euro adhoc: SMARTRAC N.V. / quarterly or semiannual financial statement / SMARTRAC N.V. continues along its growth path

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16.08.2006

Amsterdam, 16 August 2006. SMARTRAC N.V. continued along its growth
path in the first half of 2006 and further strengthened its earnings.
SMARTRAC, the leading RFID manufacturer and supplier of components
for contactless credit cards (ePayment) and passports (ePassports),
increased its total revenues in the first six months of this year
compared with the same period of 2005 from EUR 8.3 million to EUR
22.5 million. The Group's first-half EBITDA increased to EUR 4.7
million, more than triple the figure for the prior-year period (EUR
1.5 million). At EUR 3.3 million, net profit for the first half of
2006 was already higher than the figure of EUR 3.0 million reported
for full-year 2005. The company has posted a net profit every year
since its foundation.

Part of this positive development was the performance in the Standard
segment including the areas of Mass Transportation, Access Systems
and Logistics, which increased its revenues compared with the
prior-year period by 69 percent (from EUR 7.4 million to EUR 12.6
million). The main contribution however came from the High Security
segment (ePayment and ePassport), which increased its revenues to EUR
9.9 million, more than tenfold compared with the prior-year period.
With approximately EUR 3.3 million, the High Security segment made an
important contribution to EBITDA in the first half of 2006.

First-half EBITDA in the Standard segment (EUR 1.5 million) grew at a
lower rate than revenues during the same period and at a lower rate
than EBITDA in the first half of last year. This was due to regional
changes in the order structure and the strategic expansion of chip
sourcing in the Standard segment. Chip sourcing in the Standard
segment burdened the ratio between revenues and earnings compared
with the prior-year period due to the fact that only a low proportion
of SMARTRAC's value creation is accounted for by the purchased memory
chips. However, it enables SMARTRAC to improve its long-term customer
retention.

In addition to preparing the successful IPO, the main strategic focus
in the first half of 2006 was on expanding production capacity, in
particular in the High Security segment. With investments of EUR 4.4
million (H1 2005: EUR 1.3 million), SMARTRAC expanded its production
capacity with a new facility in Germany and an additional plant in
Thailand, that should be fully operational by the end of this year.

Expanding production capacity and further increase investment in
research and development are the main goals of SMARTRAC N.V. for the
second half of the year. For full-year 2006, SMARTRAC anticipates
substantial growth in revenues and EBITDA compared with 2005.

Overview:

|EUR thousand |H1 2006 |H1 2005 |Change |Change in % |
|Revenues |22,471 |8,280 |+14,191 |+171.4 |
|EBITDA |4,681 |1,502 |+3,179 |+211.7 |
|Net profit |3,324 |827 |+2,497 |+301.9 |
|Earnings per |0.33 |0.08 |- |- |
|share | | | | |

About SMARTRAC N.V.

SMARTRAC is a leading supplier of inlays for contactless credit cards
(ePayment) and passports with integrated contactless chips
(ePassports). 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 center in Bangkok (Thailand), as well as
subsidiaries in Germany and Singapore. Through an agreement with
Xytec Solutions (Kulim, Malaysia), in which SMARTRAC holds a 30%
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 ePayment and ePassport.

Further information: ISIN: NL 0000186633 Official market (Amtlicher
Markt) / Prime Standard; Frankfurt Stock Exchange Company
Headquarters: Amsterdam

For further information visit: www.smartrac-group.com

Disclaimer:

To the extent that this ad hoc release contains forward-looking
statements, such statements

are based on assumptions, planning and forecasts at the time of
publication of this ad hoc release. Forward-looking statements always
involve uncertainties.

Business and economic risks and developments, the conduct of
competitors, political decisions and other factors may cause the
actual results to be materially different from the assumptions,
planning and forecasts at the time of publication of this ad hoc
release.

Therefore, SMARTRAC N.V. does not assume any responsibility relating
to forward- looking statements contained in this ad hoc release.
Furthermore, SMARTRAC N.V. does not assume any obligation to update
the forward-looking statements contained in this ad hoc release.

end of announcement euro adhoc 16.08.2006 07:40:25
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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.: +31 20 57 88 844
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