euro adhoc: Softing AG / quarterly or semiannual financial statement / Softing AG: Divisional success varies greatly - earnings below expectation despite sales growth

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13.11.2006

Based on the figures for the first nine months of the year, the
Executive Board of Softing AG believes that the company will not be
able to attain a full-year EBIT of approximately E 1.5 million, which
was the target it announced at the beginning of the year. Continuing
a trend that was announced back at the Annual Shareholders' Meeting
in July 2006, the 2006 financial year will be dominated by a highly
profitable Industrial Automation division and an Automotive
Electronics division that will place a heavy burden on earnings this
year. Based on today's knowledge, large orders which the Executive
Board until recently expected for 2006 will not affect sales and
earnings before 2007. As a result of the burden placed on earnings by
the Automotive Electronics division, we expect the operating result
for the full year to be only slightly positive.

After the change on the Executive Board at the beginning of the year,
the Automotive Electronics division was realigned by Dr. Michael
Siedentop, who revised the division's strategy, reorganized the
division, hired new personnel in key positions, and initiated steps
aimed at achieving sustainable cost reductions. These measures had a
significant impact on this year's earnings. At the end of the year,
the Executive Board will examine if this will result in balance sheet
corrections as well. However, the Executive Board is confident that
the impact of the measures listed above will be fully limited to the
2006 financial year. The management of Softing AG believes that it
has created a solid foundation for the division's sustainable return
to profitability.

The Industrial Automation division continued to experience a
significant increase in sales and earnings. The division achieved
sales growth of nearly ten percent with an EBIT margin of around 11
percent. Most notable, however, is the excellent positioning of the
division's products in the market. The product portfolio will be
complemented by additional new products this year. As a result, we
expect sales in the next year to increase considerably while margins
should at least remain stable.

Despite the expected failure to reach our earnings target, the
Executive Board believes that Softing AG is very well positioned for
the future. The preliminary business planning expects both sales and
earnings to increase significantly in 2007.

The Quarterly Report 3/2006 can be downloaded in pdf format from the
Investor Relations section at www.softing.com from November 14, 2006.

end of announcement euro adhoc 13.11.2006 20:37:14
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ots Originaltext: Softing AG
Im Internet recherchierbar: http://www.presseportal.de

Further inquiry note:
Content:
Dr. Wolfgang Trier
Tel.: +49(0)89 45656 0
E-Mail: InvestorRelations@softing.com
Technical realisation:
Emilio Kokot
Tel.: +49(0)89 45656 311
Email: koe@softing.com

Branche: Technology
ISIN: DE0005178008
WKN: 517800
Index: CDAX, Prime All Share, Technologie All Share
Börsen: Frankfurter Wertpapierbörse / regulated dealing/prime
standard
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