Hönle Increases Consolidated Net Income by 1.6 % in the 9 Months Period

Gräfelfing/Munich (ots) -

The UV specialist Dr. Hönle AG (ISIN DE0005157101) has published
figures for the first nine months of financial year 2005/2006.

Hönle Group revenues rose by 1.6 % to TEUR 17,081 compared with
the same period in the previous year. Earnings before income and tax
(EBIT) declined by 7.8 % to TEUR 2,248 and earnings before tax (EBT)
dropped by 0.8 % to 2,870 TEUR. Consolidated net income grew by 3.5 %
to TEUR 1,815 during this period and Dr. Hönle AG's net income for
the period rose by 23.5 %. Hence, relative to 5.433 million shares,
earnings per share were EUR 0.33 after being EUR 0.32 in the previous
year's period. The EBIT margin was 13.2 % (previous year: 14.5 %),
and net profit on sales was 10.6 % (previous year: 10.4 %).

Cash provided by operating activities amounted to TEUR 1,982
during the first nine months after being TEUR 1.908 in the previous
year's period. Own shares of TEUR 481 were acquired during the last
quarter within the scope of a stock buyback program. Liquid funds,
financial assets and treasury stock now amount to TEUR 18,095
(previous year: TEUR 17,143). This represents a cash pro-portion of
EUR 3.33 per share.

The minor increase in the Hönle Group's sales revenues and
earnings is mainly due to adhesives sales being significantly
retrograde in comparison with the same period in the previous year.
This development is due to a customer's insolvency and to
cancellation of a major order. As a consequence, Wellomer GmbH, a
member of the Hönle Group, was restructured under new management
during the last quarter. Substantially reduced sales at Wellomer are
expected for financial year 2005/2006 in comparison with the previous
year. At the end of the third quarter, the Company reports a
significant deficit in comparison with a profit for the period in the
previous year. Hönle expects the net loss at the end of the fourth
quarter to be at the same level. The Honle Spain S.A. subsidiary has
also undergone changes. The company was restructured under new
management. This measure led to a drop in earnings at Honle Spain in
the past quarter, and consequently also in the Hönle Group. However,
Hönle is of the opinion that, through this measure, a good basis for
successful and confident cooperation was formed within the group of
companies.

In June, Dr. Hönle AG acquired the customer basis, the brand and
patent rights, and parts of fixed assets from the insolvency estate
of Arccure Technologies GmbH, Lippstadt. Among other things, Arccure
developed, produced and marketed UV equipment for the CD/DVD market.
The company's sales revenues amounted to approximately EUR 3 million
in the past year. Hönle expects that they will be able to continue
these sales revenues with the acquired customer base at least
partially. In addition, they were able to supplement the product
portfolio with high quality and efficient UV equipment.

Outlook
As initially mentioned, the Wellomer and Honle Spain subsidiaries
were restructured. Hönle believes that, with these measures, they
have created a good basis for the successful business development of
both companies. Regrettably, the events during the past quarters, in
particular, at Wellomer GmbH, have burdened the Group result.
However, Hönle expects no other significant negative effects on Group
results in the fourth quarter. As announced, the company has
substantially increased the sales unit through the recruitment of new
sales engineers. This expansion concerned all business segments. As a
consequence of the sustained positive investment climate and the
orders on hand as at 30 June 2006, Hönle expects sales during the
fourth quarter to be at about the previous year's level.

Dr. Hönle AG is registered in the Prime Standard of the German
Stock Exchange.
Sector of industry: appliance manufacture
ISIN: DE0005157101
WKN: 515710
Index: Prime Standard, CDAX, Prime All Share, Technology All Share
Stock exchanges: Frankfurt Securities Exchange on the regulated
market and on the OTC markets at the Berlin/Bremen,
Hamburg/Hanover, Düsseldorf, Munich and Stuttgart stock exchanges

Originaltext: Dr. Hönle AG
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ISIN: DE0005157101

Contact:
Dr. Hönle AG, Peter Weinert, Lochhamer Schlag 1,
82166 Gräfelfing/München, Tel.: +49-89-85608-173, Fax:
+49-89-85608-148, www.hoenle.de, E-Mail: ir@hoenle.de