HIGHLIGHTS:

• ARMADA’s revenue climbed 16% year-on-year in the first six months of 2012.
• Headcount remained almost unchanged from January 1.
• The company has no long-term debt.
• Management expects full-year revenue to increase 20%-25% while EBITDA margin is expected to remain at the level of 2011 (when it was equal to 12.2%).

Moscow, September 28, 2012 —ARMADA Group (MICEX-RTS: ARMD) hereby announces preliminary financial results for the first six months of 2012 (the period from January 1 through June 30, 2012).

«The results of the first six months are in line with our expectations. Historically, the group generates more than two thirds of revenue in the second half of the year. We expect ARMADA’s revenue to rise 20%-25% as of the year-end and EBITDA margin to remain on the high level achieved in 2011» said Alexey Kuzovkin, chairman of ARMADA’s board of directors.

¹ Based on IFRS management report from January 1 through June 30 of each year

REVENUE
ARMADA boosted its revenue 16% up to RUB 1.63bn in January-June 2012 compared to the same period of 2011. Of the total amount, revenue from software development and implementation reached RUB 434m, down from RUB 465m in the same period of 2011. Revenue from IT services climbed to RUB 1.197bn, up from RUB 939m in H1 2011.

Revenue in the first half of the year usually accounts for between 25% and 30% of full-year revenue due to the seasonal factor in contracts with Russian ministries, government agencies and state-owned companies. ARMADA expects the current proportion of orders from private and public customers to remain unchanged in 2012.

BUSINESS SEGMENTS
ARMADA’s software development and implementation segment includes custom software development, revenues from the sale of licenses for the company’s own and third party software, implementation and maintenance of software. IT services comprise system integration, IT outsourcing, training and project management.

This year, ARMADA won a tender to develop a software «Automated system for open foreign exchange position management» for Sberbank, created the first stage of a single Internet portal aimed at promoting Russia’s cultural heritage and traditions for the Culture Ministry, commissioned the Unified Interdepartmental Statistical Information System (UniSIS) for the Federal State Statistics Service, developed a Unified Motor Vehicle Safety Inspection Information System for the State Traffic Safety Inspectorate of Russia’s Interior Ministry, and rolled out a system of inter-agency collaboration among Moscow government agencies.
ARMADA was also awarded in 2012 contracts to deploy MEDIALOG medical information system in a number of regions, as part of the healthcare modernization program, completed a project to create a single data base of Russia’s blood service, as part of state voluntary blood donation program, implemented a project to automate the Endocrinology Scientific Center (ESC) of the Russian Healthcare and Social Development Ministry, and carried out other projects.

RATINGS AND AWARDS
ARMADA was ranked among the top five software developers in Russia in 2011 by Russian rating agency Expert RA. Moreover, ARMADA is the only company among the five leading software developers, which is also included in the ranking of system integrators, in which it was assigned 24th position.
ARMADA has carried out a project enabling the State Traffic Safety Inspectorate of the Russian Interior Ministry to provide online registration of vehicles. This project was declared the winner at the annual competition entitled «Top 10 IT Projects for the Public Sector 2012».
ARMADA received a Certificate of Gratitude from the Russian president for the company’s work in creating information systems for government agencies.

STAFF
The group’s headcount remained nearly unchanged from the end of 2011 and stood at 900 employees as of June 30, 2012 compared to 897 as of December 31, 2011. The number of employees was 819 as of June 30, 2011.

CORPORATE MANAGEMENT
Konstantin Nadenenko, a representative of Leader CJSC, which is the trust manager of significant minority stake of ARMADA’s shares, was elected as an independent director of the company’s board of directors at the annual general meeting of shareholders (AGM) held on June 28.

OUTLOOK FOR 2012
ARMADA’s management team in 2012 will endeavor to achieve growth of the company’s revenue at the rate of 20%-25% and maintain the EBITDA margin at the level of 2011 (when it was equal to 12.2%).

ABOUT ARMADA
ARMADA (MICEX-RTS: ARMD) is an innovating Russian IT company with product lines in Software and IT services. For over 15 years we have helped public and commercial organizations deliver better service in Russia. More than 300 federal and regional government bodies, as well as over 1,500 corporates, including 70 companies on the top 100 list of Russian companies are ARMADA’s customers. Website: www.armadaitgroup.com

CONTACTS:
Dmitry Chursin
Head of Investor Relations at ARMADA OAO
Tel: +7 (495) 797-6020
E-mail: IR@armd.ru
Website: www.armadaitgroup.com

DISCLAIMER
Certain statements contained herein may constitute forecasts or other «forward-looking statements» regarding planned events or ARMADA’s future performance. Such forward-looking statements are signaled through the use of such markers as «expected,» «assumed,» «according to forecasts,» «estimated,» «intention,» «will be,» «could be,» «may,» or «likely,» whether in positive or negative form, as well as other similar expressions. There is a whole number of factors that can cause a material difference between the forecasts and forward-looking statements, and the actual results. The company does not plan or undertake publicly to revisit such forward-looking statements in order to bring them up to date with the events or circumstances that occurred after the publication hereof or to take into account unpredictable events.