TRADING STATEMENT (UNAUDITED)

Misys Returns to Growth

Misys plc (FTSE: MSY.L), the global application software and services company, today, 18 June 2008, issues an unaudited trading statement for the year ended 31 May 2008.  Audited results for Misys plc will be announced in late July 2008.

This announcement includes statements that are, or may be deemed to be, "forward-looking statements". These forward-looking statements can be identified by the use of forward-looking terminology, including inter alia the terms "believes", "plans", "expects", "may", "will", or "should" or, in each case, their negative or other variations or comparable terminology.

These forward-looking statements include matters that are not historical facts and include statements regarding the Company's intentions, beliefs or current expectations concerning, among other things, the Company's results of operations, financial condition, liquidity, prospects, growth, strategies, the outlook for relevant markets and the proposed Transaction. By their nature, forward-looking statements involve risk and uncertainty because they relate to future events and circumstances. A number of factors could cause actual results and developments to differ materially from those expressed or implied by the forward-looking statements. Forward-looking statements may and often do differ materially from actual results. Any forward-looking statements in this announcement reflect the Company's view with respect to future events as at the date of this announcement and are subject to risks relating to future events and other risks, uncertainties and assumptions relating to the Company's operations, results of operations, growth strategy and liquidity.

Save as required by relevant law or regulation, the Company undertakes no obligation publicly to release the results of any revisions to any forward-looking statements in this announcement that may occur due to any change in its expectations or to reflect events or circumstances after the date of this announcement. Information in this announcement should not be relied upon as a guide to future performance.

PERFORMANCE HIGHLIGHTS

•  Misys returns to full year growth with group revenues up approximately 6%¹
• Total Order Intake² expected to be up approximately 8% to about £261m; with approximately 8% increase for Banking; 16% for Treasury & Capital Markets (TCM); 3% for Healthcare and 16% for Global Services
• Operating Profit³ expected to increase by approximately 36%
• Operating margin³ expected to increase by approximately 300 basis points
• Adjusted basic earnings per share from continuing operations⁴ expected  to be in the range of 11.6p to 12.6p (2007: 7.5p)
• Proposed merger of Misys Healthcare with Allscripts Healthcare Solutions on track
• Completion of phase one of the Misys turnaround strategy ahead of planned timetable, with the focus now on building a growth platform

• Total Order Intake² increased approximately 8% to about £261m
  • ILF increased approximately 4% with our new ASP product MyWay in its first year of availability
  • Global Services increased approximately 16% and Transaction Processing increased approximately 6%

• Revenues¹ grew approximately 6%:
  • ILF grew approximately 3%
  • Global Services grew approximately 19%
  • Maintenance grew approximately 5%
  • Transaction Processing grew approximately 4%
• Operating margin³ increased approximately 300 basis points to about 16%

This statement confirms that the Misys turnaround strategy is progressing in line with expectations and is being executed across the business ahead of the original timetable.

Banking

• Total Order Intake² up approximately 8% to about £83m;
  • ILF up approximately 5%; to about £46m;
  • Global Services up approximately 13%; to about £37m;
• Revenues¹ grew approximately 5%:
  • ILF down approximately 1%;
  • Global Services up approximately 19%;
  • Maintenance up approximately 3%
• Operating margin³ was flat at about 12%

• Total Order Intake² up approximately 16%; to about £73m;
  • ILF up approximately 4%; approximately £42m;
  • Global Services up approximately 36%; to about £31m;
• Revenues¹ grew approximately 13%
  • ILF grew approximately 12%
  • Global Services grew approximately 41%
  • Maintenance grew approximately 7% 
• Operating margin³ was down approximately 100 basis points to 22%. This is in line with management expectations reflecting investments made in product development as well as sales and services personnel 

Our market leading TCM products have enabled us to win 18 new name customers in a strong global market, with new names in China and India. TCM generated a greater percentage of revenues from existing clients compared with the prior two years. TCM saw many clients upgrading releases and purchasing additional modules and users. This year TCM established a hosted version of Summit for North America as an extension of previously announced European offerings, and now has several new name clients for this ASP product. 

Healthcare

• Total Order Intake²  increased by approximately 3%; to about £105m;
  • ILF was up 1% to about £26m, including ASP of approximately £5m;(MyWay customers represent a shift from on-premise to hosted software solutions)
  • Global Services down approximately 5%; to about £15m;
  • Transaction Processing up approximately 6%; to about £64m;
• Revenues¹ grew approximately 2%, impacted by
  • Decreases of approximately 4% in ILF and 8% Global Services
  • Increases of approximately 6% in Maintenance and 5% in Transaction Processing
• Operating margin³ increased approximately 900 basis points to about 20%

The past year saw Misys Healthcare stabilise its business. It refocused on meeting customer needs in the ambulatory market and on connecting all venues of care. Upon closing, the merger with Allscripts is intended to develop our enlarged Healthcare business into a market leader able to take advantage of the benefits of growth in Electronic Medical Records adoption. We expect to recognise significant cost synergies by leveraging our respective infrastructures as well as revenue synergies by cross-selling existing products from both companies into our respective installed bases.

These results surpassed management expectations despite the disruption of the Allscripts merger. Operating margin increased approximately 900 basis points to approximately 20%, demonstrating the results achieved by new management, specific cost actions including the delay of certain investments in development in anticipation of the merger, and organisational alignment initiatives taken during the year. The ILF revenue decrease and the decrease in Global Services order intake was the primary driver of the decreased Global Services revenue. Maintenance revenue growth indicates sustained customer loyalty and we continue to see the benefits of the Payerpath acquisition with the growth in Transaction Processing revenues.  

Global Services

• Total Order Intake² increased approximately 16% to about £83m;
  • Total Order Intake increased by approximately 13% for Banking and 36% for TCM
  • Total Order Intake decreased by approximately 5% in Healthcare
• Revenues¹ grew approximately 19%
  • Revenues for Banking increased by approximately 19% and for TCM by approximately 41%
  • Revenues for Healthcare decreased by approximately 8%

An important priority for Global Services is the development of high quality support centres in low cost environments to improve the quality of service it offers customers. Our new Global Healthcare Support Centre went live in Manila. This facility is also equipped to support a number of Banking and TCM solutions.

Foreign exchange

Retranslating the results for 2007 using the average exchange rates for 2008 decreases 2007 revenues by approximately £5m and operating profit by approximately £1m and this is reflected in the like for like comparative results. The most significant impact is from the movement in the US dollar and the Euro, where the average exchange rate in 2008 was US$2.00:£1 and €1.38:£1 compared to US$1.92:£1 and €1.48 in 2007. As at 31 May 2008 the exchange rates were US$1.98:£1 and €1.27:£1.

A conference call for analysts and investors will be held at 10am today.
To access this call please dial +44 (0)1452 542 400

For further information please contact:

ABOUT MISYS PLC
Misys plc (FTSE: MSY.L), provides integrated, comprehensive solutions that deliver significant results to organisations in the financial services and healthcare industries.  We maximise value for our customers by combining our deep knowledge of their business with our commitment to their success.

Misys: Experience, Solutions, Results