2005-08-09: technotrans 2005 with further increase of revenue and earnings
Revenue growth of 16 percent and operating profit of 15 percent in the first half year 2005 / net profit for the period of EUR 3.1 million / earnings per share of 0.48 EUR / targets for the financial year confirmed

Sassenberg, August 9, 2005

For technotrans, leading systems supplier of equipment for the printing industry and the manufacture of micro technology, the first half of 2005 proved to be highly satisfactory: With revenue boosted by over 16 percent to EUR 32.6 million (previous year: EUR 28.1 million), the company posted a dynamic increase both on the prior-year quarter and compared with the first quarter of the current year (EUR 30.8 million). Revenue half-way through the year totalled e 63.4 million, again representing an increase of some 16 percent. The Print segment performed particularly well, with growth of 20.5 percent in the second quarter. As expected, the marked rises in revenue have also had a positive impact on profitability. Gross profit rose more sharply than revenue in the second quarter, by 24.7 percent to EUR 11.6 million (previous year: EUR 9.3 million). This reflects primarily the improved levels of capacity utilisation in conjunction with higher revenue volumes.

Operating profit rose by 15.2 percent in the first half of the year, to EUR 5.4 million (previous year: EUR 4.6 million). With the exception of research and development spending, which was driven up in particular by the new cleaning systems product line, the rates of increase in the other areas (distribution, administration etc.) were much more modest than the rise in revenue. The operating margin reached 8.4 percent in all and is therefore roughly on a par with the already good level of the previous year (8.5 percent). The net profit in the second quarter rose to EUR 1.7 million (previous year EUR 1.4 million), with the result that it climbed to EUR 3.1 million overall at the year's half-way mark. This corresponds to earnings per share of EUR 0.48 (previous year EUR 0.42).

The technotrans Group employed an average total of 680 people over the first six months of 2005 (previous year: 601), comprising 468 (415) in Germany and 212 (186) outside Germany. The rise in the employee total since the start of the year (up 22, equivalent to 3.3 percent) is back to a normal level after the sharp increase in capacity especially in the second half of the last year.

Outlook
"Both revenue and earnings are at a highly satisfactory level mid-way through the year. As matters stand, we therefore expect to achieve this year's overall targets of EUR 120 to 125 million revenue and a net profit of EUR 7 to 7.5 million", said Heinz Harling, Chairman of the Board of Management.

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

In the first half of 2005, revenue in the largest segment Print rose to EUR 45.6 million, representing an increase of 18.2 percent (previous year: EUR 38.6 million). Following an extremely dynamic start to this year, it was possible to achieve a further rise in the second quarter (first quarter: EUR 22.3 million, second quarter EUR 23.3 million). This development is largely in line with the overall targets. In terms of both revenue (72 percent) and earnings (62.8 percent), the Print segment remains the focal area of business.

Earnings for that segment reached almost EUR 3.4 million at June 30, an increase of 25.2 percent on the previous year (EUR 2.7 million). The second quarter figure was diminished by the temporarily higher research and development spending for the new product area of cleaning systems and the structural changes resulting from the redeployment of capacity away from the Micro Technologies segment. The rate of return for the segment reached 7.4 percent mid-way through the year.

Revenue for the Micro Technologies segment in the second quarter of EUR 1.9 million was up on the first quarter (EUR 1.2 million), yet this level - which is on a par with the previous year six months into the year - is still well short of medium-term expectations. As a result, management has integrated the entire area into the technology structures of the company and is now running it as a separate product area.

Improvement of the segment result was significant compared to the first quarter 2005 (EUR -255,000; Q2 EUR -59,000) as well as half way through the year (2004: EUR -576,000; 2005: EUR -314,000). Slack demand in the CD/DVD area remains a cause for concern. The target is to break even in this segment by the end of the year. Micro Technologies is now generating only 5 percent of revenue.

Revenue for the Services segment in the first half of the year showed an overall rise of 13.9 percent to EUR 14.6 million (previous year: EUR 12.8 million). Progress in the second quarter proved to be slightly more dynamic, with revenue rising by 20.9 percent to EUR 7.4 million (previous year: EUR 6.1 million).

Earnings for the segment were unable to keep pace with this growth. The result for the segment of EUR 2.2 million at June 30 consequently remained broadly unchanged from the previous year (EUR 2.3 million). The rate of return for the segment dipped temporarily to just 14.8 percent mid-way through the year.

Heinz Harling explained the reasons: "Particularly in Asia's emerging markets, we are currently expanding our structures in a focused manner in order to prepare ourselves early on for further sharp growth in the total number of our installed devices in the future. This investment in our international structure will give us access to considerable fresh potential. In this instance, we have decided to tolerate the temporarily poorer margins in view of the future prospects."

Chief Financial Officer Burkard Rausch adds: "All in all, this situation and mood in the industry is in line with our expectations for the current financial year, with the result that at present we are confident of achieving our overall targets for 2005."

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 01-06/2005

Dates:
The results for the third quarter of 2005 will be published on November 8th, 2005.

Securities:
technotrans AG - ISIN DE0007449001 - German Securities Identification No. WKN 744 900

Download the complete Press Release.

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.