EANS-Adhoc: First-half figures show restructuring bringing results for SW Umwelttechnik

--------------------------------------------------------------------------------
ad-hoc disclosure transmitted by euro adhoc with the aim of a Europe-wide
distribution. The issuer is solely responsible for the content of this
announcement.
--------------------------------------------------------------------------------

6-month report

27.08.2009

* Strong order books despite poor trading environment
* Prompt restructuring actions starting to bear fruit
* Bright outlook for Water Conservation sector
thanks to stimulus packages

The economic climate in Central and Southeastern Europe (CSE) has
worsened dramatically since mid-2008. However Vienna listed SW
Umwelttechnik has been quick in responding to the recession which is
forecast to last for about two years.

Head count has been aligned to revenue expectations, resulting in a
30% reduction between the fourth quarter of 2008 and the second
quarter of 2009. SW Umwelttechnik has shifted its focus towards the
local government investment market, as the stimulus packages
announced in all the countries where it operates point to revenue
growth in this area. The company has put planned expansion
investments on hold, and pruned current assets by running down
inventories and exercising strict control of receivables. These
actions have both enabled it to maintain liquidity and resulted in an
improvement in its cost base which is already being felt. Fixed staff
costs have fallen by EUR1.8 million (m) year on year, and other
operating expenses by EUR3.7m.

First-half revenue slid by 48% to EUR26.8m from EUR51.3m in the like
period of 2008. While performance in the first half of 2008 was an
exceptionally strong this year's figure also represented a 30%
decline compared to the average for the past few years. The market
for industrial and commercial buildings served by SW Umwelttechnik's
Infrastructure business sector has collapsed. However the Water
Conservation sector has recorded healthy order intake, despite
continued delays in public funding in Hungary and Romania.

Earnings before interest and tax (EBIT) for the first half were
negative in line with the normal seasonal pattern for the industry,
and there was a loss of EUR3.5m (H1 2008: EUR+2.4m - the first
positive figure in the company's history). EBITDA was also marginally
negative at EUR-0.6m (H1 2008: EUR+5.2m). Thanks to recent
restructuring programmes, in the second quarter alone EBITDA was
positive by EUR1.7m, and EBIT by EUR0.3m, despite the adverse trading
environment.

Net finance costs decreased as a result of reduced interest expense
due to the lower Euribor rate, and of the stabilisation of the forint
exchange rate in the second quarter. Half-yearly net finance costs
narrowed to EUR2.4m from EUR4.4m in the first quarter (H1 2008:
EUR0.7m); the H1 figure includes EUR1.3m in noncash accounting
losses.

These developments led to a loss on ordinary activities of EUR6.3m,
compared to a profit of EUR1.7m in the like period of 2008. The
second quarter brought a profit on ordinary activities (POA) of
EUR2.5m - down from the EUR5.4m posted in Q2 2008 but well up on the
quarterly results between 2005 and 2007.

Order backlog Order backlog stood at a satisfactory EUR39.3m as at 30
June 2009. This was 29% down year on year (H1 2008: EUR55.6m), but
when adjusted for EUR13m in subsequent contract cancellations the
difference falls to 7%. Order books remained well above the EUR26.8m
recorded in 2007.

Employees Head count averaged 748 in the first half - a year-on-year
reduction of only 12% (H1 2008: 854). However head count as at 30
June was 29% down at 766 (30 June 2008: 1,090), in line with
management's target. The personnel adjustments should bring annual
savings of at least EUR5m in fixed costs.

Assets and finances Non-current assets contracted to EUR71.5m (30
June 2008: EUR80.2m), mainly as a result of exchange losses. Current
assets were slashed from EUR48.1m to EUR33.2m by action to run down
inventories and tight receivables management. As a result total
assets diminished to EUR107.1m (30 June 2008: EUR129.8m).

Equity fell heavily year on year, to stand at EUR12.5m (30 June 2008:
EUR31.8m). The equity ratio dropped to 11.7% (H1 2008: 24.5%), but
was double its level at the end of the first quarter. Taking the
intrinsic value of the non-current assets (i.e. the value excluding
noncash accounting losses arising on translation recognised since 31
December 2007), and including EUR10m in undisclosed reserves in the
form of surplus property, equity rises to EUR28.6m, and the equity
ratio to 23.2%.

Borrowings climbed from EUR78.6m to EUR80.3m, largely reflecting
seasonal factors in the first quarter. SW Umwelttechnik is currently
evaluating state credit guarantees and other means of strengthening
its equity base which are feasible in the medium term.

Investment In line with the company's revised strategy investments in
expansion have been put on hold, and preference given to
consolidating its finances and maintaining liquidity. During the
first half of 2009 only minor investments, totalling EUR1.4m, were
made in extending the product range. Investment spending of EUR3.0m
is planned for the year as a whole.

Outlook Management is basing its strategy on the expectation that
demand for industrial and commercial buildings will remain weak in
all CSE markets, and that growth in the local government investment
market (environmental and transport infrastructure) will only recoup
part of the resultant loss of revenue. The stimulus packages
announced by the Hungarian and Romanian governments will not kick in
until late 2009 and 2010, respectively.

Hungary In Hungary the industrial and commercial building market is
set to remain weak for some time to come, but municipal investment
should gradually pick up in the second half of 2009 due to
cofinancing backed by the IMF and the ECB.

Romania In Romania, too, industrial and commercial construction -
still booming as recently as the summer of 2008 - came to a virtual
standstill at the start of 2009. However a slight recovery is already
under way, due to strong pent-up demand. Local government investment
should grow strongly in the second half, but the stimulus packages
are not expected to feed through until 2010.

Austria Management anticipates only a slight downturn in business in
Austria this year. Thanks to the success of recently launched product
developments sales in the market segments served by the SW
Umwelttechnik should remain roughly stable.

Summary income statement in EUR m

| |H1 2009 |H1 2008 | |
|Revenue |26.8 |51.3 | |
|EBIT |-3.5 |2.4 | |
|EBITDA |-0.6 |5.2 | |
|POA |-6.3 |1.7 | |

Summary balance sheet in EUR m

| |H 1 2009 incl. |H 1 2009 |H 1 2008 |
| |intrinsic value | | |
| |and undisclosed | | |
| |reserves | | |
|Non-current assets |87.5 |71.5 |80.2 |
|Current assets |33.2 |33.2 |48.1 |
|Total assets |123.1 |107.1 |129.8 |
|Equity |28.6 |12.5 |31.8 |
|Debt |94.6 |94.6 |98.1 |

Founded in 1910, SW Umwelttechnik remains a family business, though
it has been listed on the Vienna Stock Exchange since 1997. The group
is known for its commitment to sustainable enterprise and rapid
expansion in Central and Southeastern Europe (CSE). Its innovative
environmental technology products are contributing to infrastructure
renewal in CSE.

end of announcement euro adhoc
--------------------------------------------------------------------------------

ots Originaltext: SW Umwelttechnik
Im Internet recherchierbar: http://www.presseportal.de

Further inquiry note:

Dr. Bernd Wolschner

Member of the Management Board

Tel: +43 (0)7259 31350

Mobile: +43 (0)664 3413953

Michaela Werbitsch

Investor Relations

Tel: +43 (0)7259 31350

Mobile: +43 (0)664 3688686;

E-mail: michaela.werbitsch@sw-umwelttechnik.com

Web: www.sw-umwelttechnik.com

Branche: Technology
ISIN: AT0000808209
WKN: 910497
Index: WBI
Börsen: Berlin / free trade
Frankfurt / free trade
Wien / Regulated free trade