Ad-hoc | 22 February 2005 20:05

AC-Service AG: Preliminary 2004 Results

Ad hoc announcement §15 WpHG Preliminary Results AC-Service AG: Preliminary 2004 Results Ad hoc announcement transmitted by DGAP. The issuer is solely responsible for the content of this announcement. —————————————————————————— AC-Service AG: Preliminary 2004 Results Unaudited preliminary sales revenues of EUR 44.5 million; preliminary operating loss of EUR 0.9 million after special charges. Operating earnings adjusted for special items clearly positive as projected. No dividend proposed. Good basis for favourable earnings performance in 2005. Stuttgart, 22 February 2005 – According to the preliminary, unaudited figures, AC-Service expects to finish the 2004 financial year with sales of EUR 44.5 million (prior year: EUR 48.3 million) and an operating loss (EBIT) of about EUR -0.9 million (prior year: earnings of EUR 1.3 million). The cause for this loss can be found in a number of special charges in the 4th quarter of 2004. The cost of additions to provisions for severance packages and other personnel actions was just one of the things that caused a tremendous burden on the operating earnings of Human Resource Services in particular, a division whose earnings are already below expectations due to slipping sales. After adjustments for various one-time charges from additions to provisions, the operating earnings for the business division just mentioned and for AC-Service as a whole are on the positive side and range within the expectations stated by the Board of Directors. AC-Service AG’s preliminary balance sheet, in an as yet unaudited draft version made available to the Board of Directors on 22 February 2005, clearly shows that there are financial and accounting reasons for not being able to recommend that a dividend be distributed for the 2004 financial year. It was with an eye towards enhancing the price competitiveness of the Human Resource Services division’s products, systems and services that a comprehensive cost-reduction programme was approved, which led to the need for the above-named provisions in the annual financial statements. The programme includes streamlining the branch-office network along with its personnel base. Implementing the programme together with the related savings will have a positive impact on earnings performance in the current financial year and will reinforce the operational change in direction we can already see in this business division. The complete annual report will be presented on 23 March 2005. Additional information on the Internet at http://www.ac-service.com AC-Service AG Schockenriedstr. 7 70565 Stuttgart Deutschland ISIN: DE0005110001 WKN: 511000 Listed: Geregelter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin- Bremen, Düsseldorf, Hamburg, Hannover, München und Stuttgart End of ad hoc announcement (c)DGAP 22.02.2005 222005 Feb 05