Ad-hoc | 8 November 2005 10:45

United Labels AG invests in the UK

Ad hoc announcement transmitted by DGAP. The issuer is solely responsible for the content of this announcement. —————————————————————————— – Consolidated revenue increases to EUR 27.9 million – Order backlog rises to EUR 14.9 million – Start-up costs of UK subsidiary affect bottom-line results for the period Münster, 08.11.05 – United Labels AG (ISIN: DE 0005489561), a company specialising in comicware sold under licence, recorded a 13.9% increase in consolidated revenues in the first nine months, taking the aggregate figure to EUR 27.9 million (9M 2004: EUR 24.5 million). EBIT amounted to EUR 0.1 million (9M 2004: EUR 0.4 million). The loss after taxes was EUR 0.2 million (9M: loss of EUR 0.1 million). This figure includes, in particular, start-up costs associated with the UK subsidiary United Labels Ltd., amounting to EUR 0.4 million. In the third quarter, revenue increased by 11.8% to EUR 9.5 million (Q3 2004: EUR 8.5 million). The loss before interest and taxes amounted to EUR 0.2 million (Q3 2004: EBIT of EUR 0.2 million), while the loss after taxes stood at EUR 0.4 million (Q3 2004: profit of EUR 0.1 million). Cash flow from operating activities remained unchanged year on year at EUR 1.9 million (Q3 2004: EUR 1.9 million). As at September 30, 2005, the order backlog was up by 10.4% to EUR 14.9 million (30/9/2005: EUR 13.5 million). The full interim report for the first nine months of 2005 is to be published on November 9, 2005. For further information, please visit http://www.unitedlabels.com or contact the following member of staff: Stefanie Frey, Investor Relations Tel.: +49 (0) 251-32 21-4 06 Fax: +49 (0) 251-32 21-9 60 sfrey@unitedlabels.com United Labels AG Gildenstr. 6 48157 Münster Deutschland ISIN: DE0005489561 WKN: 548956 Listed: Geregelter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin- Bremen, Düsseldorf, Hamburg, Hannover, München und Stuttgart End of ad hoc announcement (c)DGAP 08.11.2005 Issuer’s information/explanatory remarks concerning this ad hoc announcement: United Labels AG invests in the UK Broader investor base following capital increase – Consolidated revenue increases to EUR 27.9 million – Order backlog rises to EUR 14.9 million – Start-up costs of UK subsidiary affect bottom-line results for the period Münster, 08.11.05 – United Labels AG (ISIN: DE 0005489561), a company specialising in comicware sold under licence, recorded a 13.9% increase in consolidated revenues in the first nine months, taking the aggregate figure to EUR 27.9 million (9M 2004: EUR 24.5 million). EBIT amounted to EUR 0.1 million (9M 2004: EUR 0.4 million). The loss after taxes was EUR 0.2 million (9M: loss of EUR 0.1 million). This figure includes, in particular, start-up costs associated with the UK subsidiary United Labels Ltd., amounting to EUR 0.4 million. Business performance in third quarter In the third quarter, revenue increased by 11.8% to EUR 9.5 million (Q3 2004: EUR 8.5 million). The loss before interest and taxes amounted to EUR 0.2 million (Q3 2004: EBIT of EUR 0.2 million), while the loss after taxes stood at EUR 0.4 million (Q3 2004: profit of EUR 0.1 million). Cash flow from operating activities remained unchanged year on year at EUR 1.9 million (Q3 2004: EUR 1.9 million). As at September 30, 2005, the order backlog was up by 10.4% to EUR 14.9 million (30/9/2005: EUR 13.5 million). The full interim report for the first nine months of 2005 is to be published on November 9, 2005. Start-up of United Labels Ltd. goes according to plan The newly established UK-based subsidiary United Labels Ltd. commenced trading in line with expectations. In the UK, United Labels will be focusing on key account business, supplying made-to-order merchandise with a lead-time of three to five months. Thus, orders placed by the subsidiary’s seven newly secured customers, which include Woolworths, Tesco and WHSmith, will be ready for delivery in the subsequent quarters. “We are delighted at our business performance in the United Kingdom,” said Peter M. Boder, CEO of United Labels AG. “Within the first five months of operation, we have already attracted one-third of the 25 key accounts targeted in the UK.” The German-based company had established United Labels Ltd. in May 2005, thus filling a major void in Europe’s consumer goods sector. As a result, United Labels is now represented in all of Europe’s key regions for products sold under licence – including Germany, Italy and the United Kingdom – and has thus further enhanced its strong position within the marketplace. Solid demand for United Labels shares United Labels AG’s shares performed well in the period under review. Over the course of the first nine months, the company’s share price was propelled upwards by 102% from EUR 3.77 on January 3, 2005, to EUR 7.60 on September 30, 2005. In October, the company performed an increase in capital from Authorised Capital by issuing 200,000 new, no-par-value bearer shares. The new shares were placed entirely with institutional investors. The company’s share capital thus increased from EUR 4,000,000 to EUR 4,200,000. “Our aim was to expand our investor base and increase our free float,” explained CEO Peter M. Boder. “This was achieved with the capital increase.” Following the capital increase and subsequent stock placements, free float increased from 31.8% (1,272,000 shares) to 37.4% (1,572,000 shares). Cartoon classics and new movie themes 2006 United Labels AG has established a licence portfolio comprising high-impact cartoon characters of international renown. These include the Peanuts (United Feature Syndicate), Disney classics such as Mickey Mouse and Winnie the Pooh, as well as TV heroes such as SpongeBob SquarePants (MTV Networks). In 2006, the Münster-based specialist for comicware sold under licence will also be marketing merchandise associated with “Ice Age 2 – The Meltdown” (20th Century Fox) as well as “Over The Hedge” (DreamWorks), “Spider Man” (Marvel Enterprises) and “Little Red Tractor” (Entertainment Rights). United Labels United Labels AG is one of Europe’s leading specialists for comicware sold under licence. The licensing partners working in cooperation with the independent media company based in Münster/Germany include global players from the world of media and entertainment, such as Disney and 20th Century Fox. United Labels is able to reach all age groups within the European market of licensed products, thanks to its successful portfolio of well-established classics, such as Mickey Mouse, Snoopy and Sesame Street, and popular stars like The Simpsons and SpongeBob SquarePants. The company has established a comprehensive European sales network for comicware, distributing its products through more than 61,000 outlets operated by various retail partners. United Labels is represented in Germany, Belgium, France, Italy, Spain and the UK. For further information, please visit http://www.unitedlabels.com or contact the following member of staff: United Labels AG, Stefanie Frey Gildenstr. 6, D – 48157 Münster tel.: +49 (0) 2 51-32 21-4 06, phone: +49 (0) 2 51-32 21-9 60 mobile: +49 (0) 1 70-5 62 88 65, sfrey@unitedlabels.com End of message (c)DGAP