Ad-hoc | 5 January 2006 17:36

Vivanco Gruppe AG expecting lower results for 2005

Ad hoc announcement transmitted by DGAP. The issuer is solely responsible for the content of this announcement. —————————————————————————— The management board estimates that Vivanco Gruppe AG, in its 2005 fiscal year, achieved an EBIT, i.e. earnings before interest and tax, of about EUR 2 million, which, after interest and extraordinary charges, should result in earnings before tax (EBT) to be negative. These figures are below the market expectations as may prevail following previous disclosures. Vivanco Gruppe AG Ewige Weide 15-17 22926 Ahrensburg Deutschland ISIN: DE0007602906 WKN: 760290 Listed: Amtlicher Markt in Frankfurt (General Standard); Freiverkehr in Berlin-Bremen, Düsseldorf, Hamburg, München und Stuttgart End of ad hoc announcement (c)DGAP 05.01.2006 Issuer’s information/explanatory remarks concerning this ad hoc announcement: Vivanco Gruppe AG’s interim annual results for the business year 2005 show a significant increase in net sales (these now amounting to about EUR 120 million) compared to the previous year (EUR 108.6 million). Therewith the ambitious sales budget for the business year 2005 (EUR 117.1 million) has been exceeded by EUR 2.9 million. About 70 per cent of the increase in sales compared to the previous year result from the business of Vivanco’s subsidiaries in the foreign countries in Europe (+ EUR 7.8 million), about 30 per cent of the increase in sales (+ EUR 3.6 million) were achieved on the home market. This success was achieved by consequent marketing of innovative products in the company’s Accessories and Lifestyle Products segments. In its traditional core business, the Connections segment, Vivanco was subject to intense competitive pressure and was unable to meet its own expectations. The changes seen against the previous year as to both the product mix and the distribution channels led to lesser margins. As a consequence the man-agement board estimates the EBIT and EBT figures shown in the ad hoc disclosure. In general important European key accounts were acquired in 2005, which provide significant potential for future sales and earnings. End of message (c)DGAP