DocCheck AG — Interim / Quarterly Report 2006

Aug 30, 2006

Half-yearly Report

1 Overview

Quick Figures

• 12 % increase in sales compared to the same six months in the previous year
• EBIT has increased by 247%
• 7 cent profi t per share
• 16.0 million euro liquid assets = 2.74 euro per share
• Forecast for 2006: + 10% sales, taking the fi gure to 12.3 million euro

Highlights

• antwerpes & partner acquired additional pharmaceutical marketing budgets in competitive presentations.
• DocCheck Medical Services offers new Paid Content services
• DocCheck TV purchased the new TV Studio and in the third quarter will offer interesting IPTV broadcasting formats for the healthcare market.
• DocCheck Shop expands its trading activities with the new location in Leipzig.
• Successful Annual General Meeting in Cologne on 31 May
• Stable dividends policy since 2004 and so once again there is a dividend payment (8 cent per share or 0.5 million euro).

Company in brief

DocCheck AG has specialised in the growth market that is healthcare. The agency, portal and trading business is managed under the two brands DocCheck and antwerpes & partner. In 2005 the corporate group, with about 120 employees in Cologne, Basle and Stuttgart, generated sales totalling 11.2 million euro. DocCheck AG is listed in the Prime Standard (ISIN: DE0005471007 // Symbol: 547100).

Financial Calendar
Mid-November 2006			Report for the 3rd quarter
21 - 23 November 2006		Analysts' Conference in Frankfurt / Main
Quartalsbericht	01/04/2006- 30/06/2006	01/04/2005- 30/06/2005	Change
	€	€	%
Sales	3,023,430	2,899,172	4
of which antwerpes & partner sales	1,387,841	1,293,043	7
of which DocCheck	1,635,522	1,606,129	2
Overall performance	3,134,744	2,883,810	9
EBITDA	184,747	193,861	-5
EBIT	86,543	111,869	-23
Consolidated annual net income	91,518	110,343	-17
Annual net income per share	0.02	0.02	-16
Liquid assets/securities	15,952,222	16,080,346	-1
Number of employees as at 30/06/2006	95	78	22

Indicators (position as at 30/06/2006)

3 months' shares chart

Share facts

ISIN:	DE0005471007	Segment:	Prime Standard
Reuters:	ANWG.G	Sector:	Software
Bloomberg:	AJ9	Price (30/06/):	4.30 euro
Internet:	www.doccheck.de	Tech-AS:	864.38
	Market capitalisation as at 30/06/2006:	25.39 million euro
High/Low 2nd Quarter:		4.57/3.90
Number of shares:		5.90 million

Shareholder structure

Shareholders:	Free Float*	31.17 %
	Dr. Frank Antwerpes	47.56%
	Jan Antwerpes	13.95%
	Dr. Johannes Kersten	7.32%
* Calculation according to the German stock exchange

Half-yearly Report	01/01/2006- 30/06/2006	01/01/2005- 30/06/2005	Change
	€	€	%
Sales	6,164,817	5,505,322	12
of which antwerpes & partner sales	3,146,738	2,437,621	29
of which DocCheck	3,017,436	3,067,701	-2
Overall performance	6,327,398	5,519,929	15
EBITDA	615,160	299,409	>100
EBIT	414,860	119,409	>100
Consolidated annual net income	377,669	219,137	72
Annual net income per share	0.07	0.04	75
Liquid assets/securities	15,952,222	16,080,346	-1
Number of employees as at 30/06/2006	95	78	22

Orders on hand

The orders on hand total 1.8 million euro as at 30 June 2006.

Directors' Dealings according to § 15a of the German Securities Trading Act

On 17 July 2006 the Chairman of the DocCheck AG Supervisory Board, Mr. Michael Thiess, acquired 2000 DocCheck shares at a price of 3.95 euro per share.

2 Management Report

antwerpes and partner Division (Communication)

antwerpes & partner represents the agency business for the DocCheck Group. antwerpes & partner develops integrated communications solutions in the health sector. Marketing knowhow in the health market and expertise in classical and digital communications enable antwerpes & partner to work for customers cross-medially and to implement multi-channel strategies

According to Nielsen Research, advertising investments in Germany increased by 5.6 per cent in the fi rst six months of 2006 when compared to the previous year. In addition to the boost from the World Cup, the improved state of the economy has in particular supported growth. antwerpes & partner grew faster than the market in the 1st six months with an increase in sales of 29 per cent, taking the fi gure to 3.1 million euro. However in the second quarter sales increased at the somewhat slower rate of seven per cent, taking the fi gure to 1.4 million euro.

DocCheck Division

With over 400,000 registered participants and over 1000 cooperation partners from the whole of the health sector, DocCheck is the largest and fastest growing portal for medical specialist groups in Europe. DocCheck is constantly developing new services which allow transactions between users and the industry - online market research, publishing, Customer Relationship Management, IPTV and paid content are currently the most important business models. In addition, the affi liated DocCheck Shop sells medical supplies to doctors in private practice via the mail order business, the Internet Shop under www.doccheckshop.de and through its own sales force. Under the DocCheck label, the Shop has its own product line with over 100 items available.

In the 1st six months DocCheck Division's sales decreased slightly by two per cent, taking the fi gure down from 3.07 million euro to 3.02 million euro. In the 2nd quarter sales increased slightly by two per cent, taking the fi gure from 1.61 million euro to 1.64 million euro. The sales trend in the 1st six months was

3 Balance Sheet

Consolidation in accordance with IFRS

Assets	01/01/2006- 30/06/2006	01/01/2005- 31/12/2005
	€	€
Short-term assets
Liquid funds	1,228,784	2,230,712
Current-asset securities	14,723,438	14,868,800
Trade debtors	1,751,459	1,403,455
Amounts owed by group undertakings	41,219	41,528
Stocks	591,111	405,986
Prepaid expenses and deferred charges	53,730	24,114
Total short-term assets	18,389,741	18,974,595
Tangible fi xed assets	1,376,305	1,219,433
Intangible fi xed assets	105,689	92,144
Participating interests	92,648	70,694
Payments on account for fi nancial investments	181,522	0
Goodwill	697,617	697,617
Other assets	848,929	581,267
Deferred taxes	29,000	3,300
Total assets	21,721,451	21,639,050

Equity and liabilities	01/01/2006- 01/01/2005- 30/06/2006 31/12/2005
	€	€
Short-term liabilities
Short-term loans and short-term share in long-term loans	0	4,022
Trade creditors	276,949	410,656
Payments received on account	977,145	1,070,170
Other provisions for liabilities and charges	553,151	523,598
Tax provisions	180,371	66,273
Deferred income and other short-term liabilities	917,378	626,912
Amounts owed to group undertakings	31,867	12,462
Total short-term liabilities	2,936,860	2,714,093
Deferred taxes	66,000	101,600
Capital and reserves
Subscribed capital	5,904,312	5,904,312
Capital reserve	13,328,524	13,328,524
Net earnings/net loss	2,779,147	2,878,859
Revenue reserves	71,700	71,700
Capital adjustment items	-3,245,570	-3,245,570
Special revaluation reserve	-38,945	32,509
Own shares	-375,802	-411,449
Minority shareholdings	295,225	264,473
Total capital and reserves	18,718,591	18,823,357
Total equity and liabilities	21,721,451	21,639,050

infl uenced by the fact that a major order in the trading business could not be fully completed in the 1st six months and, at the end of the last half-year, the portal business handed over the edetailing business model (Internet-based discussion of products by doctors) to antwerpes & partner as better suited to the service portfolio of the agency business.

As these effects are restricted to the 1st six months and the market conditions in the online sector continue to be very positive, DocCheck will close the second half of the year with a marked increase in sales and, for the whole year, sales will increase by at least ten per cent.

3 Comments on the Balance Sheet

The six-monthly fi nancial statement as at 30 June 2006 has been prepared on the basis of the International Financial Reporting Standards ("IFRS") of the International Accounting Standards Board ("IASB"), London, which were in force on the cut-off date, as well as on the basis of the interpretations of the International Financial Reporting Interpretations Committee ("IFRIC") of the IASB, London.

The accounting and evaluation methods from the annual fi nancial statements as at 31 December 2005 were used with no changes made.

• 1. During the 2nd quarter of 2006, liquid funds were invested for the most part as time deposits with variable terms. The drop in liquid funds in the 2nd quarter of 2006 is mainly due to the distribution of dividends on 31 May 2006 which totalled 464 thousand euro.
• 2. As at 30 June 2006, the current-asset security holdings consist of two mortgage bonds and two loans against promissory notes. According to IAS 39, securities falling within the category "available for sale" are to be evaluated at fair value (market price). The fair value changes are fi rst of all recorded in the capital and reserves in a special revaluation reserve with no effect on the operating result until that point in time when the securities are taken out of the accounts.
• 3. With the exception of DocCheck TV GmbH, whose shares were offset in accordance with the acquisition method pursuant to IFRS 3, the shares in the fully consolidated subsidiaries were offset, pro rata to their holding in accordance with the book value method, against the capital of the companies at the time of the initial consolidation. This resulted in the following goodwill:

Company	Goodwill from the initial consolidation	Goodwill book value as at 30/06/2006	Goodwill book value as at 30/06/2005
	€	€	€
DocCheck Medical Services GmbH	29,340	17,238	17,238
medicalpicture GmbH	92,452	81,666	81,666
DocCheck Medizinbedarf und Logistik GmbH	755,956	401,991	401,991
medizinstudent,de GmbH	181,609	50,523	50,523
DocCheck TV GmbH	154,572	146,200	146,200
	1,213,929	697,617	697,617

• 4. DocCheck Medizinbedarf und Logistik GmbH, Weil im Schönbuch, a subsidiary of DocCheck AG, has on 27/04/2006 increased its share in Albert Geisselmann Medizinbedarf GmbH, Eilenburg, from 33.3 per cent to 84.6 per cent with fi nancial effect from 01/07/2006. The purchase price for the acquisition of the shares was paid in cash. The acquisition costs totalling 182 thousand euro are shown under "Payments on account for fi nancial investments" until the fi rst consolidation in the 3rd quarter of 2006.
• 5. Other assets are largely made up of deferred interest and taxes.
• 6. In other provisions, transfers essentially took place within provisions for holidays, bonuses and shares in profi ts. In addition, provisions were made for end-of-year accounting and audit costs. As they stand now, these provisions ensure that there is a realistic deferment of expenditure for the current fi nancial year.
• 7. Other liabilities are mainly made up of tax liabilities (sales tax, income tax and church tax), contributions relating to salaries and wages and doctors' fees which are still to be paid.
• 8. The adjusting item concerns own shares as held by DocCheck AG. In the 2nd quarter of 2006, 8,500 own share certifi cates were used to fulfi l the obligations ensuing from DocCheck AG's share option plan. The holdings of own shares as at 30 June 2006 consist therefore of 91,500 individual share certifi cates and account for a total of 91,500 euro of the capital stock. As at 30 June 2006 the market price was 393,450 euro. In accordance with IAS 32.33, own shares are to be shown in the balance sheet at cost and as a deduction from equity capital. When selling own shares, the profi t or loss is not to be shown in the profi t and loss account but as a change to the capital and reserves.
• 9. The special revaluation reserve amounting to -39 thousand euro contains the fair value changes from the current-asset securities netted out by the deferred taxes apportionable to them.

3

4 Group Profi t and Loss Account

	Group Profit and Loss Account in accordance with IFRS	01/04/2006 - 30/06/2006	01/04/2005 - 30/06/2005	01/01/2006 - 30/06/2006	01/01/2005 - 30/06/2005
	1. Sales (net)	3,023,430	2,899,172	6,164,817	5,505,322
	2. Other operating income	48,335	46,460	77,921	82,827
	3. Differences between opening and closing stocks of fi nished and unfi nished goods	111,314	-15,362	162,581	14,607
	4. Cost of materials
	a) Cost of raw materials and supplies and goods purchased for resale	889,658	792,092	1,630,434	1,645,543
	b) Cost of external services	349,549	360,723	778,238	619,495
		1,239,207	1,152,815	2,408,672	2,265,037
	5. Staff costs
	a) Wages and salaries	957,059	917,312	1,899,260	1,715,724
	b) Social security contributions	164,984	143,090	316,036	279,343
		1,122,043	1,060,402	2,215,296	1,995,067
	6. Amortisation of intangible fi xed assets and depreciation of tangible fi xed assets	98,204	81,992	200,300	180,000
7.	Other operating expenses	645,949	523,192	1,175,058	1,043,242
8.	Income from participating interests	8,867	0	8,867	0
	9. Operating result (EBIT)	86,543	111,869	414,860	119,409
	for information: EBITDA	184,747	193,861	615,160	299,409
	10. Interest and similar income	136,471	138,049	279,410	304,794
	11. Write-downs on long-term investments and current-asset securities	13,309	13,927	26,471	27,702
	12. Interest and similar expenses	1,447	1,774	3,176	3,732
	13. Result before tax (and minority shareholdings)	208,258	234,217	664,623	392,769
	14. Personal income tax and tax on earnings	97,720	118,286	255,714	173,730
	15. Other taxes	522	1,113	487	1,292
	16. Result before minority shareholdings	110,017	114,818	408,422	217,746
	17. Minority shareholdings	18,499	4,475	30,752	-1,391
	18. Consolidated annual net income	91,518	110,343	377,669	219,137
	19. Net earnings per share in accordance with IAS 33 (undiluted)	0.02	0.02	0.07	0.04
	20. Net earnings per share in accordance with IAS 33 (diluted)	0.02	0.02	0.06	0.04
	21. Average shares currently in circulation (undiluted)	5,804,609	5,881,607	5,804,461	5,892,897
	22. Average shares currently in circulation (diluted)	5,814,235	5,891,607	5,814,273	5,902,897

• 1. Net sales are showing an increase of 12 per cent to 6,165 thousand euro when compared to the fi rst three months of the previous year (previous year: 5,505 thousand euro). Receivables from uninvoiced sales amounted to 247 thousand euro (previous year: 324 thousand euro). In addition, according to IAS 11 in conjunction with IAS 18, turnover includes order projects estimated as being 263 thousand euro (previous year: 243 thousand euro) in accordance with the Percentage of Completion Method.
• 2. Other operating income is mainly made up of rent income and income from the release of provisions.
• 3. The marked increase in employees when compared to the same period in the previous year is causing the increase in staff costs.
• 4. The increase in other operating expenses when compared to the same period in the previous year mainly results from trade fair and advertising costs.
• 5. The profi t per share for the fi rst six months of 2006 was, in accordance with IAS 33 7 cent (previous year: 4 cent).

5 Statement of sources and application of funds

Statement of sources and application of		01/01/2006	01/01/2005 -
	funds (in euro)	- 30/06/2006	30/06/2005
		€	€
	Surplus for the period before extraordinary profi t	377,669	219,137
	of which funds received from interest	279,410	304,794
	of which funds paid as interest	3,176	3,732
+	Amortisation of intangible fi xed assets and depreciation of tangible fi xed assets	200,300	180,000
+	Loss from the addition and disposal of fi xed assets	2,703	0
+/-	Increase/decrease in provisions	143,652	-171,537
-/+	Increase/decrease in trade debtors	-347,695	-394,875
-/+	Increase/decrease in other assets	-267,662	98,268
-/+	Increase/decrease in stocks	-185,126	-126,412
-/+	Increase/decrease in prepaid expenses and deferred charges	-29,616	20,665
+/-	Increase/decrease in deferred income	137,999	68,195
-/+	Increase/decrease in deferred taxes reported as assets	-25,700	5,861
-/+	Reduction/increase in deferred taxes reported as liabilities	-35,600	89,500
+/-	Increase/decrease in trade creditors and other liabilities	-24,107	338,727
	Cash fl ow from current business activities	-53,183	327,529
+/-	Proceeds/outgoings for disinvestments/ investments in tangible fi xed assets, intangible fi xed assets, participating interests and goodwill	-576,896	-133,944
	Cash fl ow from investment activities	-576,896	-133,944
-	Repayment of loans	-4,022	-2,654
-	Payment to shareholders ensuing from capital reduction	0	-14,780,760
-	Disbursement from dividend payments	-464,345	-469,549
+/-	Proceeds/outgoings from the sale/ purchase of own shares	22,610	-157,083
	Cash fl ow from fi nancing activities	-445,757	-15,410,046
	Change in funds to hand which affects payment	-1,075,836	-15,216,462
+	Change in funds to hand due to evaluation (special revaluation reserve)	-71,454	91,567
	+ Funds at the start of the period	17,099,512	31,205,241
	Funds at the end of the period	15,952,222	16,080,346
-	Cash and cash equivalent	1,228,784	685,751
-	Securities	14,723,438	15,394,595

• 1. The change in cash fl ow from investment activities when compared to the same period in the previous year is mainly due to the payment in advance made by DocCheck Medizinbedarf und Logistik GmbH, Weil im Schönbuch, for the additional shares in Albert Geisselmann Medizinbedarf GmbH, Eilenburg, totalling 182 thousand euro.
• 2. The change in cash fl ow from fi nancing activities when compared to the same period in the previous year mainly ensues from the special dividend paid in the fi rst quarter of 2005 within the framework of the capital reduction.
• 3. Funds to hand as at 30/06/2006 contain borrowed money totalling 28 thousand euro (previous year: 43 thousand euro). These are outstanding doctors' fees which DocCheck AG cannot dispose of in any other way.
• 4. The liquid assets and current-asset securities totalled 16.0 million euro as at 30 June 2006 (previous year: 16.1 million euro).

5

6 Divisional Reporting as at 30/06/2006

	antwerpes & partner	DocCheck	Holding	Total
	EUR	EUR	EUR	EUR
Net sales for the divisions	3,146,738	3,017,436	643	6,164,817
Intra-group sales EBIT	39,507	216,305	1,310,158	1,565,970
EBIT	419,085	-19,798	15,573	414,860
Result before taxes on earnings	419,075	-16,637	262,185	664,623
Total assets	1,975,883	2,821,374	16,924,195	21,721,451
Total liabilities	1,468,799	573,927	490	2,043,216
Depreciation of tangible fi xed assets	13,937	32,403	153,961	200,300
Investments in tangible and intangible fi xed assets	14,855	47,149	123,017	185,021
Employees	44	40	11	95

As at 30/06/2006 DocCheck AG has changed and standardised the names of its business segments so that they are in line with brand strategy. To date, the names "Communication" and "antwerpes & partner" were used concurrently for the agency business. In future the segment will just be called "antwerpes & partner".

In future the segment "DocCheck, Commerce & Logistic" will just be called "DocCheck". The actual composition of the segments remains unaffected by this.

6

Total assets include the fi xed assets, the current assets and the prepaid expenses and deferred charges. The segment, antwerpes & partner, (formerly Communication) comprises antwerpes & partner ag, Cologne, with its business premises in Basle, Switzerland. DocCheck GmbH, DocCheck Medizinbedarf und Logistik GmbH, medicalpicture GmbH, medizinstudent.de GmbH and DocCheck TV GmbH together form the DocCheck division (formerly DocCheck, Commerce & Logistic). The segment, Holding, incorporates the whole of the administrative and service Division of DocCheck AG. Since the activities of these companies are currently located in the same area, a geographical segmentation was waived. Supplies and services within the combined group were valued at purchase price plus a mark-up and cost sharing within the Group was valued at purchase price plus interest.

7 Statement of Changes in Equity Capital

Statement of Equity Capital in accordance with IAS 1 Subsections 96-101

	Subscribed capital	Capital reserve	Statutory reserve	Reserve in accordance with the company's Articles of Association	Other revenue reserves	Special revaluation reserve	Net earnings	Capital adjustment items	Own shares	Minority share holdings	Total
Balance as at 31/12/2004	5,904,312	13,331,816	39,253	0	32,448		88,567 2,705,703	-3,245,570	0	229,645	19,086,174
Additional acquisition										5,338	5,338
of shares DocCheck TV
GmbH
Purchase of own shares									-157,083		-157,083
Revaluation of securities						91,566					91,566
Dividend payment							-469,549				-469,549
Annual net income as at 30/06/2005							219,137			-1,391	217,746
Balance as at 30/06/2005	5,904,312	13,331,816	39,253	0	32,448		180,133 2,455,291	-3,245,570	-157,083	233,592	18,774,192
Balance as at 31/12/2005	5,904,312	13,328,523	39,253	0	32,448		32,509 2,878,858	-3,245,570	-411,449	264,472	18,823,358
Revaluation of securities						-71,454					-71,454
Sale of own shares							-13,036		35,646		22,610
Distribution of dividends							-464,345				-464,345
Annual net income as at 30/06/2006					0		377,669			30,752	408,422
Balance as at 30/06/2006	5,904,312	13,328,523	39,253	0	32,448		-38,945 2,779,147	-3,245,570 -375,802		295,225	18,718,591

8 Shareholder structure

The shareholder structure of DocCheck AG consists of the following as at quarter-end:

	Share	Number
	%
Dr. Frank Antwerpes, CEO*	47.56	2,807,858
Jan Antwerpes, CFO*	13.95	823,477
Dr. Johannes Kersten, Supervisory Board member of antwerpes & partner ag	7.32	432,031
Freefl oat**	31.17	1,840,946
Hermann Korte, Supervisory Board member, antwerpes & partner ag	0.95	56,038
Roland Ortloff, Managing Director of DocCheck Medizinbedarf und Logistik GmbH	0.76	44,312
Michael Thiess, Chairman of the Supervisory Board	0.11	6,060
Dr. Joachim Pietzko, Supervisory Board member	0.01	866
Winfried Leimeister, Supervisory Board member	0.00	0
Helmut Rieger, e-commerce Board of Directors*	0.01	400
DocCheck AG	1.55	91,500

* Half of the shares of the family were allocated to Messrs. Antwerpes. In addition, the shares of Dr. Frank Antwerpes' wife were included and the same applied to Mr. Helmut Rieger.

**Calculation according to the German stock exchange

9 Stock Options

In accordance with the resolution passed at the Annual General Meeting on 16 May 2001, the company grants, by means of an options contract, subscription rights to certain employees regarding the acquisition of DocCheck AG shares. According to the grade and position of the employee, the company offers contracts to certain employees which cover the granting of share options (options contract). As at 30 June 2006, 31,750 stock options had been issued (previous year: 57,750). The reduction in the stock options portfolio is because some employees who were entitled to subscribe left the company and also because 8,500 share certifi cate options from the 3rd tranche were exercised in the 2nd quarter of 2006. The average share price on the day that the options were exercised was 4.05 euro. The shares used for the subscription right were taken from DocCheck AG's holdings of own shares.

• The market price of the DocCheck AG share has performed better than the Nemax All Share Index (now Technology All Share Index)
• The current market price of the share must be higher than the comparative market price and the comparative market price of the share is,
• for subscription rights granted up to fi ve days before the initial public offering, the initial public offering price as determined in the book-building process for the DocCheck AG share for the purposes of the initial public offering
• for one or two subscription rights granted during an acquisition period, the average of the Xetra closing prices for the 20 trading days before the fi rst day of the respective acquisition period.
  • The employee has an employment contract with a DocCheck company and notice to terminate this has not been served, nor has it been terminated in some other way.

Exercising the options granted is only permissible at any time during the following periods:

• On the respective fourth and the 19 subsequent bank working days following a DocCheck AG Ordinary Annual General Meeting.
• On the respective fourth and the 19 subsequent bank working days following the publication of the DocCheck AG quarterly report covering the 3rd quarter of a fi nancial year.

Issued stock options balance as at 30/06/2006

Issued stock options balance as at 31/12/2005	42,000
Options granted in the fi rst six months of 2006	0
Options exercised in the fi rst six months of 2006	8,500
Options which have lapsed in the fi rst six months of 2006	1,750
Issued stock options balance as at 30.06.2006	31,750
The fi rst tranche (Issue: April 2000, issue price: 18.50 , term: 7 years)	27,500
of which to management exercisable on 30/06/2006	22,000
of which to employees exercisable on 30/06/2006	5,500
The second tranche (Issue: December 2000, issue price: 15.46 , term: 7 years)	2,750
of which to employees exercisable on 30.06.2006	2,750
The third tranche (Issue: May 2002, issue price: 2.66 , term: 7 years)	1,500
of which to management	1,500
of which with a waiting period up until the fi rst implementation on 31/05/2007	1,500

Investor Relations

DocCheck AG, Tanja Mumme, Corporate Communication Manager, Vogelsanager Str. 66, 50823 Köln fon: +49(0) 2 21-9 20 53-139, fax: +49(0) 2 21-9 20 53-133 eMail: ir@doccheck.com, www.doccheck.de