Gabriel Holding — Earnings Release 2009

Nov 19, 2009

Stock Exchange and Press Release

Gabriel Holding A/S Annual Report 2008/09

Modest profit despite difficult market conditions

Gabriel prepared for continuing subdued international demand for textiles for contract furniture

Statement by management:

Management advised in the preliminary announcement of the financial statements for 2007/08 that "indications from leading clients on the market point to a reduction in demand of about 25% in the 2008/09 financial year." This proved to be a correct indication, and the downturn may be even greater. Management chose at the time to act quickly and adapt the organisation and the company's costs to ensure earnings and liquidity at the lower level of revenue. The business model has been further optimised during the year so that earnings will be able to be strengthened significantly when the order intake returns to normal. Management expects continued subdued international demand for commercial furniture in 2009/10.

Summary:

• · Revenue was DKK 204.7 million (279.7 million).
• · Operating profit (EBIT) was DKK 2.0 million (DKK 23 million).
• · Special costs of DKK 3.9 million for employees who were made redundant were charged to the profit and loss account.
• · Operating margin (EBIT) was 1.0% (8.2%).
• · The return on invested capital (ROIC) was 1.4% (20%).
• · Cash flow from operations was DKK 18.5 million (DKK 23 million).
• · Management expects a revenue of the order of DKK 180 million in the current (2009/10) financial year against DKK 204.7 million in 2008/09 and an improved operating profit (EBIT).

The Supervisory Board recommends the following be approved at the general meeting on 17 December 2009:

• 1. No payment of dividend for 2008/09.
• 2 a) Reduction of the company's share capital from nom. DKK 42,000,000 to nom. DKK 37,800,000 by cancellation of 210,000 twenty kroner shares from the company's holding of own shares of a nominal value of DKK 4,200,000, equivalent to 10% of the share capital.

In accordance with Section 44(2) compared with Section 44a(1) of the Danish Companies Act, Gabriel advises that the object of the reduction in the company's share capital is payment to shareholders. The amount of the reduction will be used for payment to shareholders for shares acquired by the company under previous authorisations of the board of directors by the general meeting. The share capital will consequently be reduced by nom. DKK 4,200,000, and the company's holding of own shares will be reduced by 210,000 twenty kroner shares. It is advised in accordance with Section 44a(3) of the Companies Act that these shares will be acquired at a total cost of DKK 6,372,900, meaning that apart from the reduction in nominal capital, DKK 2,172,900 will be paid to the shareholders.

If the proposal is adopted, the following amendment to Article 4(1) of the company's articles of association will be required, taking effect from the implementation of the capital reduction:

"Art. 4(1). The Company's share capital shall be DKK 37,800,000 in twenty kroner shares."

2 b) The following amendment to the articles of association is also proposed:

"Art. 4(6). The Company's register of shareholders shall be maintained by VP Investor Services A/S, Weidekampsgade 14, 2300 Copenhagen S, Denmark."

Two thirds of both votes cast and the share capital with voting rights represented at the meeting must vote in favour of the proposals under points 2a and 2b for their adoption to proceed.

This is a translation of the original Danish text. In the event of discrepancies between the Danish and English texts, the Danish version shall prevail.

Please see our website www.gabriel.dk for the full version of the statement (in Danish).

Gabriel Holding A/S, Hjulmagervej 55, 9000 Aalborg, Denmark Phone: +45 9630 3100 - Fax: 9813 2544 Contact: CEO Jørgen Kjær Jacobsen