Adhoc: Kontron AG boosts sales in the third quarter to EUR 73.5 million

Orders at hand once again reach new record level at EUR 140.2 million
EBIT climbs to EUR 5.8 million, surplus for the period to EUR 4.2 million
Further increase in sales and earnings expected in the fourth quarter
Forecast of EUR 23 million EBIT confirmed


Eching near Munich, October 27, 2005. In the third quarter of the ongoing business year Kontron AG, one of the leading manufacturers of Embedded Computer technologies, reported sales of EUR 73.5 million, thereby once again exceeding the record figure of EUR 71.2 million posted in the second quarter. This represents a gain of more than 14 percent over the third quarter of the previous year (EUR 64.3 million). In the first nine months of 2005 total sales came in at EUR 207 million, over EUR 195.2 million in the prior year period, which marks a six percent increase. In the third quarter the value of orders at hand also hit a new record in the history of the company at EUR 140.2 million, which is EUR 12.3 million ahead of the prior year quarter and EUR 38.3 million above the past years figure. In connection with the consistently high volume of design wins in excess of EUR 42 million, the company has announced the continuation of stable growth from quarter to quarter. In terms of regions, growth impulses are emanating mainly from Europe, and especially from Russia. Kontron AG is recording a continuous upward trend on the earnings side: in the third quarter operating earnings (EBIT) climbed to EUR 5.8 million over EUR 5.0 million in the second quarter and EUR 4.4 million in the prior year period. In the first nine months EBIT stood at EUR 14.3 million by comparison with EUR 15.0 million in the same period last year, whereby accounting in 2005 factors in the fictitious costs of the employee stock program for the first time. Surplus for the period (according to IAS § 1.81 f. before minority holdings) rose in the third quarter to EUR 4.2 million over EUR 3.6 million in the second quarter and EUR 2.9 million in the prior year period. In the first nine months of 2005 the figure stood at EUR 10.6 million over EUR 9.6 million in the same period last year. In the third quarter of 2005 the financial and assets situation of Kontron AG remains sound and stable, as before. Due to stock repurchases the cash holdings declined slightly from EUR 61.3 million in the second quarter to EUR 57.6 million. In the third quarter equity moved up from EUR 224.9 million to EUR 227.8 million. The number of employees, including 756 engineers, remained virtually constant. Kontron AG will be handling the strong increase in orders on hand by expanding existing manufacturing capacities over the next months. The company plans to ramp up manufacturing capabilities in Asia as well as founding a regional joint venture. In view of the sound order situation the corporation expects the fourth quarter to return additional growth rates over the third quarter, both in terms of sales and earnings, while operating earnings (EBIT) are projected to exceed 10 percent. With a look to the overall 2005 business year, Kontron confirms the forecasted, disproportionately high gains in EBIT earnings compared with sales to EUR 23 million. In September 2005, Kontron was the only European country to be granted Premier Status in connection with the Intel telecommunications partner program. Based on the leading role the corporation holds in the ATCA telecommunications market, Kontron is expecting to generate additional growth the years 2006 and 2007.

Investor Relations:
Gaby Moldan
Kontron AG
Oskar-von-Miller-Str. 1
85386 Eching
Tel. 08165/77212, Fax: 08165/77222
Email: Gaby.Moldan@kontron.com

Additional information is available from:
Dr. Udo Nimsdorf
Engel & Zimmermann AG
Agentur für Wirtschaftskommunikation
Schloss Fußberg, Am Schlosspark 15,
82131 Gauting
Tel. 089-89 35 633, Fax: 089-89 39 84 2
Email: info@engel-zimmermann.de