WashTec AG — Earnings Release 2006

Aug 3, 2006

News Details

Press Release | 3 August 2006 19:51

WashTec AG increases revenues and earnings in the first half of 2006

(DGAP-Media / 03.08.2006 / 19:51)

WashTec AG increases revenues and earnings in the first half of 2006 – Revenue up 19.0% to EUR 125.9m

– Earnings before taxes (EBT) up 22.4% to EUR 6.0m – Small-scale acquisition boosts sales activities in Italy

Augsburg, Germany, August 3, 2006 – The WashTec Group (ISIN DE0007507501) is still on its growth path. In the first half of 2006, the leading provider of vehicle washing solutions worldwide increased its revenues as well as its earnings.

Revenues increased by 19.0% in the first six months of the current fiscal year to EUR 125.9m. In the same period, EBT rose 22.4% to EUR 6.0m. EBITDA improved by EUR 0.1m compared with the first half of 2005 to EUR 11.0m. These figures include extraordinary expenses of EUR 4.4m for phantom stock.

The WashTec Group’s overall dynamic growth continued in the second quarter of the current year. An optimal marketing approach as well as successful product launches boosted the volume of business in the core European markets. WashTec enhanced its competitive position in Italy with a small-scale acquisition, taking over 7 employees and assets of a local manufacturer. According to Thorsten Krüger, spokesman of the board of WashTec AG, the acquisition in Italy not only enhanced WashTec’s position in this important market, it also expanded the company’s product portfolio in the conveyor segment.

The integration of the US subsidiary Mark VII, acquired at the beginning of 2006, is on track. Mark VII’s revenues, which fell short of expectations in the first quarter due to dramatic petrol price increases, recovered slightly in the second quarter.

Liabilities to banks were up compared with year-end 2005 to EUR 62.7m, largely as a result of the acquisition of Mark VII. The equity ratio amounted to 26.4% as of June 30, 2006. As of this date, the WashTec Group employed 1,418 people. In the first half of 2006, investments totaled EUR 18.8m (prior-year period: EUR 3.6m).

Outlook

The integration of Mark VII will continue in the second half of the fiscal year and is expected to be completed ahead of schedule by year-end.

At the Augsburg site, the remaining production areas are being optimized for commercial vehicle wash systems, conveyor washes and jet wash equipment. In this context, another new production hall is being built at the Augsburg site. Once this phase of production enhancement is complete, all production areas and material flows should have been optimized by year-end. This will result in further efficiency increases.

The Company will present innovations in all product areas at the world’s largest trade fair for the industry, automechanika in Frankfurt, in September 2006. These innovations will include a basic rollover system that is being developed in order to meet market requirements in regards to a reduced number of washes or programme options.

WashTec aims to build on its position as market, innovation and return on investment leader. In this context, we will continue to actively analyze individual markets in order to ensure an optimal marketing approach. Additional small-scale acquisitions may be made.

As the most dynamic company in the industry, WashTec aims to achieve another significant increase in earnings in 2006.

Key Performance Indicators:

EURm H1 2006 H1 2005
Revenues 125.9 105.8
EBITDA 11.0 10.9
EBT 6.0 4.9

The complete H1 report may be downloaded from our website at www.washtec.de.

Contact:

Karoline Kalb, Investor Relations

WashTec AG

Argonstraße 7

86153 Augsburg

Tel.: +49 (0)821 – 55 84 – 0

Fax: +49 (0)821 – 55 84 – 1135

Mobile: +49 175 – 4302025

End of Media Release

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Issuer: WashTec AG

/Quarter Results

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Language:	English
Company:	WashTec AG
	Argonstraße 7
	86153 Augsburg
	Germany
Phone:	+49 (0)821 55 84-0
Fax:	+49 (0)821 55 84-1135
E-mail:	washtec@washtec.de
Internet:	www.washtec.de
ISIN:	DE0007507501
WKN:	750750
Listed:	Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin, Düsseldorf, München, Stuttgart

End of News	DGAP-Media

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5808  03.08.2006