Scala Maintains Strong Presence in the Baltics

IDC states Scalas Baltic market share is double that of SAP

3 October 2002: Analyst group, IDC, has cited Scala as having a 15% share of the enterprise application systems (EAS) market across the Baltic countries of Estonia, Latvia and Lithuania. This is almost double the market share of SAP, which stands at 8%, and adds weight to Scalas case that businesses are demanding cost-effective global systems that can handle their local needs as well as the complexities of international business.

In 2001 IDC estimates that the Baltic EAS market stood at $14.03 million, and that this will expand by a compound annual growth rate of 14% over the next five years. This gives Scala a healthy market share that it plans to exploit, furthering its penetration into the region.

Once again, Scala has proven its business expertise by judging where a market will show substantial growth and we have established ourselves in these areas ahead of vendors such as SAP," says Mike Burdett, Scalas Chief Executive Officer. The bulk of business in the Baltics consists of mid-market players, and providing the right solution to this market is exactly where our strengths lie. Our strategy is that once we are established in one subsidiary or mid-market company, we have easy access to their head office and trading partners. Our international credentials allow us to win contracts for further implementation across other subsidiaries and throughout the supply chain."

Currently, 27% of Baltic businesses use smaller, local IT systems and Scala views this as a further 27% of the market share to be won. Scala sells its software on the basis that it can support local legislation worldwide, having the ability to operate at a local level and the potential to support customers as they expand into foreign territories.

Burdett continues, The mid-market does not need large complex systems. Scalas low total cost of ownership, multilingual capabilities, and legislative support mean that its software is the preferred choice for companies requiring a system that will do everything they need, without having to pay for unnecessary functionality that it knows it will never use. All these businesses want to know is that the software can handle all their demands and is based on technology that will take them forward as they grow the business and develop their collaborative strategies."

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Notes to Editors

About Scala Business Solutions
Scala Business Solutions creates collaborative ERP software -- integrating Internet technology and traditional ERP functionality -- to make global business simple. With Scala, global companies can fully integrate all their ERP systems anywhere in the world, whether in a subsidiary, division or headquarters, and extending to their partners and suppliers. Scalas collaborative ERP software makes it possible for global companies to meet the requirements for advanced e-business as well as use a standard ERP product for managing traditional business processes. This enables them to gain measurable benefits from trading electronically, building a private exchange or global portal, or optimising the supply chain.
From offices in Europe, North America and the Far East, and through its network of partners and dealers, Scala delivers software and services that are available in over 30 languages in more than 140 countries.

Scala is listed on the Euronext Amsterdam Stock Exchange (symbol: SCALA). 2001 revenue was US$70.6 million (€79.1 million).
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