DGAP-Adhoc: Schmack Biogas presents preliminary half-year figures

Schmack Biogas AG / Preliminary Results

13.08.2008 

Release of a Adhoc News, transmitted by DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
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Schmack Biogas presents preliminary half-year figures 
- Sales and earnings remain weak
- Framework agreement with Hg Renewable Power Partners annulled 
- Slightly better performance projected for second half


Schwandorf, August 13, 2008. As had been expected, Schmack Biogas AG
experienced weak business in the second quarter of 2008, according to
preliminary figures. This is attributable to customers’ wait-and-see
attitude which, in turn, was due to the long uncertainty about the
amendment of the Renewable Energies Act (EEG), as well as to the high
prices of agricultural commodities. At EUR 29.8 million, sales revenues in
the first six months were therefore clearly below the previous year’s EUR
55.8 million, according to preliminary figures. Half-year earnings before
interest and taxes (EBIT) are expected to amount to EUR -25.8 million (H1
2007: EUR -10.7 million).

The result for the first six months includes the reversal of approx. EUR
8.0 million in income from the development of project sites for financial
investor Hg Renewable Power Partners which had been recognised in profit
and loss in the previous year. Schmack Biogas and Hg Renewable Power
Partners have mutually agreed to annul the existing framework agreement for
the sale of biogas projects to Hg. This will allow Schmack Biogas to offer
the projects to third parties. A sale to Hg at a later date also remains
conceivable. Other non-recurrent effects and expenses related to
restructuring also weighed on the half-year result to the amount of EUR 5.2
million.

The projects already developed under, and up until now bound to the
framework agreement are currently being offered for sale to energy
companies and other investors. Concrete negotiations are underway for
several large-scale projects. Against this background, the company expects
the negative trend in its operative business to weaken in the second half
of the year and projects greatly improved sales and earnings from 2009.
Besides the project sales, an internal restructuring and cost-cutting
programme, the EEG amendment and the meanwhile strong decrease in raw
material prices are expected to have positive effects.


Contact: 
Schmack Biogas AG
Markus Meyr
Tel.: +49 (0) 9431 / 751-111
markus.meyr@schmack-biogas.com

Haubrok Investor Relations GmbH
Michael Müller, Linh Chung
Tel.: +49 (0) 211 / 30126-106
m.mueller@haubrok.de
DGAP 13.08.2008 
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Language:     English
Issuer:       Schmack Biogas AG
              Bayernwerk 8
              92421 Schwandorf
              Deutschland
Phone:        +49 (0)9431 / 751-0
Fax:          +49 (0)9431 / 751-204
E-mail:       info@schmack-biogas.com
Internet:     www.schmack-biogas.com
ISIN:         DE000SBGS111
WKN:          SBGS11
Listed:       Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
              in Berlin, Düsseldorf, München, Stuttgart
End of News                                     DGAP News-Service
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