SIMONA AG — Earnings Release 2008

Apr 23, 2008

News Details

Ireland | 23 April 2008 12:42

Simona AG:

Simona AG / Release of an announcement according to Article 37x of the WpHG [the German Securities Trading Act]

Interim report according to Article 37x of the WpHG, transmitted by DGAP -
a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.

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Interim Announcement First Quarter of 2008

Kirn, April 23, 2008

SIMONA grows in line with targets

Note: SIMONA AG disposed of its 50% interest in Georg Fischer SIMONA
Fluorpolymer Products GmbH, Ettenheim, retrospectively as of January 1,
2008. Up until December 31, 2007, Georg Fischer SIMONA Fluorpolymer
Products GmbH was accounted for in the consolidated financial statements of
SIMONA AG, Kirn, on a proportionate basis. Therefore, comparability of the
consolidated figures for 2008 with those of the previous periods is limited
in scope.

The SIMONA Group was able to benefit from the favourable economic climate
still in evidence during the first three months of the 2008 financial year.
Despite the deconsolidation of Georg Fischer SIMONA Fluorpolymer Products
GmbH, revenue grew to EUR77.7 million, up 6.2 per cent on what had been a
highly dynamic first quarter in 2007. This was slightly higher than the
total growth rate of 5 per cent forecast for the Group in 2008.

Within this context, the semi-finished products segment continued to be
driven mainly by business in the area of chemical equipment and tank
engineering as well as the mechanical engineering industry. Benefiting from
mild weather conditions, the piping systems unit gained additional momentum
in the first three months of the financial year. By contrast, a visible
slowdown within the construction sector gave cause for concern, prompted
mainly by the economic uncertainties associated with the financial crisis
as well as the appreciation of the euro against the US dollar and the
British pound. However, SIMONA has counteracted its dependence on exchange
rates in the US and Asian markets by expanding its production capacities in
North America and establishing a manufacturing facility in China.

There were no significant changes to the company's financial position or
cash flows in the first three months of 2008, with liquidity remaining
solid at all times. The risks of future development remained largely
unchanged compared with the assessment presented in the 2007 financial
statements. The high costs associated with raw materials continue to exert
pressure on earnings performance. In spite of this, however, SIMONA
succeeded in meeting its earnings target for the first quarter, benefiting
in particular from a high level of capacity utilisation and measures
initiated for the purpose of safeguarding bottom-line results.

From the current perspective, the targeted operating return of 7% appears
attainable. For this figure to be met, it is essential that further
opportunities are leveraged from the programme aimed at safeguarding
earnings. At the same time, prices quoted on the raw materials markets will
have to stabilise and the rate of economic slowdown in general will have to
be stemmed.

The number of people employed by SIMONA contracted slightly from 1,224 to
1,220.

Kirn, April 2008
The Management Board

23.04.2008 Financial News transmitted by DGAP

Language: English
Issuer: Simona AG
Teichweg 16
55606 Kirn an der Nahe
Deutschland
Internet: www.simona.de

End of News DGAP News-Service

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