ALTERIAN PLC

Audited Results for the year ended 31 March 2009

Strong performance in line with expectations, enlarged Group well positioned for continuing growth

Alterian plc (“Alterian” or “the Company” or “the Group”), the leading international provider of Integrated Marketing Software, announces its audited preliminary results for the year ended 31 March 2009.

FINANCIAL HIGHLIGHTS

*Adjusted, pre integration costs (£1.7m), amortisation of acquired intangibles (£0.8m), and loss on discontinued operations (£0.3m)

• Revenue up 73% to £33.4m (2008: £19.3m).  At constant exchange rates, revenue increased by 60%
• High gross margin of 87% maintained (2008: 87%)
• Operating costs before integration costs and discontinued business increased by 82% to £23.7m (2008: £13.1m) reflecting the costs acquired with Mediasurface in July 2008 as well as investment in product development and distribution.  These costs include £0.8m amortisation of acquired intangible assets (2008: £0.1m). Cost management remains a priority
• Operating profit before integration costs and discontinued business increased to £5.2m (2008: £3.7m).  Integration costs of £1.7m resulted in reported profit before tax from continuing operations of £3.6m (2008: £4.0m) . Adjusted profit before tax of £6.0m (2008: £4.2m)
• Cash position remains strong at £8.6m (2008: £8.2m) after funding costs and working capital associated with the acquisition of Mediasurface plc
• High customer retention rates and high proportion of revenues expected to recur
• Diluted reported earnings per share 11.2p (2008:10.1p)

OPERATIONAL HIGHLIGHTS

Commenting on trading for the period and outlook, David Eldridge, Alterian Chief Executive Officer said:

“We are pleased with our performance for the year which has seen excellent progress against both our financial and strategic objectives. 

Strong revenue growth of 73% helped to drive profit before tax, integration costs and costs of discontinued business of £5.4m. The integration of Mediasurface plc and a cost efficiency programme were implemented during the year with associated integration costs and costs of discontinued business of £2.0m.  These programmes are now complete and the benefits are being realised as planned.

The growth strategy of broadening our product platform and distribution channels is progressing well. Our software products now span the rapidly growing online space as well as more traditional off-line marketing, which are all driven from Alterian's powerful analytics software.  The integration of online and off-line data and channels, combined with Alterian’s powerful analytics capability, enables organisations to better engage with customers; supporting revenue and client retention. During the year, Alterian expects to capitalise on these strengths with further highly differentiated new product releases that meet our clients’ changing needs.

At the same time, our distribution channels are broadening to include marketing agencies and systems integrators as well as marketing services providers.  Our geographical and market reach has been extended with 25 partners signed in the year, taking the total number of partners to approximately 150.

Alterian’s progress in these areas, together with the strong recurring revenue model, an excellent team, ongoing tight cost control and substantial cash reserves positions the Company well for continuing success.

Since the year end, we have continued to trade in line with our expectations and, whilst continuing to monitor market conditions closely, the Board views the outlook for the year with confidence.“

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About Alterian

Alterian (LSE: ALN) empowers organizations to create relevant, effective and engaging experiences with their audience that help build value and reinforce commitment to their brand, through the use of the Alterian Integrated Marketing Platform. Alterian drives the transformation of marketing and communications, making it practical and cost-effective for companies to orchestrate multichannel engagement with the individual.

Alterian’s unprecedented integration of analytics, content and execution through industry leading tools, such as the Dynamic Messenger email platform and the award winning Content Management solutions, enables companies to build integrated communication strategies which create a true picture of the individual.

Alterian works with marketing services partners, system integrators and agencies who recognize the need to plan and deliver coordinated customer engagement services in partnership with their clients.

For more information about Alterian, products within the Alterian Integrated Marketing Platform or Alterian’s Partner Network, visit ww.alterian.com/ or the Alterian blog at www.this-is-marketing.com/.

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