euro adhoc: SW Umwelttechnik Stoiser & Wolschner AG (english)

Klagenfurt, 26.05.2004 - Disclosure announcement transmitted by euro adhoc.The issuer is responsible for the content of this announcement.

Klagenfurt, 26.05.2004 - Disclosure announcement transmitted by euro adhoc.The issuer is responsible for the content of this announcement.

SW Umwelttechnik Stoiser & Wolschner SW Umwelttechnik announces 1.results for first quarter of 2004

* Continued upturn in revenue and earnings* Good capacity utilisation at Hungarian factories* Order bookings more than trebled in first quarter* Positive impact of forint revaluation on finance cost

In the first quarter of 2004 SW Umwelttechnik?s revenue increased by4.0% to EUR8.6 million (m) (Q1 2003: EUR8.3m). Growth was driven bystrong capacity utilisation at the company?s Hungarian factories,which more than offset the effects of delays in contract awards toits Engineering sector as a result of public spending restrictionsand of flat construction activity in Austria.

Strong demand in Hungary was reflected by an increase in thecontribution of this geographical market to group revenue to 80%,from 68% in the like period of 2003. revenue generated in Austriafell from 21% to 17% of the total, while other EU countries accountedfor 3% of turnover. In terms of the group?s business segments, therewas a temporary rise in the revenue contribution of theInfrastructure sector from 39% to 63% due to exceptionally highcapacity utilisation in the first quarter. The contributions of theEngineering and Water Conservation sectors fell from 30% to 13%, andfrom 31% to 24%, respectively.

It should be noted that the first quarter is an unreliable guide toperformance over the year as a whole. It normally accounts for only10--15% of annual revenue due to seasonal factors. The differingseasonal distribution of income and expenses leads to negativeresults for the period.

In the first quarter of 2004 EBITDA was negative by EUR1.1m - a gainof 12.8% from the EUR1.3m loss in the like period of 2003 - and theloss before interest and tax narrowed by 12.1% to EUR1.1m (Q1 2003:negative EBIT EUR1.3m). These improvements reflect the extensiveinvestment programmes and restructuring of recent years. Due to therevaluation of the Hungarian forint against the euro the net resultfor financial items swung from finance cost of EUR0.9m to positiveamount of EUR0.6m, helping to cut the loss on ordinary activitiesfrom EUR3.2m to EUR1.4m.

Investment programme focused on Hungary

Following the completion of the major investments of the past threeyears at a cost of EUR22m, the investment budget for 2004 has beenset at approx. EUR2.5m. During the first quarter EUR0.6m or 24% ofthis amount was spent. This year the lion?s share of capitalexpenditure-about 70% - will be channelled to operations in CEEcountries.

SW Umwelttechnik?s head count for the period was 1.2% up year on yearat 691 (Q1 2003: 683).


Order intake trebled as compared to the same period of 2003, liftingorder backlog by 13.2% to EUR28.3m. This confirms the positive trendseen in the second half of 2003, and management anticipates a markedimprovement in earnings in 2004.

* EU enlargement is providing a major impetus to economic growth in SW Umwelttechnik?s main market. * In Hungary, demand from commercial and industrial customers for the Infrastructure sector?s products is growing. The good figures from this business show the potential created by the investment programme.* Following last year?s problems due to delays in Hungarian contract awards for wastewater treatment plants and sewerage projects, and uncertainties about Austrian electricity injection tariffs for biogas plants, in the first quarter of 2004 the Engineering sector registered record order intake, meaning that good capacity utilisation is assured for the rest of the year. * In Austria, where trading conditions remain difficult, the company is continuing to replace low-margin standard products by technically advanced solutions. By strengthening its ranges of surface water protection systems and masts, it hopes to increase its shares of these profitable market segments.* Another favourable effect of EU enlargement is new openings for exports from the company?s current home markets to accession states. A sales drive has been mounted to tap these opportunities.

Further inquiry note:DI Heinz Wolschner, Vorstand der SW UmwelttechnikTel.: 0043/463/32109-0, Fax: 0043/463/37667MMag. Christian Riel, Finanzen/Investor RelationsTel.: 0043/664/4337105, Fax: 0043/1/3688686,mailto:christian.riel@sw-umwelttechnik.atWebsite: http://www.sw-umwelttechnik.atTel: 0043-463-32109FAX: 0043-463-37667Email:

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WKN: 080820ISIN: AT0000808209Marktsegment: ATX Prime, ViDX, WBI, official dealing Wiener BörseAG; free trade Berliner Wertpapierbörse, Börse Düsseldorf,Baden-Württembergische Wertpapierbörse

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