euro adhoc: Financial Figures/Balance Sheet / Zapf Creation AG: Supervisory Board adopts annual financial statements for 2006 upon receiving unqualified auditor's opinion

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annual report

01.10.2007

Roedental, Germany, October 1, 2007 - The Supervisory Board of Zapf
Creation AG, Europe's leading manufacturer of play and functional
dolls, today adopted the company's annual financial statements for
the 2006 financial year. Previously, KPMG Deutsche
Treuhand-Gesellschaft Aktiengesellschaft,
Wirtschaftsprüfungsgesellschaft, Nuremberg, Germany, had issued an
unqualified auditor's opinion for Zapf Creation's annual financial
statements and consolidated financial statements for 2006. The
company intends to publish its 2006 annual report later this week.

According to the audited financial statements, the Zapf Creation
Group reports a net result for 2006 (result after taxes) of EUR -12.7
million (previous year: EUR -27.7 million). The difference compared
to the preliminary result of EUR -11.3 million for the 2006 financial
year that was announced on March 8, 2007, is due to expenses arising
from a tax audit of the period from 1999 through 2002, which has been
completed in the meantime, as well as allowances for receivables
related to the company's US activities, which were discontinued as of
the end of 2006. Consolidated earnings before interest and taxes
(EBIT), adjusted for restructuring costs and one-off expenses,
improved from EUR -6.2 million to EUR 5.4 million. Consolidated sales
were EUR 116.1 million, down four percent from EUR 120.7 million in
2005.

The Management Board now aims to rapidly implement the Group's
long-term financing structure that was agreed to on July 20, 2007. It
provides for a new syndicated loan of EUR 65 million, as well as an
equity contribution of EUR 30 million that is guaranteed by some of
the company's major shareholders. The syndicate extended its initial
deadline for this equity contribution from October 31, 2007, to
November 30, 2007. Simultaneously, the previous syndicate agreed to
extend the grace period for repayment of the extant syndicated loan
of EUR 45 million from October 31, 2007, to November 30, 2007. Plans
are to raise equity by issuing 3.2 million new shares under the
extant authorized capital; shareholders will be able to exercise
their subscription right. Additional details regarding the capital
increase will be announced shortly.

end of announcement euro adhoc 01.10.2007 22:24:31
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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
Phone: + 49 54 04 91 92 0
Fax: + 49 54 04 91 92 29

Branche: Consumer Goods
ISIN: DE0007806002
WKN: 780600
Index: CDAX, Classic All Share, Prime All Share
Börsen: Börse Frankfurt / official dealing/prime standard
Börse Berlin / free trade
Börse Hamburg / free trade
Börse Stuttgart / free trade
Börse Düsseldorf / free trade
Börse Hannover / free trade
Börse München / free trade