2004-05-04: technotrans starts 2004 with Growth in Revenue and Profit
revenue plus 3.5% / gross profit plus 15.6% / operating profit plus 53.8% / net profit plus 153% / Cash flow plus 107% / Free Cash flow plus 341%/ balance sheet cash plus 25%

technotrans, leading systems supplier of equipment for the printing industry and the manufacture of micro technology, reports a good start into financial year 2004. With revenue up 3.5 percent on the first quarter of the previous year to € 26.7 million (previous year: € 25.8 million), the positive trend of the previous two quarters held up. The Print segment performed particularly well, growing by more than 11 percent compared with the prior-year quarter to € 19.2 million.

The efforts to adjust operations during the recent crisis have had a significant effect. For example, the gross margin was boosted from 31.8 to 35.5 percent in the first quarter, and the gross profit rose by 15.6 percent in absolute terms from € 8.2 million in 2003 to € 9.5 million in the first quarter of 2004. The operating profit, too, improved from € 1.3 million to € 2.0 million in the first quarter. A net profit of € 1.3 million is reported for the first quarter, equivalent to earnings per share of € 0.20 (previous year € 558,000 or € 0.08 per share).

Cash and cash equivalents have risen from € 8.8 to 11 million since the end of 2003, an increase of 25 percent. Long-term assets in the intangible and goodwill categories fell as a result of amortisation. This amortisation is to be applied for the last time in 2004 as a result of a change in the IFRS accounting provisions, and the result will improve accordingly from 2005.

A cash flow from operating activities of € 2.4 million (previous year € 1.15 million) was generated in the first quarter. After investment, the free cash flow totalled € 2.0 million (previous year € 458,000).

At the reporting date of March 31, 2004 technotrans had a total of 606 employees (previous year: 617. Whereas the total number of domestic employees recovered slightly (421ompared with 403in the previous year), the number of employees abroad was down from 214 in the previous year to 185 on March 31, 2004, largely as a result of the closing of the production plant in England.

Outlook
"Following the successful start to the new financial year, we believe our prediction has come true: the situation is improving, and merely the duration and extent of the recovery are difficult to establish as matters stand," says Heinz Harling, Chairman of the Board of technotrans. "For this reason, we are confident that the targets for 2004 as a whole that were announced in March (revenue of € 115 million revenue and a net profit of € 5 to 6 million) will be achieved."

Sales Director Ralph Teunissen says: "In common with other market operators, we are viewing the forthcoming DRUPA industry exhibition with cautious optimism. In the current economic environment it can undoubtedly be interpreted as a positive sign that there was no marked reluctance to invest on the part of customers in the run-up to the exhibition. In other words, the so-called DRUPA "gap" has failed to occur this time. We nevertheless do not expect this year's exhibition to have as marked an effect as the previous exhibition in 2000."

This year's Shareholders' Meeting will be held on May 28, shortly after the DRUPA. Management expects then to be able to report on the prospects for the company in the wake of the exhibition.

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

Revenue in the Print Segment rose by 11.4 percent, from € 17.3 million in the first quarter of the previous year to € 19.2 million. This consequently maintained the positive development of the Print segment for the third quarter in succession, even if as expected the figure for the fourth quarter of 2003 (€ 20.2 million) was not matched.

With a rate of return of 6.7 percent, the Print segment's profitability made healthy progress. The result for the segment of € 1.3 million (previous year € 164,000) reflects both an improved operating performance and the easing of the financial burden from lower goodwill amortisation (€ 106,000 instead of € 328,000 in the previous year) and from the closing of the production plant in England in the previous year.

The Micro Technologies segment posted revenue of only € 729,000 in the first three months of the year. This development in what is traditionally a slack quarter reflects past experience and typifies the pattern in an area dominated by project business.

Nevertheless, it is not possible to generate a positive result from this low level of revenue. The segment consequently again reports a loss for this quarter (€ -521,000, previous year € -66,000). Again the usual improvement as the year progresses is being anticipated.

The Services segment achieved a new record revenue level of € 6.7 million in the first quarter (previous year € 6.5 million, + 3.6 percent) and boosted its revenue share within the group to 25 percent.

The operating profit rose by 5 percent compared with the prior year's first quarter, to over € 1.2 million. The rate of return for the segment reached a satisfying 18.3 percent. The intensive support having to be provided for new systems in the run-up to the DRUPA was thus largely counterbalanced by higher-margin services such as Technical Documentation. .

Key Data 01-03/2004

Dates
The Interim Report 2/2003 will be published on August 10, 2004.

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.