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.
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• Revenue grows to €447 million in 2007
• Operating earnings (EBIT) up 41 percent to €46.3 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 €405 million to €447 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 €32.9
million to €46.3 million. Net income for the year was €32.6 million,
compared with €25.7 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 €268 million at the end of 2007, 22 percent higher than the
previous year's record level (€220 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 €218
million to €273 million. In overall terms, Kontron AG also further improved
its very solid liquidity position. The net cash position increased to €70.7
million, compared with €28.5 million in the previous year. Operating cash
flow rose to €28.5 million, as compared with €23.4 million in 2006. Given
total equity and liabilities of €382 million (previous year: €363 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
DGAP 26.03.2008 
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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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