21.12.2005 – 07:30

ESCADA AG

euro adhoc: ESCADA AG
Financial Figures/Balance Sheet
ESCADA records significant rise in profits for 2004/2005

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  The issuer is responsible for the content of this announcement.

21.12.2005

Aschheim/Munich, December 21st, 2005 - ESCADA AG completes the fiscal
year 2004/2005 (closing date: October 31st) fully on target with its
forecast and a significant improvement in profitability. According to
preliminary figures sales are up by 3.7%. Despite a persistently
sluggish market for ladies luxury fashion the Group’s sales rose from
625.5 million Euro to 648.6 million Euro. Allowing for currency
adjustments the growth rate was 4.3%. Sales for the ESCADA brand
increased by 5.8% to 436.5 million Euro (2003/2004: 412.7 million
Euro). Revenues for the PRIMERA-Group rose by 2.8% from 205.8 million
Euro to 211.5 million Euro. Allowing for the effects of
de-consolidation, sales at the PRIMERA Group were up by 5.7%.

In 2004/2005 the Group’s earnings before interest, taxes,
depreciation and amortization (EBITDA) rose by 17.8 million to 65.1
million Euro. Compared with last year’s EBITDA of 47.3 million Euro
this increase of 37.6% clearly exceeded the targeted
EBITDA-improvement of at least 10 million Euro. The improvement in
profitability, which outstrips the growth in turnover, is, above all,
due to a 1.3%-rise in the gross profit margin to 61.9%. The positive
effects of process optimizations and efficiency improvements could be
felt in all business divisions of the Group. The ESCADA Group’s
earnings before taxes recorded 28.9 million Euro after 6.5 million
Euro the year before. Earnings after taxes and before minority
interests stands at 14.0 million Euro (2003/2004: 4.5 million Euro).
Thus, ESCADA has regained its capacity to pay out dividends.

The Group lifted its equity ratio from 20.0% to 23.4% per closing
date October 31st 2005, while net debt totaled 207.8 million Euro
(October 31st 2004: 208.7 million Euro).

For the current fiscal year 2005/2006 the Board of Management’s
outlook is optimistic. Given the continued positive and - compared
with last year - significantly higher level of incoming orders plus
the growth measures now introduced, ESCADA seeks to expand Group
sales and to achieve an over-proportional increase in the Group’s
EBITDA and net income.

end of announcement                               euro adhoc 21.12.2005 06:45:00

Further inquiry note:

Viona Brandt
Tel.: +49 (0)89 9944 1336
E-Mail: viona.brandt@de.escada.com

Branche: Clothing
ISIN: DE0005692107
WKN: 569210
Index: SDAX, CDAX, Classic All Share, Prime All Share
Börsen: Frankfurter Wertpapierbörse / official dealing/prime standard
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Bremer Wertpapierbörse (BWB) / free trade
Bayerische Börse / official dealing
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Bayerische Börse / official dealing