euro adhoc: quarterly or semiannual financial statement / Zapf Creation AG records restrained business development in the first nine months of 2007

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9-month report

08.11.2007

Rödental, Germany, November 8, 2007 - Zapf Creation AG, Europe's
leading manufacturer of play and functional dolls, recorded
restrained business development in the first nine months of 2007.
Consolidated sales during this period totaled EUR 57.6 million, down
17.9% on the figure for the same period in 2006 (EUR 70.2 million).
Consolidated sales in the third quarter amounted to EUR 34.5 million
compared with EUR 38.0 million in the prior-year period, a decrease
of 9.2%.

Consolidated earnings before interest and taxes (EBIT), adjusted for
restructuring costs and one-off expenses, broke even in spite of the
dip in sales (Q1-Q3/2006: EUR 4.0 million). Adjusted EBIT increased
from EUR 7.9 million to EUR 8.4 million in the third quarter. After
deduction of earnings from discontinued operations - the U.S.
business was wound up at the end of 2006 - the Group is reporting a
net result for the first nine months of EUR -4.3 million as against
EUR -5.1 million in the same period of the previous year.

Given the strong economic growth in Europe and the positive response
from the industry as well as end customers to the new products for
the important Christmas business, the Management Board is confident
of further narrowing the decline in consolidated sales by the end of
2007 compared with the figure for September 30, 2007. Compared to
2006, the Management Board expects a mid single-digit drop in sales
for the full year (sales in 2006: EUR 116.1 million). The Group is
continuing to aim for a substantial year-on-year improvement in
consolidated earnings after taxes in 2007, although the Management
Board expects earnings after taxes to remain slightly negative (2006:
EUR -12.7 million).

end of announcement euro adhoc 08.11.2007 10:43:29
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ots Originaltext: Zapf Creation AG
Im Internet recherchierbar: http://www.presseportal.de

Further inquiry note:
Frank Elsner
Frank Elsner Kommunikation für Unternehmen GmbH
Phone: +49 (0) 54 04 - 91 92 0
Fax: +49 (0) 54 04 - 91 92 29

Branche: Consumer Goods
ISIN: DE0007806002
WKN: 780600
Index: CDAX, Classic All Share, Prime All Share
Börsen: Börse Frankfurt / official dealing/prime standard
Börse Berlin / free trade
Börse Hamburg / free trade
Börse Stuttgart / free trade
Börse Düsseldorf / free trade
Börse Hannover / free trade
Börse München / free trade