SMARTRAC N.V. continues along its growth path

•Revenues in first half of 2006 more than doubled compared with H1 2005
•EBITDA more than tripled
•High Security segment (ePayment and ePassport) is main growth driver
•SMARTRAC N.V. anticipates ongoing growth and continues to expand its production
capacity

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Amsterdam, 16 August 2006. SMARTRAC N.V. continued along its growth
path in the first half of 2006 and further strengthened its earnings.
SMARTRAC, the leading RFID manufacturer and supplier of components
for contactless credit cards (ePayment) and passports (ePassports),
increased its total revenues in the first six months of this year
compared with the same period of 2005 from EUR 8.3 million to EUR
22.5 million. The Group’s first-half EBITDA increased to EUR 4.7
million, more than triple the figure for the prior-year period (EUR
1.5 million). At EUR 3.3 million, net profit for the first half of
2006 was already higher than the figure of EUR 3.0 million reported
for full-year 2005. The company has posted a net profit every year
since its foundation.

"In this reporting period, we more than fulfilled our operating and
financial expectations," said Dr. Christian Fischer, CFO of SMARTRAC.
"We want to continue along our successful path, following the
progress we made in the achievement of our strategic goals: the
initial public offering and the expansion of our production
capacities."

Part of this positive development was the performance in the Standard
segment including the areas of Mass Transportation, Access Systems
and Logistics, which increased its revenues compared with the
prior-year period by 69 percent (from EUR 7.4 million to EUR 12.6
million). The main contribution however came from the High Security
segment (ePayment and ePassport), which increased its revenues to EUR
9.9 million, more than tenfold compared with the prior-year period.
With approximately EUR 3.3 million, the High Security segment made an
important contribution to EBITDA in the first half of 2006.

First-half EBITDA in the Standard segment (EUR 1.5 million) grew at a
lower rate than revenues during the same period and at a lower rate
than EBITDA in the first half of last year. This was due to regional
changes in the order structure and the strategic expansion of chip
sourcing in the Standard segment. Chip sourcing in the Standard
segment burdened the ratio between revenues and earnings compared
with the prior-year period due to the fact that only a low proportion
of SMARTRAC’s value creation is accounted for by the purchased memory
chips. However, it enables SMARTRAC to improve its long-term customer
retention.

In addition to preparing the successful IPO, the main strategic focus
in the first half of 2006 was on expanding production capacity, in
particular in the High Security segment. With investments of EUR 4.4
million (H1 2005: EUR 1.3 million), SMARTRAC expanded its production
capacity with a new facility in Germany and an additional plant in
Thailand, that should be fully operational by the end of this year.

"In order to meet the strong demand for our products, our main goals
for the second half of the year are to continue expanding our
production capacity and to further increase our investment in
research and development," said Dr. Christian Fischer.

For full-year 2006, SMARTRAC anticipates substantial growth in
revenues and EBITDA compared with 2005.

Overview:
EUR thousand H1 2006 H1 2005 Change Change in %
Revenues 22,471 8,280 +14,191 +171.4
EBITDA 4,681 1,502 +3,179 +211.7
Net profit 3,324 827 +2,497 +301.9
Earnings per share 0.33 0.08 - -

About SMARTRAC N.V. SMARTRAC is a leading supplier of inlays for
contactless credit cards (ePayment) and passports with integrated
contactless chips (ePassports). The company, which was founded in
2000, is incorporated under Dutch law and has its head office in
Amsterdam. SMARTRAC has its main production and R&D center in Bangkok
(Thailand), as well as subsidiaries in Germany and Singapore. Through
an agreement with Xytec Solutions (Kulim, Malaysia), in which
SMARTRAC holds a 30% stake, the company has exclusive access to
proprietary manufacturing equipment. In two product segments -
Standard and High Security - SMARTRAC manufactures components for
RFID applications in public transport, access control and logistics,
as well as in the high-security applications of ePayment and
ePassport.

Disclaimer: To the extent that this Press Release contains
forward-looking statements, such statements are based on assumptions,
planning and forecasts at the time of publication of this Press
Release. Forward-looking statements always involve uncertainties.
Business and economic risks and developments, the conduct of
competitors, political decisions and other factors may cause the
actual results to be materially different from the assumptions,
planning and forecasts at the time of publication of this Press
Release. Therefore, SMARTRAC N.V. does not assume any responsibility
relating to forward-looking statements contained in this Press
Release. Furthermore, SMARTRAC N.V. does not assume any obligation to
update the forward-looking statements contained in this Press
Release.

end of announcement euro adhoc 16.08.2006 08:46:29
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ots Originaltext: SMARTRAC N.V.
Im Internet recherchierbar: http://www.presseportal.de

Further inquiry note:
Contact:
Max Hohenberg
Media Relations SMARTRAC N.V.
Tel.: +49 711 6569 2616
E-mail: max.hohenberg@smartrac-group.com
http://www.smartrac-group.com

Branche: Technology
ISIN: NL0000186633
WKN: A0JEHN
Börsen: Frankfurter Wertpapierbörse / official dealing/prime standard
Börse Berlin-Bremen / free trade
Baden-Württembergische Wertpapierbörse / free trade
Börse Düsseldorf / free trade
Bayerische Börse / free trade