2005-03-08: technotrans posts excellent figures for 2004 financial year
Targets surpassed: revenue rises by 10 percent to more than EUR 117 million / net profit for the year better than expected at EUR 6.8 million / plans for renewed increase in dividend (EUR 0.45 per share, + 50%)

Frankfurt/Sassenberg, March 8, 2005
technotrans, a leading systems supplier of equipment for the printing industry and for micro technologies, is able to look back on 2004 as its most successful financial year since going public. Revenue rose to EUR 117.3 (previous year: 106.7) million, an increase of almost 10 percent. After two difficult years, the Print segment made particularly good progress, with revenue rising by all of 15.3 percent. The general rise in revenue also had a positive effect on earnings. Gross profit improved by 10.7 percent to EUR 39.8 (previous year: 35.9) million and the operating profit (EBIT) by 49.6 percent to EUR 11.3 (previous year: 7.5) million. The operating margin thus reached 9.6 percent (previous year: 7 percent).

A net profit for the 2004 financial year of EUR 6.8 (previous year: -11.0, target: 5.5 to 6) million is reported, representing earnings per share of EUR 1.02. The shareholders will be participating in the company's success: the management is to propose an increase of around 50 percent in the dividend, to EUR 0.45 per share, to the Shareholders' Meeting on May 13, 2005.

The free cash flow was likewise distinctly better than planned: it rose to EUR 9.4 (previous year: 5.4; target: 7 to 8) million; cash at December 31 reached EUR 12.6 (previous year: 8.8) million. 661 people were employed by the group on the balance sheet date (previous year: 596).

Outlook
The Board of Management expects the positive progress to continue in 2005. "technotrans is back on track for growth," concluded a satisfied Heinz Harling, Chairman of the Board of Management of technotrans AG, upon presenting the annual accounts. technotrans is making plans for revenue of EUR 120 to 125 million for the current financial year, which should see earnings climb to between EUR 7 and 7.5 million. "We are now investing in the new blanket cleaners product area and are extending our capacity at the Augsburg location. We are thus paving the way for extending our reputation as a growth company of above-average profitability in the medium term, too."

The divisions
technotrans has business operations in three areas: Print, Micro Technologies and Services.

Revenue for the Print segment rose by 15.3 percent in 2004, to EUR 81.4 (previous year: 70.6) million, thus representing 70 percent of total revenue. This positive development was attributable to the improving health of the industry and the influence of the DRUPA exhibition. technotrans furthermore succeeded in strengthening its market position. The American subsidiaries moreover posted unexpectedly high growth rates.

The segment achieved an entirely satisfactory earnings figure of EUR 6.5 (previous year: 1.8) million. This improvement was achieved by virtue of economies of scale made possible by the higher production volumes, and also through the higher proportion of business with end users.

As the Print segment fared much better than expected, the progress of the Micro Technologies segment had little bearing on the company's overall target for 2004. Revenue of EUR 8.1 (previous year: 10.8) million fell short of expectations; the segment currently represents 7 percent of consolidated revenue. It was not yet possible for new applications in the field of microstructure technology to counterbalance sluggish sales in the market for optical storage media over the year as a whole.

The customary surge in revenue in the final quarter did not materialise in 2004, with the result that the segment failed to post a positive year-end result for the first time, closing on EUR -1,0 (previous year: +0.6) million. Appropriate measures have been taken to bring cost structures in line with the lower revenue volume.

The Services segment again made good progress, with revenue for the 2004 financial year up 9.4 percent to EUR 27.7 (previous year: 25.3) million. The result for the segment likewise reached the highly satisfactory level of EUR 5.5 (4.8) million.

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

Key Data 01-12/2004

Dates:
Publication of the figures for the first quarter of 2005 is scheduled for May 3, 2005.

Securities:
technotrans AG - ISIN DE0007449001 - German Securities Identification No. 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.