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9-MONTHLY-REPORTP&I PERSONAL & INFORMATIK AG1 APRIL2007 – 31 DECEMBER 2007

NEW OPPORTUNITIES

Dear shareholders,Dear friends and partners of P&I,

After our extremely successful first half year, wecan now look back on a third quarter where wecontinued to prosper. The first nine monthshave produced a double digit rate of growth inLicensing sales, accounting for the exceptionalgrowth we have seen in sales and results alike.

In the first three quarters, Licensing sales rea-ched 12.6 million euros, 4.3 million eurosabove last year's level, representing an increase of53 per cent. Total sales rose by 6.2 million eurosto 44.3 million euros, corresponding to anincrease of 16.4%. The operating result (EBIT)has risen by 29.3% to 10.3 million euros.

These figures are all the more satisfying, giventhat in our business the third quarter is particu-larly tough going. In this quarter, all the changesin legislation for 2008 have had to be incorpora-ted into 11 software localisations, without being

compensated by extra revenue. This is work which we are bound to carry out forour customers under existing maintenance contracts. On the other hand, in hugedemand were the range of end-of-year seminars we offered, informing clients of thechanges coming into effect at the beginning of the new year and their implicationsfor our software. Over 1400 customers attended our series of seminars this year.

As a result, the contribution to sales from our Consulting division was high despi-te a December relatively meagre in working days. Also, at this time of year, the con-sultants have very full schedules, striving as they do to ensure that our new custo-mers can go 'live' with their new payroll systems by the first of January.

At this point, I would like to highlight two projects which play a crucial role, dueto their size, and, in particular, their strategic significance for P&I.

The first of these is our collaboration with ADP, the globally active HR serviceprovider. ADP has f lourished internationally with its computer centres, alsoowning the rights to PAISY, a leading system in Germany. For us, it follows thatpartnership with ADP not only means more licences for P&I LOGA in computercentres, but also points to business potential in the future provision of a successor toPAISY, now no longer in its prime.

In addition, we are extending our partnership with ADP to reach beyond the pri-vate sector into the public administration sector. In January 2008, the first projectsjointly acquired with ADP got underway. With ADP's massive distributive strengt-hs and large market share, we expect excellent growth rates in Licensing sales.

Secondly, let us also look at our partnership with LogicaCMG. While our coopera-tion with ADP lays emphasis on joint acquisition of customers, here the focus is onthe migration of 600 existing customers to P&I LOGA. For this purpose, our taskwas to develop a tool to enable migration, the transfer of customer data bases intothe P&I LOGA configuration. In order for the transfer of data from 600 customers

9-Monthly Report P&I AG | Foreword from the Board of Directors

to be economic, we require migration processes to be as near to fully automated aspossible. With the decision to use P&I LOGA made, the success of the partnershipproject now depends, finally, on the effectiveness of our migration tool. At present,this is undergoing testing in cooperation with LogicaCMG. The first customers areexpected to be able to start using P&I LOGA in February, after deployment of themigration tool in the so-called setup run.

The ADP and LogicaCMG partnerships are central factors in the achievement ofextra-ordinary growth for P&I AG. With a successful outcome for both projects,our Licensing sales will reap the benefits of these two powerful, internationallyactive sales organisations.

Collaboration with such powerful entities significantly increases the share of salesgenerated through partners. At the same time, we are boosting our own distributi-ve strength in direct sales. In the third quarter, we successfully implemented thenecessary organisational restructuring measures. Now, P&I's direct sales are dividedinto only two areas: the public administration sector and private sector Europe-wide.

What I have said should convince you that P&I AG is well placed to attain a sustai-ned growth rate of 10% in sales. We remain confident that our targets for the cur-rent fiscal year will be realised. Already, we see greater potential for a higher level ofprofitability.

We believe that P&I AG continues to constitute an enterprise whose shareholderscan look with assurance to the future.

Yours

Vasilios TriadisP&I AGCEO / Executive Chairman

9-Monthly Report P&I AG | Foreword from the Board of Directors

9-Monthly Report P&I AG | Highlights

Key figures acc. to IFRS 31.12.2007 31.12.2006 Change Change

in ‘000 euros Percent

Group sales 44,310 38,071 6,239 16.4%

Earnings before

depreciation

(EBITDA) 12,933 10,457 2,476 23.7%

Earnings before

interest and taxes (EBIT) 10,331 7,992 2,339 29.3%

Group result

(DVFA/SG) 7,456 5,298 2,158 40.7%

Number of Employees

(average) 288 270 18 6.7%

Earning per share

(DVFA/SG) € 0,97 € 0,69 € 0,28 40.6%

Highlights

P&I confirms growth path: Profits rise with growth in sales

in nine-month result for 2007/2008

Rising sales and profits again characterise business development for P&I inthe third quarter. Total sales for the first nine months of the fiscal yearamounted to 44.3 million euros, representing growth of 16.1 % compared withthe same period in the previous year. The operating result (EBIT) rose by 2.3million euros to 10.3 million euros. The EBIT margin rose from 21.0% to 23.3%

ADP extends partnership with P&I to include the public administration

market segment.

The partnership between the two companies has kicked off to a successfulstart and met with very positive resonance on the market. Aside from payrollaccounting, the first customers are taking advantage of services like HR man-agement, time management and travel expense accounting. ADP perceives arising demand in the public administration sector for these services.

HR software of tomorrow: P&I kicks off pilot customer project

The scope of HR management requirements is going to expand significantlyin the next few years. The significance of human resources for strategic deci-sions is well known. This means that the HR departments will need supportthrough integrated HR software: software which, on the basis of humanresources key data on the one hand and an overview of the qualifications andqualities of employees - in other words, the so-called "human capital", on theother - can call up business scenarios at the touch of a button.

9-Monthly Report P&I AG | Interim management report

Orders and SalesAfter 15.7 million euros in the first quarter (previous year: 11.6 million euros) and14.3 million euros in the second quarter (previous year: 12.5 million euros) sales inthe third quarter also amounted to 14.3 million euros (previous year: 14.0 millioneuros) Sales of 44.3 million euros for the nine months represented an increase of6.2 million euros or 16.4 % over the comparable period year-on-year.

Orders on hand for the next twelve months, amount to 33.3 million euros as at31 December, 2007. Of these, 21.9 million euros (previous year: 21.4 million euros)attributable to maintenance business.

Segment ResultsSales increased in all business areas in the first three quarters of fiscal 2007/2008.The greatest increase occurred in Licensing sales.

Compared with the same period in the previous year, Licensing sales increased to12.6 million euros, respectively an improvement of 4.3 million euros (52.7 %).This successful development is particularly a result of sales from a major long-termproject abroad. Licensing sales contribute a share of 28 % of total group sales.

The strongest sales category was the high profit Maintenance business, accountingfor37 % of Group sales. Sales of 16.5 million euros were attained. This represents ayear-on-year increase of 1.3 million euros or 8.3 %.

Sales in the Service division increased by5.0 % or 0.7 million euros. In the Consulting/SI division, P&I has achieved 32 % of its sales, increasing to 14.1 million euros(13.4 million euros in the same period last year).

The geographical segment result for the first quarter is set out as follows:

‘000 euros 1. 4. to 31. 12. 2007 1. 4. to 31. 12. 2006

Sales

Germany 34,088 32,138

International 10,222 5,933

Group 44,310 38,071

EBIT

Germany 6,261 7,229

International 4,070 763

Group 10,331 7,992

Profit situation and cost developmentThe operating result rose by 2.3 million euros to 10.3 million euros. The EBITmargin rose from 21.0 % to 23,3 %.

Operating costs (without depreciation on customer bases) after the first ninemonths of fiscal 2007/2008 amounted to 32.1 million euros compared with28.5 million euros in the comparable period in the previous year. The increase incosts for the P&I Group amounted to 12.3 %, as against a 16.4 % increase in sales.Following the withdrawal of the Carlyle Group, one-off costs of 1,636,000 eurosarose during the past nine months due to early termination of two SAR (StockAppreciation Rights) programmes (previous year: 530,000 euros). The improve-ment seen in EBIT resulted chief ly from growth in sales in the product area.

Research & DevelopmentIn Research and Development, 8.5 million euros have been invested for productimprovement (compared to 7.5 million euros in the comparable period in the pre-vious year), updates for changes in legislation and collective bargaining arrange-ments as well as new technical developments. Contributes 19.2 % of sales (sameperiod last year: 19.7 %). Payroll processes in companies and data processing cen-tres are being speeded up using the newly developed Fast Payroll Server. The time-saving is achieved by “intelligent coaching“ of the most frequently needed data dur-ing processing. P&I LOGA users can profit significantly from the advantages ofshorter processing times. The user-friendly configuration of workf low processesand the user interface have also been focal points in development during the cur-rent fiscal year.

Investment and financial situationAnalysis of the cashf low shows an overall decline in liquid funds of 1.2 millioneuros. If the liquidity rate of the available-for-sale financial assets are included, thedecline amounts to 18.5 million euros. Of this, 7.7 million euros is accounted forby the pay-out of a dividend for fiscal 2006/2007. In addition to tax prepaymentsof 2.4 million euros for the current fiscal year, payments amounting to 3.9 millioneuros were made for tax payable from the past financial years 2005/2006 and2006/2007. Furthermore, the obligations deriving from the SAR programmes wererecognised as expenditure. For major projects, we negotiate longer term paymentdeadlines. This affects licences in particular, which for large corporate clients canonly be economically set for later dates as a rule. Thus receipt of payments is post-poned.

The high cash accrual in investments is attributable to the sale or maturity of stocksand securities to the value of 8.2 million euros. On the other hand, payments of0.9 million euros for the purchase of securities and 0.4 million euros from the pur-chase of tangible and intangible assets were made.

The dividend pay-out of 7.7 million euros led to a cash outf low in financing activ-ities.

With an inventory of 6.2 million euros in cash and financial assets available for sale(24.8 million euros on March 31, 2007), the P&I group enjoys a sound investmentsituation. Liabilities to banks still do not exist.

The total assets for the P&I group amount to 35.4 million euros (March 31, 2007:54.7 million euros). The decrease in total assets amounting to 19.3 million euros isin particular a result of the reduction in liquid assets and financial assets available foramortisation amounting to 18.5 million euros. Due to this and the positive group



result of 7.5 million euros, the equity quota increases from 44.7 % to 69.3 %. Inlong-term investments, the P&I group holds monies to a value of 11.3 million eurosand as a result can record a decrease of 2.6 million euros mainly due to depreciationand amortisation of fixed assets.

The increase in accounts receivable by 2.2 million euros to 17.1 million euros iscaused by these factors: the increase in sales (16.4 %), the increase in sales includeddue to degree of completion and the prolongation of the terms of payment, espe-cially allowed to important customers.

Long-term liabilities fell in the first nine months from 3.9 to 2.1 million euros. Thiswas mainly attributable to the payment of SAR programme obligations followingthe stock transfer. The deferred taxes are caused in the main by an increase in proj-ects handled as “work-in-progress”, which according to the principle of caution inlocal accounts are only accounted for once the project has been completed.

Short-term liabilities have been reduced by 17.6 million euros to 8.8 million euros.This reduction is mainly due to the annulment of maintenance fees delimited in thecalendar year, as well as tax accruals. The tax liabilities of 0.8 million euros includechief ly P&I AG tax accruals for the fiscal years from 2005/2006 to 2007/2008which have been offset against the tax prepayments for these fiscal years.

EmployeesAs at December 31, 2007, P&I employed 300 staff, 249 in Germany and 51 abroad.If part-time jobs are taken proportionally into account, this represents an averageFTE (employment quotient) of 288 in the reporting period, with 239 employed inGermany and 49 abroad.

Chances and RisksThere has been no significant change in the risk profile as outlined in the AnnualReport of December 31, 2007. P&I AG has a company-wide risk-management sys-tem in place to monitor and control manageable risk.

Addendum reportNo significant events occurred after December 31, 2007.

Outlook 2007/2008The result in the third quarter of fiscal 2007/2008 as well as the nine-monthly resultare in line with our expectations of sales and earnings.

Following a strong first quarter in sales and results, in the second quarter P&I wasable to further boost sales comparative to the previous three months. However, dueto the special cost effects of the SAR (Stock Appreciation Rights) schemes (for fur-ther information see "Variable Board of Directors' Remuneration/Share-based pay-ment schemes") it was not possible to maintain the previous year's result in the sec-ond quarter. In the third quarter, P&I achieved a slight increase in turnover year onyear, and through disciplined cost management, expects to be able to pass on theincrease in revenue to EBIT.

Overall, despite the special effects due to the SAR schemes, increases in costs werewell below increases in sales. P&I, with EBIT of 10.3 million euros and an EBITmargin totalling 23.3% is present in the marketplace as an extremely successfulenterprise.

P&I's excellent performance in the first nine months of the current fiscal year isaccountable for by the realisation of licensing sales in one long-term large-scaleproject on the one hand, and the completion of numerous medium-sized andsmaller customer projects on the other.

In addition to new projects in the P&I Plus product segment (the Brandenburgpolice force, among others), or in the international arena, the integrated HR solu-tions with P&I LOGA and P&I HCM (e.g. Julius Blum), P&I's integrated solutionsare in demand both in Germany and abroad.P&I's vision for its growth rests on its continuing success in our established busi-ness. Above and beyond this, new partnerships with large international HR serviceproviders who are focusing increasingly on business process outsourcing (the BPOproviders) and who will opt for P&I's software solutions present further potential forgrowth.

All in all, P&I can restate the forecasts for the whole of 2007/2008: to raise sales byaround 10 % through organic growth and establish the EBIT margin long-termabove the 20 % level.

With its state-of-the-art technology, P&I can service the entire bandwidth of corepersonnel management processes - in Germany and internationally. Parallel to this,P&I offers high-quality services internationally, jointly with leading BPOproviders. The resilient payroll accounting system, P&I LOGA, and the powerfulemployee portal HCM, together with the integrated time management solutionsenable P&I customers to reshape their HR processes and achieve greater efficiency.


9-Monthly Report P&I AG | Consolidated Balance Sheet

Balancing acc. to 31. 12. 2007 31. 3. 2007

IFRS accounting principles not verified verified

Details in ‘000 euros

Assets

Long-term assets

Tangible assets 956 1,050

Customer base 8,264 10,127

Goodwill 762 945

Other intangible assets 871 1,137

Financial assets 23 23

Deferred taxes 437 631

Total Long-term assets 11,313 13,913

Short-term assets

Inventories 156 151

Trade receivables 17,052 14,803

Cash and cash equivalents 5,242 6,472

Available-for-sale financial assets 1,000 18,288

Other Short-term assets 607 1,043

Total Short-term assets 24,057 40,757

Total 35,370 54,670

Balancing acc. to 31. 12. 2007 31. 3. 2007

IFRS accounting principles not verified verified

Details in ‘000 euros

Equity and Liabilities

Shareholders' Equity

Subscribed capital 7,700 7,700

Capital reserve -429 -429

Revenue reserve 17,341 17,586

Other equity -107 - 428

Total Shareholders' Equity 24,505 24,429

Long-term liablities

Deferred taxes 1,816 2,090

Other reserves 100 1,627

Other Long-term liabilities 197 156

Total Long-term liabilities 2,113 3,873

Short-term liabilities

Other Short-term liabilities 5,235 6,386

Trade payables 1,989 1,894

Obligations from taxes on income 742 3,997

Defered sales 786 14,091

Total Short-term liabilities 8,752 26,368

Total 35,370 54,670

9-Monthly Report P&I AG | Consolidated Balance Sheet

9-Monthly Report P&I AG | Consolidated Statement of Income

Consolidated Statement of Income Quarterly report Quarterly report 9-Monthly Report 9-Monthly report

1. 10. bis 31. 12. 2007 1. 10. bis 31. 12. 2006 1. 4. bis 31. 12. 2007 1. 4. bis 31. 12. 2006

Details in ‘000 euro / not verified

Sales 14,288 14,009 44,310 38,071

Cost of sales 4,376 4,764 13,201 11,921

Gross profit from sales 9,912 9,245 31,109 26,150

Research and development expenses 2,829 2,588 8,519 7,474

Sales and distribution expenses 1,779 1,981 6,354 6,180

Administrative expenses 928 886 3,248 2,806

Write-down of customer bases 660 567 1,980 1,702

Other operating income 17 32 71 167

Other operating expenses 143 -78 748 163

Result of ordinary activities (EBIT) 3,590 3,332 10,331 7,992

Income from investments 134 152 717 757

Financing expenses 62 5 550 26

Result of ordinary activities before tax (EBT) 3,662 3,479 10,498 8,723

Tax expenses*) 931 1,383 3,042 3,425

Result for the period 2,731 2,096 7,456 5,298

Average number of shares (undiluted) 7,700,000 7,700,000 7,700,000 7,700,000

Average number of shares (diluted) 7,700,000 7,700,000 7,700,000 7,700,000

Earnings per share in euro (diluted/undiluted) € 0.35 € 0.27 € 0.97 € 0.69

* Taxes paid or due on corporate income and earnings are shown as taxes on income.

9-Monthly Report P&I AG | Consolidated Cash Flow Statement

Cash-flow 9-Monthly report 9-Monthly report

acc. to IFRS accounting principles 1. 4. - 31. 12. 2007 1. 4. - 31.12. 2006

Details in '000 euros / not verified

Consolidated result before taxes

on income and interest 10,331 7,992

Depreciation on fixed assets 2,602 2,465

Change in inventories, trade

receivables and other assets 8,406 25

Change in liabilities and other

equity and liabilities -16,089 -14,132

Other items not affecting payments 380 -40

Interest rates and taxes -6,035 -898

Net funds from operating activities -405 -4,588

Net funds from investing activities 6,875 7,584

Net funds from financing activities -7,700 -23,100

Change in liquid resources -1,230 -20,104

Liquid resources at the beginning

of the fiscal year 6,472 25,240

Liquid resources at the end

of the reporting period 5,242 5,136

Breakdown of funds at the end of the reporting period

Cash on hand and in bank balances 5,242 5,136

Securities with an expiry date > 1 year 1,000 6,677

Liquidity 6,242 11,813

Selected facts and figures from the notes to the financial statements

Basis for the Compilation of the 9-Monthly ReportThe consolidated financial statements of P&I AG as at December 31, 2007 wereprepared, according to the International Financial Reporting Standards (IFRS)valid on the balance sheet date, in the manner required in the European Union. Inthe interim consolidated financial statements as at December 31, 2007, preparedaccording to the International Accounting Standard (IAS) 34 "Interim FinancialReporting“, the same accounting methods were applied in principle as for thepreparation of the consolidated financial statements for fiscal 2006/2007. The state-ments are based on all interpretations of the International Financial ReportingInterpretations Committee (IFRIC) obligatory as at December 31, 2007. For fur-ther information regarding specific details of the accounting and valuation methodsapplied please refer to the consolidated financial statements of P&I AG as at March31, 2007. Furthermore, this interim report complies with the German AccountingStandard No. 6 (DRS 6) – Interim Financial Reporting– laid down by the GermanAccounting Standards Committee (Deutsches Rechnungslegungs StandardsCommittee e.V., DRSC). These interim consolidated financial statements havebeen neither audited pursuant to § 317of the German Commercial Code (HGB)nor have they been subjected to inspection by an auditor.

The 9-month financial statements have been compiled in euros. Unless otherwisestated, all values have been rounded up to the next whole thousand euros (TEUR).

New financial accounting regulations used for the first time for the quarter end-ing December 31, 2007The regulations to be used for the first time for the 2007/2008 financial year IFRIC10 Intermediate reporting and depreciation as well as IFRIC 11 IFRS 2 Businessdealings with own shares and shares from other group affiliates have been taken intoaccount. They had no major effect on the capital, financial and earnings situationfor the Group.

Change in shareholders' equity 9-Monthly 9-Monthly Annual-report report report

1. 4. - 31. 12. 07 1. 4. - 31. 12. 06 2006/2007

Details in ‘000 euros not verified not verified verified

Shareholders' equity

at the beginning of the fiscal year 24,429 38,799 38,799

Subscribed capital 0 0 0

Capital reserve 0 0 0

Revenue reserve 0 0 0

Other shareholder's equity 321 -40 -56

Distribution of dividend -7,700 -23,100 -23,100

Balance sheet result 7,456 5,297 8,786

Shareholders' equity

at the end of the period 24,506 20,956 24,429

9-Monthly Report P&I AG | Change in Shareholders' Equity

9-Monthly Report P&I AG | Notes on the half-yearly financial statements

Changes in the consolidated companiesP&I Personal & Informatik AG took over, retrospective to April 1, 2007, as theabsorbing company and by way of an amalgamation (§ 2 No. 1 GermanReorganisation of Companies Act, UmwG), its 100% subsidiary, KSL Gesellschaftfür kommunale Informationssysteme mbH, based in Zweibruecken, as transferringcompany, with no granting of new shares

Advice of an existing merger pursuant to §62 3 UmwG, was transmitted to theelectronic pages of the Bundesanzeiger on April 25, 2007. Publication of this tookplace on April 27, 2007. The draft of the Merger Contract was filed at the registra-tion office of the Wiesbaden local court on April 25, 2007. The merger was record-ed in the Commercial Register at Zweibruecken on July 17, 2007. The CommercialRegister at Wiesbaden registered the merger on July 27, 2007.

With the determination of P&I AG as sole partner made on November 1, 2006, theCzech subsidiary P&I Personalistika & Informatika, s.r.o., Prague, was wound upand liquidation proceedings begun. The registration of the company in theCommercial Register at Prague, Czech Republic was cancelled on July 17, 2007,thus finalising the liquidation. The deconsolidation of the company was shown forthe first time in the half-yearly financial statements as at September 30, 2007.

Notes on the Profit and Loss AccountingThe financial results include earnings on interest from bank interest and stocks andshares of 717,000 euros (TEUR) (same period, previous year: 757,000 euros).Due to the reduction in interest from fixed-term deposits, earnings on interest aredown by 40,000 euros.

The significant increase in financing expenses, rising by 524,000 euros to 550,000euros, results, on one hand, from the liquidation of investments due for deprecia-tion, for which equity was adjusted without affecting net income (394,000 euros).On the other hand expenses of 121,000 euros also occurred from exchange ratevariations arising from the deconsolidation of the Czech subsidiary. The exchangerate differences arising from equity and loans occurred in a prior period and havebeen posted to other equity without affecting net income. The deconsolidation ledto the dissolution of this item, affecting net income.

As taxes on earnings, paid or owed taxes on income and earnings at a value of3,110,000 euros (same period, previous year: 3,250,000 euros) as well as latent taxaccruals and deferrals of 68,000 euros (same period, previous year 175,000 euros)are reported.Owing to the corporate tax reform in Germany for 2008, the corporate tax rate hasbeen reduced from 25 % to 15 %. The business tax amount has been reduced from5.0 % to 3.5 %. In addition, business tax will no longer be deductible. This willmean that the combined income tax rate has been reduced from 39.7% to 32 %.This combined tax rate applicable to P&I AG takes into account the business taxassessment rate of 432 %, the new corporate tax rate of 15 % and the solidarity sur-charge of 5.5 %. As a result of these changes, tax expenses for the fiscal year havebeen reduced by a total of 140,000 euros.

Unpaid income taxes have therefore been reduced by 577,000 euros, in comparisonto taxes paid in the previous year.

Notes on the Balance SheetCash and the financial assets available for sale are constituted as follows:

‘000 euros 31 Dec. 2007 31 March 2007

Cash on hand and in bank balances 5,242 6,472

Available-for-sale financial assets 1,000 18,288

Total 6,242 24,760

The Group equity capital remains unchanged and amounts to 7,700,000 euros onDecember 31, 2007 and is divided into 7,700,000 individually owned shares with-out a par value.

During the first nine month of fiscal 2007/2008, investments of 428,000 euros tookplace (previous year: 536,000 euros).

The entry for other equity of 107,000 euros (March 31, 2007: 428,000 euros)ref lects, in the main, foreign currency translation from foreign subsidiaries.

Long-term other accruals included as at March 31, 2007, obligations from the StockAppreciation Rights (SAR) share-based payment programmes to the amount of1,627,000 euros. This pay-out occurred in the context of the stock transfer, con-cerning which explanatory details follow.

Changes in shareholder group and executive bodiesP&I's former major shareholder, The Carlyle Group sold its indirectly held shares,which amounted to a 66.64 % share in the company, on August 23, 2007 withimmediate effect to German and foreign institutional investors in a book-buildingprocess. P&I AG is therefore no longer a "controlled company" as defined in§ 17, German Companies Act.

In the context of the stock transfer, a new Supervisory Board was elected at theAnnual General Meeting on August 28, 2007. For fiscal 2007/2008 this is as fol-lows:

Klaus C. Ploenzke, ChairmanMichael Wand, Deputy Chairman of the Supervisory Board(until August 28, 2007)Dr Wolfgang Hanrieder, until August 28, 2007Michael Pluemer, Deputy Chairman of the Supervisory Boardfrom August 28, 2007Michael Abels, from August 28, 2007.

Shareholdings by the company and executive bodiesAs at September 30, 2007, neither P&I AG nor any other company have a share-holding in P&I’s own shares pursuant to § 160 Para. 1 No. 2 AktG (GermanCompanies Act). No convertible bonds or similar securities pursuant to § 160 Para.1 No. 5 AktG had been issued as at December 31, 2007.

Michael Pluemer, Deputy Chairman of the Supervisory Board since August 28,2007, holds 2000 shares in P&I AG. No further members of the Board of Directorsor the Supervisory Board held P&I shares or options as at December 31, 2007.



DividendsThe Annual General Meeting passed a resolution on August 28, 2007 to pay out adividend for fiscal 2006/2007, from P&I's net profit of 11,870,956.73 euros for thatfiscal year, of 1.00 euro per no-par share entitled to a dividend, a total amount of7,700,00.00 euros. The remaining net profit, an amount of 4,170,956.73 euroswould be carried forward to new account. The dividend was paid out on August29, 2007.

Variable Board of Directors' Remuneration/Share-based payment schemesRemuneration for the members of the Board of Directors comprises both fixed andvariable components. The variable components of the remuneration are set at anappropriate level annually by the Supervisory Board. The governing criterion inassessing the variable compensation component is the level the Group EBIT (earn-ings before interest and taxes) reaches for the year.

With effect from September 1, 2007 it has been agreed with one member of theBoard of Directors a long-term incentive as a long-term bonus. This long-termbonus will depend on the achievement of the target Group EBIT agreed on previ-ously with the Supervisory Board and on the degree to which targets have been metin the respective fiscal year. This agreement has a duration until the end of fiscalyear 2011/2012.

In fiscal 2004/2005, one member of the Board of Directors was granted 154,000stock appreciation rights (SAR), and at the beginning of fiscal 2007/2008, one fur-ther member of the Board of Directors was granted 38,500 SAR on the basis of re-established SAR scheme. The stock appreciation rights of the Company vest theright to a cash payment to the amount of the difference between the issuing priceof the share and the price at the time of exercise (7.40 euros).

The exercise of SAR is in principle contingent on the achievement of certain per-formance criteria laid down by the Company. In addition, in the event of a certainspecified Change of Control of the Company, provision has been agreed on for aspecial right of exercise within a given time limit, whereby on the exercise of theSAR by their owner, the difference between the issuing price and the average priceper share received by the former owners of control in the context of the Change inControl, is payable as a minimum amount independent of the attainment of a tar-get performance.

Effective from August 23, 2007, P&I's former major shareholder, The CarlyleGroup sold its indirectly held shares, which amounted to a 66.64 % share in theCompany, to German and foreign institutional investors in a book-building process,resulting in a Change of Control within the meaning of the SAR terms.

All previously granted SAR were vested and were exercised by the members of theBoard of Directors within the time limit given. The respective amounts due werepaid out in September 2007, thus bringing the previous SAR scheme to a close.

The total expenses for the SAR schemes for the reporting period (April 1, 2007-December 31, 2007) amounted to 1,636,000 euros (previous year: 380,000 euros).The final balance of the liabilities for the SAR schemes at payment amounted to3,263,000 euros (previous year: 1,219,000 euros).

9-Mon

quartalsbericht_q3_english.qxd:Halbjahresbericht.qxd 12.02.2008 11:48 Uhr Seite 20

Voting rights announcement acc. to § 26, Para 1 of the German SecuritiesTrading Act (WpHG)P&I AG was notified on August 24, 2007 by Carlyle Offshore Partners II, Limited,TCG Holdings Cayman, L.P the TC Group Cayman, L.P., CEVP Limited, CEVPGeneral Partner, L.P., Carlyle Europe Venture Partners, LP, CBH I S.à r.l., IPCarBeteiligungsverwaltungs GmbH and IPCar Beteiligungs GmbH pursuant to § 21German Securities Trading Act (WpHG) of the following:

As at August 23, 2007, the percentage of voting rights in P&I Personal & InformatikAktiengesellschaft ("P&I") held by Carlyle Offshore Partners II, Limited, c/o WalkerHouse, Mary Street, P.O. Box 265GT, George Town, Grand Cayman, CaymanIslands, had risen above the 3 %, 5 %, 10 %, 15 %, 20 %, 25 % 30 % and 50 %thresholds. Its voting rights now amount to 0.00 %. The previously held votingrights have been assigned to Carlyle Offshore Partners II, Limited pursuant to § 22Para. 1 Sentence 1 No. 1 WpHG.As at August 23, 2007, the percentage of voting rights in P&I held by TCGHoldings Cayman, L.P., c/o Walker House, Mary Street, P.O. Box 265GT, GeorgeTown, Grand Cayman, Cayman Islands, had risen above the 3 %, 5 %, 10 %,15 %, 20 %, 25 % 30 % and 50 % thresholds. Its voting rights now amount to0.00 %. The previously held voting rights have been assigned to TCG HoldingsCayman, L.P. pursuant to § 22 Para. 1 Sentence 1 No. 1 WpHG.As at August 23, 2007, the percentage of voting rights in P&I held by TC GroupCayman, L.P., 1001 Pennsylvania Avenue, NW, Suite 220 South, Washington,D.C. 20004, had risen above the 3 %, 5 %, 10 %, 15 %, 20 %, 25 % 30 % and50 % thresholds. Its voting rights now amount to 0.00 %. The previously held vot-ing rights have been assigned to TC Group Cayman, L.P. pursuant to § 22 Para. 1Sentence 1 No. 1 WpHG.As at August 23, 2007, the percentage of voting rights in P&I held by CEVPLimited, c/o Walker House, Mary Street, P.O. Box 265GT, George Town, GrandCayman, Cayman Islands, had risen above the 3 %, 5 %, 10 %, 15 %, 20 %, 25 %30 % and 50 % thresholds. Its voting rights now amount to 0.00 %. The previous-ly held voting rights have been assigned to CEVP Limited pursuant to § 22 Para. 1Sentence 1 No. 1 WpHG.As at August 23, 2007, the percentage of voting rights in P&I held by CEVPGeneral Partner L.P, c/o Walker House, Mary Street, P.O. Box 265GT, GeorgeTown, Grand Cayman, Cayman Islands had risen above the 3 %, 5 %, 10 %, 15 %,20 %, 25 % 30 % and 50 % thresholds. Its voting rights now amount to 0.00 %.The previously held voting rights have been assigned to CEVP General Partner L.P.pursuant to § 22 Para. 1 Sentence 1 No. 1 WpHG.As at August 23, 2007, the percentage of voting rights in P&I held by CarlyleEurope Venture Partners, LP, c/o Walker House, Mary Street, P.O. Box 265GT,George Town, Grand Cayman, Cayman Islands, had risen above the 3 %, 5 %,10 %, 15 %, 20 %, 25 % 30 % and 5 0% thresholds. Its voting rights now amountto 0.00 %. The previously held voting rights have been assigned to Carlyle EuropeVenture Partners, LP pursuant to § 22 Para. 1 Sentence 1 No. 1 WpHG.As at August 23, 2007, the percentage of voting rights in P&I held by CBH I S.àr.l., 30, Boulevard Royal, L-2443, Luxembourg, had risen above the 3 %, 5 %,10 %, 15 %, 20 %, 25 % 30 % and 50 % thresholds. Its voting rights now amountto 0.00 %. The previously held voting rights have been assigned to CBH I S.à r.l.pursuant to § 22 Para. 1 Sentence 1 No. 1 WpHG.As at August 23, 2007, the percentage of voting rights in P&I held by IPCarBeteiligungsverwaltungs GmbH, c/o Carlyle Beratungs GmbH, Promenadenplatz




8, 80333 Munich, had risen above the 3 %, 5 %, 10 %, 15 %, 20 %, 25 % 30 %and 50 % thresholds. Its voting rights now amount to 0.00 %. The previously heldvoting rights have been assigned to IPCar Beteiligungsverwaltungs GmbH, pur-suant to § 22 Para. 1 Sentence 1 No. 1 WpHGAs at August 23, 2007, the percentage of voting rights in P&I held by IPCarBeteiligungs GmbH, c/o Carlyle Beratungs GmbH, Promenadenplatz 8, 80333Munich, had risen above the 3 %, 5 %, 10 %, 15 %, 20 %, 25 % 30 % and 50 %thresholds and no longer has any voting rights in P&I. Its voting rights now amountto 0.00 %.

On August 30, 2007, P&I AG was notified by Deutsche Bank AG, Frankfurt amMain pursuant to §§ 21 et seq. WpHG that the percentage of voting rights in P&IAG held by its subsidiary DWS Investment GmbH, Frankfurt am Main had risenabove the 3 % and 5 % thresholds and now amounted to 6.49 % (correspondingto voting rights of 500,000).

On September 5, 2007 and in the correction of the publication on December 3,2007, P&I AG was notified by Capital Management Luxemburg SA, Luxembourg,pursuant to §§ 21 et seq. WpHG, that the percentage of voting rights in P&I AGheld by Farringdon Fund I (FFI), Luxembourg had risen above the 3 % thresholdand now amounted to 3.29 % (corresponding to voting rights of 253,095). P&I wasalso notified that that the percentage of voting rights in P&I AG held by FarringdonManagement Switzerland SA (FCMS), Geneva, Switzerland, had risen above the3 % threshold on August 23, 2007 and now amounted to 3.29 % (corresponding tovoting rights of 253,095). The voting rights are assigned to it pursuant to § 22 Para.1Sentence 1 No. 6WpHG. The voting rights are assigned to it via Farringdon I (FFI),which holds 3 % of the voting rights directly or indirectly.Notification was also made that the percentage of voting rights in P&I AG held byFarringdon Capital Management Luxembourg SA (FCML), Luxembourg, had risenabove the 3 % threshold as at August 23, 2007 and now amounted to 3.29 % (cor-responding to voting rights of 253,095). The voting rights are assigned to it pursuantto § 22 Para.1 Sentence 1 No. 6 WpHG. The voting rights are assigned to it viaFarringdon I (FFI), which holds 3 % of the voting rights directly or indirectly.

Kinney Asset Management, L.L.C., Chicago (U.S.A.) informed P&I AG, pursuantto §§ 21 et seq. WpHG, on October 3, 2007 of the following:We, Acacia Capital L.P., Chicago (U.S.A.), hereby declare pursuant to § 21 Para. 1Sentence 1 WpHG, that the percentage of voting rights in P&I AG held by us roseabove the 3 % threshold on August 23, 2007 and that our voting rights now amountto 3.47 % (267,000 voting rights).I, Peter Kinney, U.S.A, hereby declare pursuant to § 21 Para. 1 Sentence 1 WpHG,that the percentage of voting rights in P&I AG held by us rose above the 3 %threshold on August 23, 2007 and that our voting rights now amount to 3.47 %(267,000 voting rights). This share of the voting rights is completely assigned toPeter Kinney as General Partner of Acacia Capital L.P. pursuant to § 22 Para. 1Sentence 1 No. 1 WpHG.We, Kinney Asset Management LLC, Chicago (U.S.A.) hereby declare pursuant to§ 21 Para. 1 Sentence 1WpHG, that the percentage of voting rights in P&I AG heldby us rose above the 3 % threshold on August 23, 2007 and that our voting rightsnow amount to 3.61 % (277,600 voting rights).

9-Mon


Relations with closely related enterprises or personsIn the first nine months of the current fiscal year, payments amounting to 104,000euros were made to closely related enterprises or persons.

Relationships exist with the following closely related enterprises or persons:

Mr Klaus C. Ploenzke, member of the Supervisory Board of P&I Personal &Informatik AG Wiesbaden, advises and supports the Company in making contactwith new customers and also in identifying possible acquisitions and analysing syn-ergy potential with these. In the first nine months of fiscal 2007/2008 consultingfees of 19,000 euros were drawn (same period in previous year: 19,000 euros).

Mr Michael Pluemer, Managing Director of OP&V Outsourcing Personalab-rechnung & Verwaltung advises and supports the Company in the development ofthe business area of Business Process Outsourcing (BPO) as well as in identifyingpossible acquisitions and carrying out their purchase. In the first nine months of fis-cal 2007/2008 consulting fees of 8,000 euros were drawn (same period in previousyear: 0,000 euros).

Mr Michael Abels, lawyer, member of the Supervisory Board of P&I Personal &Informatik AG Wiesbaden is until December 31, 2007 partner of the internationallaw firm, Linklaters LLP, Cologne. Linklaters LLP advises and supports theCompany in matters pertaining to corporate law. In the first nine months of fiscal2007/2008 consulting fees of 85,000 euros were drawn (same period in previousyear: 284,000 euros).

The services performed involved mainly consultation, development and other sup-porting services, including advertising. The terms and conditions for the transac-tions with closely related enterprises and persons are in accordance with normalmarket practice and certainly comparable with any the Company may havearranged with independent third parties (price comparison method in accordancewith IAS 24.12).

Wiesbaden, February 14, 2008

The Board of Directors



9-Monthly Report P&I AG | Financial Calendar

19 June 2008 Publication of the Annual Report 2007/2008

14 August 2008 Publication of the Quarterly Report 2008/2009

2 September 2008 Shareholders' Meeting for 2008 in Wiesbaden

13 November 2008 Publication of the Half-yearly Report 2008/2009

P&I AG | Investor Relations | Kreuzberger Ring 56 | 65205 WiesbadenTelephone (06 11) 71 47-267 | Telefax (06 11) 71 47-367E-Mail [email protected] | Internet www.pi-ag.comWKN 691 340 | ISIN DE 0006913403

Financial Calendar


P&I – YOUR PARTNER FOR INTEGRATED HR SOLUTIONS – P&I is with more than3,700 clients from all sectors one of the leading suppliers of innovativehuman resources management software solutions.

P&I solutions encompass the entire spectrum of human resourcesmanagement. P&I products can be used internationally and in all sec-tors. With its long-term experience, P&I is a reliable partner forsystem integration and system implementation. Moreover, clients alsobenefit from the advisory and training services offered by the P&IAcademy.

The company has more than 300 employees. The head office is locatedin Wiesbaden. In Germany, services are provided to our clients fromfive regional offices. P&I is present in other European countries boththrough national companies and through cooperation partners.P&I is listed in the Prime Standard on the Frankfurtstock exchange.

GERMANY

P&I AG

Kreuzberger Ring 56

65205 Wiesbaden

Telefon +49 (0)611/7147-0

Telefax +49 (0)611/7147-220

[email protected]

www.pi-ag.com

AUSTRIA

P&I GmbH

Ares Tower | Donau-City-Straße 11

A-1220 Vienna

Telefon +43126039-0

Telefax +43126039-330

[email protected]

www.pi-ag.com

SWITZERLAND

P&I AG

Zürcherstrasse 66

CH-8800 Thalwil ZH

Telefon +41(0)447227575

Telefax +41(0)447227579

[email protected]

www.pi-ag.com

THE NETHERLANDS

P&I BV

Kabelweg 37

NL-1014 BA Amsterdam

Telefon +31 (0) 2 06 81 40 66

Telefax +31 (0) 2 06 81 40 33

[email protected]

www.pi-nl.com

SLOVAKIA

P&I s.r.o.

Sliezska 1

SK- 831 03 Bratislava

Telefon +421 (0) 252 63 61 61

Telefax +421 (0) 252 63 61 63

[email protected]

www.piag.sk

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