Operational Highlights:

• Successful integration of TRADOS acquisition ahead of schedule. TRADOS was acquired in July 2005 for £35.0 million and leaves SDL well positioned to be the leader in Global Information Management
• Gross margins increased from 41% in 2004 to 47% in 2005
• Significant 2005 new business wins – AMD, Best Buy, Chrysler Group, Emerson, France Telecom, GSK, Honda, Le Meridien, Regus, Siemens Medical, SMS Demag, TI and many more

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

"Our growth drivers remain compelling.  International businesses are facing burgeoning demand from both within their businesses and externally from customers and other stakeholders, to provide multilingual content.  It is clear from our customers' experience that satisfying this demand generates considerable value in terms of return on investment. Having made this initial investment corporations then need cost effective and efficient software systems and services, in order to maintain and improve this content on an ongoing basis. 

Following many years of investment and the recent acquisition of TRADOS, SDL is ideally positioned to help businesses, large and small, to create real value through effective Global Information Management.  We therefore remain excited about the future prospects for the business."

For further information please contact:

SDL plc 
Mark Lancaster, Chief Executive 
On 22 February 2006
Tel: 020 7831 3113
Thereafter Tel: 01628 410 127
 
Financial Dynamics 
Edward Bridges/Juliet Clarke 
Tel: 020 7831 3113

Background information