SFC Energy AG — Earnings Release 2007

Oct 18, 2007

News Details

Corporate | 18 October 2007 07:59

SFC Smart Fuel Cell AG: Sales more than doubled in the first nine months of 2007

SFC Smart Fuel Cell AG / Quarter 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.

---

Corporate News Release by SFC Smart Fuel Cell AG

Sales more than doubled in the first nine months of 2007

• Outstanding sales development in the first nine months of 2007 – 130
  percent growth

• Europe-wide OEM and sales cooperations in leisure sector form basis for
  further growth

• Accessory listing with 18 recreational vehicle manufacturers

• Product program expanded: EFOY 900 successfully introduced as fourth
  member of the EFOY family

Brunnthal, October 18th 2007 – SFC Smart Fuel Cell AG, leading global
manufacturer of direct methanol fuel cells for mobile and off-grid energy
supply systems, has successfully pursued its growth strategy and has
further increased profitability in the first nine months of 2007. Sales in
the first nine months of the current business year improved by 130 percent
from EUR 4.2 million to EUR 9.6 million compared to the same period last
year.

The main growth driver in the reporting period to September 2007 was an
increase in demand in the leisure sector. The number of fuel cell systems
distributed more than doubled in the first nine months of 2007, increasing
by 178 percent to 3,030 units compared to 1,088 units in the same period
last year. The product share in sales rose accordingly to 77 percent,
compared to 62 percent in the same period last year. The product share
confirms the actual commercial demand by end customers for SFC products.

Next to the long-standing Europe-wide cooperation with major brands in the
recreational vehicle sector, SFC announced cooperation agreements with RV
manufacturers Niesmann & Bischoff and Concorde in August, leading up to a
total number of 18 RV producers in total in Europe. This was followed in
September by the announcement of the planned long term cooperation in the
OEM and aftermarket sales of leisure vehicles with Webasto, a leading
supplier to the automotive and leisure vehicle industry. The continuation
of the trend is confirmed by today’s announcement of a marketing
cooperation agreement with Grove Products Ltd, a leading supplier of
leisure products in the United Kingdom and Ireland and member of the French
Trigano Group.

With the launch of the new EFOY 900 SFC further expanded its product
portfolio in August. The new product, whose energy output lies between that
of the EFOY 600 and the EFOY 1200, is suitable for supplying electricity in
small to medium-sized motor homes and is an ideal supplement to existing
photovoltaic power generating systems. In a hybrid set-up the fuel cell
ensures that the equipment continues to work even when the photovoltaic
system is unable to deliver sufficient power because of poor weather
conditions.

SFC also recorded successes in the defense sector in Q3 2007. The German
Bundeswehr again placed a fuel cell order for the new 250 watt system with
SFC Smart Fuel Cell. Following a successful tender of the U.S. Air Force
SFC’s U.S. partner Capital Connections LLC was awarded a follow-up contract
regarding delivery of 521 Power Managers worth approx. 1.7 million USD.
This follow-up contract has not yet resulted in order income/backlog due to
a protest filed against the award decision by a competing US company prior
to the balance sheet date (September 30, 2007). As of today, the company is
confident that it will be able to prove the rightfulness of the tender
award jointly with its American business partner and legal counsel engaged
in this matter. Depending on the time it takes for the matter to be
clarified or the protest to be released it will only be able to judge
whether or, respectively, what portion of the order can be executed in 2007
or subsequent business years afterwards.

Key Data for SFC Smart Fuel Cell in accordance with IFRS

                        Q1-Q3 2007(k       Q1-Q3 2006(k   Change(in %)
                               Euro)              Euro)

Sales 9.632 4.183 +130
Gross margin from 1.404 659 +113
sales
EBIT -3.635* -2.178
Earnings after taxes -2.032 -2.495
Earnings per share -0,34 -0,42

Fuel Cell units Q1-Q3 2007 Q1-Q3 2006 Change(in %)
EFOY A-Series 3.030 1.088 +178
EFOY C-Series 16 6 +167
Power Manager 560 40 +1,300

*of which EUR 969k are non-recurring cash neutral payment

About SFC Smart Fuel Cell AG:

SFC Smart Fuel Cell AG [www.sfc.com] is the market leader for fuel cell
technologies for mobile and off-grid power applications serving the
leisure, industrial and defense markets. As one of the Germany’s most
successful technology pioneers, SFC has won numerous innovation awards. In
past years SFC has cooperated with leading companies in a variety of
sectors. Unlike most other fuel cell players, who are still in the R&D
phase or run highly subsidized demonstration projects, for the last three
years SFC has been shipping fully commercial fuel cells highly successfully
to industrial and private users The company has an established, functional
fuel cartridge supply infrastructure. SFC is DIN ISO 9001:2000 certified.

SFC Investor Relations Contact:
Barbara v. Frankenberg
Investor Relations Manager
SFC Smart Fuel Cell AG
Eugen-Sänger-Ring 4
D-85649 Brunnthal
Tel. +49 89 673 592 378
Fax. +49 89 673 592 369
Email: barbara.frankenberg@sfc.com
Web: www.sfc.com

18.10.2007 Financial News transmitted by DGAP

Language: English
Issuer: SFC Smart Fuel Cell AG
Eugen-Saenger-Ring 4
85649 Brunnthal
Deutschland
Phone: +49 (89) 673 592 - 100
Fax: +49 (89) 673 592 - 169
E-mail: info@sfc.com
Internet: www.sfc.com
ISIN: DE0007568578
WKN: 756857
Listed: Amtlicher Markt in Frankfurt (Prime Standard); Freiverkehr in
Berlin, München, Düsseldorf, Stuttgart

End of News DGAP News-Service

---