EANS-News: GESCO strengthens balance sheet during the recession and expects growth

 2009/2010 figures fall within forecast
 A high
level of equity and sufficient liquidity
 Strong start to
the new financial year: Incoming orders up 43 %

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Financial Figures/Balance Sheet

Subtitle:  2009/2010 figures fall within forecast  A
high level of equity and sufficient liquidity  Strong start
to the new financial year: Incoming orders up 43 %

Wuppertal (euro adhoc) - Wuppertal, 29 June 2010 - The SDAX listed
investment holding company GESCO AG is announcing its results for
financial year 2009/2010 (1 April 2009 - 31 March 2010) at its annual
accounts press conference today. As expected, figures at the end of
the year showed a decrease in sales and earnings but also a stronger
balance sheet. The company is forecasting growth for the new
financial year 2010/2011. The number of incoming orders already went
up considerably in the first quarter.

While the previous year still showed the effects of an economy that
had been lively until autumn 2008, financial year 2009/2010 was
dominated by recession - the effects of which GESCO Group, like many
others, was unable to escape. At the end of 2008, the Group already
took preventive action by implementing cost saving programmes and
starting various sales and innovation campaigns. Total Group sales in
financial year 2009/2010 dropped from EUR 378.4 million to EUR 277.7
million. Earnings before interest and taxes (EBIT) amounted to EUR
16.5 million compared to EUR 38.9 million in the previous year. Group
net income after minority interest reached EUR 8.9 million (previous
year: EUR 21.6 million). Earnings per share according to IFRS came to
EUR 2.95 (EUR 7.16). These figures fell within the forecast published
in June 2009.

GESCO Group closed the crisis year with an exceptionally strong
balance sheet structure. The equity ratio now amounts to 42.7 %,
liquid assets to EUR 26.9 million and the debt ratio is comfortably
low with a ratio between net liabilities to banks and EBITDA of 1.7.
In addition, goodwill poses just a small risk to the company´s
finances, as it totals only 6.4 % of equity.

For the first time, the Group´s staff of 1,733 includes the 42
employees of Georg Kesel GmbH & Co. KG, acquired in April 2009. On
the previous year´s reporting date, GESCO Group employed 1,795
people.

The Executive Board and Supervisory Board will propose a dividend of
EUR 1.30 per share to the Annual General Meeting on 2 September 2010.
The Company distributed EUR 2.50 per share in the previous year.

In view of the improved economic situation, the company is
forecasting Group sales between EUR 290 million and EUR 320 million
and Group net income after minority interest of between EUR 9 million
and EUR 11 million, corresponding to earnings per share according to
IFRS between EUR 2.98 and EUR 3.64, for the new financial year
2010/2011 (1 April 2010 - 31 March 2011).

Business livened up considerably in the first quarter of financial
year 2010/2011, which comprises the operating months January to March
for the Group´s subsidiaries. Incoming orders came to EUR 87.8
million, up 42.9 % on the same quarter in the previous year (EUR 61.4
million), and with EUR 76.8 million, sales were 4.3 % higher than in
the previous year (EUR 73.6 million).

Dr. Hans-Gert Mayrose, member of the Executive Board, on the
company´s outlook: "GESCO has come through the crisis rather well
compared to others. We naturally lowered our costs considerably, but
we did not "save the group to death" either. Our subsidiaries have
retained their full supply capacities and some have gained new
customers and tapped into new markets. Although there are still
economic risks, there are plenty of signs pointing to an upturn at
present."

The complete Annual Report is available online at www.gesco.de.

About GESCO AG

GESCO AG is a financial holding for a group of industrial SMEs. It
acquires successful, established niche providers, mainly in the form
of a business succession agreement, with the objective of retaining
long-term involvement in the companies while developing their
business. GESCO AG is listed on the Prime Standard and SDAX and
offers private and institutional investors the opportunity of
accessing SMEs.

Investor Relations / Public Relations • Oliver Vollbrecht
Phone: +49 (0)202 24820 - 18 • Fax: +49 (0)202 24820 - 49
E-mail: info@gesco.de • Internet: www.gesco.de

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

Further inquiry note:

Oliver Vollbrecht

Leiter Investor Relations

T.: +49(0)202 24820 18

info@gesco.de

Branche: Economy, Business & Finance
ISIN: DE0005875900
WKN: 587590
Index: SDAX, Classic All Share, Prime All Share
Börsen: Frankfurt / regulated dealing/prime standard
Berlin / free trade
Hamburg / free trade
Stuttgart / free trade
Düsseldorf / free trade
München / free trade