CEAG AG: Contrasting Performance of the FRIWO Business Units in 2007

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companies/Press Release: Publication of Provisional Figures

Ostbevern (euro adhoc) - Press Release: Publication of Provisional
Figures

CEAG AG: Contrasting Performance of the FRIWO Business Units in 2007

. FRIWO Power Solutions (FPS) records pleasing growth in unit sales, revenues
and EBIT yet again
. Mobile telephone business falls short of strong prior-year performance
. FRIWO Mobile Power (FMP) sold to Flextronics in February 2008
. Timely distribution of a portion of the net proceeds from the sale planned
in 2008
. Annual shareholders' meeting on August 21, 2008

Ostbevern, Germany, February 29, 2008 - CEAG AG, manufacturer of
high-quality FRIWO brand power supplies and chargers, recorded
contrasting performances by its two business units, FRIWO Mobile
Power (FMP) and FRIWO Power Solutions (FPS), once again in fiscal
year 2007. While FPS continued its pleasing growth in unit sales,
revenues and EBIT, FMP failed to match its prior-year performance in
the face of a sharp increase in competition. As reported, on February
7, 2008, CEAG signed an agreement to sell FMP in the first six months
of 2008 to a subsidiary of the Singapore-based Flextronics
International Ltd. Thus, in the future, CEAG will focus its energies
on the FPS business unit, which is continually growing.

Unit Sales

In 2007, the CEAG Group sold a total of 289.2 million power supplies
and chargers, down 6.8% on the prior year (2006: 310.4 million). This
drop is entirely attributable to FMP, which serves the high-volume
market for mobile telephones. FMP posted an 8.4% drop in unit sales
year on year to 259.2 million units (prior year: 282.9 million
units). As previously reported, this trend is mainly due to the
discontinuation of linear-device production in favor of more
technically advanced switch mode products. While CEAG was previously
sole supplier to the biggest buyer of linear devices, mobile
telephone manufacturers tend to have more than one supplier of switch
mode products.

The FPS business unit, which serves various markets, such as IT and
communications, household appliances and power tools, and industrial
applications and medical technology, maintained its growth course and
recorded unit sales of 30.1 million power supplies and chargers. This
represents an increase of 9.3% (2006: 27.5 million units).

Revenues

The CEAG Group generated revenues of EUR 315.2 million in 2007, down
10.4% on the prior year (EUR 351.7 million). On the basis of
prior-year exchange rates, the decrease was only 4.2%.

FMP generated revenues of EUR 230.9 million, 15.3% down on the prior
year (2006: EUR 272.6 million). The disappointing performance of some
of FMP's customers and the sharp increase in competition between
suppliers to mobile telephone manufacturers in particular have left
their mark. If exchange rates had been constant, the drop in revenues
would have been 9.1%.

FPS posted revenues of EUR 84.3 million, up 6.7% on the prior year
(2006: EUR 79.1 million). This growth was mainly achieved on the back
of new projects, for example in IT and communications. Taking the
exchange rate in the prior year as a basis, revenues would have
increased by 13.2%.

EBIT Consolidated earnings before interest and taxes (EBIT) stood at
EUR 12.0 million, a decrease of 10.5% on the prior year (EUR 13.4
million). The EBIT operating margin, in relation to revenues,
remained at the prior-year level of 3.8%.

The CEAG Group's earnings were encumbered by the following external
influences: The sharp increase in competition between suppliers to
mobile telephone manufacturers led to considerable price pressure,
which had a negative effect on recoverable margins. Wage increases
and energy shortages in China, temporary interruptions to production
at the Chinese plants due to strike action, and high prices of key
raw materials also all impacted negatively on earnings. Furthermore,
the appreciation of the euro against the US dollar, the currency used
by CEAG for most of its invoicing, also damaged earnings.

Consolidated net profit amounted to EUR 9.8 million, after EUR 11.4
million in fiscal year 2006 (down 13.4%). Accordingly, earnings per
share fell from EUR 1.48 to EUR 1.28.

FMP generated EBIT of EUR 9.5 million (2006: EUR 12.8 million; down
25.7%). The EBIT of the FPS business unit came to EUR 5.7 million,
compared with EUR 3.5 million in the prior year, an increase of
60.0%. This rise is due to increased revenues, but also to effects
arising from the well-balanced customer structure.

Sale of the FMP Business Unit On February 7, 2008, CEAG signed an
agreement with a subsidiary of the Singapore-based Flextronics
International Ltd. to sell FMP in the first six months of 2008. The
transaction is subject to the approval of the competent antitrust
authorities as well as other normal market terms and conditions. The
purchase price is EUR 57.5 million, less the net financing debt. It
is subject to a standard working capital adjustment provision, which
could reduce the net proceeds from the sale. On the basis of the
provisional figures for 2007, the purchase price would drop slightly
if the adjustment provisions were applied. However, it looks as
though application of these provisions as of the date of sale will
reduce the purchase price further due to fluctuations in the net
financing debt and the development of working capital in connection
with the business and seasonal trend.

Outlook for 2008 Following the sale of FMP, CEAG will focus
resolutely on the development of FPS, which is experiencing strong
growth. After the successful performance of the past few years, the
Management Board considers the chances of FPS boosting its revenues
and EBIT again in 2008 to be good. The Management Board expects to
generate positive proceeds in 2008 from the sale of FMP to
Flextronics.

Profit Distribution and Annual Shareholders' Meeting in 2008 The sale
of FMP will be initially recognized in net profit or loss for fiscal
year 2008. Hence, it will not have any effect on the retained
earnings of CEAG AG for fiscal year 2007, on which the annual
shareholders' meeting will decide in 2008. Irrespective of this, and
in order to provide the shareholders with a timely and maximum
dividend distribution in 2008, CEAG AG has released the current
revenue reserves of EUR 22.5 million. If FMP is sold at the time of
the annual shareholders' meeting, the Management Board will propose
to the annual shareholders' meeting to distribute most of the
retained earnings. The annual shareholders' meeting is due to take
place on August 21, 2008.

Rolf Endress, CEO of the Management Board of CEAG AG: "In fiscal year
2007, CEAG had to overcome numerous challenges. In view of the fierce
headwinds buffeting the Group, the EBIT we generated was relatively
pleasing. Once the FMP business unit has been sold, we will focus all
our energies on the development of FPS. CEAG will remain a player on
the international stage, with a focus on innovation, flexibility and
excellence."

More information:
CEAG AG
Ms. Gudrun Richter
Investor Relations
Tel.: +49 - 2532 - 81 158
E-mail: richter@friwo.de

Provisional Figures for the CEAG Group (IFRSs)

| | |2007 |2006 |Change |
| | | | |in % |
|Unit sales of power supplies and|In millions|289.3 |310.4 |-6.8 |
|chargers |of units | | | |
|Thereof FMP |In millions|259.2 |282.9 |-8.4 |
| |of units | | | |
|Thereof FPS |In millions|30.1 |27.5 |9.3 |
| |of units | | | |
|CEAG revenues |EUR million|315.2 |351.7 |-10.4 |
|Thereof FMP revenues |EUR million|230.9 |272.6 |-15.3 |
|Thereof FPS revenues |EUR million|84.3 |79.1 |6.7 |
|CEAG EBIT |EUR million|12.0 |13.4 |-10.5 |
|EBIT margin |in % |3.8 |3.8 |- |
|FMP EBIT |EUR million|9.5 |12.8 |-25.7 |
|FPS EBIT |EUR million|5.7 |3.5 |60.0 |
|Holding company EBIT |EUR million|-3.2 |-2.9 |-8.6 |
|Consolidated net profit |EUR million|9.8 |11.4 |-13.4 |
|Earnings per share |EUR |1.28 |1.48 |-13.4 |
|Employees (as of December 31) |No. |19,027 |22,223 |-14.4 |
|Thereof in Germany |No. |270 |270 |- |
|Thereof in other countries |No. |18,757 |21,953 |-14.6 |

Preliminary Income Statement of the CEAG Group as of December 31,
2007

|In thousands of EUR | |2007 | |2006 |
|Revenues | |315,219 | |351,659 |
|Cost of sales | |-284,299| |-316,513|
|Gross profit | |30,920 | |35,146 |
|Research costs | |-344 | |-659 |
|Selling expenses | |-6,830 | |-8,903 |
|General and administrative expenses | |-12,219 | |-12,808 |
|Other operating expenses | |-4,934 | |-3,644 |
|Other operating income | |5,408 | |4,284 |
|Income from investments | |17 | |17 |
| | | | | |
|Earnings before interest and taxes (EBIT)| |12,018 | |13,433 |
|Interest result | |-814 | |-1,131 |
|Earnings before income taxes (EBT) | |11,204 | |12,302 |
|Income taxes | |-1,362 | |-932 |
|Consolidated net profit | |9,842 | |11,370 |
| | | | | |

Preliminary Balance Sheet of the CEAG Group as of December 31, 2007

|Assets | | | | |
|In thousands of EUR | |Dec. 31| |Dec. 31,|
| | |, 2007 | |2006 |
| | | | | |
|Non-current assets | | | | |
|Intangible assets | |1,349 | |1,222 |
|Property, plant and equipment | |24,797 | |28,710 |
|Financial assets | |5 | |5 |
| | |26,151 | |29,937 |
|Deferred taxes | |2,147 | |1,731 |
| | |28,298 | |31,668 |
| | | | | |
|Current assets | | | | |
|Inventories | |48,354 | |56,771 |
|Trade receivables | |32,747 | |36,611 |
|Other assets | |2,855 | |3,649 |
|Prepaid expenses | |137 | |215 |
|Cash | |15,539 | |2,522 |
| | |99,632 | |99,768 |
| | | | | |
|Total assets | |127,930| |131,436 |
| | | | | |

|Equity and liabilities | | | | |
|In thousands of EUR | |Dec. 3| |Dec. 31,|
| | |1, | |2006 |
| | |2007 | | |
| | | | | |
|Equity | |44,557| |37,456 |
| | | | | |
|Non-current liabilities | | | | |
|Non-current liabilities to banks | |8,970 | |2,288 |
|Provisions for pensions and similar | |2,308 | |2,499 |
|obligations | | | | |
|Other non-current provisions | |1,321 | |1,114 |
|Deferred taxes | |586 | |1,693 |
| | |13,185| |7,594 |
| | | | | |
|Current liabilities | | | | |
|Provisions for income taxes | |659 | |693 |
|Other current provisions | |2,296 | |2,157 |
|Current financial liabilities | |631 | |6,057 |
|Trade payables | |53,247| |63,497 |
|Income tax liabilities | |956 | |128 |
|Other liabilities | |12,399| |13,854 |
| | |70,188| |86,386 |
| | |83,373| |93,980 |
| | | | | |
|Total equity and liabilities | |127,93| |131,436 |
| | |0 | | |

CEAG AG

CEAG AG has its registered office in Bad Homburg, Germany, and its business
address in Ostbevern, Westphalia, Germany. It is listed in the General
Standard, and is the holding company of the two FRIWO business units. The FRIWO
Mobile Power (FMP) business unit operates in the mobile telecommunications
market and is one of the world's leading manufacturers of chargers for mobile
telephones. The FRIWO Power Solutions (FPS) business unit manufactures custom-
made power supplies and chargers for the four segments of IT and
communications, household appliances and power tools, industrial applications,
and medical technology. CEAG AG/FRIWO Group is present in all major world
markets, with state-of-the-art development centers, production and sales
operations in Europe, Asia and North and South America. CEAG AG's principal
shareholder is DELTON AG, which holds almost 77% of its capital.

DELTON AG

DELTON AG is a holding company headquartered in Bad Homburg, Germany. With its
divisions Pharmaceuticals, Household Products, Logistics and Power Supply, it
manages the value-creating investment and entrepreneurial activities of its
sole shareholder Stefan Quandt. DELTON AG is active in clearly defined markets
offering future growth in which its divisions already hold or are intending to
achieve leading positions on an international scale. With a workforce of more
than 32,000 employees, the DELTON Group generated sales of around EUR 2.6
billion in fiscal 2006.
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ots Originaltext: CEAG AG
Im Internet recherchierbar: http://www.presseportal.de

Further inquiry note:

Gudrun Richter

Investor Relations

Telefon: +49 (0) 2532-81-158

E-Mail: richter@friwo.de

Branche: Semiconductors & active components
ISIN: DE0006201106
WKN: 620110
Index: CDAX
Börsen: Börse Hamburg / free trade
Börse München / free trade
Börse Berlin / regulated dealing
Börse Stuttgart / regulated dealing
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Börse Frankfurt / regulated dealing/general standard