Corporate | 7 November 2006 08:18

telegate AG: telegate convinces with again positive results in the third quarter – 9 months results consolidate forecast for fiscal year 2006

Corporate news transmitted by DGAP – a company of EquityStory AG. The issuer is solely responsible for the content of this announcement. —————————————————————————— Munich, November 7, 2006 – telegate closes the current reporting period with a renewed sales increase of nearly 27 percent to 133.8 million Euro (9 months period 2005: 105.7 million Euro). All segments of telegate Group contribute toward this positive development, with the foreign subsidiaries proving once more to be the main drivers. The proportion of sales generated in the neighbouring European countries currently stands at 36 percent (9 months period 2005: 18 percent). Though earnings before interest, tax, depreciation and amortizations (EBITDA) of 4.7 million Euro for the first nine months of the fiscal year are significantly below last year’s level (9 months 2005: 31.3 million Euro), this decline is mainly the result of the market entry in France. The improvement in earnings during the current fiscal year announced by the company, has been realized as expected during the third quarter of 2006. While the second quarter of 2006 had still seen a negative EBITDA of -4.8 million Euro, telegate once again generated a positive EBITDA of 9.3 million Euro during the third quarter of 2006. The Group’s current growth dynamic proves to be particularly impressive in the sales performance from the second to the third quarter. During this period telegate Group sales are up from 40.9 million Euro to 45.6 million. Quarter comparison shows that sales of all three business segments of telegate are growing. The segment Germany/Austria boosts its sales to 30.2 million Euro (plus 12 percent), Italy/Spain grows to 9.0 million Euro (plus 5 percent) and the segment France to 6.4 million Euro (plus 19 percent). The development of earnings before interest, tax, depreciation and amortizations (EBITDA) of the individual segments also speaks a clearly positive language. The segment Germany/Austria boosts its EBITDA by 61 percent to 11.1 million Euro, while the segment Italy/Spain raises EBITDA by 35 percent to 1.6 million Euro and even in France the negative earnings of -12.9 million Euro recorded during the second quarter are significantly lowered to -3.4 million Euro in the third quarter. Besides the growth in sales, this substantial improvement in earnings is the result of advertisement expenses which have been significantly reduced and adjusted to normal business level, after having seen an exceedingly high level during the previous second quarter of 2006. Also the improvement of the gross profit margin contributed to this achievement. Following the successful completion of the third quarter, telegate confirms its guidance for the second half of fiscal year 2006, leading to an EBITDA of approximately 20 million Euro for that period. Press contact: telegate AG Claudia Strixner Head of Public Relations Fraunhofer Str. 12a 82152 Munich-Martinsried Tel.: 089/ 8954-1180 Fax: 089/ 8954-1189 E-Mail: presse@telegate.com www.telegate.com (c)DGAP 07.11.2006 ————————————————————————— Language: English Issuer: telegate AG Fraunhofer Str. 12a 82152 München-Martinsried Deutschland Phone: +49 089 – 89 54 0 Fax: +49 089 – 89 54 10 10 E-mail: info@telegate.de WWW: www.telegate.de ISIN: DE0005118806 WKN: 511880 Indices: Listed: Geregelter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin-Bremen, Hannover, Düsseldorf, Hamburg, München, Stuttgart End of News DGAP News-Service —————————————————————————