SMARTRAC N.V. continues growth in first nine months of 2006

- Sales in 9-month-period to end September up 133 percent to
Euro 35.9 million (9-month period 2005: Euro 15.4 million)
- EBITDA up more than 140 percent to Euro 8.1 million
(comparable period 2005: Euro 3.3 million)
- SMARTRAC continues to expand its production capacities
by opening its fourth production plant in Thailand as early
as January 2007

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DE Amsterdam (euro adhoc) - Amsterdam, 16 November 2006 - SMARTRAC
N.V. announced today that it improved sales by 133 percent and EBITDA
by more than 140 percent in the 9 months up to end September 2006,
compared to the same period last year. The world’s leading RFID
manufacturer and supplier of components for passports (ePassport) and
contactless credit cards (ePayment) boosted its total sales in its
3rd quarter 2006 to EUR 13.4 million, up from EUR 7.2 million in the
same period 2005. For the nine months ended September 2006 SMARTRAC
achieved sales of EUR 35.9 million, an increase of 133 percent over
the previous year (EUR 15.4 million). The Group’s 3rd quarter EBITDA
almost doubled from EUR 1.8 million in 2005 to EUR 3.4 million. For
the nine months ended September 2006 the EBITDA is EUR 8.1 million,
an increase of more than 140 percent over the previous year (EUR 3.3
million).

"SMARTRAC achieved a significant increase in sales", said Dr
Christian Fischer, CFO of SMARTRAC. "Our net profit of Euro 6.1
million in the first nine months of 2006 represents an increase of
more than 200 % compared to the net profit we generated in the same
period last year."

These improvements were supported by excellent business in the High
Security Segment (ePayment and ePassport). In the Standard Segment,
sales rose 33 percent on the same period for the prior year (pro
forma) from Euro 12.8 million to Euro 17.1 million. In the High
Security Segment, sales revenues of Euro 18.7 million rose by a
factor of more than 7 on the same period for 2005 (Euro 2.5 million).

SMARTRAC’s EBITDA, which is the key performance indicator, rose to
Euro 8.1 million for the reporting period compared to Euro 3.3
million for the same period in 2005, an increase of more than 140
percent. Key contributor to this growth was the High Security
Segment, with approx. Euro 6.8 million (last year: Euro 0.4 million).
In order to satisfy the increasing demand, particularly in the
ePassport business, SMARTRAC is doubling its efforts to open the
fourth production plant in Thailand as early as January 2007.

The standard Segment recorded EBITDA of Euro 1.8 million (2005: Euro
2.9 million). This decrease was partly caused by seasonal sales
decrease and a higher proportion of memory chips which bear less
value-added for the company as these are purchased (chip sourcing).

In order to support continued growth, SMARTRAC invested Euro 7.4
million (compared to Euro 2.2 million for the same period in the
prior year) in property, plant and equipment in the first nine months
of the year. SMARTRAC is planning to invest approx. 3% of its sales
revenues in research and development in the mid-term.

In the third quarter of 2006, SMARTRAC’s Pay Pass inlays obtained a
MasterCard CQM-Certification. SMARTRAC’s facility, process and
products have successfully completed MasterCard’s Card Quality
Management scheme (CQM) audit - a corresponding CQM-Label has been
granted to SMARTRAC’s PayPass inlays.

SMARTRAC has posted consecutive net profits each year since its
foundation. In early October, SMARTRAC produced and shipped the 10th
million ePassport inlay. Production capacity has been expanded
continuously. For full-year 2006, the company anticipates sales of at
least EUR 50 million with an EBITDA substantially above EUR 10
million.

Overview:

EUR thousand Q3 2006 Q3 2005 Change Change in %
Revenues 13,436 7,169 +6,267 +87.42
EBITDA 3,407 1,820 +1,587 +87.20
Net profit 2,759 1,143 +1,616 +141.38
Earn. p. share 0.22 0.11 - -
About SMARTRAC N.V.
SMARTRAC is leading supplier of inlays for contactless ePassports and
contactless credit cards (ePayment). The company, which was founded in 2000, is
incorporated under Dutch law and has its head office in Amsterdam. SMARTRAC has
its main production and R&D centre in Bangkok (Thailand), as well as sales
offices in Stuttgart and Singapore. Through an agreement with Xytec Solutions
(Kulim, Malaysia), in which SMARTRAC holds a 30 percent stake, the company has
exclusive access to proprietary manufacturing equipment. In two product Segments
- Standard and High Security - SMARTRAC manufactures components for RFID
applications in public transport, access control and logistics, as well as in
the high-security applications of ePassports and ePayment.

end of announcement euro adhoc 16.11.2006 08:47:34
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ots Originaltext: SMARTRAC N.V.
Im Internet recherchierbar: http://www.presseportal.de

Further inquiry note:
Max Hohenberg
Media Relations SMARTRAC N.V.
Tel: +49 711 6569 2616
Email: max.hohenberg@smartrac-group.com

Branche: Technology
ISIN: NL0000186633
WKN: A0JEHN
Börsen: Frankfurter Wertpapierbörse / official dealing/prime standard
Börse Berlin-Bremen / free trade
Baden-Württembergische Wertpapierbörse / free trade
Börse Düsseldorf / free trade
Bayerische Börse / free trade


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