EANS-Adhoc: Six-month results of init exceed projections - order intake secures sustainable growth

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ad-hoc disclosure pursuant to section 15 of the WpHG transmitted by euro
adhoc with the aim of a Europe-wide distribution. The issuer is solely
responsible for the content of this announcement.
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6-month report

04.08.2011

Karlsruhe, August 4th 2011. init innovation in traffic systems AG
continues on course for success. Based on high volumes of incoming
business, strategic successes in opening up new markets, and numerous
calls for tenders in public transport sectors worldwide, the Managing
Board has now confirmed its forecast for 2011 along with its positive
outlook for 2012/13 halfway through the current financial year,
despite the growing risk potential in the global economy.

In the first six months, the global operator and system specialist in
telematics, planning and electronic fare collection systems booked
new orders worth EUR 49.1m (2010: EUR 18.6m). This provides an order
volume of EUR 145m as at the end of June to exceed the already
impressive figures achieved a year earlier (EUR 125m) by around 16
per cent. Worth a mention are major contracts from Sacramento (USA)
and Brisbane (Australia). Both projects are strategically
significant, as they open up new markets for e-ticketing solutions
(USA) and for control and passenger information systems (Australia).
In addition, init was able to win its first contract in what until
then had been a very much closed, yet highly attractive Swiss market.

Based on the preliminary figures now available, revenues in the init
group over the first six months of 2011 totalled EUR 31.6m (2010: EUR
32.6m) to range within the target, while consolidated earnings of EUR
4.9m (2010: EUR 3.7m) notably exceeded the projections. This
corresponds to earnings per share of EUR 0.50 (2010: EUR 0.38).
Instrumental in this above-average increase in earnings was the
incoming payments on account of positive developments in Dubai, which
resulted in a significant reduction in the discounted accounts
receivable.

Partly as a result of this, gross profit on revenues rose by over 25
per cent to EUR 13.4m (end of June 2010: EUR 10.7m). With the opening
up of new markets, the setup of new group companies close to the
customer - as in Switzerland - and the increasing number of
international tenders, however, sales and administration costs in the
first half of 2011 rose to EUR 7.1m (2010: EUR 5.6m), so that
earnings before interest and taxes (EBIT) of EUR 6.3m lagged behind
the previous year. The operating cash flow continued to improve in
the second quarter to reach EUR 9.3m as at the end of June (2010: EUR
5.9m).

At the close of the first half of the financial year, the Managing
Board largely sees its projections for 2011 confirmed and continues
to expect a moderate increase in sales to EUR 82m, with earnings
before interest and taxes of over EUR 15m. While it cannot be ruled
out that the debt crisis in a number of countries will lead to
investment cuts in local transport, this must be seen opposite many
new programmes launched to develop transport infrastructures. The
highly satisfactory order intake in the first half of the year, the
significant order volume of EUR 145m and the considerable amount of
tenders pending a decision currently suggest highly dynamic growth
for init in 2012 and 2013.

The full report for the second quarter will be published on 11 August
2011.

For further information please contact:

Alexander Güntert
init innovation in traffic systems AG
Kaeppelestraße 4-6
76131 Karlsruhe
Germany
Tel: 0721/6100-316
Fax: 0721/6100-399
ir@initag.de

Sebastian Brunner
communication+consulting
Tel: 0175/5604673
fsbrunner@aol.com

Further inquiry note:
Alexander Güntert
Tel.: +49 (0)721 6100-316
E-Mail: ir@initag.de

end of announcement euro adhoc
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issuer: init innovation in traffic systems AG
Käppelestraße 6
D-76131 Karlsruhe
phone: +49(0)721 6100-0
FAX: +49(0)721 6100-399
mail: info@initag.de
WWW: http://www.initag.de
sector: Semiconductors & active components
ISIN: DE0005759807
indexes: CDAX, Prime All Share, Technology All Share
stockmarkets: regulated dealing/prime standard: Frankfurt, free trade: Berlin,
Hamburg, Stuttgart, Düsseldorf, Hannover, München
language: English