SMT Scharf AG: Substantial increase in earnings in 2007

- Final figures slightly higher than preliminary results

- Proposed dividend of € 0.70 per share

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finances

Hamm (euro adhoc) - Hamm, February 29, 2008 - SMT Scharf AG (German
Securities Code (WKN) 575198, ISIN DE 0005751986), the global market
leader for rail-bound mining railway systems, lifted its revenues and
earnings in 2007 based on its final consolidated figures. Both EBIT
and net income are up slightly on the preliminary results reported in
January. The annual financial statements were approved by the
Supervisory Board in its meeting on February 28. The Group generated
revenue of EUR 51.2 million in 2007, after EUR 48.7 million in the
previous year (+5%). This increase shows the growth in the Group's
business on the dynamic international markets, in particular in
Russia and China: These countries are continuing to enjoy a positive
investment climate for mine operators, who are among the SMT Scharf
Group's key customers. In addition, the SMT Group has expanded its
international sales and service activities. The proportion of foreign
revenues lifted correspondingly to 74%, compared to 52% in 2006.
Despite the international expansion costs, SMT Scharf was able to
increase EBIT disproportionately to EUR 7.5 million after EUR 6.7
million in 2006 (+11%). The EBIT margin thus lifted from 13.8% to
14.6%. In particular changes in the product mix increased the cost of
materials ratio from 46.9% to 49.1%. However, it was possible to
reduce the ratio of personnel expenses to sales from 27.8% to 24.3%.
This was achieved primarily by reducing vertical integration,
expanding foreign assembly activities and programs to cut product
costs. Changes to deferred taxes in connection with the IPO and the
reform of corporate taxation caused net income for 2007 to increase
by an even greater amount - up 38% to EUR 6.0 million (previous year:
EUR 4.3 million). According to the preliminary consolidated figures
published in January 2008, SMT Scharf recorded EBIT of EUR 7.4
million for 2007, and also a 35% increase in net income to EUR 5.9
million. SMT Scharf aims to lift its revenues and EBIT still further
in 2008 and the following years. The Managing and Supervisory Boards
propose a dividend of EUR 0.70 per share for fiscal year 2007 to the
General Meeting. This corresponds to a 49% distribution rate. In
terms of the closing price of SMT Scharf's shares on February 28,
2008, the dividend return is 6,8%. The full version of the 2007
annual financial report will be published during the course of today
at www.smtscharf.com.

Company profile

The SMT Scharf Group develops, builds and maintains rail-bound
railway systems for mining and use in tunnels. The trains are used
all over the world, primarily in hard coal mines, gold mines and in
underground mining for platinum, diamonds, copper and nickel. They
are used to transport material and personnel with working loads of up
to 35t. Rail-bound trains are the only means of transport that can be
used underground on branching lines to cope with inclines of more
than 13 degrees. The SMT Scharf Group has subsidiaries in Germany,
Poland, South Africa and China, external employees in Russia, and
agencies around the world. The railways developed by SMT Scharf are
characterized, above all, by high-performance engines, high working
loads, high speed and low operating and maintenance costs. SMT Scharf
records more than 70% of its revenues in high-growth foreign markets
such as Russia, China and South Africa. The replacement parts and
repairs business constitutes around 50% of revenues. The advances in
exploitation of resources make underground conditions increasingly
difficult which in turn requires more high technology transport
solutions in mining. The total market for underground transport
technology comprises around EUR 5 billion to EUR 7 billion per year
according to company estimates. SMT Scharf AG has been listed in the
Prime Standard (regulated market) of the Frankfurt Stock Exchange
since April 11, 2007.

end of announcement euro adhoc
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ots Originaltext: SMT Scharf AG
Im Internet recherchierbar: http://www.presseportal.de

Further inquiry note:

Contact

Investor Relations

cometis AG

Henryk Deter

Tel: +49(0)611 - 205855-13

Fax: +49(0)611 - 205855-66

e-mail: deter@cometis.de

Branche: Machine Manufacturing
ISIN: DE0005751986
WKN: 575198
Börsen: Börse Frankfurt / regulated dealing/prime standard
Börse Berlin / free trade
Börse München / free trade