Conzzeta Group: Slight increase in revenues and stable result

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Zurich, October 13, 2008. - During the first eight months of the
current year, the Conzzeta Group's businesses performed at the same
level as in the previous year. Consolidated net revenues increased by
3.1% to CHF 985.3 (955.6) million. After adjustment for currency
translation effects, revenue growth amounted to 7.7%. The operating
profit (EBIT) was CHF 73.6 (74.7) million, slightly lower than for
the corresponding period of 2007. Revenues and earnings were affected
by the unfavorable currency situation. On the basis of the current
order situation, it is possible that the present revenue trend will
be maintained up to the end of 2008. The operating result in 2008
will be slightly lower than in 2007 owing to the negative impact of
currency effects and the rise in procurement costs.

In the four months from May to August, Conzzeta's markets remained
robust despite the financial crisis, high raw material prices and
increasing economic uncertainties. However, developments in the
various business units and their markets showed a mixed picture.
Compared with the first eight months of last year, consolidated net
revenues grew by 3.1% to CHF 985.3 (955.6) million. The weakness of
key export currencies (USD, GBP, KRW) continued to exert a negative
influence through the second four-month period. After adjustment for
currency translation effects, Conzzeta's consolidated net revenues
showed a 7.7% increase compared with the first eight months of last
year. The operating margin (EBIT) of 7.2% (7.8%) was slightly lower
than for the corresponding period of 2007. Operating profit was
reduced by special costs of around CHF 10 million arising from the
closure of the natural latex foam production facility. Group profit
of CHF 59.8 (112.5) million was on a par with 2007, once last year's
extraordinary profit of CHF 56.3 million is factored out.

Business units

In a generally positive capital goods market, the Sheet Metal
Processing Systems business unit (Bystronic) increased its sales in
the first two-thirds of the year to CHF 513.1 (502.0) million (+2,2%;
currency-adjusted: +8%). Growth in the Chinese and southeast Asian
markets was below expectations, while in the USA sales were higher
than last year. The opening of a branch office in Canada extended
Bystronic's marketing network. Capacity utilization in the current
year was sustained at the high levels recorded last year. Incoming
orders for the year so far increased in Europe, Russia and Brazil.
Generally, however, the order intake is tending to flatten out.

Glass Processing Systems business unit (Bystronic glass) maintained
an upward course in the reporting period, with sales rising 11.7% to
CHF 173.3 (155.2) million. The growth momentum was particularly
strong from some European markets, as well as China, Russia and the
Middle East, while demand in the USA and Great Britain came to a
virtual standstill because of the housing market crisis. Elsewhere in
Europe, demand for architectural glass processing systems appears to
be faltering. On a more promising note for the future development of
the business unit, there was liverly interest in integrated glass
processing systems and production plant for laminated safety glass
and solar cells.

With sales of CHF 35.1 (47.1) million at the end of August 2008,
Automation Systems business unit (ixmation) was unable to make good
the sales deficit on the previous year. Comparisons with the previous
period have only limited value, as the business unit subsequently
received engineering orders from customers on existing projects
delaying delivery. A further deferment of sales arose because
ixmation's plant in the USA was damaged by a tornado at the beginning
of August, resulting in a month-long delay in assembly and delivery.
At all ixmation subsidiaries (USA, Switzerland, Malaysia and China),
incoming orders and order backlogs are well above 2007 levels. Growth
was particularly marked in sales of manufacturing equipment for solar
cells and medical equipment in the USA and in Asia.

The Foam Materials business unit (FoamPartner) reported sales of CHF
104.7 (105.8) million at the end of August 2008, almost on a par with
the previous year. The market for polyurethane foams stagnated in
both Europe and the USA in the second four-month period of 2008. By
contrast, Asian markets grew strongly. At the end of 2008,
FoamPartner will cease manufacture of natural latex products in
Switzerland owing to a lack of orders and profitability. Appropriate
provisions were formed in the financial statements for the first four
months of 2008 as well as at the end of 2007 to cover the cost of
shutdown and the value adjustment on the investment. At the new foam
processing plant in China, the first products for the local market
came on stream in mid-September 2008.

The Sporting Goods business unit (Mammut Sports Group) reported sales
of CHF 111.9 (102.4) million at the end of August 2008, a 9.2%
improvement on the previous year. Mammut Sports Group achieved clear
growth in all its major markets. Even in the USA, the sales figures
were higher, despite the weakness of the US currency. The growth
trend in the clothing segment was particularly pleasing. Pre-orders
for the 2008/09 winter season provided further grounds for
confidence. The first retail outlet in Asia was established with the
opening of a Mammut Store in Tokyo.

Schmid Rhyner (varnishes and adhesives), which is consolidated under
Other Industrial Activities, put in another convincing performance,
generating steady growth in the second four months of 2008. Demand
for print finishing products in the packaging and commercial printing
segments was especially strong. Schmid Rhyner established its first
foothold abroad with a sales office in the USA.

Outlook

On the basis of the current order situation, it is possible that the
present revenue trend will be maintained up to the end of 2008. In
view of the negative exchange-rate effects and rising procurement
costs, the Group does not expect to match the 2007 result, which was
also buoyed by an unusually strong surge in revenues during the last
third of the year. With signs of a fall-off in incoming orders in the
capital goods market already clearly apparent, the Conzzeta Group
expects the economic downturn forecast for the period ahead will have
a negative impact on the performance of its businesses in the coming
year.

For further information, please contact:
Carlo Menotti, Head of Corporate Services
Phone +41 44 468 24 84
media@conzzeta.ch

The Conzzeta Group is an internationally active industrial holding
company, with over 3,500 employees worldwide. Its core business areas
are machinery and systems engineering, and the manufacture of
consumer and industrial products. Conzzeta's shares are listed on the
SWX Swiss Exchange (SWX:CZH).

The News Release including consolidated income statement can be
downloaded from the following link:

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Conzzeta AG
Giesshübelstrasse 45 Zürich Switzerland

WKN: 265798;
ISIN: CH0002657986; Index: SPI, SSCI, SPIEX;
Listed: Main Market in SWX Swiss Exchange;
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