Viscom AG — Interim / Quarterly Report 2008

Aug 25, 2008

Interim Report as of 30 June 2008

▪	Key Group Figures 3
▪	Foreword by the Executive Board 4
▪	Viscom Shares 6
▪	Consolidated Interim Management Report 8
	Revenue and Earnings Development 8
	Net Assets and Financial Position 8
	Employees 9
	Segment Information 10
	Opportunities/Risks and Outlook Report 12
	Significant Transactions with Related Parties 13
▪	General Information on the Company 13
▪	IFRS Consolidated Interim Financial Statements 14
	Income Statement 14
	Balance Sheet 15
	Cash Flow Statement 17
	Statement of Changes in Shareholders' Equity 18
▪	Special Disclosures 19
▪	Responsibility Statement 21
▪	Financial Calendar 22
▪	Credits 23

Key Group Figures

	01.01.– 30.06.2008	01.01.– 30.06.2007
Revenue	28,446 K€	19,179 K€
EBIT	1,550 K€	-1,053 K€
Financial result	129 K€	546 K€
Income taxes	-628 K€	-126 K€
Net profit for the period	1,051 K€	-633 K€
Number of shares	9,020,000	9,020,000
Diluted and undiluted earnings per share	0.12 €	-0.07 €
Number of employees	403	366

Foreword by the Executive Board

Dear Shareholders, Ladies and Gentlemen,

Good news at mid-year: as announced Viscom was able to increase its revenue and earnings. We continue on our very promising course toward achieving our forecast for the year of € 57 million to € 60 million in revenue and an EBIT margin between 7 % and 9 %.

The first half of 2008 ended with revenue of K€ 28,446. This represents a 48.3 % increase from the corresponding half of the previous year, when revenue of K€ 19,179 was generated. We even achieved an increase of 16.2 % over the half year with the highest revenue yet, the first half of 2006. Because we continue to suffer the effects of the weak US dollar, the portion of our sales volume that is billed in USD is quite significant, we can consider this result to be even better than that of previous years.

However, Viscom is also affected by the economic downturn, the current incoming orders do not meet our expectations. In Asia due to the unfavourable US dollar development we need to calculate with lower margins.

An important step in the second quarter 2008 was the commencement of the series production of the X7056RS inspection system. Due to the optimised production we can realise shorter delivery periods and cover the rising worldwide demand. We have already received a considerable number of orders for the system, which boasts the unique technological feature of combined optical and x-ray inspection.

Over the past few months, our new inspection systems have gained global recognition. We have garnered two awards that are highly respected in the industry. First, the X7056RS received the 2008 SMT VISION Award in the USA for being the best new product in the Inspection category. The SMT VISION Award 2008 in China followed simultaniously for the S3088-II system in the category of Inspection & Testing-AOI. These honours once again point up the merits of Viscom's strategic orientation as a technology leader in manufacturing inspection systems for electronics production.

In May 2008, Viscom combined its service into a business area of its own, taking an important step towards the future. We strive to meet the increasing demands of our customers, particularly with regard to the availability and expertise of our service technicians. Viscom intends to guarantee the reliable functioning of its systems at all times, even as the number of customers rises. In the near future, Service will become a sustainable revenue driver for the company.

We would like to take this opportunity to express our particular thanks to our employees, whose tireless efforts have made Viscom what it is today. In the second half of 2008 as well, we will work together to advance and develop the company.

We would also like to thank our shareholders for their confidence in the company. We look forward to continuing our growth with your support.

The Executive Board

Dr. Martin Heuser Volker Pape Ulrich Mohr

Viscom Shares

ISIN	DE 000 7846867
Market segment	Official Market of the Frankfurt Stock Exchange Prime Standard
Number of shares	9.020.000
Free float	39.5 %
Market capitalisation	€ 47.9 million
High	€ 9.05
Low	€ 5.32
Average trading volume (Xetra/day)	6,178
EPS	€ 0.12

as of 30 June 2008

Whilst the first quarter of 2008 saw a significant deterioration in sentiment and an extremely negative performance of the DAX of -18 %, a temporary calm set in at the start of the second quarter. This was brought on by the supportive action taken by the US Federal Reserve to rescue an investment bank and by an expansion of monetary policy to raise liquidity for commercial banks. This upswing once again brought the DAX close to the 7,000 mark, before it levelled off in mid-May. At that time, activity was impacted significantly by a high in several raw materials markets and by the weak US dollar. During this phase, financial and consumer shares were under strong selling pressure.

However, in June prices resumed their downward slide. The DAX declined 11 % – more than it had gained in the two months prior. The subprime crisis made a return appearance and the ECB announced that it was tightening its monetary policy. Under these conditions, steady raw materials quotations and the high price of oil worked to speed inflation.

During the first half year, Viscom shares developed parallel to the German stock market. During the first quarter, the shares were under heavy selling pressure, which eased off slightly at the beginning of the second quarter. After price decreases in early May, HPC Vermögensverwaltung GmbH – in which Viscom Executive Board members Dr. Martin Heuser and Volker Pape hold partnership shares – on 15 May 2008 purchased 50,000 shares for an average share price of € 6.94. This transaction was effected in order to express the confidence of the Executive Board in the company's operating earnings strength on the stock market. June then saw further price drops, with the result that the share reached a low of € 5.32 toward the end of the quarter.

On 12 June 2008 the annual general meeting of Viscom AG was held in the Expowal, Hanover. By a vote of 6,672,898 votes in favour, or 99.97 %, the annual general meeting resolved to distribute a dividend of € 0.30 per share. This represents a dividend yield of 5.6 % as at the last business day of the half year. The next ordinary annual general meeting is scheduled to be held on 18 June 2009 in Hanover.

Our investor relations activities are aimed at enabling all capital market participants to make a fair evaluation of Viscom AG. Accordingly, open and honest communication is our top priority. All information relating to Viscom's shares is also published in a timely manner on the company's website at www.viscom.com/en_ir.

7

Consolidated Interim Management Report

Revenue and earnings development

During the first half of 2008, Viscom earned revenue of K€ 28,446, compared to revenue in the corresponding half of the previous year of K€ 19,179. This amounts to an increase of 48.3 %. Because somewhat weaker revenue was achieved in 2007, it is worthwhile looking at the corresponding figures of the 2006 financial year. Even this comparison points up positive aspects: Viscom achieved an increase of 16.2 % compared to 1H/2006. This increase in revenue can be estimated to be even higher when the weakness of the US dollar is taken into account. The average dollar exchange rate continued to deteriorate year-on-year. Whereas Viscom after the first quarter recorded sales volume billed in USD that was some K€ 400 lower than that at the USD/EUR exchange rate of the previous year, this figure rose to K€ 570 by 30 June 2008.

During the reporting period, revenue figures were higher than incoming orders. Because the order backlog for the X7056RS was reduced during the second quarter, orders on hand dropped as expected to K€ 9,477 (previous year: K€ 14,100). Customers issued a further K€ 23,822 in orders during the first six months of 2008. Thus incoming orders are below the level of the previous year (K€ 24,700). These figures ensure that production capacities will be utilised for about two months. Because the majority of the planned investments of our customers are usually made during the second half of the year, we expect incoming orders to correspond to those of previous years.

However, costs that were 32.4 % higher offset the higher revenue. This is due to the higher cost of materials in line with higher revenue, and, to a large extent, to staff costs. As a result of the expansion, a higher proportion of costs was attributable to personnel, sales and research and development in the first half of 2008. In spite of everything, an EBIT of K€ 1,550 (previous year: K€ -1,053) was achieved.

The financial result shows a decline from the previous year. Lower investments and the change to a form of investment with greater tax benefits lowered the financial result to K€ 129 (previous year: K€ 546). In purely mathematical terms, this yields a tax rate of 37.4 %. The tax benefits of this form of investment will be recognised at the end of the year. For 2008 as a whole, we expect a tax rate of less than 30 %. This enabled Viscom to earn total net profit for the period of K€ 1,051 (previous year: K€ -633). This yields earnings per share of € 0.12 (previous year: € -0.07).

Net assets and financial position

Cash flow from operating activities amounted to K€ -2,575 in the first six months of the current year, compared with K€ -5,125 in the same period of the previous year. The positive development can be attributed to three key factors. In addition to the significantly higher net profit for the period of K€ 1,051 (previous year: K€ -633), liabilities were seen to increase (to K€ 110 from K€ -5,488 the previous year) and taxes paid to decrease (currently K€ -1,253 from K€ -2,326 the previous year). The "Inventories, receivables and other assets" item declined (K€ -4,010; previous year: K€ 3,541). It comprises a significant increase in receivables (€ +2.4 million) resulting from the high volume during the second quarter and an increase in inventories and other assets (€ +1.2 million).

The significant drop in cash flow from investment activities from K€ -79 the previous year to K€ -17,370 is primarily the result of purchases of units in funds during the first quarter of 2008 with a current fair value of K€ 17,076. Because investments in application centres made in 2008 were not as significant as those in the previous year, the position "acquisition of property, plant and equipment and noncurrent intangible assets" decreased to K€ -509 (previous year: K€ -704). The position "interest received" dropped to K€ 129 (previous year: K€ 557).

Cash flow from financing activities reflects the results of the dividend payment after the 2008 annual general meeting. It now equals K€ -2,730 compared to K€ -4,456 the previous year. Because a lower dividend was distributed in 2008 than in 2007, the position "distribution of dividends" decreased to K€ -2,706 (previous year: K€ -4,510). Total cash and cash equivalents declined significantly, from K€ 30,437 in the first half of the previous year to K€ 4,989 at the end of the period under review. This was primarily due to a change in the form of investment.

Working capital decreased slightly to K€ 54,649 in the first six months of 2008 as against K€ 55,856 at the end of 2007. Current assets and liabilities are thus constant for the most part.

In comparison to the same quarter of the previous year (86.5 %) and the end of 2007 (84.1 %), the equity ratio dropped to 83.4 %. The reason for the slightly lower shareholders' equity is the dividend distribution for 2007.

As at the end of the second quarter of 2008, Viscom had 403 employees worldwide. This represents an increase of 10.1 % compared to the first half of the previous year. After the number of employees rose sharply, particularly in the first quarter of the current year, and employees had been hired for all growthbased areas of the company, the second quarter saw a minimum of new hires. Viscom is now well equipped for its revenue growth over the coming years in terms of human resources.

Employees

As of 30 June 2008	Europe	Asia	Americas	Total
Total	348	37	18	403
of which: full-time	332	36	18	386
of which: part-time	16	1	0	17
plus: trainees	12	0	0	12

Europe Segment information

During the first six months, roughly 67 % of Viscom revenue was generated in the Europe region. In Germany in particular, the Viscom brand enjoys a high level of respect. Thanks to the relatively good economy, our home market is and will remain Viscom's key market. The S3088-II system has now established itself as a standard system and is attracting new customer groups. These are primarily medium-sized companies that continue to reduce our dependency on larger customers. In this area our increased sales activities in recent months have paid off to a particular degree.

The Europe region as a whole is considerably stronger than in the first quarter of 2008. Its current product range gives Viscom an excellent position on the European market. Here, Viscom achieved revenue of K€ 19,129 during the first half of 2008. This represents an increase of more than 42 % compared to the previous year's value of K€ 13,411. Because higher volumes of sales tend to be transacted in the second half of the year, this number inspires confidence in continued revenue growth for the year. EBIT continues to be impacted by increased operating expenses at the Hanover location. These expenses include increased staff costs and investments in research and development. EBIT showed encouraging year-on-year growth at K€ 994 (previous year: K€ -901).

Europe	01.01.– 30.06.2008	01.01.– 30.06.2007
Revenue (K€)	19,129	13,411
EBIT (K€)	994	-901
EBIT margin (%)	5.2	-6.7
Employees	348	310
Representatives	20	17

Asia

Once again in the second quarter just completed, the Asia region showed disappointing growth. Total revenue for the first half year was below the expectations of the group. Although revenue rose by 10 % to K€ 4,083 (previous year: K€ 3,707), a higher figure was expected. The Asia region thus contributed 14 % to group revenue. This development was negatively impacted by the continued weakness of the US dollar, because a majority of Asian sales are transacted in US dollars.

However, activities to increase brand recognition of Viscom in Asia were highly gratifying. During the second quarter of 2008, the sales team expanded. In addition to the three new sales employees at various locations in Asia – such as Singapore and Korea – Sales was expanded to promote the new systems for inspection of semiconductors.

This work on the customer base was amply rewarded during the first half of the year 2008. At Nepcon in Shanghai, the S3088-II AOI system from Viscom was recognised with the 2008 SMT China VISION Award in the category of Inspection & Testing AOI. The S3088-II was called a first-class solution for automated optical inspection of assemblies. Viscom is very pleased about this recognition. The enormous demand, no more than six months after the launch of series production, and the positive assessment by customers shows that the inspection concept of the S3088-II is very well received by the market.

EBIT in the Asia region is still feeling the negative effects of the cost of expansion into growth regions. EBIT during the first half of 2008 amounted to K€ -101 (previous year: K€ 147) due to the establishment of a solid sales base and the expense of promoting the machinery at various trade fairs.

Asia	01.01.– 30.06.2008	01.01.– 30.06.2007
Revenue (K€)	4,083	3,707
EBIT (K€)	-101	147
EBIT margin (%)	-2.5	4.0
Employees	37	37
Representatives	12	17

Americas

For 2008 as well, the Americas region remains a driver for success in the business of Viscom. With revenue that grew by roughly 153 % to K€ 5,234 (previous year: K€ 2,061), the segment now contributes 18 % to group revenue. Against the backdrop of the sustained weakness of the US dollar, this result can be considered even stronger.

The Americas benefit from orders on hand that remain strong even in the face of a debilitated US economy. In addition to the regular business of Viscom in the automotive sector, the customer base expanded during the first six months of the year under review. Contract manufacturers are becoming an increasingly important customer group and purchased numerous systems. This allows Viscom to offset individual declining demand cycles of our customers by diversifying its customer base.

The X7056RS, the combined AOI/AXI system, won Viscom the 2008 SMT VISION Award in the USA as the best new product in the Inspection category. This honour underscores the merits of Viscom's strategic orientation as a technology leader in manufacturing inspection systems for electronics production.

Though negatively impacted by the costs of expansion, EBIT corresponds to the development of revenue. It stands at K€ 657 following K€ -299 the previous year. However, expansion costs such as those incurred in the construction of the application and training centre in Guadalajara, Mexico, are already reflected in revenue growth. The growth markets of Mexico and South America in particular will contribute increasingly over the medium and long term to the success of Viscom.

Americas	01.01.– 30.06.2008	01.01.– 30.06.2007
Revenue (K€)	5,234	2,061
EBIT (K€)	657	-299
EBIT margin (%)	12.6	-14.5
Employees	18	19
Representatives	15	15

Opportunities/risks and outlook report

The product range of Viscom offers technologically outstanding products for various branches of industry. They are used to reduce defect rates in the electronics and semiconductor industries, and in future also in the photovoltaic industry. With its successful global expansion, the company is opening up new growth regions, and with its new technologies it is tapping new customer groups.

The primary focus for the 2008 financial year is on three new and promising inspection systems.

One of the main revenue drivers will be the X7056RS. Series production for this product started up in the second quarter of 2008.

The S2012PV machine is currently in a customerfocussed phase of development. With this system, Viscom is seeking to cooperate with photovoltaic equipment producers. The basic version was launched in April 2008. With this machine, Viscom will participate in the market for photovoltaic production lines.

The new MX100 and MX2000IR semiconductor inspection systems are becoming another mainstay for Viscom. The patented illumination that we acquired from Phoseon Technology Inc. supplies us with a special technology in the industry and will allow us to gain customers not only in the electronics industry but in the semiconductor industry as well.

With the establishment and expansion of the new service area, Viscom has taken a giant stride forward in adapting structures for the group's further growth. This step serves the increasing installation base found across the globe, and allows Viscom to provide its customers with even more targeted support. Thus Viscom will meet the increasing demands for service, particularly in terms of the availability and expertise of service technicians. This will enable Viscom to guarantee the reliable functioning of its systems, even as the number of customers rises.

Viscom has initiated a risk management system in accordance with section 91 (2) of the German Stock Corporation Act. The guiding principle of the risk management system is that the relevant decisionmakers should be made aware of the development of significant risks as promptly and comprehensively as possible in order to allow them to respond or initiate pre-emptive actions in a timely and appropriate manner. To this end, the risk managers from the individual business areas meet on a regular basis to discuss and clarify the current status of and approach to the significant risk positions on the basis of corresponding evaluations and reports. Specialist employees provide additional clarification where necessary.

Currently Viscom is primarily exposed to exchange rate risk. Particularly in the Americas and Asia regions, a large portion of sales is invoiced in US dollars; at the moment this portion represents about 20 % of all sales transacted. If revenue and EBIT had been recognised in USD, they would have been much higher over the past half year. This effect is mitigated by purchases in the US dollar region. The management currently forecasts that the US dollar exchange rate will be 1.55 USD per EUR on average for the year.

Major customer risk represents a further risk. A significant portion of the company's business volume of more than 50 % is transacted with three large customers. If one of these customer accounts were lost, it would have a considerable impact on the company's success. Viscom minimises the risk arising from the development of new machines by employing a systematic construction process in which the quality of the development activities performed to date is reviewed on a regular basis; corresponding measures are then derived from the results of this review. Particularly in the case of the new products for semiconductor and photovoltaic inspection, new customer groups that further reduce dependency on the electronics industry are being approached.

Human resources risk is currently the focus of particular attention. Viscom is taking measures to recruit and retain qualified employees. In addition to associations with universities, Viscom will in future establish a strategic human resources planning. Building the qualifications of the company's employees as specialists and managers is key to its long-term success.

The company's management is forecasting revenue of between € 57 million and € 60 million and an EBIT margin between 7 % and 9 % for the 2008 financial year. The extent to which the risks mentioned above can be controlled and the performance of the new products are closely correlated to the achievement of these goals.

Significant transactions with related parties

There are rental agreements for seven properties on Carl-Buderus-Straße, Hanover, between the company and Dr. Martin Heuser/Petra Pape GbR, Hanover, Marina Heuser/Petra Pape GbR, Hanover, and HPC Vermögensverwaltung GmbH, Hanover. The parties to these agreements all constitute related parties within the meaning of IAS 24.

Viscom has also concluded leases for company cars with HPC Vermögensverwaltung GmbH.

General Information on the Company

Viscom AG is headquartered in Hanover, Germany, where it is registered under record number HR B 59616. The business address is Viscom AG, Carl-Buderus-Straße 9 - 15, 30455 Hanover. The company's business activities consist of the development, manufacture and sale of automated inspection systems for industrial production. Inspection is performed by the computer-based optical and/or X-ray comparison of the inspected objects with the specifications defined in the inspection system.

IFRS Consolidated Interim Financial Statements as of 30 June 2008 Income Statement

01.04.–	01.04.–	01.01.–	01.01.–
30.06.2008	30.06.2007	30.06.2008	30.06.2007
K€	K€	K€	K€
16,581	8,463	28,446	19,179
237	231	403	394
16,818	8,694	28,849	19,573
203	1,683	1,560	3,347
-6,662	-4,435	-12,237	-10,024
-5,457	-4,615	-10,440	-9,259
-252	-200	-504	-389
-3,130	-2,072	-5,678	-4,301
-15,298	-9,639	-27,299	-20,626
1,520	-945	1,550	-1,053
58	370	189	566
-59	0	-60	-20
-480	-116	-628	-126
1,039	-691	1,051	-633

Balance Sheet: Assets

Assets	30.06.2008 K€	31.12.2007 K€
Current assets
Cash and cash equivalents	4,989	27,726
Trade receivables	19,147	16,783
Current income tax assets	3,665	2,709
Inventories	20,773	19,508
Other financial receivables	435	315
Other assets	17,592	444
Total current assets	66,601	67,485
Noncurrent assets
Property, plant and equipment	2,144	2,182
Goodwill	15	15
Intangible assets	2,723	2,725
Loans originated by the Company	80	98
Deferred tax assets	457	623
Other noncurrent assets	6	0
Total noncurrent assets	5,425	5,643
Total assets	72,026	73,128

Balance Sheet: Liabilities and Shareholders' Equity
-----------------------------------------------------	--

Liabilities and Shareholders' Equity	30.06.2008	31.12.2007
	K€	K€
Current liabilities
Trade payables	2,454	1,855
Payables to affiliated companies	0	28
Advanced payments received	493	718
Provisions	3,904	3,384
Current income tax liabilities	416	312
Other financial liabilities	2,255	2,625
Other current liabilities	1,840	2,178
Total current liabilities	11,362	11,100
Noncurrent liabilities
Noncurrent provisions	169	159
Other noncurrent liabilities	421	370
Total noncurrent liabilities	590	529
Shareholders' equity
Subscribed capital	9,020	9,020
Capital reserves	42,170	42,170
Retained earnings	8,872	10,527
Reserves for fair value adjustments	215	0
Exchange differences	-203	-218
Total shareholders' equity	60,074	61,499
Total liabilities and shareholders' equity	72,026	73,128

Cash Flow Statement

Cash Flow Statement	01.01.– 30.06.2008 K€	01.01.– 30.06.2007 K€
Cash flow from operating activities
Net profit for the period after interest and taxes	1,051	-633
Adjustment of net profit for income tax expense (+)	627	126
Adjustment of net profit for interest expense (+)	67	20
Adjustment of net profit for interest income (-)	-183	-566
Adjustment of net profit for depreciation and amortisation expense (+)	503	389
Increase (+) / Decrease (-) in provisions	535	-165
Gains (-) / Losses (+) on the disposal of noncurrent assets	-22	-24
Increase (-) / Decrease (+) in inventories, receivables and other assets	-4,010	3,541
Increase (+) / Decrease (-) in liabilities	110	-5,488
Income taxes paid (-)	-1,253	-2,326
Net cash used in/from operating activities	-2,575	-5,125
Cash flow from investing activities
Acquisition (-) of current assets	-19,799	0
Disposal (+) of current assets	2,767	0
Proceeds (+) from the disposal of noncurrent assets	42	68
Acquisition (-) of property, plant and equipment and noncurrent intangible assets	-509	-704
Interest received (+)	129	557
Net cash from/used in investing activities	-17,370	-79
Cash flow from financing activities
Dividend distribution (-)	-2,706	-4,510
Appropriation of income from deferred receivables to capital reserve (+)	0	87
Interest paid (-)	-24	-33
Net cash from/used in financing activities	-2,730	-4,456
Changes in cash and cash equivalents due to changes in interest rates	-62	-47
Cash and cash equivalents
Changes in cash and cash equivalents	-22,675	-9,660
Cash and cash equivalents at 1 January	27,726	40,144
Total cash and cash equivalents	4,989	30,437

Statement of Changes in Shareholders' Equity

Shareholders' Equity	Sub scribed capital K€	Capital reserves K€	Exchange diffe rences K€	Retained earnings K€	Reserves for fair value adjustments K€	Total K€
Shareholders' equity at 01.01.2007	9,020	42,082	-6	11,478	0	62,574
Exchange rate differences + Net profit for the period	0 0	0 0	2 0	0 -633	0 0	2 -633
Total income and total expenses	0	0	2	-633	0	-631
- Dividends	0	0	0	-4,510	0	-4,510
+ Appropriation of income from de ferred receivables to capital reserve	0	88	0	0	0	88
Shareholders' equity at 30.06.2007	9,020	42,170	-4	6,335	0	57,521
Shareholders' equity at 01.01.2008	9,020	42,170	-218	10,527	0	61,499
Exchange rate differences	0	0	15	0	0	15
+ Net profit for the period	0	0	0	1,051	0	1,051
Total income and total expenses	0	0	0	1,051	0	1,051
- Dividends	0	0	0	-2,706	0	-2,706
+ Fair value adjustment	0	0	0	0	215	215
Shareholders' equity at 30.06.2008	9,020	42,170	-203	8,872	215	60,074

Special Disclosures

Declaration of compliance

These interim financial statements produced at the end of the second quarter of 2008 were produced through the uniform application of and in accordance with all International Financial Reporting Standards (IFRS) and International Accounting Standards (IAS), including in particular IAS 34 (Interim Reporting), applicable as at the 30 June 2008 statement date.

Basic principles of preparation

The IFRS interim financial statement was produced in euro (€) denomination. Most figures are presented as euro thousands (K€). The same accounting, measurement and computational methods were employed as with the 2006 consolidated financial statements.

The income statement was prepared in accordance with the nature of expense method.

Pursuant to IAS 1, assets and liabilities carried on the balance sheet are classified as either current or noncurrent. Current assets or liabilities are those designated for disposal/redemption within a one-year time horizon.

The consolidated financial statements contain certain estimates and assumptions that have an impact on the recognition and carrying amounts of assets, liabilities, income, expenses and contingent liabilities. Actual amounts may differ from these estimates.

Disclosures on assets and liabilities

The purchase price allocation for the acquisition of the MX product family from Phoseon Technology Inc. dated 23 August 2007 is still provisional, as there remains a degree of uncertainty with regard to the accuracy of the underlying data. The total cost of the acquisition was K€ 2,635.

In the first quarter 2008, Viscom acquired units of a Luxembourg-based Part II investment fund with a total volume of K€ 14,716. The investment strategy of the fund is aimed at generating a standard money market return by employing various listed securities (fixedincome securities, equities) and derivatives in order to achieve an attractive post-tax yield while ensuring the greatest possible degree of flexibility. Derivatives are employed in order to generate returns as well as for hedging purposes.

On initial recognition, the fund units are carried at cost, which corresponds to the fair value of the consideration paid (including transaction costs). In subsequent periods, they are measured by calculating their fair value on a daily basis using the underlying asset portfolio determined by the bank in the active market, with gains and losses recognised in the period in which they occur. As the fund units are classified as available-for-sale financial instruments, any changes in fair value are taken directly to equity.

In addition to the general risks attributable to taxoptimised investments, the fund is exposed to the interest rate and counterparty default risks relating to the conclusion of derivatives.

In accordance with section 8b of the German Corporate Income Tax Act, a further money market fund with a volume of € 2.2 million allows the generation of substantially tax-free income based on the differences between the spot rates and forward rates of equities. The resulting share price risk is largely hedged in a timely manner through the use of derivatives.

The fund is exposed to the interest rate and counterparty default risks relating to the conclusion of derivatives.

Events after the balance sheet date

The executive board resolved on 29 July 2008 to buy back up to 902,000 of the company's own shares in the period until 31 March 2009. This corresponds to about 10 % of subscribed capital. Viscom AG is therefore acting on the authorisation of the annual general meeting on 12 June 2008, which approved a motion for the company to buy own shares pursuant to section 71, paragraph 1, number 1 AktG (Stock Corporation Act). According to that, the company is authorised to buy back up to 10 % of the available subscribed capital on the day the motion was passed until 11 December 2009. Currently the company does not hold treasury shares.

Shares are going to be bought back via the stock market. The price Viscom AG pays for each share with identical features (excluding incidental costs) may not exceed or fall short of the median of the share's closing price on the last five days in Xetra trading on Frankfurt Stock Exchange before committing to the purchase by more than 10 % or 20 % respectively. The share buy-back is being undertaken to preferably use these own shares purchased in the course of acquiring companies, company divisions or stakes in companies.

The share buy-back is being led by NORD/LB, Hanover, which is making its decision on the time of purchasing Viscom shares independent of and without any influence by the company. In addition to that, NORD/LB has undertaken to adhere to article 5 of Commission Regulation (EC) No 2273/2003 of 22 December 2003. This means that on any given day it is inadmissible to purchase more than 25 % of the average trading volume during the last 20 days of trading before the date of purchase. Transactions will be announced on the Viscom AG website after they have been executed.

Seasonality

The Viscom Group's business is seasonal in nature to a significant degree. More revenue tends to be generated in the second half of the year than in the first six months. The fourth quarter is typically the strongest quarter in terms of revenue.

Audit of the accounts

As was the case with previous half-yearly financial statements, the half-yearly financial statements as at 30 June 2008 were neither examined by an auditor according to Section 320 HGB, nor were subjected to an audit review as required by the Wertpapierhandelsgesetz (WpHG – German Securities Trading Act).

Disclosures on the Group's	Europe		Asia		Americas		Total
geographical segments bro ken down by sales market (in K€)	01.01.– 30.06. 2008	01.01.– 30.06. 2007	01.01.– 30.06. 2008	01.01.– 30.06. 2007	01.01.– 30.06. 2008	01.01.– 30.06. 2007	01.01.– 30.06. 2008	01.01.– 30.06. 2007
Revenue	19,129	13,411	4,083	3,707	5,234	2,061	28,446	19,179
EBIT	994	-901	-101	147	657	-299	1,550	-1,053
plus financial result	0	0	0	0	0	0	129	546
less income taxes	0	0	0	0	0	0	-628	-126
Net profit for the period	0	0	0	0	0	0	1,051	-633

Responsibility Statement

To the best of our knowledge, and in accordance with the applicable reporting principles for group interim financial reporting, the group interim consolidated financial statements give a true and fair view of the assets, liabilities, financial position and profit or loss of the Group, and the Group interim management report includes a fair review of the development and performance of the business and the position of the Group, together with a description of the principal opportunities and risks associated with the expected development of the group for the remaining months of the financial year.

Dr. Martin Heuser Volker Pape Ulrich Mohr

Financial Calendar

	▪ 13 August 2008 Publication of interim report on second quarter, conference call	Hanover
	▪ 26 August 2008 DVFA Small Cap Conference	Frankfurt
	▪ 10 November 2008 German Equity Forum	Frankfurt
	▪ 12 November 2008 Publication of interim report on third quarter, conference call	Hanover

Viscom AG

Supervisory Board	Dr. Jürgen Knorr (Chairman) Hans E. Damisch (Deputy Chairman) Prof. Dr. Claus-Eberhard Liedtke
Executive Board	Dr. Martin Heuser Volker Pape Ulrich Mohr
Head office	Carl-Buderus-Straße 9–15, 30455 Hanover Commercial Register of Hanover Local Court HR B 59616
Subsidiaries of Viscom AG	Viscom France S.A.R.L., Cergy Pontoise Cedex, France Viscom Inc., Atlanta, Georgia, USA Viscom Machine Vision Pte Ltd., Singapore
Subsidiary of Viscom Machine Vision Pte Ltd., Singapore	Viscom Machine Vision (Shanghai) Trading Co., Ltd.

Credits

Published by	Viscom AG, Carl-Buderus-Straße 9–15, 30455 Hanover, Germany Tel. +49 511 94996-0, Fax +49 511 94996-900 info@viscom.de, www.viscom.com
Responsibility	Viscom AG, represented by the Executive Board
Editors	Dr. Martin Heuser (Executive Board) Volker Pape (Executive Board) Ulrich Mohr (Executive Board) Simone Huch (Investor Relations Manager)
Layout and design/Photography	CL*GD – corinna.lorenz.grafik.design., www.clgd.de Iso K° Photography, www.iso-k.de Viscom AG (Photo-Team, Juergen Brinkmann)
Printing and production	Druckhaus Benatzky, www.benatzky.de
Commercial register and registration number	Court of registration: Hanover Local Court, Registration num-ber: HR B 59616, VAT ID number in accordance with section 27a of the German VAT Act: DE 115675169
Copyright notice	All photographs and text contained in this report are protected by copyright. Reproductions of any kind require the express written permission of Viscom AG.

Head office

Viscom AG Carl-Buderus-Straße 9–15 30455 Hanover Germany Tel.: +49 511 94996-0 Fax: +49 511 94996-900 info@viscom.de

Investor Relations

Viscom AG Simone Huch Carl-Buderus-Straße 9–15 30455 Hanover Germany Tel.: +49 511 94996-861 Fax: +49 511 94996-555 simone.huch@viscom.de

www.viscom.com

Viscom AG - Interim Report as of 30 June 2008