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PANDATEL AG i.A.

euro adhoc: PANDATEL AG
Annual Reports
Pandatel presents the 2003 financial figures, which stand under the sign of investments in new products and ongoing pressure on prices (E)

  Disclosure announcement transmitted by euro adhoc.
  The issuer is responsible for the content of this announcement.
Hamburg, March 22, 2004. In financial 2003, Pandatel AG posted sales
of EUR 20.1m, down 29% on the year. Given the ongoing price squeeze,
dwindling order volumes in the telecom equipment provider market as
well as additional investments in Sales and R&D, the company was
forced to absorb a loss of EUR 5.7m, compared with one of EUR 1.4m
one year before. The loss before interest and taxes came to EUR 8.2m
compared with EBIT of EUR 3.8m a year earlier. It bears considering
here that both demand and sales have picked up noticeably since Q2
2003. As at Dec. 31, 2003 Pandatel’s equity ratio ran at 94.3% as
against 94.9% one year earlier. The company carries cash and cash
equivalents of EUR 22.4 as compared with EUR 24.8m twelve months
before, and reported a net cash outflow of 3.9m, contrasting with the
2002 inflow of EUR 129 thousand.
European business relatively stable, Asia and America significantly
weaker
Sales in the EMEA (Europe, Mid East, Africa) were only 7.8% down on
the year, a satisfactory result given the political situation in the
Near East. EMEA contributed EUR 13.7m in sales, with east Europe and
Great Britain the main sales markets alongside Germany. US business
was influenced by the restructuring of Pandatel Inc. The Asia Pacific
region paid tribute to the weak dollar and the SARS outbreak. The two
regions saw sales slump 48% and 50% respectively.
Cost-cutting agenda implemented and product drive launched
Following massive investments in developing new products last year,
in the current year Pandatel intends to optimally exploit all the
cost-cutting potential available. The goal of the agenda termed
ProVit 2004 is to slash costs by some EUR 2m, with a further EUR 1m
being saved by enhancing planning and process efficiency. Key factors
here: demand-driven streamlining of the product and service range,
ongoing standardization of components production and optimisation of
the logistics chain. In the current year, Pandatel is targeting a 10%
increase in efficiency for the organization as a whole. That said,
the company not only withes to make savings, it is also committed to
boosting sales with newly developed products. The product offensive,
featuring 15 new product launches thru July 2004, is expected to
bring the overall sales potential to about EUR 30m in the course of
the current business year, with the company breaking even in the
process.
end of announcement        euro adhoc 22.03.2004

Further inquiry note:

Pandatel AG
Dietlinde Bamberger
Investor Relations

Branche: Telecommunications Equipment
ISIN: DE0006916307
WKN: 691630
Index: Prime All Share, Prime Standard
Börsen: Frankfurter Wertpapierbörse / regulated dealing
Niedersächsische Börse zu Hannover / free trade
Berliner Wertpapierbörse / free trade
Bayerische Börse / free trade
Hamburger Wertpapierbörse / free trade
Bremer Wertpapierbörse (BWB) / free trade
Börse Düsseldorf / free trade
Baden-Württembergische Wertpapierbörse / free trade

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