Ad hoc: Funkwerk AG: Funkwerk increases sales and earnings in Q3

13 November 2007: According to the final figures now available, Funkwerk AG increased its revenues in the third quarter by 25 per cent on the prior year, raising the volume from 53.3 mill. Euro to 66.8 mill. Euro. At the same time, quarterly earnings before interest and taxes (EBIT) of 2.3 mill. Euro proved significantly higher than in the previous year (0.2 mill. Euro). Over the nine-month period, sales of the Thuringian technology group listed in the Prime Standard thus rose by 18 per cent to over 193 mill. Euro (2006: 164 mill. Euro). The nine-month EBIT increased to 4.0 mill. Euro (2006: 1.6 mill. Euro). The consolidated net income improved on the previous year, from 0.1 mill. Euro in 2006 to 0.5 mill. Euro. The earnings per share stood at 0.06 Euro (2006: 0.01 Euro). In terms of cash flow, the company reported an equally positive trend. On balance, the inflow of funds from operations in the third quarter totalled 1.2 mill. Euro. The cash flow is the sum total of the consolidated net profit plus depreciation and amounted to 12.5 mill. Euro as at the end of September (2006: 9.8 mill. Euro). At the cutoff date, the order volume came to 150 mill. Euro, up by 67 per cent on the prior-year 90 mill. Euro. In the third quarter, the business trend by segment followed the same uneven pattern as in previous periods. While Traffic & Control Communication, after its reorganisation, was back on course for profitable growth, Enterprise Communication once again failed to achieve its sales target and will now undergo restructuring. A delay in product placement also put pressure on the margin of Automotive Communication, though revenues here remained in the target range. Due to its customer structure, the sales distribution of Funkwerk in fiscal 2007 is again defined by a strong asymmetry with emphasis on the fourth quarter. Specifically, Funkwerk anticipates that the completion of major projects by the end of the year will result in sales of more than 100 mill. Euro, with significantly increasing earnings. Based on the current order volume, this target is already virtually secured. The integration of acquisitions made early in the year are progressing according to plan and will largely be finalised by the year-end. The positive completion of critical projects taken over still remains a risk for the group's earnings situation. Based on the information currently available, however, the Executive Board expects Funkwerk to reach its targets set for 2007, including sales of 300 mill. Euro and an EBIT of around 15 mill. Euro. The full nine-month report of Funkwerk AG is available for downloading on the Internet at For further information contact Funkwerk AG Im Funkwerk 5 99625 Kölleda/Thuringia Germany Jörg Reichenbach Investor Relations Telephone: 0 36 35/458-346 Fax: 0 36 35/6 00 -507 --- End of Message --- Funkwerk AG Im Funkwerk 5 Kölleda Germany WKN: 575314; ISIN: DE0005753149; Index: HDAX, MIDCAP, CDAX, Prime All Share, TECH All Share; Listed: Geregelter Markt in Frankfurter Wertpapierbörse, Prime Standard in Frankfurter Wertpapierbörse, Freiverkehr in Börse Berlin, Freiverkehr in Bayerische Börse München, Freiverkehr in Börse Düsseldorf, Freiverkehr in Börse Stuttgart, Freiverkehr in Hanseatische Wertpapierbörse zu Hamburg, Freiverkehr in Niedersächsische Börse zu Hannover;