Prime Investment, one of the leading investment banking companies in the Baltics, has issued semi annual report Baltic ICT Market News. The report highlights important corporate and M&A events of the Baltic ICT market and provides proprietary ratings of the leading Baltic IT service companies.

According to Prime Investment, IT service revenues of Prime TOP-20 companies have declined by 4,7% in the first half of 2009 as compared to the same period in 2008. Total income of the rated companies decreased by 21%.

Part of the companies sustained their growth by expanding product range or establishing themselves in the new markets, meanwhile others did not reach 2008 sales volumes because of IT budget cuts in state institutions and private companies. Overall 11 companies, included in the rating, had negative dynamics in IT service revenues and 9 managed to maintain growth. IT services market leaders (in terms of sales) on average underperformed smaller rivals as drop in sales of top 10 companies in the ranking amounted to 7,1%, while the decrease in sales of 10 smaller companies was only  2,3%.

The top position among the Baltic IT service providers is once again maintained by Exigen Services whose turnover from IT services stood at EUR 9.882 mln. Webmedia earned EUR 7.149 mln and moved to 2nd position. Alna group descended to 3rd place with EUR 7.096 mln in IT service revenues

The fastest growth was performed by Nexum IT, Santa Monika Networks and Etronika - 24,9%, 24,8% and 19,7% accordingly.

Despite economic slowdown and severe drops in stock markets and valuations, the number of M&A deals in ICT sector remained notable, as some market players used the situation to consolidate their presence on markets and strengthen core focus. 13 deals were closed in the first half of 2009 - the same number as in the whole 2008.

The ratings that are being compiled since 2001 are based on revenues from in-house developed IT services and value-adding efficiency. The ranking does not include any sales of hardware, distribution of software other than developed in-house, office equipment or other products.

Next issue of Baltic ICT Market News, containing annual results for 2009, will be published in July 2009.

For more information please contact:

Ms Justė Pačkauskaitė

juste@primeinvestment.lt

Mobile: +370 618 24729

* ICT – information and communication technology