Distinct Growth in Sales and EBITDA Thanks to the Full Consolidation of BOWE Bell + Howell, USA


AUGSBURG, Germany, Aug. 11, 2005 (PRIMEZONE) -- BOWE SYSTEC:

- Rise in sales in the first half of the year: 45% to EUR 199.4 million

- EBITDA rises by 93% to EUR 16.0 million in the first six months

- Order backlog at record level of EUR 114.8 million

- Overall forecast for 2005 remains unchanged: Group sales between EUR 460 and 480 million and results up to over EUR 17.5 million

BOWE SYSTEC continues along the growth path. With new record levels in sales and order intake in the second quarter of the current financial year, the company has succeeded in building on the successful trend of the first three months. As was already the case in the financial statement for the first quarter of 2005, the full consolidation of the U.S. company BOWE Bell + Howell at the beginning of the year has led to a further welcome rise in the group value vis-a-vis the previous year. A comparison with the figures for the same period of the previous year is therefore only possible to a limited extent.

2nd quarter

The BOWE SYSTEC Group displayed a clear increase, in particular relating to order intake. At EUR 131.0 million, it was up 61% on the figures for the second quarter of the previous year. A similarly positive development can be reported in the Group's sales and order backlog which rose in the second quarter of 2005 to EUR 103.9 million and EUR 114.8 million respectively. Therefore the relevant prior year figures have been surpassed by around 46% and 84%.

The result before interest, taxes and depreciation (EBITDA) for the quarter increased by EUR 2.7 million or 54% to EUR 7.7 million, disproportionately high compared to the increase in sales.

As a result of the purchase of further shares in BOWE Bell + Howell, USA, BOWE SYSTEC is currently reporting a high level of interest charges. As a consequence the result after minority interests lay at EUR -1.0 million (previous year EUR -1.7 million).

1st half year

Over the entire first half of 2005, the order intake of the BOWE SYSTEC Group amounted to EUR 228.6 million (previous year EUR 159.9 million). Among the factors contributing to this increase were initial project successes with postal organizations in Europe. Sales increased by 45% to EUR 199.4 million (previous year EUR 137.6 million). For the entire first half of 2005 the result before interest, taxes and depreciation (EBITDA) increased by 93% to EUR 16.0 million, disproportionately high compared to the increase in sales. The net result after minority interests which reflects the current burden of interest and taxes, was negative at EUR -2.7 million as in the first half of 2004 (EUR -4.1 million).

Outlook

Through the takeover of the majority share, BOWE SYSTEC will fully consolidate the business of the US company from the current financial year onward. The worldwide sales of the BOWE SYSTEC Group will consequently display a clearly double-digit growth rate vis-a-vis 2004. The opening up of the European postal markets to competition permits further the expansion of sales of sorting system products in the European markets too, availing of the BOWE SYSTEC sales and service companies. At the current exchange rates, the forecast for the Group's sales in 2005 remains unchanged at between EUR 460 and EUR 480 million (previous year EUR 309.1 million). In terms of the net income for the year an increase vis-a-vis the 2004 financial year continues to be anticipated.


 Quarterly financial statement    Second Quarter   First Half Year  
  according German GAAP (HGB)                                        

  Financial Year                    2005    2004     2005     2004   

  Order intake (Million EUR)       131.0    81.2    228.6    159.9   

  Order backlog (Million EUR)        -        -     114.8     62.4   

  Sales (Million EUR)              103.9    71.2    199.4    137.6   

  EBITDA (Million EUR)              7.7      5.0     16.0     8.3    

  EBIT (Million EUR)                1.6      0.3     3.8      -0.1   

  EBT (Million EUR)                 -1.3    -1.1     -1.8     -2.7   

  Net results after minority        -1.0    -1.7     -2.7     -4.1   
  interests (Million EUR)                                            

  EPS (EUR)                        -0.15    -0.26   -0.41    -0.62   

  Employees (June 30th)                       -     3,567    2,662   

The complete interim report can be found on http://www.boewe-systec.de or can be requested by calling Tel. +49(0)821 / 5702-365. http://hugin.info/130395/R/1005683/154959.pdf



 BOWE SYSTEC AG
 The Board
 
 Financial Calendar 2005:
 Nov 10 Interim report as of September 30, 2005


            

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