Design Hotels AG Reports Results for the 1st Half Year 2009

Corporate news announcement processed and transmitted by Hugin AS. The issuer is solely responsible for the content of this announcement. ---------------------------------------------------------------------- -------------- Effects of global economic crisis impact turnover and net result Berlin - Design Hotels AG (Regulated Market, Munich: LBA; ISIN: DE0005141006), integrated provider of marketing and positioning services for individually managed hotels and small hotel groups in the New Luxury Segment, today reports its results for the 1st half year of 2009 according to IFRS. Financial Highlights for the Design Hotels Group: Revenues for the first six months decreased by approximately 10% to ¤3.71 million (HY2008: ¤4.14 million). With a drop of 26% to ¤1.60 million, booking commissions were hit hardest by the economic crisis. Contribution to total revenues went down to 43% (HY 2008: 53%). Revenues from membership fees and Marketing Products/Consulting of ¤1.10 million and ¤1.01 million respectively both showed modest gains of 7% on a six month basis. Marketing Products/Consulting benefited from a large project, which was invoiced in the first quarter of 2009. For the second quarter, this business segment however showed a clear decrease in revenues by 28%, compared to the same quarter last year. The gross margin came in at 74% and thus remained at last year's level (74%). EBITDA for the first six months was a negative ¤131,000 as compared to a positive ¤382,000 for the same period last year. EBIT for the first half of 2009 came in at a negative ¤221,000 as compared to a positive ¤304,000 last year. The Net Loss was ¤208,000 compared to a net profit of ¤309,000 in the same period last year. The net loss per share was - ¤0.02 (HY2008: +¤0.03) As per June 30th 2009, the Company had Cash and Cash Equivalents to the amount of ¤2.14 million, as compared to ¤2.78 million as per December 31st 2008. In the first six months Shareholder's Equity decreased from ¤5.64 million to ¤5.44 million. The balance sheet is free from any liabilities to banks or noteworthy goodwill. Additional Notes: CEO Claus Sendlinger commented: "After the weak start in 2009 for the tourism industry, the sector remained under pressure during the months April to June. The intermittent improvements in bookings during the quarter unfortunately proved to be of a passing nature. We do not foresee a speedy recovery. For the short term we have therefore reacted by changing the focus on our respective activities, without losing sight of our long term goals such as strengthening of the Design Hotels brand, customer loyalty to the organisation, as well as a continuous improvement of our product. The measures implemented include a structural adjustment in staffing as well as a thorough revision of our sales offer in order better to meet the current needs of the hoteliers. Our clients have a much greater need for Sales and Marketing support from Design Hotels than they would during the past economic boom. However, we are realistic enough to accept that in times of crisis, budgets for external service providers are generally rather reduced. Additionally, we are focused on improving our presence in the Far East, as well as to accelerate the expansion of our hotel portfolio. As we believe that the Asian market will be the first to recover. Therefore, we are looking to create the conditions that will allow us to increase the contribution to revenues from this region through expanding our hotel portfolio there and increasing brand awareness with end customers. At the same time, we see that the crisis has increased the need for hotels to affiliate themselves with strong marketing organisations. This, we believe, creates opportunities to strengthen the quality of our portfolio." The complete Half Year Report is available for downloading via the link at the end of this message and at www.designhotels.com Contact: Design Hotels AG Claus Sendlinger (CEO) Stralauer Allee 2c 10245 Berlin Tel. +49 (0)30 88 484 00 14 Fax +49 (0)30 25 933 01 7 ir@designhotels.com Schwarz Financial Communication Frank Schwarz Tel. +49 (0)611 17453 9811 Fax +49 (0)611 17453 9829 schwarz@schwarzfinancial.com Design Hotels AG (formerly: lebensart global networks AG) is an integrated provider of communication and positioning services and acts as a consultant for individually managed hotels and small hotel groups. The service range of design hotels begins with the concept for a hotel. Clients of design hotels AG can choose from a modular service portfolio. With the brand Design Hotels(TM) the company currently represents and markets a unique collection of over 184 individual hotels in more than 40 countries. Through its marketing and communication activities Design Hotels AG forms the connection between the member hotel and a global clientele looking for self-determination and individuality. www.designhotels.com, ISIN: DE0005141006, Munich Stock Exchange (Regulated Market) --- End of Message --- Design Hotels AG Stralauer Allee 2c Berlin Germany WKN: 514100; ISIN: DE0005141006; Listed: Open Market in Frankfurter Wertpapierbörse, Freiverkehr in Börse Berlin, Freiverkehr in Hanseatische Wertpapierbörse zu Hamburg, Regulierter Markt in Bayerische Börse München;