euro adhoc: SMARTRAC N.V. / Financing, Stock Offerings (IPO) / SMARTRAC N.V. plans IPO in July

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Disclosure announcement transmitted by euro adhoc.
The issuer is responsible for the content of this announcement.
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13.07.2006

Amsterdam/Stuttgart, 13 July 2006. SMARTRAC N.V., a leading RFID
manufacturer and supplier of components for contactless credit cards
(ePayment) and passports (ePassports), today announced key dates for
its IPO. SMARTRAC will offer its shares at a fixed price of EUR
17.00. The shares can be subscribed for from 14 until 18 July 2006.
Listing on the Prime Standard of the Frankfurt Stock Exchange is
planned for 19 July 2006.

SMARTRAC is launching its IPO following the 19 June 2006 decision of
the public prosecutor in Augsburg to dismiss investigations against
CEO Manfred Rietzler concerning potential infringement of patent
rights. In the interest of an orderly IPO-process and in order to
protect investors, SMARTRAC had postponed the IPO during the roadshow
in March 2006 despite excellent market feedback. Of the total of 4.0
million ordinary SMARTRAC N.V. shares being offered, 3.5 million
shares are from a capital increase and 0.5 million shares are from
existing shareholders. The company will therefore receive net
proceeds of almost EUR 55 million from the IPO, which will primarily
be used to finance the company’s growth. Additionally, existing
shareholders have provided an overalottment option of up to 0.5
million shares in proportion to their shareholdings under a
stock-lending agreement.

Growth path confirmed by strong first quarter SMARTRAC continued
along its path of strong growth in the first quarter of 2006: The
company tripled sales compared to the first quarter of the prior year
from a total of EUR 3.6 million to EUR 10.7 million, and also tripled
its EBITDA from EUR 0.7 million to EUR 2.0 million. SMARTRAC achieved
even stronger growth in the high security segment in ePayments and
ePassports; in this segment, sales of EUR 4.3 million in the first
quarter nearly equaled the company’s entire EUR 5.0 million in sales
for the full-year 2005.

There will be a public offering of SMARTRAC shares in Germany and in
Switzerland. In addition, there will be a private placement targeting
institutional investors in Europe. UBS Investment Bank has been
mandated as Sole Global Coordinator and Bookrunner.

Proceeds from the planned IPO will be used primarily to fund further
growth. The focus is on expanding production capacity for components
in high-security RFID applications - credit cards, bank cards and
passports.

Trading in SMARTRAC N.V. shares will take place under the trading
symbol "SM7" and the ISIN "NL0000186633" on the official market
(Amtlicher Handel) of the Frankfurt Stock Exchange and on the "Prime
Standard" sub-sector of the official market.

The company’s founder Richard Bird and CEO Manfred Rietzler and
family together hold approximately 90 percent of the shares and will
continue to be majority shareholders after the IPO. All other
existing shareholders, in particular the management, will continue to
hold shares in SMARTRAC N.V. after the IPO. Assuming full placement
of the shares (including overalottments and the exercise of the
Greenshoe option), the free float will be one third or 33.3 percent
of the company.

The prospectus for the public offering in Germany and Switzerland
will be published in the course of Thursday, 13 July 2006 on the
Internet at www.smartrac-group.com and will be available to eligible
investors free of charge from the company and the bookrunner.

This Ad-hoc release and the information contained herein is not being
issued in the United States of America (the "U.S.") and may not be
distributed in the U.S.

This document does not constitute an offer of securities in the U.S.
Securities may not be offered or sold in the U.S. absent registration
or exemption from registration under the U.S. Securities Act of 1933,
as amended. Neither SMARTRAC N.V. nor any selling shareholder intends
to register any portion of an offering of securities of SMARTRAC N.V.
in the U.S. or to conduct a public offering of securities of SMARTRAC
N.V. in the U.S.

This document does not constitute a prospectus within the meaning of
Article 652a of the Swiss Code of Obligations or Article 32ff. of the
Listing Regulations of the SWX Swiss Exchange. A decision to invest
in shares of SMARTRAC N.V. should solely be made on the basis of the
securities prospectus published by the company for this purpose.

An investment decision regarding any publicly offered securities of
SMARTRAC N.V. should only be made on the basis of the securities
prospectus to be published on 13 July 2006 and available free of
charge to eligible investors from UBS Limited (c/o UBS Deutschland
AG, Stephanstraße 14-16, 60313 Frankfurt am Main, Germany) or on the
SMARTRAC N.V. website at http://www.smartrac-group.com.

This communication is only directed at persons (I) who are outside
the United Kingdom or (II) who have professional experience in
matters relating to investments as defined by Article 19 (5) of the
U.K. Financial Services and Markets Act 2000 (Financial Promotion)
Order 2005 (as amended) (the "Order") or (III) who fall within
Article 49 (2) (a) to (d) of the Order ("high net worth companies,
unincorporated associations etc.") of the Order (all such persons
together being referred to as "Relevant Persons"). Any person who is
not a Relevant Person must not act or rely on this communication or
any of its contents. Any investment or investment activity to which
this communication refers is available only to Relevant Persons and
will be engaged in only with Relevant Persons.

end of announcement euro adhoc 13.07.2006 19:48:31
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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 / admission applied: official
dealing