24.05.2006 – 08:19

SW Umwelttechnik Stoiser & Wolschner AG

euro adhoc: SW Umwelttechnik Stoiser & Wolschner AG
quarterly or semiannual financial statement
SW Umwelttechnik announces first quarter figures

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

24.05.2006

* Revenue up by 15%
* Expansion in Romania
* Record order backlog of EUR 52 million

SW Umwelttechnik Stoiser & Wolschner AG made a bright start to the
year, returning 15% revenue growth in the first quarter. Margins
improved, though as usual they were negative due to seasonal factors.
The sharp devaluation of the Hungarian forint (HUF) added to finance
cost, leading to a decline in profit on ordinary activities (POA).
However record order backlog points to a positive outlook.

In the first quarter of 2006 SW Umwelttechnik posted a 14.6%
year-on-year increase in revenue to EUR9.3m (Q1 2005: EUR8.1m),
reflecting a marked rise in revenue from the Infrastructure sector,
and an upturn in sales in Hungary and Romania.

First quarter figures are a poor guide to SW Umwelttechnik’s
performance over the year as a whole. Due to seasonal factors, the
first quarter normally accounts for only 8-12% of annual revenue, and
timing differences in income and expenses always lead to losses for
the period.

The revenue growth was driven by Hungary, which contributed 69% of
the total  — up from 66% in the like period of 2005 — and Romania
which for the first time generated for 6%. Austria accounted for 21%
(Q1 2005: 29%), and other EU and non-EU countries 4% (Q1 2005: 5%).
Viewed in business segment terms, there was no change in the Water
Conservation sector’s 26% revenue share, while the Engineering sector
contributed only 10% due to delays in awarding contracts (Q1 2005:
22%) and the Infrastructure sector was responsible for 64% of revenue
(Q1 2005: 52%).

The historically negative first-quarter EBIT margin narrowed from 43%
to 34%. EBIT and EBITDA held steady in absolute terms, and were
negative by EUR3.3m (Q1 2005: EUR3.4m) and EUR2.3m (Q1 2005:
EUR2.4m), respectively.

Finance cost rose from EUR0.4m to EUR1.6m due to the sharp
devaluation of the Hungarian forint against the euro. In consequence
the loss on ordinary activities widened to EUR5.0m from EUR3.7m in
the like period of 2005.

SW Umwelttechnik’s head count climbed by 9% year on year to stand at
786 (Q1 2005: 722). The figure includes 46 Romanian employees who
received training in Hungary for their duties at the new factories in
Romania.

Investment focusing on Romania

This year’s business developments will be dominated by expansion in
Romania. The Timisoara works will go into operation in the summer,
and construction of a second factory, near Bucharest, is already
under way. SW Umwelttechnik is also looking at the possibility of a
third Romanian site.

Some EUR2.1m or 21% of the total investment budget of EUR10m was
spent in the first quarter, EUR1m being devoted to the Romanian
factories, EUR0.9m to further expansion of the South Budapest
factory, and EUR0.2m to Austrian operations.

in EURm Q1 2006  Q1 2005
Revenue  9.3     8.1
EBITDA  -2.3    -2.4
EBIT    -3.3    -3.4
POA     -5.0    -3.7

Positive outlook

Management is giving optimistic guidance for 2006 as a whole, and
anticipates revenue and earnings growth.

All SW Umwelttechnik’s businesses are expected to encounter strong
demand in Hungary over the next few years. The main South Budapest
site and the other four factories in the country are well placed to
benefit from good market conditions.

Trading conditions are expected to remain difficult for all the
group’s business sectors in Austria. However the merger of the
Austrian operating subsidiaries into a single organisational
structure should bring significant improvements in the marketing
effort and earnings. Due to the lack of supported electricity
injection tariffs for Austrian biogas plants, only capacity that has
already been accredited will be put out to contract and built in
2006.

Romania is expected to join the EU as early as 2007, creating good
demand conditions for all the group’s businesses there. 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 the commencement of construction of a
factory near Bucharest has been brought forward to the first half of
2006.

As of the end of the first quarter order backlog was 18% up year on
year, to stand at a record EUR52m.

end of announcement                               euro adhoc 24.05.2006 07:45:00

Further inquiry note:

Heinz Wolschner, member of the Management Board
Tel: +43 (0)463 321090; fax: +43 (0)463 37667
Michaela Wolschner, Investor Relations
+43 (0)664 8117662; fax: +43 (0)1 3688686
E-mail: michaela.wolschner@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