2006-03-08: technotrans exceeds targets for 2005
Revenue up 10.7 percent to € 129.8 million / net profit for the year up 12.8 percent to € 7.5 million / dividend to rise from € 0.45 to € 0.55 / outlook: further growth

Sassenberg/Frankfurt, March 8, 2006
Thanks to a more positive mood within the industry, technotrans' business progress in 2005 was better than planned. The technotrans Group boosted its revenue overall by 10.7 percent to EUR 129.8 (previous year: 117.3) million, thus easily surpassing its revenue target for 2005 of EUR 120 to 125 million. The largest division, the Print segment, was yet again the main driving force behind this growth, growing by 13.8 percent to EUR 92.6 (previous year: 81.4) million. The renewed downturn in revenue for the Micro Technologies segment (-11.1 percent), which contributed only EUR 7.2 (previous year 8.1) million to total revenue, was more than counterbalanced in particular by the positive business progress of the Services segment.

The 10.7 percent rise in revenue also resulted in an improved financial performance. For example, the gross profit was up by 13.7 percent and the gross margin increased to 34.8 (previous year: 33.9) percent. The 24.3 percent rise in the operating result to EUR 13.8 (previous year: 11.1) million was much sharper than the rise in gross profit. It was diminished in particular by the rise in research and development costs (2005: EUR 4.7 million, 2004: EUR 3.0 million). The new cleaning systems product area was one of the focal areas of R&D activities. The operating margin in 2005 was again a highly satisfactory 10.6 percent (previous year: 9.7 percent). This correspondingly yields an EBIT (earnings before interest and tax) of EUR 13.0 (previous year: 11.1) million, representing a rise of 17.5 percent. The EBIT margin in 2005 is therefore 10.0 percent (previous year: 9.4 percent).

The loss of EUR 1.02 million reported in the Income Statement under impairment loss according to IAS 36 concerns the former Stadtbergen location. The necessary reduction in the carrying value to the agreed purchase price was reported here.

technotrans posted a net profit for 2005 of EUR 7.5 (previous year: 6.7) million. This represents a rise of 12.8 percent and is therefore at the upper edge of the original target range (EUR 7 to 7.5 million). Earnings per share according to IFRS, on the basis of a weighted, slightly higher number of shares (6.644 million), also improved yet again, to EUR 1.13 (previous year: 1.01).

At the balance sheet date of December 31, 2005, the technotrans Group employed 694 people, 33 more than at the corresponding point in the previous year.

The segments
technotrans' reporting comprises three segments - Print, Micro Technologies and Services - for the last time for the 2005 financial year. From 2006, "Print" and "MicroTech" are being combined to form the new segment "Technology".

In 2005, the Print segment accounted for the bulk of both revenue and growth in relation to total revenue, rising by 13.8 percent to EUR 92.6 (81.4) million. The result for the segment amounted to EUR 8.8 (previous year: 6.4) million. The rate of return for the segment of 9.5 percent (previous year: 7.9 percent) clearly reflects the improved efficiency that stems from the revenue growth and in particular the successful expansion of the product range in the direction of the end consumer market.

Revenue for 2005 as a whole in the Micro Technologies segment totalled EUR 7.2 (previous year: 8.1) million. In spite of the low revenue volume, it was possible to push earnings just back into the black, as planned. The previous year's losses of more than EUR 1 million compare with a modest profit of EUR 27 thousand for 2005. This is substantially the result of a comprehensive reorganisation in 2005.

The Services segment boosted its revenue in 2005 by 7.9 percent, to EUR 29.9 (27.7) million. The result for the Services segment was unable to keep pace with the growth in revenue, falling for the first time by 14 percent to EUR 4.7 (previous year: 5.5) million. This reversal was attributable to the expansion of our service structures, particularly in markets in Asia. The rate of return for the segment remained generally satisfactory at 15.8 percent in 2005.

Financial position
Due to the construction of the new plant at Gersthofen, near Augsburg, the free cash flow for 2005 amounted to only EUR 4.4 (previous year: 9.4) million but exceeded our plans, which had merely envisaged a positive free cash flow for the year as a whole. technotrans raised funds of EUR 6.3 million in 2005 to finance the new plant. In all, cash at the end of the period was virtually unchanged from the previous year at EUR 12.8 (12.6) million.

Outlook
The Board of Management expects that technotrans will share in the anticipated sustained rise in exports of capital goods in 2006. Board Chairman Heinz Harling commented: "Many printing presses, both sheet-fed offset and web offset, are already factory-fitted with technotrans equipment. For us, a systems supplier to the printing industry, that is our most significant sales market. We are therefore expecting demand for our core products from this sector to rise by at least the same rate as the market as a whole in 2006."

technotrans is tapping into an additional market by extending its product range to include cleaning systems for printing presses. Following successful installations at field test customers, the company is planning to start volume production of its new blanket cleaners in 2006. "As with other product launches, these innovations will not yet make any substantial contribution to revenue in the current financial year," added Harling. "Their significance is to be seen rather in terms of considerable growth in the medium term." He estimates the volume of the market for blanket cleaners at EUR 120 to 140 million. "Our aim here, as in other product areas, is to become one of the world leaders. That is why we will continue to work intensively on developing that product line further in 2006," stressed Harling.
"Given the strong start that we have made to the 2006 financial year, e are expecting revenue to top EUR 140 million," elaborated Burkard Rausch, Finance Director of technotrans AG. "With revenue of this magnitude, we should succeed in once again posting an EBIT margin of at least 10 percent. Among other things due to a falling tax ratio, we therefore expect the net profit for the year to reach EUR 8.5 to 9 million." This would be equivalent to earnings per share (based on the number of shares at the end of 2005) of between EUR 1.27 and 1.35. Due to the steady fall in revenue in the CD/DVD area, the balance-sheet adjustments that may prove necessary at the end of the financial year will be the deciding factors in whether the company ultimately finishes the year at the upper or lower end of its earnings target range.

Rausch does not exclude further rises in the dividend. "In keeping with technotrans' dividend policy, which envisages the distribution of around half of the consolidated net profit, the improvement in earnings would moreover offer shareholders the prospect of a further possible increase in the dividend." A dividend of EUR 0.55 per share will be proposed to the Shareholders' Meeting for the 2005 financial year.

Key Data 01-12/2005

Dates:
Publication of the figures for the first quarter of 2006 is scheduled for May 3, 2006.

Securities:
technotrans AG - ISIN DE0007449001 - German Securities Identification No. WKN 744 900

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These press releases contain forward-looking statements which are based on assumptions and estimations by the management board of technotrans AG. Even though the management board is of the opinion, that those assumptions and estimations are realistic the future development and the projected results may deviate substantially from the forward-looking statements. Those deviations can be due to several factors including but not limited to changes in the macro-economic situation, in the exchange rates, in the interest rates and in the graphic arts industry. technotrans AG gives no warranty and does not assume the liability for any damages in case the future development and the projected results do not correspond with the forward looking statements.