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DGAP-Adhoc: Kontron AG continues record revenue and earnings growth

26.03.2008
Kontron AG / Final Results 26.03.2008 Release of an Ad hoc announcement according to § 15 WpHG, transmitted by DGAP - a company of EquityStory AG. The issuer is solely responsible for the content of this announcement. =-------------------------------------------------------------------------- ? Revenue grows to EUR447 million in 2007 ? Operating earnings (EBIT) up 41 percent to EUR46.3 million ? Outlook: target of double-digit operating revenue growth accompanied by disproportionately high earnings growth Eching, Munich, March 26, 2008. In the 2007 financial year, Kontron AG, one of the world's leading suppliers of embedded computer systems, successfully continued its profitable growth path of recent years. Total revenue rose from EUR405 million to EUR447 million - corresponding to a nominal increase of 10 percent; when adjusted for currency losses resulting from the weak US dollar, the increase was as high as 15 percent, and totals 18 percent taking the disposal of the mobile product area in the United States into account. Operating earnings (EBIT) were up 41 percent, rising from EUR32.9 million to EUR46.3 million. Net income for the year was EUR32.6 million, compared with EUR25.7 million in the previous year. Earnings per share (diluted) rose to 60 cents compared with 46 cents in the previous year, representing an increase of over 30 percent. The company's high growth rate is particularly reflected in the order book: the level of orders on hand amounted to EUR268 million at the end of 2007, 22 percent higher than the previous year's record level (EUR220 million). There was a comparably dynamic rise in the number of design wins. The latter rose to 339 compared with 257 in the previous year, and, in monetary terms, volume increased from EUR218 million to EUR273 million. In overall terms, Kontron AG also further improved its very solid liquidity position. The net cash position increased to EUR70.7 million, compared with EUR28.5 million in the previous year. Operating cash flow rose to EUR28.5 million, as compared with EUR23.4 million in 2006. Given total equity and liabilities of EUR382 million (previous year: EUR363 million), the equity ratio increased to 75.4 percent compared with 69.4 percent in 2006. Compared with the company's rate of business growth, the workforce grew only moderately, to 2,567 employees (previous year: 2,445). According to the Executive Board, the disproportionate rise in profitability results mainly from the successful implementation of the Profit Improvement Program. The facility in Penang, Malaysia, which was acquired at the end of 2005, played a particular role in securing a long-term improvement in profitability. As in 2006, this has resulted in a major reduction in production costs. Whereas production costs were still 8.5 percent in 2006, this proportion was cut to an average of 6.6 percent during the course of 2007. Besides technology and quality leadership, Kontron AG's medium-term goal is to assume a position of production-cost leadership in the embedded computer technology segment by 2009. A decisive step in this direction was made in the first quarter of 2008 with the founding of a joint venture with the Taiwanese company Quanta Computer Inc., Taipei, the world's largest manufacturer of laptops. Improved purchasing terms, in combination with further optimization of production costs, should allow the EBIT margin to be improved by up to two percentage points over the next three years, according to Kontron's Executive Board. Profitability will also improve further as the result of the company's successful focus on vertical markets, accompanied by a high level of cost-consciousness, as well as the new joint venture in Asia. Kontron aims to focus on organic growth rather than making expensive acquisitions; the only exception to this policy will be corporate purchases that can be made on particularly attractive terms ('lucky buys'). According to Kontron's Executive Board, double-digit revenue growth on the basis of unchanged exchange rates, accompanied by a disproportionately high rate of earnings growth with regard to revenue, is a realistic target for the 2008 financial year, in spite of greater uncertainties in global markets due to the financial crisis in the United States. Investor Relations: For further information: Gaby Moldan Dr. Udo Nimsdorf Kontron AG Engel & Zimmermann AG Oskar-von-Miller-Str. 1, Agentur für Wirtschaftskommunikation D-85386 Eching Schloss Fußberg, Am Schlosspark 15, Tel:+498165/77212,Fax+498165/77222 D-82131 Gauting Email: Gaby.Moldan@kontron.com Tel.+4989-8935633,Fax:+4989-89398429 Email : info@engel-zimmermann.de 26.03.2008 Financial News transmitted by DGAP =-------------------------------------------------------------------------- Language: English Issuer: Kontron AG Oskar-von-Miller-Str. 1 85386 Eching Deutschland Phone: 08165-77-225 Fax: 08165-77-222 E-mail: martin.przybyla@kontron.com Internet: www.kontron.com ISIN: DE0006053952 WKN: 605395 Indices: TecDAX Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin, Stuttgart, München, Hamburg, Düsseldorf End of News DGAP News-Service =--------------------------------------------------------------------------

Kontron AG / Final Results 26.03.2008 Release of an Ad hoc announcement according to § 15 WpHG, transmitted by DGAP - a company of EquityStory AG. The issuer is solely responsible for the content of this announcement. =-------------------------------------------------------------------------- ? Revenue grows to EUR447 million in 2007 ? Operating earnings (EBIT) up 41 percent to EUR46.3 million ? Outlook: target of double-digit operating revenue growth accompanied by disproportionately high earnings growth Eching, Munich, March 26, 2008. In the 2007 financial year, Kontron AG, one of the world's leading suppliers of embedded computer systems, successfully continued its profitable growth path of recent years. Total revenue rose from EUR405 million to EUR447 million - corresponding to a nominal increase of 10 percent; when adjusted for currency losses resulting from the weak US dollar, the increase was as high as 15 percent, and totals 18 percent taking the disposal of the mobile product area in the United States into account. Operating earnings (EBIT) were up 41 percent, rising from EUR32.9 million to EUR46.3 million. Net income for the year was EUR32.6 million, compared with EUR25.7 million in the previous year. Earnings per share (diluted) rose to 60 cents compared with 46 cents in the previous year, representing an increase of over 30 percent. The company's high growth rate is particularly reflected in the order book: the level of orders on hand amounted to EUR268 million at the end of 2007, 22 percent higher than the previous year's record level (EUR220 million). There was a comparably dynamic rise in the number of design wins. The latter rose to 339 compared with 257 in the previous year, and, in monetary terms, volume increased from EUR218 million to EUR273 million. In overall terms, Kontron AG also further improved its very solid liquidity position. The net cash position increased to EUR70.7 million, compared with EUR28.5 million in the previous year. Operating cash flow rose to EUR28.5 million, as compared with EUR23.4 million in 2006. Given total equity and liabilities of EUR382 million (previous year: EUR363 million), the equity ratio increased to 75.4 percent compared with 69.4 percent in 2006. Compared with the company's rate of business growth, the workforce grew only moderately, to 2,567 employees (previous year: 2,445). According to the Executive Board, the disproportionate rise in profitability results mainly from the successful implementation of the Profit Improvement Program. The facility in Penang, Malaysia, which was acquired at the end of 2005, played a particular role in securing a long-term improvement in profitability. As in 2006, this has resulted in a major reduction in production costs. Whereas production costs were still 8.5 percent in 2006, this proportion was cut to an average of 6.6 percent during the course of 2007. Besides technology and quality leadership, Kontron AG's medium-term goal is to assume a position of production-cost leadership in the embedded computer technology segment by 2009. A decisive step in this direction was made in the first quarter of 2008 with the founding of a joint venture with the Taiwanese company Quanta Computer Inc., Taipei, the world's largest manufacturer of laptops. Improved purchasing terms, in combination with further optimization of production costs, should allow the EBIT margin to be improved by up to two percentage points over the next three years, according to Kontron's Executive Board. Profitability will also improve further as the result of the company's successful focus on vertical markets, accompanied by a high level of cost-consciousness, as well as the new joint venture in Asia. Kontron aims to focus on organic growth rather than making expensive acquisitions; the only exception to this policy will be corporate purchases that can be made on particularly attractive terms ('lucky buys'). According to Kontron's Executive Board, double-digit revenue growth on the basis of unchanged exchange rates, accompanied by a disproportionately high rate of earnings growth with regard to revenue, is a realistic target for the 2008 financial year, in spite of greater uncertainties in global markets due to the financial crisis in the United States. Investor Relations: For further information: Gaby Moldan Dr. Udo Nimsdorf Kontron AG Engel & Zimmermann AG Oskar-von-Miller-Str. 1, Agentur für Wirtschaftskommunikation D-85386 Eching Schloss Fußberg, Am Schlosspark 15, Tel:+498165/77212,Fax+498165/77222 D-82131 Gauting Email: Gaby.Moldan@kontron.com Tel.+4989-8935633,Fax:+4989-89398429 Email : info@engel-zimmermann.de 26.03.2008 Financial News transmitted by DGAP =-------------------------------------------------------------------------- Language: English Issuer: Kontron AG Oskar-von-Miller-Str. 1 85386 Eching Deutschland Phone: 08165-77-225 Fax: 08165-77-222 E-mail: martin.przybyla@kontron.com Internet: www.kontron.com ISIN: DE0006053952 WKN: 605395 Indices: TecDAX Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin, Stuttgart, München, Hamburg, Düsseldorf End of News DGAP News-Service =--------------------------------------------------------------------------

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