euro adhoc: SMARTRAC N.V. / Annual Reports / SMARTRAC N.V. continues growth in first nine months of 2006

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16.11.2006

Amsterdam, 16 November 2006 - SMARTRAC N.V. announced today that it
improved sales by 133 percent and EBITDA by more than 140 percent in
the 9 months up to end September 2006, compared to the same period
last year. The world’s leading RFID manufacturer and supplier of
components for passports (ePassport) and contactless credit cards
(ePayment) boosted its total sales in its 3rd quarter 2006 to EUR
13.4 million, up from EUR 7.2 million in the same period 2005. For
the nine months ended September 2006 SMARTRAC achieved sales of EUR
35.9 million, an increase of 133 percent over the previous year (EUR
15.4 million). The Group’s 3rd quarter EBITDA almost doubled from EUR
1.8 million in 2005 to EUR 3.4 million. For the nine months ended
September 2006 the EBITDA is EUR 8.1 million, an increase of more
than 140 percent over the previous year (EUR 3.3 million).

These improvements were supported by excellent business in the High
Security Segment (ePayment and ePassport). In the Standard Segment,
sales rose 33 percent on the same period for the prior year (pro
forma) from Euro 12.8 million to Euro 17.1 million. In the High
Security Segment, sales revenues of Euro 18.7 million rose by a
factor of more than 7 on the same period for 2005 (Euro 2.5 million).

SMARTRAC’s EBITDA, which is the key performance indicator, rose to
Euro 8.1 million for the reporting period compared to Euro 3.3
million for the same period in 2005, an increase of more than 140
percent. Key contributor to this growth was the High Security
Segment, with approx. Euro 6.8 million (last year: Euro 0.4 million).
In order to satisfy the increasing demand, particularly in the
ePassport business, SMARTRAC is doubling its efforts to open the
fourth production plant in Thailand as early as January 2007.

The standard Segment recorded EBITDA of Euro 1.8 million (2005: Euro
2.9 million). This decrease was partly caused by seasonal sales
decrease and a higher proportion of memory chips which bear less
value-added for the company as these are purchased (chip sourcing).

In order to support continued growth, SMARTRAC invested Euro 7.4
million (compared to Euro 2.2 million for the same period in the
prior year) in property, plant and equipment in the first nine months
of the year. SMARTRAC is planning to invest approx. 3% of its sales
revenues in research and development in the mid-term.

In the third quarter of 2006, SMARTRAC’s Pay Pass inlays obtained a
MasterCard CQM-Certification. SMARTRAC’s facility, process and
products have successfully completed MasterCard’s Card Quality
Management scheme (CQM) audit - a corresponding CQM-Label has been
granted to SMARTRAC’s PayPass inlays.

SMARTRAC has posted consecutive net profits each year since its
foundation. In early October, SMARTRAC produced and shipped the 10th
million ePassport inlay. Production capacity has been expanded
continuously. For full-year 2006, the company anticipates sales of at
least EUR 50 million with an EBITDA substantially above EUR 10
million.

OVERVIEW

EUR thousand Q3 2006 Q3 2005 Change Change in %
Revenues 13,436 7,169 +6,267 +87.42
EBITDA 3,407 1,820 +1,587 +87.20
Net profit 2,759 1,143 +1,616 +141.38
Earn. p. share 0.22 0.11 - -

end of announcement euro adhoc 16.11.2006 07:57:27
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ots Originaltext: SMARTRAC N.V.
Im Internet recherchierbar: http://www.presseportal.de

Further inquiry note:
Max Hohenberg
Media Relations SMARTRAC N.V.
Tel: +49 711 6569 2616
Email: max.hohenberg@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