HWA AG

Earnings Release • Aug 6, 2008

News Details

Corporate | 6 August 2008 20:05

HWA AG expecting satisfactory second half of 2008 – interim figures as at 30 June

HWA AG / Half Year Results/Preliminary Results

Release of a Corporate News, transmitted by DGAP - a company of EquityStory
AG.
The issuer / publisher is solely responsible for the content of this announcement.

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HWA AG expecting satisfactory second half of 2008 – interim figures as at
30 June

Affalterbach, 6 August 2008 – Business developments at motor sport
specialists HWA AG in the first six months of 2008 have been according to
plan. However – unlike in 2007 – there have been no revenues in the
vehicles and components business in the first half year.

Revenues in the first half year were stable at EUR 30.25 million, the same
as in the first half of 2007 (EUR 30.25m). EBIT for the period was EUR 2.1
million (first half 2007: EUR 3.6m). HWA AG’s net profit after tax was EUR
1.4 million, or 28 eurocents per share (first half 2007: EUR 2.3m and 45
eurocents/share).

In its motor racing business, where HWA AG acts as total service provider
for Daimler AG’s motor sport activities in the German Touring Car Masters
Championship (DTM), there was a significant increase in the costs incurred,
with the aim of enhancing the team’s performance. In the first half of 2008
– in coordination with Daimler AG – there was substantial investment in the
continuing development of the racing cars, capacities and test series.
Management is convinced that these investments will provide the necessary
basis for the continuing success of the AMG Mercedes team in the medium
term.

In the vehicles and components business there were no budgeted or actual
sales revenues in the first half of the year. Income is expected to flow
from development work in the second half, when the delivery of the new
models starts.

Business with Formula 3 engines has made a highly satisfactory contribution
to revenues and earnings: there were 76 engines in use in 2007, compared
with 100 so far in 2008.

For the second half of 2008 HWA AG’s Management is predicting a solid
performance – despite a thoroughly challenging market environment, in which
the automobile industry’s value chain is exposed to increasing pressure on
margins. Production of the new model will be starting, which will of course
mean a much greater emphasis on revenues within the vehicles and components
business than in the first half. Post-tax profits year on year will be
boosted by the significantly lower tax rate introduced as part of the tax
reforms.

HWA AG’s major investor from Qatar, Nasser bin Khaled (NBK) Holding, has
informed us that it has further increased its interest in the Company in
recent weeks: purchases through the stock exchange and off-exchange have
raised its holding to 28 percent.

Contact:

Hans-Jürgen Mattheis
HWA AG
Benzstraße 8
71563 Affalterbach
Phone: + 49/ (0) 7144/ 8717- 279
Fax: + 49/ (0) 7144/ 8718- 111
ir@hwaag.com
www.hwaag.com

Company profile HWA AG

HWA AG was founded in 1998 as a spin-off from AMG, which was established in
1967 by Hans Werner Aufrecht as the Mercedes Benz customisation specialist.
Towards the end of 1998 Aufrecht sold a majority interest in AMG Motoren-
und Entwicklungsgesellschaft mbH, as it then was, to Daimler AG. In the
course of the disposal, motor racing, what is today the AMG-Mercedes team
in the German Touring Car Championship (DTM) and parts of the vehicles and
components business was spun off and transferred to HWA AG. In the motor
racing business, HWA AG acts as a full service provider to Daimler AG
Motorsport in the DTM. It is responsible for the whole process of
development and construction of the racing cars, including the motors,
together with all other activities involved in the racing team’s
operations. In its vehicles and components business, it develops and builds
cars and vehicle components for the automobile industry. Since 2003 HWA AG
has been producing and servicing racing engines for the Formula 3
Euroseries and the British Formula 3 Series. HWA AG currently has 223
employees in its Affalterbach works. In 2007 HWA AG had revenues of EUR
60.9 million and EBIT of EUR 9.1 million. Its net profit after interest and
taxes was some EUR 5.6 million. The Company has been listed on the
Frankfurt Stock Exchange in the Entry Standard segment since 19 April 2007.
06.08.2008 Financial News transmitted by DGAP

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Language: English
Issuer: HWA AG
Benzstraße 8
71563 Affalterbach
Deutschland
Phone: +49 (0)7144 87 17-279
Fax: +49 (0)7144 87 18-111
E-mail: ir@hwaag.com
Internet: http://www.hwaag.com
ISIN: DE000A0LR4P1
WKN: A0LR4P
Listed: Freiverkehr in Berlin, Düsseldorf, München, Stuttgart; Entry
Standard in Frankfurt

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