Dimension Data Holdings plc reports 33% increase in operating profit

Dimension Data Holdings plc ("Dimension Data" or the "group"), a leading global technology group, today announced its results for the six months ended 31 March 2006.

* Turnover grows strongly by 15.9% to $1.45 billion
* Gross profit increases by 10.3% to $299 million
* Group overheads improved to 18% of turnover (H1 2005: 19.4%)
* Operating profit increases by 33.3% to $37.4 million (H1 2005: $28.1 million)
* Operating margin improves to 2.6% (H1 2005: 2.2%)

* Strong revenue growth and market share gains
* Further operating leverage achieved

Dimension Data today reported group revenue growth of 15.9% to $1.45 billion. Both group operating profit and group operating margin increased considerably. Group operating profit increased by 33.3% from $28.1 million in H1 2005 to $37.4 million and group operating margin increased from 2.2% to 2.6%.

The growth in revenue reflects a 12.2% increase in the Network Integration line of business and an overall good performance from our Solutions lines of business. Gross margin was 20.6%(2), 1.1% lower than for H1 2005, although slightly higher than H2 2005`s 20.5%.

Commenting on the results, Brett Dawson, CEO, Dimension Data said: "It is pleasing to note that we are growing our market share specifically in the area of network integration which is at the centre of the convergence trend. As a result of this trend we experienced notable growth in our converged communications and security lines of business and fully expect the market trend of the convergence of voice and data onto a single IP infrastructure to continue, and the demand for our skills and experience to increase. The hard work, commitment and loyalty of our employees have contributed significantly to the pleasing results."

Africa`s revenue grew by 9.1% with services revenue increasing by 13.3%. Reported operating profit improved from $21.9 million in the first half of 2005 to $27.9 million, and the operating margin increased from 9.8% to 11.4%. Overall gross margin improved from 30.9% in H1 2005 to 32% this period. Gross profit grew by 13.1% for the period.

Commenting on Africa`s financial performance, Allan Cawood, CEO for Dimension Data in Africa said: "The financial results of the first half build on the positive momentum of last year. We continued to focus on increasing revenue and containing costs to deliver profitable growth. Our focus on delivery and client satisfaction can be seen in our growing and loyal client base. It is also important to recognise that the strong financial performance from Africa is a result of the commitment from our highly skilled employees in delivering exceptional client service. This half, we increased our shareholding in both Plessey and Internet Solutions which has further enhanced our market offering and our ability to deliver improved telecommunications services throughout the continent."

Looking forward, Dawson commented: "The successful execution of our strategy within our chosen market segments is delivering positive results for the group and going into the second half we are confident that we will continue the momentum and deliver improved returns to shareholders."

To view the SENS please go to: www.dimensiondata.com.

(1) Unless otherwise indicated, comparisons are to the equivalent prior period being the six months ended 31 March 2005. All references to $ are to US$; H1 2005 refers to the six months ended 31 March 2005; H1 2006 refers to the six months ended 31 March 2006.

(2) See note under "Basis of Accounting" regarding a change in the treatment of turnover in respect of certain categories of transaction in RNS announcement which can be found on dimensiondata.com.

(3) After adjusting for the impact of currency movements, and excluding acquisitions and disposals not fully accounted for in either the current period or the comparable period.