euro adhoc: ESCADA AG / quarterly or semiannual financial statement / ESCADA publishes half-year figures and decides on comprehensive structural optimizations leading to a significant loss after taxes

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6-month report

28.06.2007

Munich, June 28, 2007 - Over the first half of fiscal year 2006/2007
(reporting date: October 31) the ESCADA Group increased sales and
earnings slightly against the same period of last year recording a
moderate business performance overall. Group revenues for the women´s
luxury fashion manufacturer were up by 3.7%, climbing from last
year´s total for the period of 332.1 million Euro to 344.3 million
Euro (currency adjusted: + 6.4%) At 37.6 million Euro, Group earnings
before interest, taxes, depreciation and amortization (EBITDA) were
up by 1.9% on the previous year (36.9 million Euro). Half-year
earnings after taxes and minority interests came to 9.3 million Euro.
Last year´s half-year loss of -3.0 million Euro had been considerably
affected by one-time expenses during the second quarter.

The Group recorded a sales plus of 10.7% for the second quarter of
2006/2007, up from 165.4 million Euro in Q2 of 2005/2006 to 183.1
million Euro in 2006/2007. At 16.0 million Euro, EBITDA was
marginally below the figure of last year (Q2 2005/2006: 16.4 million
Euro).

Looking ahead over the full fiscal year 2006/2007, the Board of
Management reckons Group sales and consolidated EBITDA both to grow
moderately in the single percentage point range against the prior
year.

The Board of Management and the Supervisory Board have agreed on the
implementation of a strategic program, called "ESCADA Excellence",
for the years ahead in order to set the stage for accelerated growth
and higher profitability. The program will concentrate on the
following five strategic objectives: build up a strong and clear
brand identity, create the accessories business, focus on core
markets, rationalize the retail network and adjust the Group´s
organization and structure to the strategic objectives.

Furthermore, ESCADA´s Board of Management has decided to execute
structural optimizations in order to improve the Group´s efficiency.
The measures relate to management of the retail network, the
organizational improvement of the subsidiaries and to the closing of
contractual liabilities.

These structural costs will come to around 35 million Euro and will
affect the Income Statement of the Annual Financial Statement
2006/2007. For the current fiscal year, the Board of Management
furthermore estimates that the German company tax reform will have a
negative effect on the Group as it will necessitate a re-valuation of
capitalized deferred taxes leading to a write-down of around 14
million Euro. As a consequence of above two factors, the ESCADA Group
will complete fiscal year 2006/2007 with a loss after taxes of
approximately 25 million Euro.

end of announcement euro adhoc 28.06.2007 07:04:53
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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
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