Masterflex SE — Earnings Release 2008

Jul 4, 2008

News Details

Ad-hoc | 4 July 2008 16:06

Masterflex AG: Correction of the ad hoc disclosure

Masterflex AG / Strategic Company Decision/Miscellaneous

Release of an Ad hoc announcement according to § 15 WpHG, transmitted by
DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.

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Please note the correct information in the first chapter:

'The evaluation has lead to value impairments (in line with IFRS) being
charged of € 8.1 million that do not impact on cash flow.'
(The information was correct in the german version).

Ad hoc disclosure pursuant to section 15 German Securities Trading Act
(WpHG)

Masterflex AG: Management Board charges value impairment of € 8.1 million

Consistent focus on earnings growth and highly profitable core business in
high-tech hose systems

Gelsenkirchen, July, 3 2008. Masterflex AG (ISIN DE0005492938), has
obtained new insights into individual projects in the framework of the goal
the new CEO has announced of focusing on consistent earnings growth and the
related evaluation of all activities that do not fit with our core
high-tech hose systems business. The evaluation has lead to value
impairments (in line with IFRS) being charged of € 8.1 million that do not
impact on cash flow. In addition, provisions of € 0.3 million have been
made.

The projects involved include in particular an investment made in early
2007 in a start-up company that had developed a novel high-tech process for
coating surfaces. This investment was at the time expected to emphatically
help us expand our technology leadership in the field of Advanced Material
Design (surface technology). Said company was granted various loans. The
expectations that the innovative process would swiftly be ready for market
launch have not, however, materialized. Talks in recent weeks with
potential clients and possible strategic investors have not generated the
hoped-for success.

As a consequence, given current earnings forecasts and the tight liquidity
situation the start-up is expected to face in the future, the Management
Board of Masterflex AG has resolved to avail itself of the option of a
value impairment for the shares in and receivables from the company of a
total of € 6.2 million as already mentioned in the Risk Report in the 2007
Annual Report. In addition, provisions have been made of € 0.3 million.

Moreover, as part of this step, the Management Board has decided to adjust
the ongoing balance-sheet valuations of other projects that, for example,
do not match a specific risk/opportunity benchmark. This specifically
affects two long-standing development projects:

• the 'LaryVent respiration mouth' project will be completely written off
  and the project no longer moved forward. The value impairment charged
  totals € 1.1 million and covers the development expense of € 0.8 million
  and the licenses and commercial copyrights obtained of € 0.3 million.

• the 'hose inner surface coatings' project will see a partial value
  impairment of € 0.8 million charged on various third-party services that
  have not resulted in the desired progress in development. Masterflex AG
  remains convinced that the project will be a success. For this reason the
  Company will in future increasingly commit its own expertise to the
  project.

After a close examination, neither the above-mentioned nor other major
development projects being run by Masterflex AG reveal an additional need
for amortization to be charged.

The Management Board of Masterflex AG would like to emphasize that this
value impairment process as part of the new strategy concept is necessary
among other things in order to enable the Company to concentrate fully on
expanding its successful core high-tech hose system business.

All future Masterflex AG activities will be measured against the growth and
value added they offer for our core business, which rests on long-standing
successful and superior core competencies. The Company seeks to
consistently extend the superlative profitability of the high-tech hose
system segment to the entire company and appreciably boost our enterprise
value.

In Q1 2008 our core business performed successfully. Against this
background, the Masterflex AG Management Board has reconfirmed its forecast
for business 2008 of a growth in operating EBIT of between 6 and 12
percent.

Masterflex AG will be arranging a conference call for analysts to follow
closely on from release of this publication.

For further information: Masterflex AG, Investor Relations,
Willy-Brandt-Allee 300, 45891 Gelsenkirchen, Germany
stephanie.kniep@masterflex.de, Tel. +49 209 97077 44.

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Information and Explaination of the Issuer to this News:

On the company:

Masterflex AG is the specialist in effectively developing and manufacturing
high-end connection and hose systems using innovative high-tech plastics.

With its countless innovations, the company has set new standards
world-wide.

Masterflex AG makes use of its outstanding know-how in special high-tech
plastics and their efficient processing to identify and develop new
applications for them.

Alongside its core business, the company is also active in the field of
surfaces technology and climate-neutral mobility solutions, among other on
the basis of its own fuel cell systems.

Through our subsidiaries we also offer medical technology and innovative
solutions for mobile offices.
04.07.2008 Financial News transmitted by DGAP

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Language: English
Issuer: Masterflex AG
Willy-Brandt-Allee 300
45891 Gelsenkirchen
Deutschland
Phone: +49 (0)2099 70 77-44
Fax: +49 (0)2099 70 77-20
E-mail: stephanie.kniep@masterflex.de
Internet: www.masterflex.de
ISIN: DE0005492938
WKN: 549 293
Indices: Prime all share
Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
in Berlin, Düsseldorf, Hamburg, München, Stuttgart

End of News DGAP News-Service

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