euro adhoc: ESCADA AG / quarterly or semiannual financial statement / ESCADA further improves earnings in first quarter 2006/2007

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Company Information

06.03.2007

Aschheim/Munich, March 6, 2007 - ESCADA AG records operative business
performance for first quarter of fiscal year 2006/2007 (reporting
date: October 31) in line with expectations and improves earnings
still further. Consolidated sales for the women’s luxury fashion
manufacturer totaled 161.2 million Euro for the first three months,
as against 166.7 million Euro for the same period of last year
(-3.3%). This reduction is essentially due to foreign currency
effects and the deliberate adjournment of sales into the second
quarter. The shift of sales is the result of the delivery schedules
being adjusted to market requirements. Currency adjusted - that is on
the basis of constant exchange rates - consolidated sales would have
remained on the level of same quarter of last year (-0.5%).

Quarterly earnings before interest, taxes, depreciation and
amortization (EBITDA) increased by 5.4%, up from the 20.5 million
Euro recorded for the same quarter of last year to 21.6 million Euro.
This was primarily the result of further improvements in the cost
ratio (share of operative costs in sales) from 57.6% to 56.6%. While
the exchange of foreign currencies had a negative effect on sales,
and with it on the gross profit, the measures taken to hedge foreign
currencies had a positive counter-effect on costs and other operating
income. As a consequence, the influence of foreign currencies on
EBITDA was more or less neutral.

The quarterly profit after taxes and minority interests was up from
last year’s first quarter result of 6.2 million Euro to 6.9 million
Euro, which is a plus of 11.3%.

As of January 31, 2007 net debt stood at 190.0 million Euro and was
therefore significantly lower than the figure recorded at the end of
the first quarter of 2006 (223.9 million Euro). In line with company
strategy, inventories were reduced from 138.8 million Euro to 107.8
million Euro, as of reporting date.

The ESCADA business unit generated first quarter sales of 111.5
million Euro against 120.9 million Euro in the same quarter of the
prior year (-7.8%, currency-adjusted: -3.9%). EBITDA improved by 9.6%
from 14.6 million Euro to 16.0 million Euro.

The PRIMERA business unit improved quarterly sales by 6.8% to 56.7
million Euro (first quarter 2005/2006: 53.1 million Euro). Extra
costs for the expansion meant that the PRIMERA unit’s EBITDA of 5.6
million Euro was marginally below last year’s figure for the same
quarter (5.9 million Euro).

The Board of Management affirms its expectations for the full fiscal
year 2006/2007, estimating Group sales to climb by a mid single-digit
percentage point, and EBITDA to increase in excess of sales growth.

end of announcement euro adhoc 06.03.2007 06:14:06
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ots Originaltext: Escada AG
Im Internet recherchierbar: http://www.presseportal.de

Further inquiry note:
Viona Brandt
Tel.: +49 (0)89 9944 1336
E-Mail: viona.brandt@de.escada.com

Branche: Clothing
ISIN: DE0005692107
WKN: 569210
Index: SDAX, CDAX, Classic All Share, Prime All Share
Börsen: Frankfurter Wertpapierbörse / official dealing/prime standard
Börse Berlin-Bremen / free trade
Hamburger Wertpapierbörse / free trade
Baden-Württembergische Wertpapierbörse / free trade
Börse Düsseldorf / free trade
Bayerische Börse / official dealing