FORTEC Elektronik AG

Quarterly Report • Nov 30, 2007

Report 1st Quarter 2007/2008

=======================

July 01 – Sept. 30, 2007

Content

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

Report 1st Quarter 2007/2008 01.07. - 30.09.2007

During first quarter of business year 2007/08 the turnover continuously increased again and reached 10.2 million € previously 9.1 million €. The company's profit before tax was 744 T€ which is about same as previous year amounting to 739 T€. Because of a low tax rate for the current business year, the net result raised from 453 T€ to 496 T€. At the same time and due to a capital increase in spring 2007, the amount of shares rose from 2.7 million pcs to 2.954.943 pcs. Therefore, the result per share of 17 cent remained constant for this quarter.

The cash flow in operating business mounted to 1.031 T€ from 1.425 T€ in previous year.

Mainly due to the addition of AUTRONIC Steuer- und Regeltechnik GmbH, the number of employees as regards full-time increased to 108 persons (prev. year 75).

Same as last year, suggestion will be made to the board of directors on its annual general meeting on December 20th, 2007 for a dividend payment of € 0,30 per share yet in view of an increase in shares from 2.7 million to now 2.954.943. In consequence, the dividend steps up from € 810.000 to € 886.482,90.

For the 2nd quarter, again a continuous positive business is expected. However, a cool-down of business will be forcasted yet at high level – thus imposing a stronger pressure on margins in the future.

Annexe.

The balancing and evaluation methods of fiscal year 2006/07 according to IAS/IFRS remain unchanged.

CONSOLIDATED BALANCE SHEET (uncertified) according to IAS/IFRS 30.09.2007(last year's figures 30.06.2007)

T O T A L A S S E T S	€	€	To l Eq i d L ia b i l i ies ta ty t a n u	€	€
	3 0. 0 9. 2 0 0 7	3 0. 0 6. 2 0 0 7		3 0. 0 9. 2 0 0 7	3 0. 0 6. 2 0 0 7
A. No t a ts n- cu rre n ss e			S A. ha ho l de i ty re rs e q u
I. Go dw i l l o	4. 4 8 5. 7 0 9	4. 4 8 5. 7 0 9
			I. Su bs i be d c i ta l cr ap	2. 9 5 4. 9 4 3	2. 9 5 4. 9 4 3
I I. In i b le ta ts ng as se	5 4. 0 6 5	5 1. 0 4 6	I I. Ca i ta l re p se rve	8. 6 8 9. 3 6 3	8. 6 8 9. 3 6 3
I I I. Ta i b le ts ng as se	1 8 3 3 7 5.	6 9 0. 8 2 6	O I I I. t he h. inc r c om p re om e I V. Ne inc t	6. 8 7 2. 5 6 8 4 9 5. 7 4 4	5. 3 0 0. 6 8 3 1. 5 7 1. 8 8 5
I V. F ina ia l a ts nc ss e	1. 2 5 9. 6 2 9	1. 2 6 2. 7 7 7	om e
	6. 1 2 3 6 5 5.	6. 4 9 0. 3 8 5		1 9. 0 1 2. 6 1 8	1 8. 1 6. 8 4 5 7
B. Cu t a ts			B. Lo l ia b i l i ies -te t ng rm
rre n ss e			I. De fe d tax rre es	1 7 4. 8 1 5	3 9 8. 9 1 0
I. Inv to ies en r	7. 3 6 8. 9 1 9	7. 1 3 6. 9 7 6
I I. Ac iva b les ts co un re ce	3. 8 9 1. 9 1 6	4. 5 6 5. 1 8 3	C. S ho t- te l ia b i l i t ies r rm
I I I. O he t ts r a ss e	7 7 1. 4 4 2	7 0 5. 7 2 1	I. L ia b i l i ies ba ks t to n	0	0
I V. Ca h- -h d, ba k s on an n ba lan ce s	8 6 3. 0 8 5. 5	1 3. 4 0 5. 5 7	I I. Tr de b les a p ay a	2. 8 7 1. 1 9 3	2. 7 4 7. 3 0 4
	1 8 9 3 6 2 7. 5.	1 6 1. 2 8 8 7. 5	I I I. Ac ls fo he t tax cr ua r o r es	6 8 4 8 4 5.	1. 0 3 5 5 7
			I V. O t he ls r a cc ru a	6 0 3. 8 0 6	6 7 0. 6 7 3
			V. O t he l ia b i l i t ies r	1. 0 6 2. 6 8 2	1. 1 6 6. 8 1 2
				3 9 9 8 0 5. 7.	1 3 8 6 2 5. 5.
To ta l As ts se	2 4. 4 1 0. 5 9 8	2 4. 0 5 1. 6 4 6	To ta l Eq i ty d L ia b i l i t ies u a n	2 4. 4 1 0. 5 9 8	2 4. 0 5 1. 6 4 6

Consolidated Income Statement (uncertified) according to IAS/IFRS

01.07. – 30.09.2007 (last year's figures 01.07. - 30.09.2006)

Income Statement	FY 2007/08	FY 2006/07
Sales revenues	10.252.715 €	9.088.436 €
Other operating income	151.202 €	167.152 €
Cost of material	7.427.048 €	6.678.537 €
Personnel expenses	1.356.455 €	1.137.915 €
Depreciation	72.639 €	74.251 €
Other operating expenses	845.576 €	645.853 €
Operating income (EBIT)	702.199 €	719.032 €
Other interests and similar income	41.958 €	20.557 €
Taxes on income and profit	248.413 €	286.616 €
Net income	495.744 €	452.973 €
Earning per share/1st Quarter	0.17	0.17 €
Shares outstanding	2.954.943	2.700.000 €

Consolidated Cash Flow Statement

(uncertified) according to IAS/IFRS 01.07. - 30.09.2007 (last year's figures 01.07. - 30.09.2006)

I. Operative Business	FY 2007/08	FY 2006/07
Net income	€ 495.744	€ 452.973
Depreciation of tangible and intangible assets	€ 72.639	€ 74.251
Change of inventories	€ - 231.943	€ - 1.126.081
Change in accounts receivable	€ 673.267	€ 2.893.050
Change of liabilities	€ 154.170	€ - 554.918
Change of short-term accruals	€ - 66.867	€ - 245.105
Change of other assets	€ - 65.721	€ - 69.474
Cash flow from operating business	€ 1.031.289	€ 1.424.696
II. Investment Activities
Investitments of finance/ tangible and intangible assets	€ - 362.085	€ - 217.616
Earnings from assets	€ 37.326	€ 2.026
Cash flow from investitment activities	€ - 324.759	€ - 215.590
III. Financing Activities
Increase of capital reserve	€ 0	€ 67.500
Earnings from finance assets	€ 3.148	€ 0
VI. Cash flow in total	€ 709.678	€ 1.276.606
V. Change in Liquid Funds
Cash at the beginning of period	€ 5.153.407	€ 901.463
Cash at the end of period	€ 5.863.085	€ 2.053.317

Company Capital. (uncertified) according to IAS/IFRS 01.07. - 30.09.2007 (last year's figures 01.07. - 30.09.2006)

	Capital stock Euro	Capital Reserves Euro	Development of reserves and accumulated profit Euro	TOTAL Euro
Balance 01.07.2006	2.700.000	5.654.522	6.311.822	14.666.344
Share option program		67.500	0	67.500
Period earning			452.973	452.973
Balance 30.09.2006	2.700.000	5.722.022	6.764.795	15.186.817
Not transferable according to § 150 AktG according to § 47 AktG	2.700.000	5.722.022

	Capital stock Euro	Capital Reserves Euro	Development of reserves and accumulated profit Euro	TOTAL Euro
Balance 01.07.2007	2.954.943	8.689.363	6.872.568	18.516.874
Period earning			495.744	495.744
Balance 30.09.2007	2.954.943	8.689.363	7.368.312	19.012.618
Not transferable according to § 150 AktG according to § 47 AktG	2.954.943	8.689.363