03.08.2005 – 07:50

SW Umwelttechnik Stoiser & Wolschner AG

euro adhoc: SW Umwelttechnik Stoiser & Wolschner AG
Quarterly or Semiannual Financial Statements
SW Umwelttechnik announces first-half interim results for 2005

  Disclosure announcement transmitted by euro adhoc.
  The issuer is responsible for the content of this announcement.

03.08.2005

* Positive outlook for whole year confirmed
* Revenue up by 21% after strong second quarter
* Order backlog 20% up
* Dividend increase to EUR0.25 (2004: EUR0.20) planned

Vienna listed SW Umwelttechnik Stoiser & Wolschner AG posted a 33%
gain in second-quarter revenue from EUR20.0 million (m) to EUR26.6m,
more than making up ground lost in the first quarter due to bad
weather conditions. This excellent performance also extended to EBIT
which more than doubled year on year to EUR2.6m (Q2 2004: EUR1.1m),
and EBITDA which rose by 81% to EUR3.7m (Q2 2004: EUR2.0m).

Over the first half of 2005 the company recorded a cumulative
increase of 21% in revenue, to EUR34.6m from EUR28.6m in the like
period of 2004. Organic growth accounted for 15% of the improvement,
and consolidation of the Alpha Umwelttechnik acquisition for the
other 6%. Record revenue of EUR9.7m in June points to a strong
showing in the second half.

Revenue from Hungarian operations rose by 11% to EUR22.7m (H1 2004:
EUR20.5m), representing 65% of total sales (H1 2004: 72%). The
acquisition of Alpha Umwelttechnik increased the proportion of
revenue generated in Austria from 24% to 27%. Other EU member states
contributed 6% (2004: 3%) and third countries (mainly Romania) 2%
(2004: 1%) of revenue.

In terms of the segmental revenue breakdown, SW Umwelttechnik’s
Engineering sector gained at the expense of its Infrastructure
business. The Infrastructure sector made excellent progress in
Hungary, while the Engineering sector registered a decline in revenue
from wastewater treatment plant and sewer construction projects. The
Infrastructure sector was responsible for 48% (2004: 33%), the
Engineering sector 23% (2004: 38%) and the Water Conservation sector
29% (unchanged) of total revenue.

Earnings before interest and tax (EBIT) for the first half remained
negative due to seasonal factors, but improved by 13% year on year to
a loss of EUR0.8m (H1 2004: EUR0.9m) or 2.4% of revenue (H1 2004:
3.2%). EBITDA for the period reflected this positive trend, climbing
to EUR1.3m from EUR0.9m in the like period of the previous year. High
capacity utilisation and steady increases in the efficiency of
production processes brought an excellent second quarter.

A slide in the financial result from a profit of EUR0.3m to a loss of
EUR0.5m widened the loss on ordinary activities to EUR1.3m (H1 2004:
EUR1.1m). This should be seen in the light of the fact that, while
interest expense fell sharply in the first half of 2005, from EUR1.0m
to EUR0.6m, there were minor book HUF-EUR exchange losses (EUR0.04m)
compared to exchange gains of EUR0.8m in the first half of 2004.

The head count rose to 749 (H1 2004: 717). The takeover of Alpha
Umwelttechnik, Klagenfurt and a start to expansion of the Romanian
workforce were the main factors behind this increase.

During the second quarter the company issued shares to finance
expansion in Central and Southeastern Europe. The investment budget
has been boosted from EUR3.4m in 2004 to EUR7.8m in 2005.
Construction of a new factory in Timisoara, western Romania, is due
to begin in September 2005, with production start-up scheduled for
early 2006. Work on a planned factory in the Bucharest area is set to
commence in 2006, and production there in 2007.

Construction of the most modern pipe works in Hungary, at SW
Umwelttechnik’s South Budapest site, is proceeding to plan, and
commissioning is planned for October 2005. Due to its outstanding
performance, factory space at the South Budapest operation is being
expanded to some 16,000 square metres.

Good outlook for 2005 as a whole

Due to the impressive second quarter management is standing by the
upbeat full-year outlook issued after the weak first quarter.

Management anticipates revenue growth of about 15%, and plans to
raise the dividend for 2005 to EUR0.25 per share (2004: EUR0.20).

* Order backlog as at 30 June was up by 20% year on year, from EUR30m
to EUR36m. Particularly encouraging were contract wins for reference
projects in the promising biogas and surface water protection system
areas. * All the fully consolidated Austrian subsidiaries, including
the Alpha-Umwelttechnik acquisition, have been merged into an
operating company with a single corporate identity, organisational
structure and financial control system. This will bring improvements
in customer service and the cost base. * In Hungary the
Infrastructure and Water Conservation sectors’ capacity at the South
Budapest site is being expanded in response to the strong demand for
their products. The new pipe works currently under construction will
further strengthen the SW Umwelttechnik’s position in the civil
engineering market. * In Romania roll-out of the sales network is
proceeding in step with the planning of the new production
facilities. The works in western Romania is to enter into operation
in 2005, and the factory in the greater Bucharest area a year later.

end of announcement                               euro adhoc 03.08.2005 07:15:57

Further inquiry note:

Dr. Bernd Wolschner, member of the Management Board
Tel: +43 (0)463 32109; mobile: +43 (0)664 3413953; fax: +43 (0)463 37667
Michaela Wolschner, Investor Relations
Tel: +43 (0)664 8117662; fax: +43 (0)1 3688686;
e-mail: michaela.wolschner@sw-umwelttechnik.at
Web: www.sw-umwelttechnik.at

Branche: Technology
ISIN: AT0000808209
WKN: 080820
Index: WBI, ATX Prime, ViDX
Börsen: Berliner Wertpapierbörse / free trade
Baden-Württembergische Wertpapierbörse / free trade
Börse Düsseldorf / free trade
Wiener Börse AG / official dealing