Ad-hoc | 17 March 2006 07:32

Surteco AG: Preliminary Indicators for the Annual Financial Statements in 2005

Ad hoc announcement transmitted by DGAP – a company of EquityStory AG. The issuer is solely responsible for the content of this announcement. —————————————————————————— Ad-hoc Press Release pursuant to Article § 15 Section 1 of the Securities Trading Act WpHG Preliminary Indicators for the Annual Financial Statements in 2005 SURTECO AG AGAIN INCREASES SALES AND PRE-TAX RESULT Dividend proposal at prior-year level Buttenwiesen-Pfaffenhofen, 17 March 2006. – SURTECO AG is the leading manufacturer of surface materials based on raw papers and plastics for technical applications in the international construction and furnishing industry. Despite increasingly fierce competitive intensity and a difficult market environment, SURTECO is privileged to look back on a fiscal year 2005 that has been successful overall. The preliminary figures indicate that Group sales at 396.4 million euros for 2005 were up by four percent on the previous year (380.4 million euros). Business volume in Germany for the prior fiscal year (at 31 December) stood at 143.1 million euros (36 percent), lagging behind the result for 2004 by three percent. By contrast, foreign markets concluded the year with an increase of nine percent at 253.3 million euros. The Canadian Canplast Group, acquired in October 2004, made a significant contribution to this result and enabled SURTECO AG to significantly enhance its North American profile for the Strategic Business Unit (SBU) Plastics. The ongoing tense economic situation on the domestic scene and generally in international markets meant that the SBU Paper at SURTECO AG concluded fiscal year 2005 four percent down on the previous year (172.5 million euros). Although the SBU Plastics lost ground by three percent in the German market, export sales expanded disproportionately, particularly sales of plastic edging tapes and technical extrusions (profiles), posting an increase of 22 percent. The SBU Plastics was particularly successful in America (+ 51 percent) and Australia (+ 24 percent). Overall, this business line contributed 223.9 million euros to sales of the SURTECO Group. Compared to 2004, this corresponds to an increase of 12 percent. Preliminary consolidated earnings before taxes (EBT) improved by eight percent in 2005 to 37.6 million euros. This has enabled SURTECO AG to present the best result in the company’s history – albeit favoured by elimination of amortization of goodwill for the first time. The Board of Management intends to propose an unchanged dividend compared to 2005 amounting to 0.80 euros per share at the Annual General Meeting on 22 June 2006. The current fiscal year 2006 has so far been dominated by uncertainties about prices of raw materials and by the ongoing development of currency parities. Adjusted by changes in exchange rates, SURTECO AG forecasts a slight increase in sales for this year. The company will be striving to achieve a further improvement in the earnings situation. The SURTECO Group in a 2-year comparison Amounts in million euros, unless 2005preli- otherwise stated 2004 minary Diff. in % Sales 380.4 396.4 +4 Proportion of foreign sales in % 61 64 EBITDA* 71.7 69.1 -4 EBIT* 45.8 51.3 +12 Result from ordinary activities before restructuring expenses 36.1 41.4 +15 Restructuring expenses -1,4 -3,8 Result from ordinary activities after restructuring expenses (EBT) 34.7 37.6 +8 * before restructuring expenses Buttenwiesen-Pfaffenhofen, 17 March 2006 Board of Management (c)DGAP 17.03.2006 ————————————————————————— language: English emitter: SURTECO AKTIENGESELLSCHAFT Johan-Viktor-Bausch-Str. 2 86647 Buttenwiesen-Pfaffenhofen Deutschland phone: +49 (0)8274 99 88-0 fax: +49 (0)8274 99 88-5 05 email: g.schneller@surteco.com WWW: www.surteco.com ISIN: DE0005176903 WKN: 517 690 indexes: stockmarkets: Amtlicher Markt in Frankfurt (Prime Standard), München; Freiverkehr in Berlin-Bremen, Düsseldorf, Stuttgart End of News DGAP News-Service —————————————————————————