euro adhoc: Financial Figures/Balance Sheet / Zapf Creation AG again substantially improves consolidated earnings in 2007

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Preliminary financial figures

25.02.2008

Roedental, February 25, 2008 - Zapf Creation AG, Europe's leading
manufacturer of play and functional dolls, today announced that
business in 2007 developed in accordance with the most recent
forecast, thus continuing the positive development of earnings that
began in 2006. According to preliminary unaudited figures,
consolidated earnings before interest and taxes (EBIT) — adjusted for
restructuring costs and one-off items — rose by 11.2% to EUR 6.0
million (2006: EUR 5.4 million). If the restructuring and one-off
costs are included, consolidated EBIT climbed substantially from EUR
-0.5 million the previous year to EUR 5.7 million in 2007. After-tax
consolidated earnings from continued operations were EUR -2.6 million
(2006: EUR -6.5 million). The net result for the period also improved
significantly year-on-year, from EUR -12.7 million in 2006 to EUR
-2.7 million in 2007. This includes net result from discontinued
operations in the amount of EUR -0.1 million (previous year: EUR -6.1
million).

Consolidated sales in the 2007 financial year were EUR 110.5 million,
a decline of 4.9% compared to 2006 (EUR 116.1 million). There was a
sharp upturn in revenues of the Zapf Creation Group during the year,
reaching EUR 52.9 million in the especially important fourth quarter
— an increase of 15.1% over the same quarter of the previous year.

The equity ratio of the Zapf Creation Group climbed to 12.5% at the
close of the period presented (from 3.1% as of December 31, 2006) due
to the successfully executed capital measures of the year 2007. Net
liabilities declined substantially from EUR 53.3 million at the close
of 2006 by EUR 37.4 million to EUR 16.0 million at the close of 2007.
It fell by EUR 20.5 million, if the subordinated shareholder loans
granted in 2007 in the amount of EUR 16.9 million (including interest
accrued as of the reporting date) are taken into account.

As far as the 2008 financial year is concerned, the Management Board
expects consolidated sales to turn around and rise again,
consolidated EBIT to improve further, and consolidated earnings after
taxes to return to the black.

Zapf Creation AG will publish its audited annual financial statements
on March 31, 2008, and discuss them at both a financials press
conference and an analysts' meeting.

end of announcement euro adhoc
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ots Originaltext: Zapf Creation AG
Im Internet recherchierbar: http://www.presseportal.de

Further inquiry note:

Frank Elsner

Frank Elsner Kommunikation für Unternehmen GmbH

Tel.: +49 (0) 54 04 - 91 92 0

Fax: +49 (0) 54 04 - 91 92 29

Branche: Consumer Goods
ISIN: DE0007806002
WKN: 780600
Index: CDAX, Classic All Share, Prime All Share
Börsen: Börse Frankfurt / regulated dealing/prime standard
Börse Berlin / free trade
Börse Hamburg / free trade
Börse Stuttgart / free trade
Börse Düsseldorf / free trade
Börse Hannover / free trade
Börse München / free trade