euro adhoc: ESCADA AG / quarterly or semiannual financial statement / ESCADA´s business performance after nine months very moderate-outlook adjusted

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9-month report

27.09.2007

Munich, September 27, 2007 - The ESCADA Group continued its moderate
performance during the first nine months of fiscal year 2006/2007
(reporting date: October 31). Sales and operative earnings were
higher than last year´s level, while the profit after taxes was
affected by the operative and fiscal one-time expenses announced
after the second quarter.

Group revenues for the women´s luxury fashion manufacturer were up by
2.3%, climbing from the 490.0 million Euro recorded for the first
nine months of last year to 501.3 million Euro for the current period
under review (currency adjusted: + 4.7%) At 53.1 million Euro,
consolidated operative earnings before interest, taxes, depreciations
and amortizations (EBITDA) grew by 5.0% against the first nine months
of last year (50.5 million Euro). Earnings after taxes and minority
interests came to -4.1 million Euro (first nine months 2005/2006:
-1.5 million Euro). Of the 35 million Euro in one-time expenses,
announced after the second quarter, 6.7 million Euro have already
been allocated in the third quarter for structural optimizations. In
addition another 11.6 million Euro, of a total of 14 million Euro for
the new valuation of capitalized deferred taxes, have been booked in
the wake of the German corporate tax reform.

The Group recorded sales of 157.0 million Euro for the third quarter
of 2006/2007 (Q3 2005/2006: 157.9 million Euro; -0.6%). EBITDA
improved by 14.0% to 15.5 million Euro (Q3 2005/2006: 13.6 million
Euro).

The Group´s net debt as of July 31, 2007 continued to fall to 179.4
million Euro, following a total of 207.1 million Euro on the same
reporting date of last year (-13.4%). Year-on-year comparison per
reporting date shows inventories cut by 18.7% from last year´s 135.7
million Euro to 110.3 million Euro.

The Board of Management adjusts its previous outlook for fiscal year
2006/2007. Consolidated sales and EBITDA are expected to close out
slightly below last years figures of 695.2 million Euro and 74.1
million Euro respectively. These adjustments take into account the
very weak start of the Fall/Winter 2007 collection and the
corresponding level of retail sales in August and September. Allowing
for expenses for structural optimization (totaling approx. 35 million
Euro) and the write-downs for the new valuation of capitalized
deferred taxes (totaling approx. 14 million Euro), the fiscal year
2006/2007 is likely to generate a loss after taxes of around -25
million Euro, already announced with the half year report.

end of announcement euro adhoc 27.09.2007 06:57:49
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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: Börse Frankfurt / official dealing/prime standard
Börse Berlin / free trade
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