Highlights:

• Turnover up 72% to £58.0m (2001: £33.7m). Organic growth continues.

• EBITDA profit of £3.0m (2001: loss of £1.4m) including software development costs of £3.0m (2001: £3.2m), which are written off as incurred

• Pre tax profit (before amortisation of goodwill and intangibles) of £1.2m (2001: loss of £2.0m)

• Loss per share of 7.10p per share (2001: loss of 11.56p per share)

• Gross margin at 44% (2001: 46%) reflecting the effects of the acquisition and difficult market conditions during the period

• Acquisition of Alpnet, Inc. ("Alpnet") for £4.7m, plus assumed debt of £7.2m, consolidating SDL’s position as one of the world’s largest globalization and localisation companies.

• Restructuring of Alpnet achieved ahead of schedule and at less cost than planned

• Cash at year-end was £6.7m (2001: £9.0m)

• Net funds of £4.6m (2001: £9.0m)

• Net debt assumed at Alpnet acquisition reduced from £7.2m to £2.1m

Commenting on the preliminary results Mark Lancaster, Chairman and Chief Executive of SDL, said:

"2002 has proved to be a challenging year for all SDL’s markets, but in spite of these difficulties the Group has demonstrated yet another year of progress through organic and acquisition lead growth. Following the acquisition of Alpnet in January last year, SDL is now a world-wide leader in fully integrated multilingual-enabling technology."