B2B Integration software company TIE Holding N.V. ("TIE") listed on the EuroNext Amsterdam Stock Exchange hereby publishes its results for the first quarter of the financial year 2004 (October 1, 2003 - September 30, 2004). The net result for the quarter was EUR 122.000, constituting the first positive net result since the IPO in March 2000. In the same period last year, the result was EUR 1.2 million negative. Management reconfirms its statement that TIE will be able to achieve net profitability for the current financial year.

First quarter results
The net result per share for the quarter was EUR 0.01 (2003: EUR -0.07). Revenue for the first quarter in 2004 was EUR 2.1 million (2003: EUR 3.3 million). Net revenue compared with the previous quarter was marginally lower, reflecting that TIE Belgium was only consolidated for the month of October, following its sale to Porthus NV in November 2003. This transaction generated extraordinary income of EUR 0.5 million.

Operating costs in the first quarter were EUR 1.7 million (2003: EUR 3.1 million) compared to EUR 2.6 million in the previous quarter, which shows the positive impact of the reorganization that took place at the beginning of the quarter.

Equity & Financial position
The audit for the financial year 2003 is currently underway. In this context, and following review of TIE Commerce Inc, a number of provisions have been made additionally for the rent of unused office space in the USA, sales tax and accounts receivable. This requires TIE to report that shareholders equity at year-end was EUR -8.5 million rather than EUR -7.5 million as previously stated. Shareholders equity improved in the first quarter by EUR 0.9 million and is now at EUR -7.6 million. This improvement reflects the positive net result and the placement of shares that occurred in the first quarter. TIE's liability position has improved, with current liabilities reduced by EUR 1.8 million and long term liabilities by EUR 0.4 million from EUR 3.5 million to EUR 3.1 million. TIE will seek to reduce its borrowings through additional direct capital placements, or via convertible bonds. The repayment of long-term liabilities is viewed by TIE's management as a priority and discussions on this issue with the lenders are underway. The company's cash balance amounted to EUR 233.000 million following the receipt of proceeds of several direct and indirect stock placements. The funds so generated have partly been used to reduce the company's short-term debts, whilst the balance is available as working capital.

Annual Shareholders Meeting
TIE will publish its annual report for the financial year 2003 at the end of February. The Annual Shareholders meeting will be held on Wednesday March 17, 2004 at 15:00h at the company offices. The meeting which was foreseen for February 25th has been deferred, to enable the annual report to include TIE's reponse to the recently published guidelines for corporate governance by the Tabaksblat commission.

Dick Raman, CEO of TIE commented: "In September 2003 we set a target to put TIE back on its feet and produce a net positive result. We have achieved this in the first quarter. We can see interest in TIE building up which should enable us to see our revenue increase as market circumstances improve."