Kontron AG reports further fast earnings growth

  • Operating earnings (EBIT) rise 65% to EUR 33.9 million in the first nine months of 2007
  • Double-digit margins (EBIT) already expected for 2007

Eching, Munich, October 25, 2007. In the third quarter of the current financial
year, Kontron AG has once again achieved rapid earnings growth, and reported
a new record level of operating earnings (EBIT) of EUR 16.8 million, compared
with EUR 8.8 million in the same period of the previous year. Overall operating
earnings (EBIT) rose to EUR 33.9 million in the first nine months of the current
business year, compared with EUR 20.6 million in the prior year period. This
represents growth of 65%. Kontron AG reported double-digit EBIT in the first
nine months of 2007. Third-quarter net income grew to EUR 12.8 million, lifting
2007 nine-month net earnings to EUR 25.6 million compared with EUR 14.6
million in the prior year period. This extraordinarily strong leap in earnings
contains the one-off impact of around EUR 2.9 million in net income from the
sale of Mobile Computer in the US. Year-on-year growth was 55% without this
special effect.

With third-quarter revenue of EUR 115 million compared with EUR 106.5 million
in the prior year period, year-on-year growth in revenue was 19% when
adjusted for currency effects and the loss of revenue from the disposal of the
Mobile Computer business, and 8% in nominal terms. With total revenue of
EUR 322.6 million in the first nine months of the 2007 financial year, Kontron
AG achieved revenue growth of 23% compared with the same period of the
previous year (EUR 286.4 million) taking into account currency and special
effects.

The order book experienced extremely positive growth: it rose to EUR 267
million compared with EUR 220 million in the previous year. Significant growth
was also reported in terms of design wins. The number of design wins grew to
254, compared with 182 in the same period of the previous year, and volumes
rose from EUR 161 million in the first nine months of 2006 to EUR 202 million
as of the first nine months of 2007.

The very positive results allowed a further significant improvement to be made
to the company's already very solid cash position. The net cash position rose
from around EUR 40 million as of June 30 to EUR 68 million as of September
30, 2007.

The company is assuming a double-digit EBIT margin for the 2007 financial
year as a consequence of the Profit Improvement Program. The Management
Board expects a continuation of growth in the long term as the result of the
strong inflow of new orders and numerous design wins.

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


For further information:
Dr. Udo Nimsdorf
Engel & Zimmermann AG
Agentur für Wirtschaftskommunikation
Am Schlosspark 15,
82131 Gauting
Tel. 089-89 35 633, Fax: 089-89 39 84 29
Email : info@engel-zimmermann.de

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