Trintech Reports Second Quarter Fiscal Year 2007 Financial Results

Dublin, Ireland/Dallas, Texas - 23 August, 2006 - Trintech Group Plc (NASDAQ: TTPA), a leading provider of transaction reconciliation and payment infrastructure solutions, today announced its second quarter fiscal year 2007 financial results. Following the announcement of the impending sale of its payments systems business to VeriFone Holdings Inc., Trintech is required to present its financial results on a continuing and discontinuing basis. This requirement has resulted in the presentation of financial results showing second quarter revenues for the continuing business (the Funds Management Systems business) of $6.0 million and a net loss in the quarter for the continuing business of $94,000. The net loss incurred in the quarter for the continuing and discontinuing businesses amounted to $2.1 million.

Highlights

* Revenue for the continuing business amounted to $6.0 million compared to $5.3 million last year, reflecting growth in the Funds Management Systems (“FMS”) business. Revenue for the discontinuing payment systems business amounted to $6.5 million compared to $7.3 million in the corresponding quarter last year.
* Gross profit for the continuing business amounted to $4.6 million in Q2, representing 76% of revenue, compared to $4.3 million and 80% in Q2 last year.
* Trintech has increased expenditure quarter on quarter in research and development for the FMS business from $587,000 in Q2 last year to $1.1 million in the same quarter this year. This investment is focused on enhancing the functionality of the FMS software platform with a view to targeting new vertical markets for its reconciliation suite of products. This investment has had a short term negative impact on earnings and will continue to do so through the end of the 2007 fiscal year.
* Trintech has also increased expenditure quarter on quarter in sales and marketing for the FMS business from $1.2 million in Q2 last year to $1.8 million in the same quarter this year. This investment is targeted at growing the sales and distribution network for Trintech’s reconciliation products both in the USA and internationally.
* Trintech incurred a net loss from continuing operations of $94,000 and Adjusted EBITDA net income from continuing operations of $164,000. When combined with the loss from discontinuing operations of $2.0 million, Trintech incurred a total loss in the quarter of $2.1 million.
* Combined basic and diluted net loss per equivalent ADS for the quarter ended July 31, 2006 was $0.14, compared with a basic and diluted net loss per equivalent ADS of $0.24 for the corresponding quarter ended July 31, 2005. Basic and diluted net loss per equivalent ADS for the continuing and discontinuing operations amounted to $0.01 and $0.13, respectively for the quarter ended July 31, 2006.

“Trintech is divesting its payment systems business to reinforce its strategic focus on its FMS business,” said Cyril McGuire, Chairman and Chief Executive Officer. “Trintech established a successful track record of innovation and leadership in key emerging segments of the payments market. Trintech’s payments product set will have a strong strategic fit with VeriFone’s business. The proposed transaction represents an excellent opportunity for the customers, employees and shareholders of Trintech. The future growth of Trintech will be focused on its FMS software business which is a proven business with a strong core customer base and an established market position. We propose to expand this business franchise through our investment in new products and markets. We will also continue to seek further acquisition opportunities in the FMS target market.”

Recent Highlights include:

Trintech announced that its payment systems business is to be acquired by VeriFone Holdings, Inc. (NYSE:PAY), in an all-cash transaction. Trintech’s unattended and outdoor payment systems will enhance VeriFone’s solutions in the growing markets for self-service payment, vending, and pay-at-the-pump applications.

Trintech announced that Beall’s, Inc., a retailer with stores across the Sun Belt of the United States, has selected ReconNET to automate deposit, credit card and bank reconciliations. The installation of ReconNET is designed to enable Beall’s to improve daily productivity and exception resolution and increase daily visibility of cash balances.

Trintech announced that Provident Bank, the second largest independent commercial bank in the state of Maryland, has selected Trintech’s ReconNET for account verification and reconciliation, and AssureNET GL for automating general ledger reconciliation, review and certification processes. The implementation of ReconNET is part of a multi-phase project by Provident Bank to ensure compliance, reduce costs and improve performance across its enterprise.

Trintech announced a partnership agreement with BWise, a leading provider of compliance and enterprise risk management software. Under the terms of the agreement, BWise customers will have direct access to Trintech’s general ledger reconciliation and certification solution, AssureNET GL. Likewise, Trintech customers will have direct access to BWise solutions for internal control, compliance, enterprise risk management, corporate and IT governance and process management.

Trintech announced that Fortune 500 company North Fork Bancorporation Inc., selected Trintech’s enterprise suite to help streamline its reconciliation and exception management processes, and mitigate risk across eleven functional groups representing over 55 reconciliation processes.

Trintech announced that Smart & Final Inc. selected ReconNET to automate the verification and reconciliation of its cash banking and credit card transactions, and the DataFlow Transaction Network to provide electronic bank data delivery.

Trintech announced the formation of its Healthcare Business Group, a strategic business unit that will help healthcare providers, payers and financial institutions optimize the claim to payment transaction process, including transaction reconciliation and workflow management of exceptions.

Trintech announced the successful conclusion of its tenth annual US-based Customer Conference, FOCUS 2006, and the debut of its Executive Circle featuring IDC Financial Insights analyst, Maggie Scarborough. More than 200 accounting and treasury professionals from leading retail, utility, hospitality, restaurant, banking, government, and financial services organizations attended the event, held May 15-18, 2006 at the Sandestin Golf and Beach Resort in Sandestin, Florida.

Trintech held its 7th Annual General Meeting (AGM) as a public company in Dublin, Ireland in July. At the AGM, Cyril McGuire, Co-founder, Chairman and CEO, welcomed the approval by shareholders of all the ordinary and special resolutions presented to shareholders including the approval of the share buy-back agreement with Deutsche Bank AG.

Paul Byrne, President of Trintech, stated. “We are committing significant investment to the reconciliation business as we seek to drive and accelerate growth in our existing commercial market. The recent hiring of industry veterans in both financial services and healthcare, combined with investment to date and future acquisitions, will position Trintech to drive profitable growth in new vertical markets.”

Results Overview:
Continuing Operations:

Revenue for the quarter ended July 31, 2006 was $6.0 million compared with $5.3 million for the quarter ended July 31, 2005, an increase of 14 percent.

Software license revenue for the quarter ended July 31, 2006 increased 15 percent to $3.3 million from $2.9 million in the corresponding quarter last year.

Service revenue for the quarter ended July 31, 2006 increased 13 percent to $2.7 million from $2.4 million in the corresponding quarter last year.

Gross margin for the quarter ended July 31, 2006 was $4.6 million, an increase of 8% from the corresponding period last year.

Total operating expenses for the quarter ended July 31, 2006 increased 40 percent to $5.1 million from $3.7 million in the corresponding period last year. Adjusted EBITDA operating expenses for the quarter ended July 31, 2006 were $4.6 million, an increase of 34 percent on the Adjusted EBITDA operating expenses for the corresponding quarter last year.

Trintech’s balance sheet remains strong with cash and cash equivalent balances of $29.7 million as of July 31, 2006. Net cash usage for the three months ended July 31, 2006 was $3.5 million, which includes acquisition related payments of $1.6 million comprising the final element of deferred consideration relating to the acquisition of the Dataflow business.

During the quarter ended July 31, 2006, Trintech did not purchase any shares via the share buy-back program. As a result, $2.9 million remains available for future repurchases under this program as at July 31, 2006.

Trintech will host a conference call to discuss its financial results and business outlook beginning at 15:30hrs (UK Time) today, Wednesday, August 23, 2006. Please see advisory for information on the call.

A web simulcast of Trintech’s conference call reviewing our performance for Q2 fiscal year 2007 and our business outlook for Q3 fiscal year 2007 will be broadcast live today, Wednesday, August 23, 2006 at 15:30 hrs (UK Time), 10:30 hrs (NY Time) and 07:30 hrs (CA Time) and thereafter for 1 year at www.trintech.com. An instant telephone replay will also be available for 10 days by dialing +44 1452 550 000 and entering the following access number (4 2 9 0 1 5 6 #).

About Trintech
Trintech is a leading provider of secure payment infrastructure and transaction reconciliation solutions globally. In our Payments business, we develop, market and sell a comprehensive suite of software and electronic PoS systems that enable electronic payments in multiple channels. In our FMS business, we develop, market and sell a comprehensive suite of transaction reconciliation software products and services which allow our customers to optimize enterprise funds management and payment lifecycle management including account reconciliation and risk management functions for their receipts and payments transactions. Trintech can be contacted in Ireland at Trintech Building, South County Business Park, Leopardstown, Dublin 18 (Tel: +353 1 2074000), in the US at 15851 Dallas Parkway, Suite 855, Addison, TX 75001 (Tel: +1 972 701 9802), in Uruguay at Technology & Business Park, Zona America - Ruta 8 Km. 17.500, Of. 006 - Local 310, ZIP 91.600, Montevideo (Tel: + 598 2 518 2250) and in the UK at Beaconsfield Close, Hatfield, Hertfordshire, AL 10 8YZ (Tel: +44 (0) 1707 632 900).

Forward Looking Statement
This news release contains “forward looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Any “forward looking statements” in this press release are subject to certain risks and uncertainties that could cause actual results to differ materially from those stated. “Forward looking statements” in this press release include statements, among others, relating to the proposed benefits from the impending sale of the payment systems business to VeriFone Holdings, Inc., Trintech’s strategic focus and search for acquisition opportunities in the FMS business, its investment in new products and markets in that sector and the financial impact of such investment, the focus of investment in research and development for the FMS business and the financial impact of such investment, the focus of investment in sales and marketing for the FMS business, the formation of the new Healthcare Business Group, and the intended purpose of the BWise partnership. Factors that could cause or contribute to such differences include Trintech’s ability to accurately predict future sales, its ability to accurately predict and meet customer needs and to successfully position itself in the market, Trintech’s ability to ensure the performance of its products and services, and its ability to improve the performance of its organization and ensure the long term health of its business. Actual performance may also be affected by other factors more fully discussed in Trintech’s Form 6-K for the quarter ended April 30, 2006 filed with the US Securities and Exchange Commission (www.sec.gov). Lastly, Trintech assumes no obligation to update these forward-looking statements.

Download the complete Earnings Release here: www.trintech.com/main_docs/INV_docs/TTPA23AUG06A.pdf

Contact Information

Donna Martinez

Trintech Group plc

Contact via E-mail