FORTEC Elektronik AG

Quarterly Report • May 20, 2010

9 Months' Report of Fiscal Year 2009/2010

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July 01, 2009 – March 31, 2010

Content

• Management Report
• Consolidated Balance Sheet
• Consolidated Income Statement
• Cash Flow Statement
• Statement of Capital Changes

FORTEC Elektronik AG Ph: +49(0)8191-91172-10 Fax: +49(0)8191-21770 Email: aktie@fortecag.de

Management Report 2009/10 July 01, 2009 – March 31, 2010

During these previous nine months, the turnover of 25.4 million € was – because of recession - still below the figures of last year of 33 million €. Based on the increase of stocks within the entire investment industry, the reversal of the economic trend in this cycle is more than evident and thus the 3rd quarter was by far the best of this fiscal year amounting to 9.9 million € (prev. year 11.6 million €).

The profit before tax of 0.5 million € is mainly based on EMTRON's success, who – despite of the general trend – was able to continue to increase considerably turnover as well as profit compared to previous year's figures; whereas the FORTEC AG and its adequate production and distribution companies could only achieve a slightly moderate result by means of short-work. Total number of employees was reduced to 110 (prev. year 120).

The worst market brake after the war should thus be over. The improved devices combined with the increasing customers' projects clearly indicate a recovery. Due to exports, the German economy receives important impulses at present and is undergoing a total phase of economic comeback. This development will be supported by a further recovery of the investment industry within these coming quarters.

Based on the short-notice deliveries of ordered customers' stock since beginning of this calendar year in almost all fields of the electronic industry and the relevant delivery shortage based on worldwide further low-production, we still expect – despite of a considerable increased order volume - another period of low turnover during the next months compared to last years' figures.

Annexe:

Balancing and evaluation methods according to IFRS still remained unchanged compared to fiscal year 2008/09.

CONSOLIDATED BALANCE SHEET (uncertified) according to IAS/IFRS 31.03.2010 (last year's figures 30.06.2009)

	31.03.201	0 (last year's fi	ures 30.06.2009) g
Assets	31.03.2010 €	30.06.2009 €	Equity and Liabilities	31.03.2010 €	30.06.2009 €
A. Non-current assets			A. Shareholders' Equity
Goodwill I.	2.335.459	2.335.459	Subscribed capital I.	2.954.943	2.954.943
Intangible assets II.	155.157	178.797	Capital reserve II.	8.689.364	8.689.364
Tangible assets III.	1.342.522	1.330.519	Other reserves III.	5.574.080	4.875.080
Financial assets IV.	977.473	953.233
Long-term liabilities V.	9.182	9.182	Net income IV.	343.850	1.568.393
	4.819.793	4.807.191		17.562.237	18.087.780
			B. Long-term liabilities
B. Current assets			Other provisions I.	56.160	56.160
			Deferred taxes II.	195.693	209.869
Inventories I.	6.155.223	7.327.416		251.853	266.029
Accounts receivables II.	3.748.821	3.871.707
Tax receivables III.	276.463	293.103	C. Short-term liabilities
Other assets IV.	361.467	240.626
Cash on hand, bank balances V.	6.511.844	5.146.225	Trade payables II.	2.285.699	1.376.970
	17.053.818	16.879.076	Accruals other taxes III.	130.211	443.862
			Other provisions IV.	514.780	514.543
			Other liabilities/accruals V.	1.128.831	997.083
				4.059.521	3.332.459
Total Assets	21.873.611		21.686.267 Total Equity and Liabilities	21.873.611	21.686.267

3

Consolidated Income Statement (uncertified) according to IAS/IFRS

01.07.2009 - 31.03.2010 (last year's figures 01.07.08 - 31.03.09)

Income Statement	FY 2009/10	FY 2008/09
Sales revenues	25.456.088 €	33.340.614 €
Other operating income	317.624 €	579.083 €
Cost of material	18.795.749. €	24.334.816 €
Expenses personnel	3.694.811 €	4.465.761 €
Depreciation	219.973 €	244.334 €
Other operating expenses	2.564.867 €	2.871.429 €
Operating income (EBIT)	498.312 €	2.003.357 €
Other interests and similar income	31.971 €	72.537 €
Taxes on income and profit	186.433 €	722.768 €
Net income	343.850 €	1.353.126 €
Earnings per share	0,12 €	0,46 €
Shares outstanding	2.954.943	2.954.943

Consolidated Income Statement (uncertified) according to IAS/IFRS

01.01. – 31.03.2010 (last year's figures 01.01. - 31.03.2009)

Income Statement	Q3 (1.01.-31.03.10)	Q3 (1.01.-31.03.09)
Sales revenues	9.878.291 €	11.619.886 €
Other operating income	66.111 €	106.809 €
Cost of material	7.359.829 €	8.457.523 €
Personnel expenses	1.214.708 €	1.533.792 €
Depreciation	88.651 €	94.097 €
Other operating expenses	888.838 €	852.919 €
Operating income (EBIT)	392.376 €	788.364 €
Other interests and similar income	4.729 €	12.582 €
Taxes on income and profit	103.824 €	303.039 €
Net income	293.281 €	497.907 €
Earnings per share/3rd Quarter	0,10 €	0,17 €
Shares outstanding	2.954.943	2.954.943

Consolidated Cash Flow Statement (uncertified) according to IAS/IFRS 01.07. - 31.03.2010 (last year's figures 01.07.08 - 31.03.09)

I. Operative Business	FY 2009/10	FY 2008/09
Net income	€ 343.850	€ 1.354.126
Depreciation of tangible and intangible assets	€ 219.973	€ 244.334
Change of inventories	€ 1.172.193	€ - 1.267.597
Change of accounts receivables	€ 139.526	€ - 377.878
Change of liabilities	€ 712.649	€ - 244.839
Change of accruals	€ 237	€ 211.820
Change of other assets	€ - 120.847	€ 50.725
Cash-flow from operative business	------------------ € 2.467.587	------------------- € - 9.309
II. Investment Activities
Cash-flow from investment activities	€ - 215.485	€ - 523.675
III. Finance Activities
Profit earned /paid	€ - 886.483	€ - 886.483
VI. Cash-flow in total	€ 1.365.619	€ - 1.419.467
V. Change in Liquid Funds
Cash at beginning of period	€ 5.146.225	€ 4.831.168
Cash at end of period	€ 6.511.844	€ 3.411.701

Company Capital (uncertified) according to IAS/IFRS 01.07.2009 - 31.03.2010

	Capital stock €	Capital Reserves €	Development of reserves and accumulated profit €	TOTAL €
Balance 01.07.2009	2.954.943	8.689.364	6.443.473	18.087.780
Change of stated value from market earnings of financial assets			24.240	24.240
Deferred taxes accummulated on company capital			-7.150	-7.150
Payout dividends			-886.483	-886.483
Net earning			343.850	343.850
Balance 31.03.2010	2.954.943	8.689.364	5.917.930	17.562.237
Not transferable according to § 150 AktG according to § 47 AktG	2.954.943	8.689.364

Company Capital (uncertified) according to IAS/IFRS 01.07.2008 - 31.03.2009

	Capital stock €	Capital Reserves €	Development of reserves and accumulated profit €	TOTAL €
Balance 01.07.2008	2.954.943	8.689.364	5.802.462	17.446.769
Change of stated value from market earnings of financial assets			-339.724	-339.724
Deferred taxes accummulated on company capital			101.917	101.917
Payout dividends			-886.483	-886.483
Net earning			1.353.126	1.353.126
Balance 31.03.2009	2.954.943	8.689.364	6.031.298	17.675.605
Not transferable according to § 150 AktG according to § 47 AktG	2.954.943	8.689.364