euro adhoc: ESCADA AG / Financial Figures/Balance Sheet / ESCADA raises operative Group profit for 2005/2006 by around 14 % and continues positive development

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Disclosure announcement transmitted by euro adhoc. The issuer is responsible
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20.12.2006

Aschheim, December 20, 2006 - ESCADA AG fully achieved its sales
target for fiscal 2005/2006 (reporting date: October 31) and managed
to exceed expectations for operative earnings. According to
preliminary figures, the women’s luxury fashion manufacturer records
Group sales of 695.2 million Euro, a plus of 7.2% on last year (648.6
million Euro). Forecasted growth had been in the mid single-digit
percentage range.

Group earnings before interest, taxes, depreciations and
amortizations (EBITDA) grew by 13.8 % to 74.1 million Euro
(2004/2005: 65.1 million Euro), and thus surpassed the expected
growth of around 10% in EBITDA. The cost ratio (counted as the share
of personnel expenses and other operating expenses of sales) was cut
from 57.4 % to 55.6 %. Profit after taxes and minority interests came
to 6.9 million Euro. The difference against last year’s result of
13.7 million Euro is solely the result of one-time valuation
adjustments in the balance sheet that were made primarily for
inventories and deferred taxes in the second quarter.

ESCADA Group’s equity ratio per reporting date, October 31, 2006
stands at 25.7% (vs. last year: 23.0%). In line with company
strategy, inventories were cut from last year’s level of 125.5
million Euro to 102.5 million Euro, as of reporting date. At the end
of October 2006, net debt stood at 188.1 million Euro, which is 19.6
million Euro below the figure recorded at the closing date of fiscal
year 2004/2005 (207.7 million Euro).

The Board of Management’s outlook for the current fiscal year
2006/2007 is optimistic. On the basis of the measures undertaken over
the last few months to increase efficiency, further develop the
ESCADA brand and improve development of markets the Board of
Management reckons with Group sales continuing to expand, with EBITDA
once again expected to grow stronger than sales.

end of announcement euro adhoc 20.12.2006 06:10:52
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ots Originaltext: Escada AG
Im Internet recherchierbar: http://www.presseportal.de

Further inquiry note:
Viona Brandt
Tel.: +49 (0)89 9944 1336
E-Mail: viona.brandt@de.escada.com

Branche: Clothing
ISIN: DE0005692107
WKN: 569210
Index: SDAX, CDAX, Classic All Share, Prime All Share
Börsen: Frankfurter Wertpapierbörse / official dealing/prime standard
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