Funkwerk AG

Regulatory Filings • Jun 3, 2003

News Details

Corporate | 3 June 2003 10:00

Funkwerk AG english

Funkwerk to supply Belgian railway Corporate-news announcement sent by DGAP. The sender is solely responsible for the contents of this announcement. ——————————————————————————– New large-scale contract: Funkwerk to supply Belgian railway with mobile radio terminals More than 1,100 traction units to be equipped over the next years – business with railway companies reaches new record level Kölleda, 3 June 2003. European railway companies back Funkwerk technology as a replacement of their communication systems. The company, based in the Thuringian town of Kölleda, has now been awarded a contract for the delivery of mobile radio terminals for the Belgian state railway. Based on a blanket agreement with an international partner, Funkwerk will be equipping in excess of 1,100 traction units and engines in Belgium over the next four years. Says Chairman of the Board, Dr. Hans Grundner, “This new large-scale contract will enable us to further consolidate our leading position as a supplier of mobile radio terminals for railway companies in Europe.” The technology change in European railway systems is speeding up: The conventional analogue train radio and signalling technology is increasingly replaced by digital telematics solutions. This takes place against the background of the operational and general economic necessity of harmonising rail traffic in Europe and making transport more efficient. A major milestone here is the introduction of the GSM-R (Global System for Mobile Communications for Railways) standard for the transmission of information in European railway traffic. By 2008, 32 railway companies will have introduced appropriate mobile radio networks and systems over a wide area. The start was made by Deutsche Bahn in 2001, followed by the French railway, SNCF, in 2002, and now the Belgian SNCB-NMBS. Production of mobile radio terminals at full speed An integral component of this network are the mobile communication platforms (GSM-R terminals) in the traction units and engines. In the last few years, Funkwerk has gained a leading market position here as a manufacturer of these components. Only a few days ago, the 2,000th GSM-R terminal was completed for Deutsche Bahn AG in Kölleda. Another 5,500 terminals will follow by the end of 2004. Based on this new basic agreement, Funkwerk will now also deliver more than 1,700 GSM-R and dual-mode terminals to the Belgian SNCB-NMBS by 2008. This means, business with railway companies is reaching a new record level for Funkwerk. “We will have to, and indeed want to, accelerate production though, to be able to meet the demand,” announced the Chairman of the Board. In the past few years, Funkwerk increased its production capacities in Kölleda and created new jobs. “These invest-ments are now paying off.” Target figures clearly exceeded in the first half of 2003: Thus, even in 2003, business for Funkwerk in the area of Traffic & Control Commu-nication (communication and control systems for transport and logistics companies) is better than expected. In the first quarter of 2003, sales in this segment more than doubled as against the previous year, recording 15.4 million Euro. Even the second quarter indicates that the company is in for a positive surprise. According to Financial Director, Herbert Meyer, “We anticipate exceeding our original projections with sales of 21.5 million Euro in the area of Traffic & Control Communication in the first six months of 2003 by 40 per cent.” In addition, further decisions by other European railway companies on their GSM- R contracts are expected to be announced in the coming months. After Germany, France, and Belgium, it has emerged that other European countries will soon also tackle the extension of their networks. And here, too, Funkwerk is involved in the tendering process as a partner. According to Dr. Grundner, “There are now also spe-cific enquiries from non-European regions.” Information on Funkwerk AG: As a market and technology leader, Funkwerk AG specialises in communication sys- tems for transport and logistics. With its three business segments, Traffic & Control Communication (communication and control systems for transport and logistics companies), Automotive Communication (communication equipment and accessories for vehicles), and Private Networks (messaging systems and innovative telecommunication solutions for companies and institutions), Funkwerk occupies a strategically ex-cellent place in future markets. In the preceding 2002 financial year, Funkwerk achieved an increase in sales of around 61 per cent to EUR 108.7 million and in earnings (EBIT) of around 35 per cent, recording EUR 8.9 million For further details please contact: Funkwerk AG; Im Funkwerk 5; D-99625 Kölleda/ Thuringia; Germany; Katrin Schwarz; nvestor Relations; phone: +49 (0) 36 35/6 00 -3 35; fax: +49 (0) 36 35/6 00 -3 99; schwarz@funkwerk.com rw konzept; Agentur für Unternehmenskommunikation; Ysenburgstraße 7; D-80634 Munich, Germany; Sebastian Brunner; phone: 0 89/13 95 96 -33; fax: +49 (0) 89/13 95 96 -34; mobile: +49 (0)1 75/5 60 46 73; brunner@rw-konzept.de Disclaimer “This press release is not being issued in the United States of America and should not be distributed to United States Persons or publications with a general circulation in the United States. This document does not constitute an offer or invitation to subscribe for or purchase any securities in addition, the securities of Funkwerk AG have not been registered under the United States securities laws and may not be offered, sold or delivered within the United States or to U.S. Persons absent from registration under or an applica-ble exemption from the registration requirements of the United States securities law.” end of message, (c)DGAP 03.06.2003 ——————————————————————————– WKN: 575314; ISIN: DE0005753149; Index: NEMAX 50 Listed: Geregelter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin- Bremen, Düsseldorf, Hamburg, Hannover, München und Stuttgart 031000 Jun 03