euro adhoc: Valartis Group AG / other / Group profit rises 8.6% to CHF 49.2 million

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Disclosure announcement transmitted by euro adhoc. The issuer is responsible
for the content of this announcement.
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09.04.2008

In the business year 2007 Valartis Group has increased consolidated
net profit to CHF 49.2 million (previous year: CHF 45.3 million).
Shareholders´ equity reached CHF 244.4 million (previous year: CHF
209.3 million). Assets under management rose by CHF 414 million to
CHF 4.239 billion. The board of directors proposes a dividend of CHF
2.75 per bearer share (unchanged compared to the previous year) to
the shareholders´ meeting of 6 May 2008. Furthermore it proposes the
reelection of Philipp LeibundGut and the election of Jean-François
Ducrest to the board of directors of Valartis Group AG.

Successful commission and fee business In 2007 Valartis Group
increased total income by 21.9% to CHF 111.3 million (previous year:
CHF 91.3 million). Thereof CHF 86.4 million (previous year: CHF 76.3
million) or three quarters come from the commissions business. In
addition to issuing and trading derivatives and structured products
as well as brokerage for Swiss small & mid caps, the commission
business benefited from the good development of various investment
products in the asset management division; in particular the
instruments for the Russian and Eastern European market once again
generated an above-average performance. On a consolidated basis
assets under management increased 10.8% to CHF 4.239 billion. The
management of the trading book was equally successful. Despite a
difficult stock market environment in the second half of the year,
income from trading for the whole of 2007 increased to CHF 23.0
million (previous year: CHF 11.7 million).

On the cost side, the increase in administrative expenses to CHF 50.0
million (previous year: CHF 37.1 million) was mainly due to the
Group´s expansion strategy. This, among other things, is reflected in
the significant growth in staff numbers from 60 to 131. In addition
to the build-up of a private-banking organization in Geneva and
Zurich, the increase in staff was mostly due to the expansion of the
corporate finance and M&A activities in Europe (opening of an office
in Vienna) and the expansion of the real estate activities in the
asset management division in Moscow and St. Petersburg. In parallel
with the increase in personnel expenses to CHF 32.5 million (previous
year: CHF 23.5 million), administrative expenses also rose. Business
and office expenses increased to CHF 17.5 million (previous year: CHF
13.6 million). Based on total expenses including depreciation, the
cost / income ratio was slightly higher than in 2006 (46.7% vs.
42.4%).

Group profit after tax (CHF 10.1 million, previous year: CHF 7.2
million) reached CHF 49.2 million in 2007; this results in a return
on equity of 22% (previous year: 24.2%). At the end of December 2007
the Group´s shareholders´ equity stood at CHF 244.4 million (previous
year: CHF 209.2 million) resp. CHF 49.80 per share (previous year:
CHF 41.80).

Changes in the group executive board Due to the difficulties in the
U.S. real estate and mortgage sectors the board of directors decided
to discontinue the real estate structured finance activities as a
separate business segment and instead integrate the staff´s know-how
into the investment banking and asset management divisions.
Consequently Henrik Bartl, head real estate structured finance, will
step down from the group executive board; he will, however, remain a
member of the executive board of Valartis Bank AG. Furthermore
Lorenzo Trezzini, CFO of Valartis Group, will leave the company at
the end of April 2008 and take up a new challenge. The board of
directors would like to thank Lorenzo for all his endeavors to bring
the group forward and wishes him success in his future professional
career. Decisions on replacement are not yet taken.

From 1 July 2008 Felix Morf will become head of the asset management
division. In addition to product development in the different
traditional and alternative asset classes he will be responsible for
strengthening the distribution structure. After his education as an
economist with focus on finance and investment in the US Felix Morf
(born 1962, CH) worked mainly in the banking sector. In the past 10
years he held various management positions at Pictet Funds SA, where
he was finally responsible for the worldwide marketing of the Pictet
Funds.

Unchanged dividend - election of Jean-François Ducrest to the board
of directors The board of directors of Valartis Group AG proposes to
the shareholders´ meeting of 6 May 2008 to distribute an unchanged
dividend of CHF 13.75 million resp. CHF 2.75 per bearer share.
Furthermore it proposes to reelect Philipp LeibundGut and the
election of Jean-François Ducrest to the board of directors of
Valartis Group AG. Jean-François Ducrest (born 1958, CH) is a partner
at the law firm Borel & Barbey, Geneva, and inter alia vice-chairman
of the Geneva Bar Association. With his election to the board of
directors of Valartis Group AG Jean-François Ducrest will also take a
seat on the board of Directors of Valartis Bank AG.

Dates and information

Press conference 2007 9.4.2008, 10.30 Widder Hotel, Zurich
Shareholders´ Meeting 2008 6.5.2008, 17.00 Kongresshaus, Zurich

The annual report 2007 can be downloaded (pdf) from our homepage
www.valartis.ch.

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

Further inquiry note:

Gustav Stenbolt, CEO Valartis Group

Phone +41 43 336 81 11

Branche: Financial & Business Services
ISIN: CH0001840450
WKN: 184045
Index: SPI, SPIEX, SSCI
Börsen: SWX Swiss Exchange / official market


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