Funkwerk increases turnover and doubles orders received

5/11/2007, 8:29 AM (Source: GlobeNewswire)
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- Turnover in the first quarter at 56.9 mill. Euro (2006: 53.3 mill.
- Orders received at 144 mill. Euro (2006: 69 mill. Euro)
- EBIT at 0.2 mill. Euro (2006: 0.4 mill. Euro)
- Growth targets for 2007 confirmed

Kölleda, 11th of May 2007. The first quarter of the 2007 financial
year of Funkwerk AG (ISIN: DE0005753149) took place against a
background of acquisitions and a high level of orders received. As a
result, the turnover increased by 6.7 percent to 56.9 mill. Euro,
compared with 53.3 mill. Euro in the previous year. The total orders
received amounted to 144 mill. Euro, meaning that the previous year's
figure of 69 mill. Euro has been more than doubled. The level of
orders on the reporting date at the end of March increased to 148
mill. Euro (previous year: 97 mill. Euro). "This confirms Funkwerk's
perspectives for growth this year," said Chairman of the Board Dr.
Hans Grundner upon presentation of the quarterly report, adding,
"Using innovations and acquisitions, we have expanded existing
strengths and added to our product portfolio in order to tap into new

This has enabled Funkwerk to launch new products in all three
business segments - products that are expected to yield good profits
in the current and coming financial years. Furthermore, the Traffic &
Control Communication sector has been considerably strengthened by
the acquisitions, while, in other product segments, the objective of
market leadership has been reached. Grundner states, "The takeover of
a competitor has made us into one of the leading providers of
information systems for transport companies in Germany and Europe."
The integration of Vossloh Information Technologies (VIT) into the
Funkwerk group is going according to plan and will give considerable
competitive advantages by the end of the year.

Consolidated net income at the previous year's level

Due to integration and consolidation measures plus initial start-up
costs for projects currently being commenced, the operating result
(EBIT) of the technology company listed in the Prime Standard reached
a value of 0.2 mill. Euro (2006: 0.4 mill. Euro). The consolidated
net income lay at the previous year's level with 0.2 mill. Euro.

In the business cycle of the financial year, the first quarter
traditionally shows the weakest turnover for Funkwerk. "For the
further course of the year we expect successively higher turnover
figures and profit contributions, peaking again in the fourth
quarter. In view of the high level of orders and promising business
deals that are in the pipeline, we remain confident of reaching the
growth targets set for 2007," states Grundner. Overall, the board is
currently expecting revenues at group level of around 300 mill. Euro
for an operating result before interest and taxes (EBIT) of
approximately 15 mill. Euro.

Traffic & Control Communication grows due to acquisitions

The largest turnover growth of 15 percent in the first quarter was
achieved by the TCC division - the segment for professional
communication and information systems for traffic and industry, where
the quarterly turnover was up on the previous year's figure of 20.5
mill. Euro at 23.6 mill. Euro. This increase is largely attributable
to the acquisitions of Vossloh Information Technologies and

In the sector for automotive communication equipment (Automotive
Communication, AC), Funkwerk increased its turnover potential in the
first quarter by 14 percent from 12.6 mill. Euro in 2006 to 14.4
mill. Euro. This increase is primarily due to the OEM business with
the automotive industry which alone made 11.1 mill. Euro (2006: 9.7
mill. Euro). "The big contracts already landed and the promising
deals on the table for the supply of UMTS-amplifier units for the
international automobile industry give rise to excellent growth
potential in this product group for the coming years," explains the
Chairman of the Board, Grundner.

The turnover of the Enterprise Communication segment, which
specialises in network solutions, communication and messaging systems
for companies and institutions, lay behind expectations in the first
quarter and, at 18.9 mill. Euro, was down on the previous year's
figure of 20.2 mill. Euro. The causes for this were the increased
competition on the French network component market and difficulties
with the software changeover for the new generation of VPN routers.

Market leadership extended

As a whole, in the first quarter of 2007, Funkwerk has expanded its
position as a provider of professional communication and information
systems for transport companies and industry, that's according to the
Chairman of the Board. "In important product areas such as mobile
radiotelephones, information systems and messaging solutions and also
with high-frequency products for the OEM business with the automotive
industry, we have either become the market leader or have further
extended our leadership position," states a contented Grundner,
reinforcing this by adding. "In addition, the concluded acquisitions
and investments will start to pay off by 2008, so that a
significantly higher turnover potential and result potential will
become apparent in the mid-term."

Funkwerk AG's policy of continual dividend payment, made in the
shareholders' interest, will also be continued this year. The board
and the supervisory board of the shareholders meeting convened for
the 22nd of May therefore propose that an unchanged dividend of 0.35
Euro per share be paid out.

For further information please contact
Funkwerk AG
Im Funkwerk 5
D-99625 Kölleda/Thüringen
Jörg Reichenbach
Investor Relations
Tel.: 0 36 35/458-346
Fax: 0 36 35/6 00 -507

rw konzept GmbH
Emil-Riedel-Straße 18
D-80538 Munich
Sebastian Brunner
Tel.: 0 89/13 95 96 -33
Fax: 0 89/13 95 96 -34
Mobile: 01 75/5 60 46 73

--- End of Message ---

Funkwerk AG
Im Funkwerk 5 Kölleda Germany

WKN: 575314; ISIN:
DE0005753149; Index: HDAX, MIDCAP, CDAX, Prime All Share, TECH All
Listed: Geregelter Markt in Frankfurter Wertpapierbörse, Prime
Standard in Frankfurter Wertpapierbörse,
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in Niedersächsische Börse zu Hannover;
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