EANS-News: LPKF invests in the future

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quarterly report

Garbsen (euro adhoc) - LPKF invests in the future

• Revenue in first half above previous year´s level
• Earnings affected by capacity expansion as expected
• Incoming orders above EUR 51 million

Garbsen, 12 August 2011 - The special machine manufacturer LPKF
boosted revenue in the first half of 2011 by 3 % to EUR 37.7 million
to slightly exceed last year´s record level. Revenues in the second
quarter grew by 23 % to EUR 23.4 million year on year.

There is still a big demand for laser systems for material
processing. The orders in hand of the LPKF Group have more than
doubled to EUR 26 million since the beginning of the year.

Earnings affected by investment in expansion As announced by the
management board at the start of the year, the current financial year
is hallmarked by the comprehensive expansion of capacities. EBIT
(earnings before interest and tax) at EUR 5.2 million were therefore
well down on the previous year (EUR 8.4 million). To satisfy growing
demand, LPKF has increased its workforce from 429 to 532 over the
past 12 months. In addition to the strong growth in staff, a modified
product mix has also depressed the level of earnings. The EBIT margin
in the first six months was 14 %, compared to 23 % the previous year.

CEO Dr. Ingo Bretthauer is still satisfied with the way business is
de-veloping: "We are currently in a transition phase, and our
performance is being gauged against last year´s extremely high level.
We intend to grow further. This means we have to invest and
temporarily have to live with slightly lower earnings. The high level
of incoming orders in the first half and beyond clearly demonstrates
that we are charting the right course."

Incoming orders above EUR 51 million The development in incoming
orders in the first half is cause for major satisfaction. Orders rose
12 % to EUR 51 million year on year. The re-ceipt of incoming orders
was particularly dynamic in the Other Produc-tion Equipment segment
which encompasses the Plastic Welding and Solar divisions - both
belonging to the company´s growth sectors. In-coming orders in this
segment have risen significantly in the ongoing third quarter.

Outlook reinforced The targeted growth in 2012 is in sight against
this background, so that the management board has reinforced its
forecast. The management is predicting a revenue of between EUR 83 -
EUR 86 million in the current financial year, with an EBIT margin
between 15 - 17 %. The man-agement is forecasting an average growth
in revenue of above 10% per annum in the 2012 and 2013 financial
years, and a slight rise in EBIT margin if the economic framework
remains stable.

The Q2 2011 financial report, including the metrics, is in the
internet at www.lpkf.de.

About LPKF LPKF Laser & Electronics AG specializes in the production
of laser systems for micro-material processing, a field in which it
is the world leader in several sectors. Founded in 1976, the Group
has its headquarters in Garbsen near Hannover in Germany, and does
business around the world together with its subsidiaries and
representatives. LPKF has around 530 employees globally. The shares
in LPKF Laser & Electronics AG are traded on the Prime Standard of
the Frankfurt Stock Exchange (ISIN 0006450000).

Further inquiry note:
LPKF Laser & Electronics AG
Bettina Schäfer, Investor Relations Manager (CIRO)
Tel: (05131) 7095-1382

end of announcement euro adhoc
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company: LPKF Laser & Electronics AG
Osteriede 7
D-30827 Garbsen
phone: +49(0)5131 7095 1382
FAX: +49(0)5131 7095 90
mail: investorrelations@lpkf.com
WWW: http://www.lpkf.de
sector: Semiconductors & active components
ISIN: DE0006450000
indexes: CDAX, Prime All Share, Technology All Share
stockmarkets: regulated dealing/prime standard: Frankfurt, free trade: Berlin,
Hamburg, Stuttgart, Düsseldorf, Hannover, München
language: English