euro adhoc: LPKF Laser & Electronics AG / Annual Reports / LPKF exceeds 2005 turnover and profit targets

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Disclosure announcement transmitted by euro adhoc.
The issuer is responsible for the content of this announcement.
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21.03.2006

The group generated the following results in the 2005 financial year:

2005 2004 Change
Turnover TEUR 34,871 25,167 +38.6%
Profit TEUR 3,021 899 +236.0%
Net margin 8.7% 3.6%
EBIT TEUR 5,980 1,697 +252.3%
EBIT margin 17.2% 6.8%
EPS EUR 0.28 0.08
Cash and cash
equivalents TEUR 8,564 7,125 +20.2%
Capital ratio 74% 76%
Orders in hand
AG 31.12. TEUR 5,422 2,368 +128.9%
Orders received
AG 31.12. TEUR 29,780 20,939 +42.2%
Current orders in
hand AG as at 21.3. 5,036 4,130 +21.9%

Notes on the 2005 results

With a turnover of EUR 34.9 million in the 2005 financial year, the
LPKF Group generated the highest turnover in its history. The
turnover target was raised in November 2005 to EUR 33 million and has
now been exceeded by around 5.7%. The EBIT margin of 17.2% also
exceeded the target figure of 14.0%. The consolidated profit of EUR
3.021 million was only just short of the previous record profit of
EUR 3.183 million generated in the 2000 financial year.

The strong rise in turnover reflects the successful implementation of
new and/or further developed products, and the continuation of strong
demand in the Asian market. Overall, all of the segments posted
extremely positive development in their business.

The Laser Systems segment was again primarily responsible for the
boost in turnover. Laser Cutting Systems rose by 47.7%, 3D-MID grew
by 56.1%, and Laser Plastic-Welding increased turnover by 90.5% and
generated its first profit. The turnover in Inspection Systems also
grew strongly by 221.8% to EUR 4.441 million in total, and thus made
a considerable contribution to the overall performance. Turnover in
the Rapid Prototyping segment only began to surge in the fourth
quarter but was still able to reach its overall planning target.

The Asian market grew further in importance in the 2005 financial
year to account for 47.8% of total turnover.

Outlook 2006

The expansion of the LPKF Group will continue with the aim of
boosting turnover and profit further in 2006. Turnover in the ongoing
financial year is forecast to reach EUR 41 million, and to rise
further to EUR 50 million at the end of 2007.

The high level of current orders in hand indicates that the strong
upswing in 2005 is continuing unabated. Innovations designed to give
users the greatest possible economic benefits will form the basis of
LPKF's growth strategy. The ongoing financial year will therefore
also see new and improved products being launched on the market,
particularly in the Laser Cutting Systems segment. The growth
strategy also focuses on further penetration of the markets.

The management primarily forecasts growth in the Laser Cutting
Systems segment. There is also further growth potential in the Rapid
PCB Prototyping segment and the Inspection Systems segment.

The Board of Managing Directors and the Supervisory Board will
propose the payment of a dividend of 10 cents per share to the annual
general meeting on 8 June 2006 (previous year: 4 cents per share).

Klaus Sülter, Member of the Supervisory Board and one of the four
founders of LPKF Laser & Electronics AG, will resign from the
Supervisory Board at the annual general meeting. Mr Sülter
communicated that he intends to reduce his shareholding in LPKF Laser
& Electronics AG.

LPKF Laser & Electronics AG shares are quoted in the Prime Standard
of the Frankfurt stock exchange (ISIN 0006450000).

end of announcement euro adhoc 22.03.2006 08:00:00
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ots Originaltext: LPKF Laser & Electronics AG
Im Internet recherchierbar: http://www.presseportal.de

Further inquiry note:
Bettina Schäfer
Tel.: +49 (0)5131 7095 382
b.schaefer@lpkf.de

Branche: Semiconductors & active components
ISIN: DE0006450000
WKN: 645000
Index: CDAX, Prime All Share, Technologie All Share
Börsen: Frankfurter Wertpapierbörse / regulated dealing/prime
standard
Börse Berlin-Bremen / free trade
Hamburger Wertpapierbörse / free trade
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