  With a significant proportion of our revenues being generated in the US, Group turnover has remained flat but is ahead 4% at constant exchange rates.  More importantly however, we have continued to drive the operating performance of the business forward strongly.

Following the successful launch of SDL’s Knowledge-based Translation System (KbTS), allowing companies to lower significantly the cost of translation, SDL has used KbTS extensively for delivering translation services to Case New Holland. More recently KbTS was instrumental in SDL winning a significant contract with the Best Western hotel group. This latter project would not have been feasible for Best Western under conventional localization processes.

The changes we predicted in the market are starting to emerge. The larger customers for translation are continuing to consolidate vendors and are seeking complete and secure translation solutions that reduce cost. We are starting to see the benefits of our long term investments in local geographic infrastructure and software solutions provide a stable profit contribution for the Group. In the latter months of 2004 we expect to see closure on some of the large strategic opportunities we have been working on, coupled with a continued increase in standalone software solutions sales.

We expect 2005 to be a landmark year for SDL as our investments in software solutions and infrastructure begin to generate significant competitive advantages over the competition by reducing costs and providing more effective tailored solutions to the customer.”

For further information please contact:

SDL plc                                                               On 7 September 2004 tel: 020 7831 3113        
                                                                                             Thereafter tel: 01628 410 127
Mark Lancaster, Chairman and Chief Executive

Financial Dynamics                                                                            Tel: 020 7831 3113
Edward Bridges/Ben Way