Quarterly Report I 2011

		Q1/2011	Q1/2010	Change
Sales	Million EUR	28.2	25.7	10%
Return or revenue before tax	%	21%	19%	14%
EBITDA	Million EUR	8.1	7.1	14%
EBIT	Million EUR	6.4	5.2	23%
EBT	Million EUR	6.0	4.8	25%
Net income before other shareholder´s interests	Million EUR	3.8	2.8	36%
Profit	Million EUR	3.6	2.5	44%
Earnings per share (basic)	Million EUR	0.69	0.49	42%
Operational cash flow	Million EUR	1.9	2.0	-9%
Depreciation and amortization on non-current assets	Million EUR	1.7	1.9	-10%
Staff as of March 31	Persons	559	519	8%

Approval

Eckert & Ziegler receives final approval for its drug YTTRIGA (Yttrium-90-chloride) from the European Commission. (1)

Awarded

The physicist Dr. Gudrun Erzgräber, Member of the Supervisory Board of Eckert & Ziegler Strahlen- und Medizintechnik AG, was awarded the prestigious Timoféeff-Ressovsky Medal of the Russian Academy of Medical Sciences for her achievements in the field of radiation biophysics. (2)

Dividend

The Executive Board and the Supervisory Board decide to propose a dividend payment of 0.60 EUR per dividend-bearing share at the shareholder meeting on 19 May 2011.

User meeting

On the occasion of its user meeting in Thailand the Therapy segment presents to some 100 international radiation therapy experts the prototype of its new radiation device for cancer therapy MultiSource®. (3)

Abstract Award

On the occasion of the annual meeting of the European Association of Nuclear Medicine (EANM) the company for the fourth time presents the Eckert & Ziegler/EANM Abstract Award for exceptional works in the field of nuclear medicine. (4)

Contract

Eckert & Ziegler concludes a longterm contract with Euromedic International B.V., based in Budapest, to supply its Polish diagnostic centres with Fludeoxyglucose (18F) (FDG). The framework agreement also envisages the creation of a pharmaceutical facility in Warsaw in addition to the supply of clinics. (5)

Theragenics

Eckert &Ziegler submits a proposal to acquire the US-based Theragenics Corporation. But after the Board of Directors of Theragenics refuses to engage in any negotiations and it cannot be established that the considerable additional expenditure for a hostile takeover is justified by the risk-adjusted value of the takeover target, Eckert & Ziegler withdraws its takeover offer.

Business development of the Eckert & Ziegler Group

An outstanding first quarter in 2011

The first quarter of 2011 was extremely successful for the Eckert & Ziegler Group. Sales in all segments were higher than in the first quarter of 2010, rising in total by EUR 2.5 million (10%) to EUR 28.2 million. This is the second highest figure ever reached for sales during a quarter, surpassed only by the immediately preceding fourth quarter of 2010 when the Russia project accounted for an exceptionally high proportion of turnover and a total of EUR 30.0 million EUR was achieved.

Profits grew even more vigorously than sales, also increasing in all operative segments and setting new absolute records. In no previous quarter had the group achieved an EBIT of EUR 6.4 million, a profit before tax of EUR 6.0 million, and a net income after minority interests of EUR 3.6 million. In comparison with the first quarter of the previous year EBIT grew by 23%, profit before tax increased by 25% and net income after minority interests was up by 44%. Earnings per share for the first quarter of 2011 stood at EUR 0.69.

Once again Isotope Products accounted for the biggest proportion of overall earnings. Admittedly, revenue was up by only 7% as sales with the robust drill hole sources did not measure up to the strong first quarter of the previous year. The remaining products, however, especially the reference and calibration resources, showed vigorous growth. Roughly half of the revenue increase of EUR 0.9 million was achieved as profit because the increase in the cost items was disproportionately low.

The strongest growth was achieved by the Radiopharma segment where sales were up by at least 25% in every product group. Overall, the segment increased its quarterly revenue by 31% to EUR 6.2 million. What is particularly gratifying in this context is the gross margin of 62%, the highest throughout the group, so that it is in this segment that a major part of the revenue growth is reflected in profit, even more so than in the Isotope Products segment.

Sales were also up in the Therapy segment. The afterloaders developed particularly well. Detailed statements concerning the Therapy segment can be found in the quarterly report of IBt S.A. (www.ibt-bebig.eu) which is being released concurrently. In the segment P/L there are minor dislocations and valuation differences between the Eckert & Ziegler and the IBt financial statements which are shown in the below table.

Sales also rose in the Environmental Services segment, although only by EUR 0.1 million because new orders had not yet materialised in revenue. Some small savings were achieved as far as the costs are concerned so that, in contrast to the previous year, there were no more losses. Unfortunately, the same cannot be said for the Others segment which includes the allocations and costs of the holding company. The loss of this segment has increased by EUR 0.1 million.

	Segment Therapy	IBt 3-monthly	Difference	Of which customer base
	der EZAG	Report		amortization
	TEUR	TEUR	TEUR	TEUR
Revenues	6,697	6,697
Costs	-6,238	-6,152	-86	-86
EBT	459	545	-86	-86
Income tax expense	-273	-273
Net income	186	272	-86	-86
Profit/loss attributable to minority interests	-51
Dividend to shareholders to Eckert & Ziegler AG	135

Liquidity

The statement of cash flows shows a gross cash flow of EUR 6.0 million for the first three months of 2011 (cash inflow from operating activities before the change of current assets and liabilities). This means that gross cash flow is 22% higher than the previous year's figure of EUR 4.9 million. The increase can mainly be attributed to the 36% rise in profit for the period. Furthermore, this result includes EUR 1.4 million of other non-cash expenses which are eliminated here. These are mainly unrealised exchange losses. The reduction of longterm provisions and non-current liabilities, on the other land, has had a negative effect.

The EUR 2.9 million reduction in receivables and inventories has meant that the cash inflow from operating activities has fallen by EUR 0.2 million year-on- year.

Investments have risen sharply in comparison with the previous year, from EUR 0.9 million to EUR 2.5 million. This is mainly accounted for by the introduction of a uniform ERP system throughout the group.

The reduction in long-term loans is EUR 0.4 million higher than in the previous year. This is counterbalanced by a temporary short-term borrowing of EUR 1.3 million as at the end of the reporting period (31 March 2011), but this will be repaid in April 2011.

Together with a EUR 0.3 million reduction in the value of the cash positions due to exchange differences, liquidity declined by EUR 1.1 million to EUR 28.1 million during the first quarter of 2011.

Balance sheet

In comparison with the end of the last reporting period at 31 December 2010 the changes in the balance sheet in the first quarter of 2011 are only marginal. The most significant difference is the increase in the equity ratio from 51% to 53%, which is due to the absolute EUR 3.1 million increase in equity from current income during the quarter. At the same time, total assets have remained constant at EUR 144.5 million. So debts have been reduced in the same measure as equity has risen, mainly by paying back loans and reducing provisions, as described in the section on liquidity.

External sales (in TEUR)

Research and Development

In the Therapy segment the focus of the work was the development of a new MultiSource® radiation system for cancer treatment. The prototype of the new device was presented at the international user meeting in Thailand; its extended functions provide optimized operator guidance. The new 40-channel system now makes it possible to carry out even complex cancer treatments. By mid-2011 the radiation device for cancer treatment will be introduced to the market.An own manufacturing method has been developed for the MultiSource® applicators, allowing complex applicators to be produced in-house in small quantities for individual applications (e.g. the pharyngeal space throat).

Employees

As of 31 March 2011 the Eckert & Ziegler Group had 386 employees in Germany and 559 employees worldwide. Since the end of 2010 the number of employees has risen by 13 (31 December 2010: 546). The increase is distributed evenly over all segments except for the holding company.

Outlook

For the fiscal year 2011 the target for sales is EUR 110 to 120 million. The Executive Board maintains its profit forecast of EUR 2.00 per share (profit after taxes and minority interests > 10 EUR million). This target can already be achieved with revenue from the operative business without acquisitions.

Profit after taxes (in TEUR)

Group Statement of Income	Quarterly Report I/2011 01-03/2011	Quarterly Report I/2010 01-03/2010
	TEUR	TEUR
Revenues	28,244	25,702
Cost of sales	- 11,882	- 11,612
Gross profit on sales	16,362	14,090
Selling expenses	- 4,596	- 4,257
General and administrative expenses	- 4,728	- 4,760
Research and non-capitalized development expenses	- 467	- 579
Other operating income	229	709
Other operating expenses	- 79	- 217
Profit from operations	6,721	4,986
Earnings from shareholdings accounted for using the equity method
Other financial results	- 315	202
Earnings before interest and taxes (EBIT)	6,406	5,188
Interest received	14	56
Interest paid	- 387	- 433
Profit before tax	6,033	4,811
Income tax expense	- 2,206	- 1,995
Net income	3,827	2,816
Profit/loss attributable to minority interests	- 204	- 300
Dividend to shareholders of Eckert & Ziegler AG	3,623	2,516
Earnings per share
Basic	0.69	0.49
Diluted	0.69	0.49
Average number of shares in circulation (basic)	5,221	5,141
Average number of shares in circulation (diluted)	5,221	5,163

Group Statement of Comprehensive Income	Quarterly Report I/2011 01-03/2011	Quarterly Report I/2010 01-03/2010
	TEUR	TEUR
Profit for the period	3,827	2,816
Of which attributable to other shareholders	204	300
Of which attributable to shareholders of Eckert & Ziegler AG	3,623	2,516
Adjustment to fair value of available for-sale financial assets	0	2
Amount reposted to income statement	0	0
Profit tax	0	-1
Adjustment of amount recorded in shareholders' equity (Financial assets available-for-sale)	0	1
Adjustment of balancing item from the currency translation of foreign subsidiaries	-761	1,021
Amount reposted to income statement	0	0
Adjustment of amount recorded in shareholders' equity (Currency translation)	-761	1,021
Total of value adjustments recorded in shareholder equity	-761	1,022
Of which attributable to other shareholders	13	30
Of which attributable to shareholders of Eckert & Ziegler AG	-774	992
Total from net income and value adjustments recorded in shareholder equity	3,066	3,838
Of which attributable to other shareholders	217	330
Of which attributable to shareholders of Eckert & Ziegler AG	2,849	3,508

Group Statement of Cash Flows	Quarterly Report I/2011 01.01.2011 - 31.03.2011	Quarterly Report I/2010 01.01.2010 - 31.03.2010
	TEUR	TEUR
Cash flows from operating activities:
Profit for the period	3,828	2,817
Adjustments for:
Depreciation	1,738	1,928
Proceeds from grants less release of deferred income from grants	- 86	- 71
Long-term provisions, other non-current liabilities	- 866	136
Gains (-)/losses on the disposal of non-current assets	1,406	131
Miscellaneous	4	-
Changes in current assets and liabilities:
Receivables	- 2,347	- 1,906
Inventories	- 563	172
Prepaid expenses and deferred charges, other current assets	10	- 1
provisions and other current liabilities	- 1,259	- 1,162
Cash inflows generated from operating activities	1,865	2,044
Cash flows from investment activities:
Purchase (-)/sale of non-current assets	- 2,539	- 845
Cash outflows from investment activity	- 2,539	- 845
Cash flows from financing activities:
Change in long-term borrowings	- 1,393	- 1,003
Change in short-term borrowings	1,297	- 326
Distribution to minority interests	-	- 58
Acquisition of own shares	-	475
Sales of own shares or own shares used for the share option program	-	- 254
Cash outflows from financing activities	- 96	- 1,166
Effect of exchange rates on cash and cash equivalents	- 345	284
Increase/reduction in cash and cash equivalents	- 1,115	317
Cash and cash equivalents at beginning of period	29,216	43,674
Cash and cash equivalents at end of period	28,101	43,991

Group Balance Sheets	March 31, 2011	December 31, 2010
	TEUR	TEUR
ASSETS
Non-current assets
Goodwill	29,890	30,410
Other intangible assets	10,502	10,475
Property, plant and equipment	27,759	27,602
Investments valuated according to the equity method	108	108
Deferred tax	11,821	12,204
Other non-current assets	765	1,220
Total non-current assets	80,845	82,019
Current assets
Cash and cash equivalents	28,101	29,216
Securities	224	224
Trade accounts receivable	18,955	17,252
Inventories	13,082	12,678
Other current assets	3,285	3,078
Total current assets	63,647	62,448
Total assets	144,492	144,467
EQUITY AND LIABILITIES
Capital and reserves
Subscribed capital	5,293	5,293
Capital reserves	53,874	53,874
Retained earnings	14,978	11,729
Other reserves	- 2.957	- 2,183
Own shares	- 27	- 401
Portion of equity attributable to the shareholders of Eckert & Ziegler AG	71,161	68,312
Minority interests	5,510	5,293
Total shareholders' equity	76,671	73,605
Non-current liabilities
Long-term borrowings and finance lease obligations	14,675	16,009
Deferred income from grants and other deferred income	570	584
Deferred tax	662	647
Retirement benefit obligations	5,982	5,913
Other provisions	17,277	17,841
Other non-current liabilities	442	1,118
Total non-current liabilities	39,608	42,112
Current liabilities
Short-term borrowings and finance lease obligations	7,019	5,794
Trade accounts payable	3,303	4,323
Advance payments received	3,234	3,374
Deferred income from grants and other deferred income	463	536
Current tax payable	1,770	1,112
Other current liabilities	12,424	13,611
Total current liabilities	28,213	28,750
Total equity and liabilities	144,492	144,467

						Cumulative other equity items
		Subscribed capital
							Foreign
					Unrealized	Unrealized	currency		Equity attribu	Mi	Group
		Nominal	Capital	Retained	profit	profit pension	exchange	Own	table to share	nority	share holders'
	Number	value	reserve	reserves	securities	commitments	differences	shares	holders' equity	shares	equity
	TEUR	TEUR	TEUR	TEUR	TEUR	TEUR	TEUR	TEUR	TEUR	TEUR	TEUR
As of January 1, 2010	5,260,283	5,260	52,719	21,955	4	-149	-3,234	-703	75,852	10,223	86,075
Foreign currency translation differences							1,047		1,047	-16	1,031
Unrealized gains/losses on performanceorientated pension commitments at balance sheet date (after tax of EUR -0)						1			1		1
Unrealized gains/losses on securities at balance sheet date (after tax of EUR -1)					3				3		3
Reversal of unrealized gains/ losses on securities at previous
balance sheet date					-4	149			145		145
Total of expenditures and income directly entered in equity	0	0	0	0	-1	150	1,047	0	1,196	-16	1,180
Net profit for the year				9,413					9,413	1,002	10,415
Total income for the period	0	0	0	9,413	-1	150	1,047	0	10,609	986	11,595

Dividends paid				-2,335					-2335	-351	-2686
Purchase or sale of minority interests				-17,304					-17,304	-5,565	-22,869
Sale of own shares for purchase of minority interests			583					189	772		772
Sale of own shares			368					113	481		481
Capital increases	32,700	33	204						237		237
As of December 31, 2010	5,292,983	5,293	53,874	11,729	3	1	-2,187	-401	68,312	5,293	73,605

As of January 1, 2011	5,292,983	5,293	53,874	11,729	3	1	-2,187	-401	68,312	5,293	73,605
Foreign currency translation differences							-774		-774	13	-761
Unrealized gains/losses by perfomance oriented pensions on balance sheet date (after tax of EUR -0)						1			1		1
Unrealized gains/losses on securities at balance sheet date (after tax of EUR 3 thousand)					3				3		3
Reversal of unrealized gains/ losses at previous balance sheet date					-3	-1			-4		-4
Total of expenditures and income
directly entered in equity	0	0	0	0	0	0	-774	0	-774	13	-761
Net profit for the year				3,623					3,623	204	3,827
Total income for the period	0	0	0	3,623	0	0	-774	0	2,849	217	3,066
Purchase or sale of minority
interests				-374				374	0	0	0
As of March 31, 2011	5,292,983	5,293	53,874	14,978	3	1	-2,961	-27	71,161	5,510	76,671

		Isotope Products Therapy			Environmental Radiopharma Services				Others	Elimination		Total
	Q1	Q1	Q1	Q1	Q1	Q1	Q1	Q1	Q1	Q1	Q1	Q1	Q1	Q1
	2011	2010	2011	2010	2011	2010	2011	2010	2011	2010	2011	2010	2011	2010
	TEUR	TEUR	TEUR	TEUR	TEUR	TEUR	TEUR	TEUR	TEUR	TEUR	TEUR	TEUR	TEUR	TEUR

Sales to external customers	14,158	13,240	6,647	6,353	6,238	4,764	1,201	1,345	0	0	0	0	28,244	25,702
Sales to other segments	254	169	50	63	47	257	210	1	294	269	-854	-759	0	0
Total segment sales	14,412	13,409	6,697	6,416	6,285	5,021	1,411	1,346	294	269	-854	-759	28,244	25,702
Segment profit before
interest and profit taxes (EBIT)	4,706	4,258	612	614	1,529	738	134	-4	-575	-475	0	57	6,406	5,188
Interest expenditures
and revenues	-103	-97	-153	-101	-235	-255	-2	-12	120	145		-57	-373	-377
Income tax expense	-1,463	-1,372	-273	-284	-368	-302	-102	-30	0	-7			-2,206	-1,995
Profit before minority interests	3,140	2.789	186	229	926	181	30	-46	-455	-337	0	0	3,827	2,816

								Environmental
in TEUR		Isotope Products		Therapy		Radiopharma		Services		Others		Total
	Q1 2011	Q1 2010	Q1 2011	Q1 2010	Q1 2011	Q1 2010	Q1 2011	Q1 2010	Q1 2011	Q1 2010	Q1 2011	Q1 2010
	TEUR	TEUR	TEUR	TEUR	TEUR	TEUR	TEUR	TEUR	TEUR	TEUR	TEUR	TEUR
Segmental assets	65,051	63,063	50,094	58,681	22,490	17,715	-*	-*	102,781	122,676	240,416	262,135

elimination of inter-segmental shares,equity investments and receivables											-95,924	-99,986
Consolidated total assets											144,492	162,149

Segmental liabilities	-31,068	-32,749	-21,942	-29,552	-20,581	-20,854	-*	-*	-19,733	-39,957	-93,324	-123,112
Elimination of inter segmental liabilities											25,503	30,082
Consolidated liabilities											-67,821	-93,030

Investments (without acquisitions)	1,125	314	710	325	230	202	0	0	474	4	2,539	845

Depreciation	-548	-657	-666	-717	-382	-396	-113	-109	-29	-49	-1,738	-1,928
Non-cash income/expenses	225	-144	-117	-417	-294	180	0	0	-272	185	-458	-196

*In internal reporting, the asset and liability items of the Environmental Services segment are still shown in the Industry segment.

For this reason, the numbers are shown in the same way in the segment reporting.

Sales by regions		Janurary- March 2011		Janurary- March 2010
	Million EUR	%	Million EUR	%
Europe	16.8	60	14.6	57
North America	8.2	29	7.2	28
Asia/Pacific	2.3	8	3.0	12
Others	0.9	3	0.9	3
Total	28.2	100	25.7	100

Notes to the interim financial statements

1. General information

The present unaudited interim consolidated financial statements as of 31 March 2011 comprise the financial statements of Eckert & Ziegler Strahlen- und Medizintechnik AG and its subsidiaries (also called "Eckert & Ziegler AG" in this report).

2. Accounting policies

The consolidated financial statements (interim financial statements) of Eckert & Ziegler AG as of 31 March 2011 have been prepared in accordance with the International Financial Reporting Standards (IFRS), as were the annual financial statements for 2010. All standards of the International Accounting Standards Board (IASB), London, as adopted by the EU at the end of the reporting period as well as the applicable interpretations of the International Financial Interpretations Committee (IFRIC) and the Standing Interpretations Committee (SIC) have been observed. The accounting policies explained in the notes to the annual financial statements for 2010 have been applied without any change. In order to prepare the consolidated financial statements according to IFRSs it is necessary to make estimates and assumptions that have effects on theamount and disclosure of recognised asset values and liabilities, income and expenses.The actual values may differ from the estimates. Significant assumptions and estimates are made concerning the useful lives and the recoverable amounts of the non-current assets, the recoverability of receivables, and the recognition and measurement of provisions.This interim report contains all information and adjustmentsnecessary to provide a realistic picture of the assets, financial position and earnings situation of Eckert & Ziegler AG at the time when the interim report was produced. The earnings achieved during the current fiscal year do not necessarily allow conclusions to be drawn about the development of future earnings.

3. Consolidated companies

The consolidated financial statements of Eckert & Ziegler AG include all companies whose financial and business policies are subject to direct or indirect control by Eckert & Ziegler AG (control concept).

Company acquisitions and disposals

Please refer to the notes under section 4 for information regarding company acquisitions and disposals.

4. Limited comparability of the consolidated financial statements with those of the previous year

In March 2010 the takeover offer for the shares of IBt S.A. that are not in the possession of Eckert & Ziegler AG ended. Eckert & Ziegler then increased the number of dividend-bearing shares it holds in IBt to 72%. In March 2010 the Eckert & Ziegler Group increased its shareholding in Eckert & Ziegler EURO-PET Berlin GmbH from 70 % to 100 %. In March 2010 the Eckert & Ziegler Group increased its shareholding in Eckert & Ziegler f-con Europe GmbH from 74 % to 77 %. By the end of 2010 the group had acquired the shares in sonoTECH Gesellschaft für sonographische Technologie mbH. Compared with the first three months of 2010 this had significant effects on the group's financial position and earnings situation, so that the group report is not fully comparable with that of the previous year.

5. Currency translation

The financial statements of the companies outside the European Monetary Union are translated according to the concept of the functional currency. The following exchange rates were used:

Country	Currency	Exchange rate 3/31/2011	Exchange rate 3/31/2010	Average rate 01/01-3/31/2011	Average rate 01/01-3/31/2010
USA	USD	1.4098	1.3362	1.3721	1.3839
Czech Republic	CZK	24.5188	25.061	24.2981	25.9254
Great Britain	GBP	0.8793	0.8565	0.8536	0.8879
Sweden	SEK	8.9350	8.9655	8.8864	9.9673

6. Holdings of treasury shares

At 31 March 2011 Eckert & Ziegler AG held 4,818 of its own shares. This equates to a share of 0.1% of the company's nominal capital.

7. Substantial transactions with related parties

With regard to material transactions with related parties we refer to the disclosures in the consolidated financial statements at 31 December 2010.

Berlin, 3 May 2011

Dr. Andreas Eckert Chief Executive Officer

Dr. Edgar Löffler Executive Board Member

Dr. André Heß Executive Board Member

Financial Calendar

May 3, 2011 Quarterly Report I/2010

May 4, 2011 Entry and General Standard Conference in Frankfurt

May 19, 2011 Annual General Meeting in Berlin

August 2, 2011 Quarterly Report II/2010

November 2, 2011 Quarterly Report III/2010

November 2011 German Equity Forum in Frankfurt

Imprint

Publisher Eckert & Ziegler Strahlen- und Medizintechnik AG

Photographies Eckert & Ziegler AG

Layout Salzkommunikation Berlin GmbH

Contact

Eckert & Ziegler Strahlen- und Medizintechnik AG

Karolin Riehle Investor Relations

Robert-Rössle-Straße 10 13125 Berlin www.ezag.de

Telephone +49 (0) 30 94 10 84 - 0 Telefax +49 (0) 30 94 10 84 - 112 E-Mail [email protected]

ISIN DE0005659700 WKN 565970

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