Ad-hoc | 21 May 2001 20:36

Ad hoc-Service: Pandatel AG english

Ad hoc announcement transmitted by DGAP. The issuer is solely responsible for the content of this announcement. ——————————————————————————– Hamburg, May 21, 2001 PANDATEL turns a profit even in a difficult environment In light of dwindling demand for network infrastructure in the United States and Europe as seen in recent months, PANDATEL is revising its sales and earnings forecasts for 2001 as a whole downwards. Sales trends in Asia for the first three months of 2001 were, by contrast, gratifying, with sales booked totaling EUR 3.4 million, as opposed to EUR 0.7 million in first-quarter 2000, but this can only partly offset the decrease recorded in other region. From the present viewpoint, we will not achieve our targeted sales growth of 27.4 percent to EUR 46.5 million. Nonetheless, the Company still expects to close the year with a profit – the original budgeted target was EUR 7.8 million. We have responded to current market conditions by revising our forecasts: the more restrained propensity of telecom corporations and carriers to invest has been evident since February. Given trying present earnings and liquidity conditions presently faced by telecoms, together with the overall economic slowdown, a pronounced pick-up in demand for network components is not to be expected in the next two quarters; furthermore, distributors and system integrators still have large inventories. That said, as corporations have recently begun to reduce their high stock levels, the current market situation could prove to be no more than a temporary dip, especially if the general economic outlook grows more rosy. Finally, we believe that given the PANDATEL’s strong market position, its active cost management policy, and current comfortable liquidity base of EUR 21.5 million, the Company is well equipped to pull through the current period of poor demand in the telecoms market, and to emerge from the expected market consolidation in a stronger position. end of ad hoc announcement (c) DGAP 21.05.2001 ——————————————————————————– WKN: 691630; Index: NEMAX 50 Listed: Neuer Markt in Frankfurt; Freiverkehr in Berlin, Bremen, Düsseldorf, Hamburg, Hannover, München und Stuttgart 212036 Mai 01