Kontron Reports Record Sales and Orders

Kontron AG, one of the world’s leading manufacturers of embedded computer systems, generated sales of EUR 86.6 million in the first quarter of 2006. This represents a gain of 39 percent over the same period last year (EUR 62.3 million). Orders on hand, which had already reached a record level on December 31, 2005, at a total of EUR 151 million, once again set a new record in company history at EUR 176 million. Order entry in the first quarter amounted to EUR 112 million by comparison with just under EUR 70 million in the prior year period. This represents a gain of 60 percent.

In the first quarter, operating earnings (EBIT) rose by a disproportionate measure against sales growth, by 45 percent to EUR 5.1 million, over EUR 3.5 million in the same period last year. Surplus for the period increased accordingly to EUR 3.4 million over EUR 2.6 million in the first quarter of 2005. Operating cash flow, which was recorded at EUR -2.6 million in the same period last year, rose to EUR 5.4 million. This boosted net liquidity in the first quarter by EUR 3.7 million to 17.7 million, while the cash and liquid funds position rose to EUR 56.5 million. Kontron AG management confirmed the forecast of achieving a minimum of 10 percent sales growth, and even stronger earnings (EBIT) growth in the 2006 business year. In this context, the corporation intends to fully concentrate on organic growth and increase liquidity, without any further acquisitions.

About Kontron
A global leader in embedded computer technology and mobile rugged solutions, Kontron supplies a diversified customer base of OEMs, system integrators, and application providers in the: automation, test and measurement, communications, medical, gaming and entertainment, military, aerospace, transportation, and energy markets. The company helps its customers considerably reduce their time-to-market and gain a competitive advantage with products including: high-performance open computer platforms and systems, single board computers, human-machine interfaces, and mobile rugged computers and displays. Kontron employs more than 2,300 people worldwide and has manufacturing facilities in Europe, North America, and Asia-Pacific. The company is listed on the German TecDAX 30 stock exchange under the symbol “KBC”. Kontron is a Premier member of the Intel(R) Communications Alliance which means it has the earliest access to leading-edge Intel technologies and privileged engineering support.