UPDATE 1-Dutch Tulip Computers to list German unit Devil AG

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AMSTERDAM, May 5 (Reuters) - Dutch information technology company Tulip Computers (TULN.AS) said on Monday it would list its German unit Devil AG on the Frankfurt stock exchange, using the proceeds to fund Devil's growth.

The company said in a statement it would list 2.85 million shares including 2.5 million new shares and that it would keep a controlling stake in Devil.

Tulip said it would announce the price range of the shares on May 7, while investors can subscribe from May 8 until May 14.

It expects Devil to have a listing as of May 20 on the German exchange.

Devil is one of Germany's leading IT distributors and had sales of about 322 million euros ($498 million) in the fiscal year 2006/07, of which 90 percent in Germany, and earnings before interest and taxes of 2 million euros.

After the listing Devil will have 7.5 million shares outstanding, with a free float of about 38 percent.

Tulip said it wanted to use the proceeds of the listing to increase the unit's product line and its client base. (Reporting by Harro ten Wolde; Editing by Louise Ireland)