EANS-News: Hoeft & Wessel records significant surge in consolidated profit for 2010

- High operating cash flow
- Rising dividend
- Earnings per share doubled

--------------------------------------------------------------------------------
Corporate news transmitted by euro adhoc. The issuer/originator is solely
responsible for the content of this announcement.
--------------------------------------------------------------------------------

Financial Figures/Balance Sheet

Subtitle: - High operating cash flow
- Rising dividend
- Earnings per share doubled

Hannover / Germany, 29 March 2011. (euro adhoc) - The Hoeft & Wessel
Group recorded a significant increase in its operating income in
fiscal year 2010. Consolidated earnings adjusted for temporary
currency effects of the IT, hardware and software specialist for
ticketing, parking and mobile solutions more than doubled to EUR 4.3
million (2009: EUR 1.9 million). The increase was due, among other
factors, to a non-recurring tax effect which contributed EUR 1.3
million to consolidated earnings for the year 2010. With a growth
rate of 2 per cent, the sales revenues of EUR 95.6 million were in
line with expectations (2009: EUR 94.1 million).

The operating result (EBIT) adjusted for temporary currency effects
was up by 23 per cent, to EUR 3.8 million, year-on-year (2009:
EUR 3.1 million). Earnings per share doubled, to EUR 0.50 (previous
year: EUR 0.22).

The substantially higher operational strength of this technology
enterprise is also reflected in its growing profitability.
Accordingly, it was possible for the contribution margin to be raised
from 41.7 to 44.3 per cent.

In 2010, the Hoeft & Wessel Group supplied ticket vending machines
and systems to public transport companies in Berlin, Geneva, Hamburg
and the Swiss National Railways SBB, the Finnish State Railways and
German Rail, amongst others. Recipients of parking terminal
deliveries included the Isle of Wight, various London boroughs, and
Australia. Mobile devices for data recording where delivered amongst
others to leading German retail chains such as Rewe and Edeka.

"The positive result for the 2010 fiscal year allows a reliable
payout to shareholders of a dividend increased by 25 per cent. Over
the next few years, we plan to record organic growth. The opening up
of new international markets will generate an additional impetus for
growth," explains Hansjoachim Oehmen, CEO of the Hoeft & Wessel
Group.

Given the overall positive economic fundamentals, the Hoeft & Wessel
Group expects that its solid performance will continue in 2011. The
Company anticipates an increase in sales revenues and the operating
result (EBIT) for 2011. Should the economic recovery remain stable,
Hoeft & Wessel also expects a further increase in sales revenues and
earnings for 2012.

In the Auto ID market segment, which covers mobile devices for
identifying and data recording, a further normalisation is expected
for the current financial year after the worldwide market slump. It
is therefore anticipated that the Skeye business division will
provide the increased impetus for sales anticipated for 2011 and
subsequent years, especially as a result of the expansion in the
international partner business. The market environment in the public
transport and parking segments indicates that sales revenues for the
Almex and Metric divisions in the current financial year will match
the high level recorded a year earlier.

With rising sales from quarter to quarter, last year was yet another
typical reflection of business trends for Hoeft & Wessel. The fourth
quarter, with EUR 35.5 million in sales revenues, met the Company's
ambitious expectations. Another contributory factor to the positive
business development in the fourth quarter was the better ability of
the shipment of electronic components. By approaching producers
directly and adopting other targeted measures, Hoeft & Wessel managed
to ensure procurement on a timely basis for the production. The new
representative office in Taiwan played a major role in this respect.

In the year 2010, the Hoeft & Wessel Group was able to boost its net
liquidity substantially. The operational cash flow developed
positively in 2010 and, at EUR 7.8 million, saw a substantial
increase (2009: EUR 5.9 million). The funds generated were used to
repay net financial liabilities and, for the first time in the
Company´s history, a dividend was paid out to the shareholders. For
the financial year 2010, the Management Board will also propose a
dividend payout to the Annual General Meeting, which will increase by
25 per cent, to EUR 0.10, year-on-year.

The order intake continued to develop at a high level as the year
progressed. A total volume of new orders amounting to EUR 83.0
million was recorded in the books. Compared with the previous year,
this represents an increase by just over 3 per cent (2009: EUR 80.3
million).

The very good sales performance in the fourth quarter of 2010 led to
a corresponding decline in the order portfolio of the Hoeft & Wessel
Group by 17 per cent, to EUR 61.9 million (31 December 2009: EUR 74.4
million).

For 2011 and subsequent years, the Hoeft & Wessel Group plans to
extend its business activities. This will be achieved through organic
growth and the opening up of additional international markets by
expanding the distribution network and acquiring additional partners.
The company is well positioned for this endeavour with a range of new
products capable of running on open system platforms. They include
solar-powered ticket vending machines and parking terminals, on-board
computers and robust mobile devices.

Key Financials of Hoeft & Wessel Group

in EUR thousands 2010 2009 2008 2007 2006
-----------------------------------------------------------------
Sales revenues 95,567 94,098 98,072 99,704 73,959

Operating result before
depreciation and amorti-

sation (adj. EBITDA (1)) 8,914 7,569 9,591 11,294 3,685

Operating result
(adj. EBIT (1)) 3,787 3,076 (3,545) 6,249 (1,102)

in % of sales revenues 4.0 3.3 - 6.3 -

Earnings before taxes
(adj. EBT (1)) 2,870 2,081 (5,023) 4,727 (1,930)

in % of sales revenues 3.0 2.2 - 4.7 -

Group earnings (adj. (1)) 4,256 1,854 (6,751) 4,401 (2,491)

Earnings per share
(adj. in EUR (1)) 0.50 0.22 (0.79) 0.51 (0.29)

Dividend (in Cent (2)) 10 8 - - -

EBITDA 8,045 7,569 9,591 11,294 3,685
EBIT 2,918 3,076 (3,545) 6,249 (1,102)
EBT 2,001 2,081 (5,023) 4,727 (1,930)
Group earnings 3,387 1,854 (6,751) 4,401 (2,491)

Contribution margin

(in per cent (3)) 44.3 41.7 42.0 44.3 48.8

Cash flow from
operating activities 7,826 5,933 1,456 12,180 4,703

Average number of employees 500 503 502 513 528

------------------------------------------- (1) Adjusted for
temporary currency effects (2) 2010: Proposal to the AGM (3) Turnover
+/- inventory changes - cost of materials in relation to turnover

Investor Relations website: http://www.hoeft-wessel.com/en/ir/ir.htm

Press kit with photos:
http://www.presseportal.de/pm/12945/hoeft_wessel_ag/

The Company The Hoeft & Wessel Group is the leading IT and
engineering technology Group for ticketing, parking and mobile
solutions in Germany and Great Britain. Established in 1978 by the
two entrepreneurs who gave the company its name and listed on the
stock market since 1998, the enterprise has developed into a group of
companies with sales revenues of nearly EUR 100 million and a
workforce of 500 employees. Its main locations are Hannover, Germany,
and Swindon, UK, to the west of London.

The annual investment volume in the Research & Development division,
which sets the pace in the Group´s technological orientation and
employs more than a third of the total workforce, amounts to
approximately 10 per cent in terms of turnover. According to the EU
Industrial R&D Investment Scoreboard, Hoeft & Wessel ranks amongst
the top companies in Europe.

In Europe, the Almex division is a leading provider of ticketing and
telematics systems for public transport and check-in solutions for
the airline industry. More recently, Almex has been making mobile
GSM-Rail communications systems available for shunting and
construction operations.

The British subsidiary Metric Parking is one of the largest global
providers of car park ticket vending machines, parking space
management systems as well as comprehensive services.

As one of Europe´s largest manufacturers, the Skeye division provides
a wide range of mobile terminals, e.g. for retail and logistics, as
well as point-of- sale solutions. Skeye is the market leader in
Germany´s retail sector.

end of announcement euro adhoc
--------------------------------------------------------------------------------

ots Originaltext: Höft & Wessel AG
Im Internet recherchierbar: http://www.presseportal.de

Further inquiry note:

Arnd Fritzemeier
Tel.: +49-511-6102-300
E-Mail: PR@hoeft-wessel.com

Branche: Technology
ISIN: DE0006011000
WKN: 601100
Index: TecDAX, Prime All Share, Technology All Share
Börsen: Frankfurt / regulated dealing/prime standard
Berlin / free trade
Hamburg / free trade
Stuttgart / free trade
Düsseldorf / free trade
Hannover / free trade
München / free trade