euro adhoc: SW Umwelttechnik Stoiser & Wolschner AG / other / SW Umwelttechnik affected by CEE exchange rates

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Disclosure announcement transmitted by euro adhoc. The issuer is responsible
for the content of this announcement.
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14.01.2009

* Book losses due to RON and HUF course changes
* Restructuring actions in Hungary initiated in
fourth quarter already implemented
* Outlook for Water Conservation sector still positive in 2009

SW Umwelttechnik - a listed family business with its core markets
in Central and Southeastern Europe - is exposed to increased
short-term currency risk by its expansion investments. The recent
course changes in the Hungarian forint (HUF) and Romanian lei
(RON) are likely to cause temporary book losses of about EUR 5
million (m) in the 2008 financial year.

The Hungarian and Romanian currencies were highly volatile in 2008
due to the economic crisis, and both lost almost 10% of the value
against the euro in the fourth quarter. SW Umwelttechnik will
probably recognise EUR3m in resultant losses on the revaluation of
assets in its income statement, and report a further EUR2m on
its balance sheet. The group expects the volatility of these
currencies to abate during the second half of 2009, and the exchange
rates to return to their normal ranges, meaning that these non-cash
write downs can be reversed.

Restructuring exercises in Hungary, aimed at adjusting
operations to the changed market environment, have already been
successfully implemented, leading to the lay-off of 165 internal
blue collar and 45 salaried staff, in addition to the 210
redundancies among leased employees announced in the third quarter.
As a result of these actions and of the strong market position
enjoyed by its Water Conservation sector, SW Umwelttechnik
anticipates a marked improvement in earnings in 2009 despite the
continued adverse economic situation in Hungary. Management is
confident the strong pipeline of EU-cofinanced municipal projects
will continue to drive high capacity utilisation at the two new
factories, in Timisoara and Bucharest. All the technical
preparations for the planned investment in expansion of the
Bucharest works have been completed, and work on the project is due
to start towards the end of 2009, market conditions
permitting.

The Austrian operations are expected to deliver similar results to
those in 2008, as the government's planned economic stimulus
programmes will give a particularly strong boost to the market
segments served by SW Umwelttechnik. In 2009 and 2010 the group will
be concentrating on consolidating its positions in its core markets
- Austria, Hungary and Romania - and on its existing export business
with Bulgaria, Italy, Slovakia and Slovenia.

SW Umwelttechnik will publish a detailed review of business
developments in 2008 and an updated outlook for 2009 when it
announces its preliminary results on 27 February 2009.

Founded in 1910, SW Umwelttechnik remains a family business, though
it has been listed on the Vienna Stock Exchange since 1997. The
group is known for its commitment to sustainable enterprise
and rapid expansion in Central and Southeastern Europe (CSE).
Its innovative environmental technology products are contributing to
infrastructure renewal in CSE.

end of announcement euro adhoc
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ots Originaltext: SW Umwelttechnik
Im Internet recherchierbar: http://www.presseportal.de

Further inquiry note:

Dr. Bernd Wolschner

CEO SW Umwelttechnik AG

T: +43/(0)7259/31 35 0

Michaela Werbitsch

Investor Relations

T: +43/(0)664/811 76 62

F: +43/(0)463/37 667

E: michalea.werbitsch@sw-umwelttechnik.com

W: www.sw-umwelttechnik.com

Branche: Technology
ISIN: AT0000808209
WKN: 910497
Index: WBI
Börsen: Börse Berlin / free trade
Börse Frankfurt / free trade
Wiener Börse AG / Regulated free trade