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Roding, August 04, 2004 - Mühlbauer technology group, listed in the
German Prime Standard, has finalized the second quarter 2004
successfully with the best EBIT since three years and a sales plus of
47.6%. So the earnings before interest and taxes (EBIT) climbed by
205.9% to 5.5 m EUR (1.8), while — based on the improved interest
result (compared with last years Q2) - the earnings before taxes
(EBT) increased to 5.6 m EUR (1.8) in the same period. Thus the
pretax profit margin in the second quarter reached comfortable 16.0%
(7.7%) and reflects  at the same time the leverage potential of
earnings during a time of growing business. 3.4 m EUR (1.2) were
earned net by Mühlbauer in the period under report. That means a plus
of 177.7%. Earnings per share tripled to 0.24 EUR (0.08). The
profitable growth of this year’s first quarter could be continued. On
half year basis EBIT was extended by 143.0% to 7.4 m EUR (3.0) and
earnings per share climbed by 135.7 % to 0.33 EUR (0.14).

As a result of a consistently accomplished working-capital-management
the working capital dropped to a new all-time low of 29.6 m EUR
(39.6), in spite of strong sales at the end of the second quarter.
Based on the additional liquidity caused by this the free cashflow
was growing to +8.8 m EUR (+1.2). With +15.5 m EUR in the first half
of 2004 the free cashflow reached a value far beyond the (+0.7) in
the same period of last year and already 45% above the total free
cashflow in 2003 (+10.6).

Order Income increased in second Quarter 2004 to 63.7 m EUR, that’s
more than double of this figure in Q2/2003 (27.7). Supported by a
majore order for the gradual delivery of a turn-key solution for
manufacturing of ID-cards for a ministry of interior the core
business Smart Identification reached an all time high of 38.2 m EUR
(11.0) - a growth of 246.9%. Also the order income in Semiconductor
Related Products Sector grew by 55.9% to 19.4 m EUR (12.4). The Order
income of 2.3 m EUR in Traceability Sector sets a mark 101.1% above
last years figure (1.2) in the same period, while Precision Parts and
Systems could increase its order income by 25% to 3.8 m EUR (3.1). On
half year basis order income reached 99.5 m EUR (50.9), a growth of
95.4%.

As expected also sales catched up significantly with orders. Sales
improved by 47.6% to 35,3 m EUR (23.9). In regional view Europe
remains the core market of the Mühlbauer company with a quota of
70.6% (73.3%) followed by Asia 22.3% (23.0%). 6.8% (1.9%) of the
sales were realized in the NAFTA-Region and South Americas. The share
of sales in the other regions Africa and Australia was 0.3% (1.8%).
During the first six months of this year the consolidated sales grew
up to 56.3 m EUR (46.7). This means an increase of 20.5%.

The technology group sees the current order backlog of almost 70 m
EUR building a strong base for the further extension of its business.
For supporting the possible growth, this year the company plans
capital expentitures of nearly 8 m EUR. Because of the current market
position and of the conservative accounting policy the Mühlbauer
group assume, a still positive atmosphere in the markets provided,
that they can go on optimising sales and results.

The complete quarterly report II/2004 can be downloaded at
http://www.muehlbauer.de.

For further information’s please contact: Investor Relations, Tel.:
+49 (0) 9461-952-653, Fax: +49 (0) 9461-952-8520, 
investor-relations@muehlbauer.de, Mühlbauer Holding AG & Co. KGaA,
Werner-von-Siemens-Str. 3, D-93426 Roding, www.muehlbauer.de.

end of announcement        euro adhoc 04.08.2004

Further inquiry note:

Hubert Forster
CFO
+49(0)9461-952-141
hubert.forster@muehlbauer.de

Branche: Machine Manufacturing
ISIN: DE0006627201
WKN: 662720
Index: CDAX, Nemax 50, Prime All Share, Prime Standard, Technologie All Share
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