2005-11-08: Positive development at technotrans continues
Revenue and earnings grow according to plan / investment into new facility completed / positive free cash flow and net profit of EUR 5.1 million / earnings per share of EUR 0.77

Business progressed highly satisfactory in the third quarter and the first nine months 2005 for technotrans, leading systems supplier of equipment for the printing industry and the manufacture of micro technology components. Revenue after nine months reached EUR 94.5 million, equivalent to growth of 11.3 percent or almost EUR 10 million. Considered within the context of a growth target of up to 10 percent for the current year, this is at the upper end of the target range. The Print segment remained the driving force behind this year's developments, growing by 14.2 percent overall.

Earnings rose in the same measure as revenue. Gross profit was up 11.9 percent at the nine-month mark, at EUR 33 million. The operating result was up by almost 9 percent to EUR 8.7 million; this already included the necessary adjustments, now amounting to e 1 million in total, to the carrying value of the land to be sold in Stadtbergen. The operating margin was consequently back up at 10.8 percent in the third quarter, and compared with the previous year it was 9.2 percent for the ninemonth period (previous year 9.4 percent).

After the first three quarters of the year, the net profit totalled EUR 5.1 million, a rise of 8.6 percent (previous year EUR 4.7 million). In the third quarter alone, a profit of more than EUR 1.9 million was realised in spite of the one-off charges. This corresponds to overall earnings per share of EUR 0.77 (previous year EUR 0.71).

The technotrans Group employed an average total of 680 people over the first nine months of 2005 (previous year: 609), comprising 468 (421) in Germany and 212 (188) outside Germany.

Outlook

The Board of Management expects two aspects to have significant impact on the coming months ahead: the continuing progress in tapping new product areas and the improving situation in the printing industry in general. Heinz Harling, Chairman of the Board: "Experience has taught us that technotrans is able to benefit from a recovery more swiftly and to a greater extent than other market players."

Burkard Rausch, Chief Financial Officer, sees the financial targets of 2005 coming into reach: "The healthy development in revenue means that we are at the upper end of our target range after nine months and that we are sure to achieve or slightly exceed our target for the year of EUR 120 to 125 million. The operating result for the nine-month period is more than satisfactory as well. We therefore expect that we will also reach our target for the full year of a net profit of EUR 7 to 7.5 million."

The Segments

technotrans is active in three areas of business: Print, Micro Technologies and Services.

At EUR 21.8 million, revenue for the Print segment in the third quarter was slightly down on the dynamic first two quarters of 2005 (EUR 22.3 and 23.3 million). The total revenue of e 67.5 million represents a year-on-year increase of 14.2 percent (EUR 59.1 million) and is consequently in line with the original target. The Print segment remains the focal area of the technology company, accounting for almost three quarters of revenue.

The result for the segment showed an 18.1 percent year-on-year improvement to EUR 5.4 million (EUR 4.6 million). The margin returned to a satisfactory level of 9.5 percent in the third quarter - this despite the depreciation of the carrying value of the land in Stadtbergen, increased expenditure on R&D activities and the investments into the new product area.

With first-half year revenue for the Micro Technologies segment remaining virtually unchanged from the previous year, the third quarter brought yet another downturn compared with the prior-year quarter. technotrans' smallest segment generated revenue in the first nine month of only EUR 5.0 million, compared with EUR 5.9 million in 2004, and has consequently slipped back to the magnitude of other product areas that are of only minor significance for technotrans' success.

It is pleasing to note that even with this reduced level of revenue, the third quarter nevertheless showed a positive result. It was consequently possible to reduce the loss that had built up in the first half of the year to EUR -152,000. Thanks to the structural measures implemented in recent quarters, the segment is on course for achieving the goal of breaking even on an operating level for the year as a whole.

Revenue for the Services segment at the nine-month mark showed an overall rise of 10.5 percent to EUR 22.0 million (previous year: EUR 19.9 million). Revenue for the third quarter was roughly on a par with previous quarters, at EUR 7.3 million.

As was already the case at the half-way point in 2005, the expansion of the service structures, particularly in Asia, is temporarily diminishing margins. The result for the segment of EUR 3.3 million was 12.5 percent down on the prior-year figure (EUR 3.7 million), and the rate of return for the segment remains 14.8 percent. As structural expansion usually generates additional revenue with a time lapse of 6-9 months, Management remains confident that earnings will soon be able to return to the customary levels.

CFO Burkard Rausch satisfied with the business progress so far."With the rising volume we are able to report a positive free cash flow, less capital expenditure, of EUR 0.6 million after only nine months. Our task will be to ensure that this growth is reflected overproportionally in the result, by means of strict cost monitoring, intelligent management of the working capital and, last but not least, a highly motivated team."

Note: Any forward-looking statements contained in this report represent our best judgement as to what will occur in the future. The Company's actual results could differ materially from those forecasted, depending on a number of competitive and economic factors, some of which are and will be outside the control of the Company.

Key Data 01-09/2005

Dates The Annual Report 2005 will be published on March 08, 2006.

technotrans AG - WKN 744 900

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These press releases contain forward-looking statements which are based on assumptions and estimations by the management board of technotrans AG. Even though the management board is of the opinion, that those assumptions and estimations are realistic the future development and the projected results may deviate substantially from the forward-looking statements. Those deviations can be due to several factors including but not limited to changes in the macro-economic situation, in the exchange rates, in the interest rates and in the graphic arts industry. technotrans AG gives no warranty and does not assume the liability for any damages in case the future development and the projected results do not correspond with the forward looking statements.