28.02.2006 – 07:33

SW Umwelttechnik Stoiser & Wolschner AG

euro adhoc: SW Umwelttechnik Stoiser & Wolschner AG
Earnings Forecast
SW Umwelttechnik announces preliminary results for 2005

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

28.02.2006

* Revenue up by 19%
* EBIT up by 70%
* Record EUR10.5 million investment programme
* Construction of factory in Timisoara, Romania under way

Further gains in market shares and a new organisational structure in
Austria brought SW Umwelttechnik (Vienna Stock Exchange, SWUT) major
improvements in revenue and earnings in 2005. Meanwhile the
construction of the group’s first factory in Romania is laying the
groundwork for sustained growth in this emerging market for
environmental technology and infrastructure.

The company’s unaudited preliminary IFRS results show a 19% gain in
revenue to EUR91.1 million (m) in 2005 (2003: EUR76.3m). Organic
growth accounted for 15% of the increase and initial consolidations
for 4%.

The principal geographical market was Hungary, which contributed
EUR58.2m or 64% of revenue (2004: EUR53.4m or 70%). Austrian sales
advanced from EUR18.9m or 25% of the total in 2004 to EUR25m or 28%
last year, boosted by the Alpha Umwelttechnik acquisition among other
factors. The proportion of revenue generated by Romania climbed from
1% to 4%, due to infrastructure, drinking water and sewerage
projects. The revenue share of the "other EU member states" segment
(Germany, Italy and Slovakia) was unchanged at 4%.

An analysis of revenue in business segment terms shows an increase in
the contribution of the Water Conservation sector from 27% to 32%,
while that of the Engineering sector decreased from 31% to 27%, and
that of the Infrastructure sector was almost unchanged at 41%,
compared to 42% in 2004.

Earnings before interest and tax (EBIT) surged by 70% from EUR2.3m to
EUR3.9m, and the EBIT margin jumped from 3.0% to 4.3%. These
improvements were driven by a sharp increase in production capacity,
as well as good capacity utilisation and resultant productivity
growth.

EBITDA was up by 39%, from EUR6.2m to a record EUR8.6m — providing a
secure financial basis for further rapid expansion in Romania.

SW Umwelttechnik streamlined its organisational structures in 2005.
Three Austrian subsidiaries were merged, significantly strengthening
the group’s competitive position in this challenging market.
Meanwhile the merger of Rocla and Strong&Mibet to form Strongrocla
also helped extend the group’s leadership of the Hungarian market.

Finance cost mounted by EUR0.3m to EUR2.0m as a result of book
exchange losses of EUR0.7m (compared to exchange gains of EUR1.3m in
2004) due to refinancing of the Hungarian operations on a euro basis.
A 10% capital increase and the sale of treasury shares during the
year made it possible to fund heavy investment without a significant
increase in debt.

Higher finance cost trimmed profit from ordinary activities (POA) to
EUR1.9m (2004: EUR2.0m), profit after tax to EUR1.3m (2004: EUR1.5m)
and profit after minorities to EUR1.4m (2004: EUR1.6m). The strong
upturn in operating profits largely compensated for the accounting
losses caused by movements in the forint/euro exchange rate; these
had no impact on cash flow.

Order backlog at balance sheet date was a record EUR38.5m (year end
2004: EUR35.8m) — a 7% year-on-year gain.

Employees The headcount expanded by 10% to 798, reflecting the growth
in output. The group now has 209 employees in Austria, 556 in Hungary
and 33 in Romania. The proportion of female employees rose from 14%
to 16%.

Capital expenditure In 2005 the group invested a record EUR10.6m
(2004: EUR3.5m) in order to exploit growth opportunities in Hungary
and Romania. The lion’s share of capital expenditure — 77% of the
total — went to Hungary where capacity at the South Budapest was
further expanded, and the most modern pipe works in Hungary was built
at the site. In Romania work began on a new factory in Timisoara
where will start up this summer.

Dividend recommendation Due to the positive earnings performance the
Management Board will be recommending an increased divided of EUR0.25
per share (2004: EUR0.20) for the 2005 financial year to the annual
general meeting.

Outlook Management is again giving optimistic guidance for 2006, and
anticipates further revenue and earnings growth.

* All the group’s business sectors are expected to encounter robust
demand in Hungary over the next few years, and the main South
Budapest site and the other four factories are well placed to
benefit. However this year’s general election may lead to
uncertainties regarding public sector contract awards. * The merger
of the Austrian operating subsidiaries into a single company and
organisational structure should bring a marked improvement in the
marketing effort and earnings. Major orders for biogas plants in
Austria are unlikely owing to the scrapping of electricity injection
tariff subsidies. * Romania is expected to join the EU in 2008,
creating good demand conditions for all the group’s businesses. SW
Umwelttechnik is planning to invest EUR30m in three Romanian
factories over the next five years. The Timisoara works will enter
production in mid-2006, and construction of a factory on a 25-hectare
site near Bucharest which has already been purchased is due to
commence in the second half of this year.

end of announcement                               euro adhoc 28.02.2006 07:00:00

Further inquiry note:

Heinz Wolschner, member of the Management Board
Tel: +43 (0)463 321090; fax: +43 (0)46337667
Christian Riel, Investor Relations
Tel: +43 (0)664 1924824; fax: +43 (0)1 3688686; e-mail:
christian.riel@sw-umwelttechnik.com
Web: www.sw-umwelttechnik.com

Branche: Technology
ISIN: AT0000808209
WKN: 910497
Index: WBI, ATX Prime, ViDX
Börsen: Börse Berlin-Bremen / free trade
Baden-Württembergische Wertpapierbörse / free trade
Börse Düsseldorf / free trade
Wiener Börse AG / official dealing