It is anticipated that increased security concerns, recent service failures, such as electricity blackouts, and economic recovery will drive infrastructure investments, especially in the U.S. and Latin America.

Expected GDP growth rates of approximately 8% in China over the next several years will require substantial infrastructure investment. Projected investments are expected in China in electrical capacity, oil & gas (approximately 6,000 new miles of pipelines by 2010) and transportation (approximately 16,000 new miles of toll highways by 2015) to boost performance and consequently spending in several sectors.

Energy and Transport customers are increasingly looking to outsource real-time solutions, and it is believed that this trend will open up new markets.

LMS is a real-time operations software system for liquid pipelines that includes a number of flexible, high-performance modules that meet a variety of real-time operational needs. These modules include metering and ticketing, tank management, leak detection, pump statistics and data validation.

SimSuite is a technologically-advanced transient pipeline simulation system, with a variety of on-line real-time and off-line simulation applications. On-line real-time applications include batch tracking, leak detection and virtual telemetry. Off-line applications include engineering and design analysis, operational planning and control center operator training and evaluation.

POLARIS Liquids and POLARIS Gas provide a comprehensive commercial accounting solution, which integrates ticketing, production volume accounting, revenue accounting, billing and customer reporting.

Gas Suite is a comprehensive software solution that integrates operations, measurement and commercial processes such as flow measurement, inventory management, historical data collection, historical data processing and operations applications.

For its Energy – Electricity customers, the Company provides complete solutions, including field data, control systems, advanced operational applications and business applications.

The Company’s Distribution Management Systems, or DMS, applications track network conditions and permit testing of different operational scenarios within a simulated environment. The simulation mode facilitates short-circuit analysis and energy loss minimization and tests different network configurations. DMS also includes an application for short-term load forecasting and a training simulator.

The Company’s Traffic solutions are focused on minimizing urban congestion and maximizing interurban road capacity. The Company’s products and services solutions cover traffic management systems, incident detection, intersection controllers and city access management systems.

The Company’s Transport solutions include ticketing systems for railways and public transportation systems, automated toll solutions for highways, and access control and payment systems for parking. The unit is based in the Company’s Bilbao competency center.

Cost of revenues slightly increased to € 98,143 for the six months ended June 30, 2004, compared to € 84,438 for the same period in 2003.

General and administrative expenses slightly decreased to 11,355 for the six months ended June 30, 2004, compared to 11,806 for the same period in 2003.

Sales and Marketing Expenses increased to € 4,346 for the six months ended June 30, 2004, compared to € 3,617 for the same period in 2003.