Quarterly Report III/2007

		Q1-3 2007	Q1-3 2006	Change

Revenue	Million EUR	39.2	35.8	9%

Return on revenue before tax	%	9	10	-4%

EBITDA	Million EUR	7.0	7.3	-4%
EBIT	Million EUR	4.2	4.1	4%

EBT	Million EUR	3.7	3.5	5%

Net income before minority interest	Million EUR	1.5	2.3	-36%
Net income / loss	Million EUR	1.3	2.1	-39%
Earnings per share (basic)	EUR	0.41	0.67	-39%

Earnings per share (diluted)	EUR	0.40	0.66	-39%

Cash flow from operating activities	Million EUR	3.7	2.3	63%
Depreciation and amortization	Million EUR	2.8	3.3	-15%
Employees (as of September 30)	Persons	353	299	18%

Cover captions (from left to right):

Conditioning of cleaning cartridges at the sterilization station*

Module system for producing carbon-11 marked radiopharmaceuticals

Quality control of contrast agents using HPLC analysis*

Fully automatic dispenser unit for dosing, filling and steam sterilizing FDG solutions*

* Eckert & Ziegler EURO-PET Köln/Bonn GmbH

Company situation and business development

The first nine months of the 2007 business year developed well.

In the current business year, the Eckert & Ziegler Group has posted sales of 39.2 million EUR, which is 3.4 million EUR or 9.5% above the level of the same period of last year. The operating result increased by 10.5% to 4.4 million EUR. The surplus, however, declined by 0.8 million EUR to 1.3 million EUR due to special effects from the corporate tax reform in Germany.

Sales in all segments increased over the respective figures for the same ninemonth period of last year.

The Radiopharmaceuticals segment succeeded in increasing sales by 1.8 million EUR (48%), due especially to the successful market introduction of the Modular Lab family of synthesis systems as well as to higher sales of radioactive contrast agents in Germany.

Sales in the Therapy segment increased by 1.1 million EUR or 8% to 14.8 million EUR, based primarily on rising sales of implants for treating prostate cancer. Contributing factors here include stronger sales activities in Eastern Europe. Therapy auxiliary sales on the French market also proceeded well. As expected, however, tumor radiation systems were not able to attain the high figures of last year when they were boosted by a large-scale contract from Venezuela.

Sales in the Nuclear Imaging and Industry segment showed little nominal change over the figure for last year (+3%, or 0.5 million EUR), although considerable increases in volume were posted especially for the industrial products.

Raw isotopes also developed well in comparison to last year. On account of the unfavorable course of the exchange rate between the US dollar and the euro, however, these developments in the Nuclear Imaging and Industry segment did not have the hoped-for effect.

Net assets, financial position, and profit situation

Net assets

The Eckert & Ziegler Consolidated Balance Sheet as of 30 September 2007 rose slightly over that of 31 December 2006, to 65.3 million EUR (31 December 2006: 64.2 million EUR). This increase of 1.1 million EUR consisted of 0.6 million EUR for long-term and 0.5 million EUR for short-term assets.

Due to dividends paid out and exchange rate-related reductions in foreign capital stocks, equity capital declined to 35.8 million EUR (31 December 2006: 36.3 million EUR), which means that the equity capital rate decreased to 55% (31 December 2006: 57%). Despite this slightly lower equity capital rate, the Eckert & Ziegler Group commands a solid capital structure which provides it with sufficient capacity for future action.

Liabilities as of 30 September 2007 increased by 1.7 million EUR over the figure for 31 December 2006. While the sum of short-term liabilities remained nearly

Milestones

n July 2007

Eckert & Ziegler AG can look back at 10 years of successful work. It celebrates the anniversary with guests active in politics, business, and the arts.

n September 2007

Eckert & Ziegler acquires the Bonn-based radiopharmaceutical producer MC Pharma GmbH, thus further expanding its position as a manufacturer of radiopharmaceutical products for new nuclear medical imaging procedures. The cyclotron thereby acquired can produce "PET tracers", i.e. contrast agents for positron emission tomography technology used to diagnose cancer.

n September 2007

The Radiopharmaceuticals segment is restructured. Responsibilities are centralized Europe-wide and processes are optimized, by which the Group expects to achieve greater customer proximity, a better internal flow of information, and a higher level of profitability.

unchanged, long-term liabilities rose by 1.7 million EUR. This increase in longterm liabilities is based in large part on the inclusion of Eckert & Ziegler EURO-PET Köln/Bonn GmbH in the consolidation cycle.

Financial position

The cash flow from operating activities in this ongoing business year was 3.7 million EUR, compared to 2.3 million EUR for the same period of last year. Some 2.8 million EUR were channeled into investment activities, compared to a figure of 1.3 million EUR for last year.

The cash flow from financing activities was -1.7 million EUR (2006: -1.5 million EUR). These funds were used to repay long-term loan liabilities of 1.4 million EUR. An additional 0.8 million EUR were paid out as dividends to the shareholders of Eckert & Ziegler AG, and 0.3 million EUR to minority interests.

Group liquidity as of 30 September 2007, consisting of net cash volume plus shortterm securities and other monetary investments, was 4.7 million EUR (31 December 2006: 5.8 million EUR).

Profit situation

After taxes and distributions to other shareholders, a profit was posted of approximately 1.3 million EUR for the 2007 business year (2006: 2.1 million EUR) or 0.41 EUR per share (2006: 0.67 EUR per share). This decline with respect to last year is explained almost exclusively by the re-evaluation of active and passive latent tax items required by the corporate tax reform passed by the German Federal Parliament. This added a one-time, non-monetary, tax burden of 0.8 million EUR to the Group's results for the third quarter of the 2007 business year. It corresponds to a cost of 0.27 EUR per share. In the absence of this special effect arising from the re-evaluation of latent tax items, the result would be 0.68 EUR per share and thus slightly above the level for last year.

As in previous periods, the main source of profits was the Nuclear Imaging and Industry segment, which contributed around 2.1 million EUR to the surplus after taxes and distributions to other shareholders. Sales, operating result, and the result before taxes and distributions to other shareholders all increased. Due to slightly higher taxes, the surplus was 1% lower than the corresponding value for last year.

The Therapy segment also succeeded in raising both its sales (+8%) and its operating result (+36%). Unfortunately, this did not translate into a corresponding result after taxes. The corporate tax reform and its associated re-evaluation of latent tax items led to a high, non-monetary special tax burden that depressed the surplus to 0.4 million EUR. On account of this one-time effect, the surplus was 34% or 0.2 million EUR lower than last year.

The Radiopharmaceuticals segment considerably increased both its sales (+48%) and gross profit (+43%). By contrast, the operating result and the result before taxes were lower than the corresponding figures for last year. This is due primarily to Other Income, which was nearly 0.4 million EUR higher last year than in this 2007 report period on account of special effects from acquiring holdings. Discontinuation thereof could not be compensated for solely by the segment's

disproportionately low increases in sales, administration, and development costs vis-à-vis the raw margin. The result for the first nine months was therefore only -0.6 million EUR, with the addition of a one-time tax burden of 0.2 million EUR stemming from the re-evaluation required by the corporate tax reform.

Comparing this and last year's results for this segment is made even more difficult by the fact that the final accounting for last year's Group-internal services was not done until the end of the year. As of the 2007 business year, Group-internal accounting now includes interim statements. In this respect the results for this segment lie within the expected range.

Research and Development

This summer, Eckert & Ziegler succeeded in developing a user-friendly but highperformance modular system for producing carbon-11 marked radiopharmaceuticals. Consisting of a so-called "trapping module", Peltier reactor, heating system, detector, and various molecular sieves and valve blocks, it enables carbon-based radiopharmaceuticals to be produced in a matter of minutes. It achieves a >98% degree of radiochemical purity and an end-product yield of >70%.

The new carbon-11 module from Eckert & Ziegler can be supplemented via a simple cable connection with a second reactor and a high-performance liquid chromatography unit (HPLC), making it especially attractive for clinical research and molecular imaging.

In routine clinical work, radioactive contrast agents (PET tracers) based on carbon-11 are acquiring ever greater significance for clinical work especially in neurology and cardiology.

In the third quarter, the Nuclear Imaging and Industry segment concluded development and validation activities for the new IGG100 gallium generator. This is a shielded reaction container about the size of a thermos flask which yields radioactive gallium that researchers can use to produce new substances. The generator can be used for around 12 months, after which it has to be replaced by a fresh reaction container.

This short-lived gallium positron emitter will be of great interest to medical professionals, because in principle it can be used for nuclear imaging procedures (PET scans) in precisely the same way as fluorine-18 which is currently standard but more expensive.

A number of pre-clinical development projects are therefore seeking to develop new gallium-based medical imaging techniques. The new generator from Eckert & Ziegler provides gallium with a very high degree of purity for these purposes.

Staff

As of 30 September 2007, the Eckert & Ziegler Group employed a staff of 353 (30 September 2006: 299). The number of staff increased by 52 over the figure for the end of 2006 (31 December 2006: 301). This increase is due in large part to the acquisition of Eckert & Ziegler EURO-PET Köln/Bonn GmbH (formerly MC Pharma).

Outlook

Despite the sale of its business in blood radiation equipment last year and an unfavorable exchange rate with the dollar, Group sales for the period of this report rose by 10% over 2006, fueled above all by implants for treating prostate cancer, synthesis systems, and radioactive contrast agents. The Board expects this trend to continue in 2008, especially on account of the sales and result-related consolidation connected with the new subsidiary Eckert & Ziegler EURO-PET Köln/Bonn GmbH. This in turn will lead to a strong growth in sales for the Radiopharmaceuticals segment to over 12 million EUR. If the exchange rate with the dollar should stabilize at 1.40 USD/EUR, stronger nominal growth can also be expected in the Nuclear Imaging and Industry segment. In the Therapy segment, slower growth is expected due to the fact that no large-scale contracts for tumor radiation systems have been acquired as in the preceding two years. Growth will therefore be driven in large part by implants.

Regarding the 2007 full-year result, the Board continues to forecast 0.90 EUR per share, with the caveat that this does not reflect the non-monetary effects of the corporate tax reform in Germany (minus 0.27 EUR per share). It was not possible to estimate these effects during the planning period. For 2008, the Board anticipates that the overall surplus can be increased by at least 10% to 1.00 EUR per share at a dollar exchange rate of 1.40 USD/EUR, because start-up losses in the Radiopharmaceuticals segment will continue to decline or perhaps even start to yield revenues.

In order to continue to increase the return on equity and to ensure future growth, the Board will remain on the look-out for possible acquisitions in 2008. It assumes that acquisitions, if they remain within last year's order of magnitude, can be financed without measures undertaken on the capital market, which means that the result per share can be increased once again. Because the actual time points at which acquisitions are made are influenced by the opportunities available and are thus difficult to predict, the above prediction is based on the condition that no acquisition-related accounting or restructuring effects occur in 2008.

	Quarterly Report	Quarterly Report	9-monthly	9-monthly
	III/2007	III/2006	Report	Report
	07–09/2007	07–09/2006	01–09/2007	01–09/2006
	TEUR	TEUR	TEUR	TEUR

Revenue	12,788	12,659	39,246	35,835
Cost of goods sold	-6,186	-6,645	-19,527	-18,559
Gross profit on sales	6,602	6,014	19,719	17,276
Selling expenses	-2,256	-2,025	-7,049	-6,197
General and administrative expenses	-2,716	-2,717	-8,130	-7,824
Research and development expenses	-96	-146	-149	-412
Other operating income	124	412	247	1,277
Other operating expenses	-107	149	-191	-97
Operating income/loss	1,551	1,687	4,447	4,023
Interest receivable and payable, net	-194	-182	-551	-573
Gains/losses on currency exchange, net	-247	-140	-243	-155
Other income/expense, net	-	-45	-	183
Income before tax and minority interest	1,110	1,320	3,653	3,478
Income tax expense	-1,221	-580	-2,195	-1,198
Net income from continuing operations	-111	740	1,458	2,280
Minority interests in net income
of consolidated subsidiaries	-65	-56	-174	-77
Net income/loss	-176	684	1,284	2,103

Earnings per share
Basic	-0.06	0.22	0.41	0.67
Diluted	-0.06	0.22	0.40	0.66
Average number ofsharesin circulation (basic)	3,143	3,132	3,142	3,128
Average number ofsharesin circulation (diluted)	3,170	3,167	3,172	3,163

	9-monthly Report	Annual Report
	09-30-2007	12-31-2006
	TEUR	TEUR

ASSETS
Non-current assets
Property, plant and equipment	17,499	15,920
Intangible assets	7,965	7,212
Goodwill	10,164	10,773
Equity investments	59	74
Deferred taxes	3,065	4,118
Other non-current assets	2,076	2,084
Total non-current assets	40,828	40,181

Current assets
Cash and cash equivalents	3,647	4,683
Marketable securities	1,045	1,081
Trade accounts receivable, less allowance for doubtful accounts	10,577	11,110
Receivables from related parties	6	27
Inventories	7,410	5,888
Prepaid expenses and other current assets	1,786	1,204
Total current assets	24,471	23,993
Total assets	65,299	64,174

EQUITY AND LIABILITIES
Shareholders' equity
Subscribed capital	3,250	3,250
Capital reserve	29,740	29,632
Retained earnings	6,566	6,068
Cumulative other comprehensive income	-3,747	-2,679
Own shares	-358	-366
Minority interests	325	424
Total shareholders' equity	35,776	36,329

Non-current liabilities
Long-term debt, less current portion and finance lease obligations	9,301	7,319
Deferred income from grants and other deferred income	1,179	1,270
Deferred taxes	1,510	1,706
Retirement benefit obligations	136	129
Other non-current liabilities	3,415	3,449
Total non-current liabilities	15,541	13,873

Current liabilities
Short-term debt and current portion of long-term debt and finance lease obligations	3,314	3,365
Trade accounts payable	3,211	3,855
Prepayments received	337	331
Provisions	4,398	3,971
Deferred income from grants and other deferred income	952	960
Income tax payable	191	300
Other current liabilities	1,579	1,190
Total current liabilities	13,982	13,972
Total liabilities and shareholders' equity	65,299	64,174

	9-monthly Report	9-monthly Report
	01 – 09/2007	01 – 09/2006
	TEUR	TEUR

Cash flows from operating activities:
Profit for the period	1,458	2,103
Adjustments for:
Depreciation and amortization	2,779	3,251
Proceeds from grants
less release of deferred income from grants	-139	-697
Deferred taxes	1,066	-154
Income (-)/expense from stock option plan	98	80
Unrealized foreign currency gains (-)/losses	-73	-231
Long-term reserves, other long-term liabilities	105	25
Gains (-) / losses (+) from the disposal of non-current assets	-5	14
Gains (-) / losses (+) on the sale of securities	-	-55
Other items, net	11	-242
Changes in current assets and liabilities:
Receivables	1,013	-975
Inventories	-1,681	-143
Prepaid expenses and other current assets	-61	-162
Accounts payable
and accounts payable to affiliates	-530	-349
Tax reserves	-479	-579
Other liabilities	110	367
Net cash generated from operating activities	3,672	2,253

Cash flows from investing activities:
Additions to/sale of non-current assets	-2,753	-2,720
Acquisition/sale of consolidated enterprises	-111	- 15
Purchase/sale of securities	50	1,387
Net cash used in investing activities	-2,814	-1,348

Cash flows from financing activities
Dividends paid	-786	-434
Change in long-term borrowing	-1,415	987
Change in short-term borrowing	703	-2,276
Distributions to minority interests	-272	-
Treasury stock used for stock options	20	218
Net cash generated from financing activities	-1,750	- 1,505

Effect of exchange rates on cash and cash equivalents	-144	-135
Decrease/increase in cash and cash equivalents	-1,036	-735

Cash and cash equivalents at beginning of period	4,683	4,950
Cash and cash equivalents at end of period	3,647	4,215

Balance Dec 31, 2006	3,250,000	3,250	29,632	6,068	22	-2,701	-366	35,905	424	36,329
Negative minority interest acquired								0		0
Increase/decrease in minority interest								0		0
translation differences						-1,037		-1,037		-1,037
Foreign currency
previous balance sheet date					-41			-41		-41
losses on securities at
Reversal of unrealized gains/
(after tax of EUR 14 thousand)					22			22		22
securities at balance sheet date
Unrealized gains/losses on
Profit for the year				2,221				2,221	324	2,545
share option plan			170				68	238		238
for acquisitions and to service
Application of own shares
Cost of share option plan			116					116		116
Dividends paid				-469				-469		-469
Balance Jan 1, 2006	3,250,000	3,250	29,346	4,316	41	-1,664	-434	34,855	100	34,955

		TEUR	TEUR	TEUR	TEUR	TEUR	TEUR	TEUR	TEUR	TEUR
	Shares	value	reserve	earnings	on securities	differences	shares	shareholders	interest	equity
		Nominal	Capital	Retained	gains/losses	Exchange	Own	butable to	Minority	holders'
		Subscribed capital			Unrealized			Equity attri-		share-
	otherequity items									Group
					Cumulative

Balance Sept 30, 2007	3,250,000	3,250	29,740	6,566	34	-3,782	-358	35,450	326	35,776
translation differences						-1,081		-1,081		-1,081
Foreign currency
previous balance sheet date					-22			-22		-22
losses on securities at
Reversal of unrealized gains/
(after tax of EUR 22 thousand)					34			34		34
securities at balance sheet date
Unrealized gains/losses on
Profit for the year				1,284				1,284	174	1,458
share option plan			11				8	19		19
for acquisitions and to service
Application of own shares
Cost of share option plan			97					97		97
Dividends paid				-786				-786	-272	-1,058
Balance Jan 1, 2007	3,250,000	3,250	29,632	6,068	22	-2,701	-366	35,905	424	36,329
		TEUR	TEUR	TEUR	TEUR	TEUR	TEUR	TEUR	TEUR	TEUR
	Shares	value	reserve	earnings	on securities	differences	shares	shareholders	interest	equity
		Nominal	Capital	Retained	gains/losses	Exchange	Own	butable to	Minority	holders'
		Subscribed capital			Unrealized			Equity attri-		share-
		otherequity items								Group
					Cumulative

01 – 09/2007
	Nuclear		Radio-
	Medicine		pharma-		Consoli-
	& Industry	Therapy	ceuticals	Others	dation	Total
	TEUR	TEUR	TEUR	TEUR	TEUR	TEUR
Sales to external customers	19,029	14,804	5,390	23		39,246
Sales to other segments	92	375	12	731	-1,210
Total segment sales	19,121	15,179	5,402	754	-1,210	39,246
Depreciation & amortization	-822	-1,485	-380	-92		-2,779
Non-cash income and expenses	-97	-33	-434	-538	39	-1,063
Net income/loss before minority interest	2,301	392	-598	-677	39	1,457
Segmental assets	27,165	17,317	16,965	38,661	-37,875	62,233
Segmental liabilities	-12,171	-14,420	-17,846	-7,019	23,444	-28,012
Capital expenditure	485	1,402	864	2		2,753
Sales by geographic areas 01– 09/2007					Million EUR	%
North America					14.6	37
Europe					21.1	54
Asia/Pacific					1.9	5
Others					1.6	4

01 – 06/2006
	Nuclear		Radio-
	Medicine		pharma-		Consoli-
	& Industry	Therapy	ceuticals	Others	dation	Total
	TEUR	TEUR	TEUR	TEUR	TEUR	TEUR
Sales to external customers	18,510	13,678	3,643	4		35,835
Sales to other segments	444	69	8	494	-1,015
Total segment sales	18,954	13,747	3,651	498	-1,015	35,835
Depreciation & amortization	-965	-1,789	-378	-119		-3,251
Non-cash income and expenses	1,285	437	188	-684		1,226
Net income/loss before minority interest	2,328	596	-427	-217		2,280
Segmental assets	28,148	19,469	7,971	36,805	-32,259	60,134
Segmental liabilities	-13,998	-19,327	-10,028	-5,248	22,172	-26,429
Capital expenditure	415	1,338	959	8		2,720

39.2 100

Sales by geographic areas 01– 09/2006	Million EUR	%
North America	13.7	38
Europe	17.4	49
Asia/Pacific	1.8	5
Others	2.9	8
	35.8	100

General information

This Consolidated Interim Report for the first nine months of 2007 comprises the reports from Eckert & Ziegler Strahlen- und Medizintechnik AG and its subsidiaries (also "Eckert & Ziegler AG" below).

The Interim Report and the Interim Management Report were not subjected to an audit-related inspection or to an audit in accordance with §317 HGB.

Accounting and valuation methods

Eckert & Ziegler AG's Consolidated Interim Report of 30 September 2007 was produced like the 2006 Annual Report in accordance with the International Financial Reporting Standards (IFRS). It takes into account all standards stipulated for application in the EU on that date by the International Accounting Standards Board (IASB) in London, as well as official interpretations by the International Financial Interpretations Committee (IFRIC) and/or the Standing Interpretations Committee (SIC).

The accounting and valuation methods contained in the appendix to the 2006 Annual Report were applied unchanged.

To prepare the Consolidated Interim Report in accordance with IFRS, it is necessary to make estimates and assumptions about the level and extent of the assets, debts, revenues, and expenditures on the balance sheet. The actual values can deviate from the estimates. Major assumptions and estimates are made for useful lives, obtainable revenues from fixed assets, viability of outstanding accounts, and accounting and valuation of provisions.

This Interim Report contains all the information and adjustments needed to acquire a view of the total assets, financial position, and profit situation of Eckert & Ziegler AG corresponding to actual conditions at the time of the Interim Report. Sub-year results for the ongoing business year cannot necessarily be used to derive conclusions about the development of future results.

Consolidation cycle

Eckert & Ziegler AG's Consolidated Interim Report includes all companies for which Eckert & Ziegler AG is able to directly or indirectly determine financial and business policy (control function). The number of consolidated companies developed as follows:

2007	2006
17	18
1	-
-	1
18	17

MC Pharma GmbH of Bonn was newly included in the consolidation cycle. On 14 September 2007, 100% of the MC Pharma GmbH shares were taken over by Eckert & Ziegler f-con Deutschland GmbH, in connection with which the company was renamed Eckert & Ziegler EURO-PET Köln/Bonn GmbH.

Limited comparability of this Consolidated Interim Report with last year

Altmann Therapie GmbH & Co. KG left the consolidation cycle as of 31 December 2006. This substantially affected the Group's asset and profit situations, which makes it difficult to compare this Consolidated Interim Report with that of the year before.

Currency conversion

Financial statements for subsidiaries outside the European Currency Union are converted in accordance with the notion of functional currency. The following exchange rates were used:

Country	Currency	Exchange rate	Exchange rate	Average rate:	Average rate:
		on 30 Sept. 2007	on 30 Sept. 2006	1 Jan. – 30 Sept. 2007	1 Jan. – 30 Sept. 2006
USA	US\$	1.427200	1.268800	1.343115	1.256296
Czech Republic	CZK	27.502750	28.333300	28.108047	28.420394

Significant events

No significant events have occurred after the first nine months of the 2007 business year.

Number of own shares

On 30 September 2007 Eckert & Ziegler AG held 106,835 of its own shares. This corresponds to 3.3% of the company's capital stock.

Dividends paid

In the second quarter of 2007 dividends in the amount of EUR 785,791.25 (2006: EUR 469,164.75) were paid. This corresponds to a dividend of EUR 0.25 per share (2006: EUR 0.15 per share).

Berlin, 27 September 2007

Dr. Andreas Eckert, Dr. Edgar Löffler, Dr. Andreas Hey, Chief Executive Officer Board Member Board Member

Financial Calendar

11-06-2007 Quarterly Report III/2007

11-13-2007 German Equity Capital Forum in Frankfurt

03-28-2008 Annual Report 2007

03-28-2008 Balance Press Conference in Berlin 04-15-2008 Medtech Day in Frankfurt

05-06-2008 Quarterly Report I/2008

06-11-2008 Annual General Meeting in Berlin

08-05-2008 Quarterly Report II/2008 11-04-2008 Quarterly Report III/2008

11-13-2008 German Equity Capital Forum in Frankfurt

Eckert & Ziegler Strahlen- und Medizintechnik AG

Robert-Rössle-Str.10 D-13125 Berlin www.ezag.de

Telephone +49 (0) 30 9410 84 - 0 Telefax +49 (0) 30 9410 84 -112 E-mail [email protected]

ISIN DE 0005659700 WKN 565 970

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