EANS-News: MAG Europe announces record sales and positive outlook for 2013

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annual report/annual result/Financial Figures/Balance Sheet

Göppingen (euro adhoc) - - MAG Europe group announces preliminary
business figures (US GAAP) for 2012 - Turnaround successful: sales
rise by 22 % totaling EUR684 million - operating results exceed
targets - Search for a new investor well on track

Göppingen, February 5, 2013 - According to preliminary US-GAAP*
figures, MAG Europe group has grown significantly in 2012, achieving
record sales of EUR684 million (2011: EUR561 million) with MAG IAS
GmbH as its core operational unit contributing 86 %, or EUR591
million. As a result, the company has exceeded its targets for 2012.

As expected and indicated by the general market trend, bookings
dropped to EUR595 million (2011: EUR766 million). This was also due
to the group's restructuring program, realigning its product range
and focusing on higher margin core business while still achieving the
second highest bookings figures in its history. The machine tool
builder expects ongoing strong demand in 2013.

Financial results in 2012 exceeded the group's targets set in the
course of the 2011 restructuring program. With a preliminary profit
of EUR16.2 million (normalized EBIT) compared to a loss of EUR30
million in 2011, this year's target was exceeded by EUR3 million.
This turnaround results from effective measures taken in the course
of the restructuring program, including cost cuts, product range
optimization and settling non profitable projects from 2009 and 2010.
Dr. Gerald Weber, MAG Europe group's CEO says: "We successfully
realigned our strategy and turned around the business. The group is
now well positioned for further growth and continued technology
leadership."

Taking into consideration one-off restructuring and financing costs,
the total results for the year come to a loss of EUR15.2 million. The
forecasts for 2013 see noticeably improved margins and significant
profit. The preliminary figures for MAG IAS GmbH according to HGB
accounting standards are generally in line with the group's figures
stated above. The annual statement for MAG IAS GmbH is due in June.

In 2012, MAG Europe had secured its growth by extending financing
agreements with its long term partners. These consisted mainly of
project-related bank guarantees. Apart from its EUR50 million bond,
which was issued in 2011, the group has no financial debt. In
addition, the group is still actively pursuing its search for a new
investor to enable further growth. Negotiations are ongoing and well
on track.

About MAG MAG is a leading machine tool and systems company serving
the durable goods industry worldwide with complete manufacturing
solutions for metal cutting and composites applications. With a
strong foundation based upon renowned brands such as Boehringer,
Cincinnati, Cross Hüller, Ex-Cell-O, Fadal, Forest Liné, Giddings &
Lewis, Hessapp, Honsberg, Hüller Hille, Modul and Witzig & Frank, MAG
is recognized as the preeminent provider of tailored production
solutions based on state-of-the-art technology. Key industrial
markets served include aerospace, automotive and truck, heavy
equipment, oil and gas, rail, solar energy, wind turbine production
and general machining.

With manufacturing and support operations strategically located
worldwide, MAG offers comprehensive lines of equipment and
technologies including turning, milling, hobbing, grinding, honing,
systems integration, composites processing, maintenance, automation
and software, tooling and fluids, and core components.

* If not otherwise stated, all figures in this publication are based
on internal reporting standards primarily based upon US-GAAP
regulations.

Further inquiry note:
Joachim Jäckl
Corporate Communications Manager
Tel.: +49 7161 201 4083
E-Mail: joachim.jaeckl@mag-ias.com

end of announcement euro adhoc
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company: MAG IAS GmbH
Stuttgarter Straße 50
D-73033 Göppingen
phone: +49 7161201-0
mail: ir@mag-ias.com
WWW: http://www.mag-bond.de
sector: Machine Manufacturing
ISIN: DE000A1H3EY2
indexes:
stockmarkets: free trade: Hannover, Berlin, Hamburg, free trade/Bondm: Stuttgart,
Open Market: Frankfurt
language: English