Kontron Increases Forecast for 2006

Kontron AG, one of the world’s leading manufacturers of embedded computer systems, is raising its sales and earnings forecast in connection with the announcement of the semi-annual figures. With regard to the 2006 business year, the TecDAX-listed corporation is expecting revenue gains of 15 percent over the previous year (EUR 300 million) to EUR 345 million. A 15 percent increase is also anticipated with regard to the operating result (EBIT). At the beginning of the year Kontron had announced an expected 10 percent rise in revenues and EBIT.

In the second quarter of the ongoing businesses year the company generated sales of EUR 93.3 million over EUR 71.2 million in the prior year period. This represents a gain by 31 percent. In the first half of 2006 Kontron AG generated total revenues of EUR 179.9 million over EUR 133.5 million in the same period last year. Strong gains were also achieved in earnings. With EBIT standing at EUR 6.7 million in the second quarter, Kontron exceeded the performance of the prior year period by 36 percent (EUR 4.9 million). The total operating result of the first six months of 2006 comes in at EUR 11.8 million by comparison with EUR 8.4 million in the previous year. Accordingly, surplus for the period was up from EUR 6.2 million in the first half of 2005 to EUR 8 million in the first half of 2006 (of which EUR 4.6 million were generated in the second quarter).

Order intake and the level of orders at hand outpaced the dynamic developments in revenues and earnings. In the first half of 2006, incoming orders amounted to a total of EUR 238 million (prior year period: EUR 162 million). This has pushed the volume of orders at hand to the record mark of EUR 207 million by comparison with EUR 128 in the past year. The volume of design wins significant for medium and long-term company development also showed a strong rise in the first half of the year and advanced to EUR 110 million (prior year period: EUR 87.4 million). This volume points to sustained growth over the next years.

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 in the Intel (R) Communications Alliance which means earliest access to leading-edge Intel technologies and privileged engineering support.