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Zapf Creation AG

euro adhoc: Financial Figures/Balance Sheet
Zapf Creation AG: Supervisory Board adopts annual financial statements for 2006 upon receiving unqualified auditor's opinion

  Disclosure announcement transmitted by euro adhoc. The issuer is responsible
  for the content of this announcement.
annual report
01.10.2007
Roedental, Germany, October 1, 2007 - The Supervisory Board of Zapf 
Creation AG, Europe's leading manufacturer of play and functional 
dolls, today adopted the company's annual financial statements for 
the 2006 financial year. Previously, KPMG Deutsche 
Treuhand-Gesellschaft Aktiengesellschaft, 
Wirtschaftsprüfungsgesellschaft, Nuremberg, Germany, had issued an 
unqualified auditor's opinion for Zapf Creation's annual financial 
statements and consolidated financial statements for 2006. The 
company intends to publish its 2006 annual report later this week.
According to the audited financial statements, the Zapf Creation 
Group reports a net result for 2006 (result after taxes) of EUR -12.7
million (previous year: EUR -27.7 million). The difference compared 
to the preliminary result of EUR -11.3 million for the 2006 financial
year that was announced on March 8, 2007, is due to expenses arising 
from a tax audit of the period from 1999 through 2002, which has been
completed in the meantime, as well as allowances for receivables 
related to the company's US activities, which were discontinued as of
the end of 2006. Consolidated earnings before interest and taxes 
(EBIT), adjusted for restructuring costs and one-off expenses, 
improved from EUR -6.2 million to EUR 5.4 million. Consolidated sales
were EUR 116.1 million, down four percent from EUR 120.7 million in 
2005.
The Management Board now aims to rapidly implement the Group's 
long-term financing structure that was agreed to on July 20, 2007. It
provides for a new syndicated loan of EUR 65 million, as well as an 
equity contribution of EUR 30 million that is guaranteed by some of 
the company's major shareholders. The syndicate extended its initial 
deadline for this equity contribution from October 31, 2007, to 
November 30, 2007. Simultaneously, the previous syndicate agreed to 
extend the grace period for repayment of the extant syndicated loan 
of EUR 45 million from October 31, 2007, to November 30, 2007. Plans 
are to raise equity by issuing 3.2 million new shares under the 
extant authorized capital; shareholders will be able to exercise 
their subscription right. Additional details regarding the capital 
increase will be announced shortly.
end of announcement                               euro adhoc 01.10.2007 22:24:31

Further inquiry note:

Frank Elsner
Frank Elsner Kommunikation für Unternehmen GmbH
Phone: + 49 54 04 91 92 0
Fax: + 49 54 04 91 92 29

Branche: Consumer Goods
ISIN: DE0007806002
WKN: 780600
Index: CDAX, Classic All Share, Prime All Share
Börsen: Börse Frankfurt / official dealing/prime standard
Börse Berlin / free trade
Börse Hamburg / free trade
Börse Stuttgart / free trade
Börse Düsseldorf / free trade
Börse Hannover / free trade
Börse München / free trade

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