euro adhoc: Zapf Creation AG / Financial Figures/Balance Sheet / Zapf Creation achieves EBIT turnaround in 2006

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Preliminary Figures 2006

08.03.2007

Roedental, March 8, 2007 - Zapf Creation AG, Europe's leading
manufacturer of play and functional dolls, today announced that it
has achieved a turnaround in terms of its operating result in 2006.
The company reported positive earnings for the year. Based on
preliminary, un-audited figures, the consolidated earnings before
interest and taxes, adjusted for restructuring costs and one-off
effects (adjusted EBIT), were EUR 5.4 million, up from EUR -6.2
million in the previous year. Including restructuring costs and
one-off effects, EBIT almost broke even at EUR -0.8 million (previous
year: EUR -12.3 million). Consolidated sales totaled EUR 116.1
million, down approximately 4% compared to the previous year's figure
of EUR 120.7 million. In the fourth quarter, which is an important
quarter for Zapf Creation, the Group grew sales by 10% compared to
the same quarter of 2005.

The sales and earnings figures presented above do not include
operations in the Americas because MGA Entertainment Inc. took over
the sale of Zapf Creation products in this region in early 2007, as
previously announced. Zapf Creation therefore discontinued its US
operations.

Pursuant to IFRS, the final earnings figure for the Americas sales
region of EUR -5.3 million (previous year: EUR -6.9 million) is shown
separately under "income and income tax from discontinued
operations." Together with the after-tax result from continued
operations (EUR -6.0 million after EUR -20.8 million in the previous
year), the Group reports a net result for the 2006 financial year of
EUR -11.3 million, which is an improvement of EUR 16.5 million
compared to 2005 (EUR -27.7 million).

The final annual financial statements for 2006 will be published on
March 28 and explained during the annual financial statements press
conference and analyst conference.

end of announcement euro adhoc 08.03.2007 07:48:38
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ots Originaltext: Zapf Creation AG
Im Internet recherchierbar: http://www.presseportal.de

Further inquiry note:
Frank Elsner, Frank Elsner Kommunikation für Unternehmen GmbH
Tel.: +49 (0) 5404 - 91 92 0, Fax: +49 (0) 54 04 - 91 92 29

Branche: Consumer Goods
ISIN: DE0007806002
WKN: 780600
Index: 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
Niedersächsische Börse zu Hannover / free trade
Bayerische Börse / free trade