euro adhoc: init innovation in traffic systems AG / quarterly or semiannual financial statement / init grows as planned in first half - sales and earnings targets confirmed

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Financial Figures Q2 2008

05.08.2008

In the first half of 2008, init innovation in traffic systems AG grew
according to plan and was able to confirm its sales and earnings
targets for the whole year. In the second quarter, the international
system provider and telematics specialist for public transport
recorded an increase in revenues by 10.3 percent to 12.9 mio. EUR
(2007: 11.7 mio. EUR). Over the first six months, revenues thus
increased by 9.8 percent to 21.3 mio. EUR (2007: 19.4 mio. EUR).

The satisfactory trend of incoming business continued throughout this
period. In the first half of the year, init gained new orders
totalling over 28 mio. EUR. As at the end of June, the order volume
had risen by some 50 percent to over 104 mio. EUR (2007: 69.1 mio.
EUR).

As expected, the hardware deliveries for ongoing major projects in
Europe, North America and the United Arab Emirates multiplied in the
second quarter. This had a positive effect on the profitability in
this quarter. Earnings before interest and taxes (EBIT) increased by
100 percent to 1.6 mio. EUR (2007: 0.8 mio. EUR). Net earnings
improved on the previous quarter to triple from 0.5 to 1.6 mio. EUR.
Hardware deliveries and installations will further increase in the
latter half of this year to result in disproportionately high sales
and earnings.

In view of the scheduled execution of these large-scale projects and
the continued high level of growth dynamics, the company raised its
personnel capacities in the period under review. Together with other
advance payments, the cost of production as at the end of June thus
grew at a proportionately faster rate than sales compared to the
previous year. At 5.5 mio. EUR, the gross profit on sales remained
below the prior-year level (6.7 mio. EUR).

Earnings before interest and taxes (EBIT) in the first six months
amounted to 0.8 mio. EUR (2007: 1.2 mio. EUR), resulting in a
first-half net profit of 0.4 mio. EUR (2007: 0.8 mio. EUR). This
corresponds to earnings per share of 0.05 EUR (2007: 0.09 EUR).

Due to the increase in hardware deliveries and installations, the
operating cash flow rose quite significantly to 3.9 mio. EUR (2007:
-0.2 mio. EUR) and is likely to increase further in the third and
fourth quarters.

Traditionally, init generates the lion´s share of its sales and
earnings in the latter half of the year, the fourth quarter generally
proving to be the best. For the whole of 2008, the Managing Board
upheld its projections of increased sales totalling 56 mio. EUR
(2007: 46.8 mio. EUR) and an EBIT of around 8.4 mio. EUR (2007: 7.2
mio. EUR).

end of announcement euro adhoc
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ots Originaltext: init innovation in traffic systems AG
Im Internet recherchierbar: http://www.presseportal.de

Further inquiry note:

Alexandra Weiß

Investor Relations

Telefon: +49(0)721 6100-102

E-Mail: aweiss@initag.de

Branche: Semiconductors & active components
ISIN: DE0005759807
WKN: 575980
Index: CDAX, Prime All Share, Technologie 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