Feintool achieves significant increase in results - in strong position with solid balance sheet structure

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Results for the 2007/08 financial year

The Feintool technology group, based in Lyss (Switzerland), has
reported a significant increase in sales, earnings and net income for
the 2007/08 financial year (ended 30 September). Sales increased by
CHF 48.8 million or 9.4% to CHF 569.2 million (previous year: CHF
520.4 million) and EBIT by 31.4% to CHF 33.9 million - equivalent to
6.0% of sales. Consolidated net income rose by 70.3% to CHF 20.1
million (previous year: CHF 11.8 million). Net debt was reduced by a
further CHF 30 million to CHF 57.9 million (previous year: CHF 88.0
million), while shareholders' equity rose by 7.0% to CHF 204.6
million - giving an equity ratio of 43,1% (previous year: 41.5%).

The Feintool Group can look back on its by and large most successful
financial year at operating level since the IPO in 1998. Despite
one-time costs of around CHF 2,5 million in connection with
structural improvements, the Group was able to achieve a significant
increase in sales and earnings thanks to still relatively buoyant
economic conditions during the first three quarters, a healthy level
of orders in hand at the start of the financial year, and an
attractive range of products and services that provide a high degree
of customer benefit. Following a further increase in order intake and
orders in hand at Group level in the first half of the financial
year, a fall-off was noted as of the third quarter. This decline was
due to the financial crisis and its ramifications for the global
automotive and textile industries.

Feintool's cornerstone Fineblanking/Forming segment raised sales by a
further 8.8% to CHF 367.2 million (previous year: CHF 337.5 million).
Its share of Group sales now stands at 64.4% (previous year: 64.7%).
The segment increased its EBIT by 13.8% to CHF 32.1 million. In the
presses and equipment business, sales of the Feintool and Schmid
brands managed to improve on the high level of preceding years. In
the components business, the European and Japanese factories both
posted double-digit growth rates. In the former case this was due to
new projects for the expanded factory in Jena, while in the latter
case it was attributable to a high export ratio on the part of
Japanese customers. Sales at our US companies were down on the
previous year, primarily owing to the dollar's weakness against the
Swiss franc. Year-on-year, the order intake in this segment fell by
3.2% and orders in hand by 7.0%.

The increase in business at the Automation segment was particularly
impressive: here, sales rose by 21.1% to CHF 141.0 million (up from
CHF 116.4 million in the previous financial year) and accounted for
24.7% of the Group total. This positive development is due to the
high demand for the attractive, updated product range of Automation
Components and to Automation Systems' high volume of orders in hand
at the beginning of the financial year. In the riveting business,
Feintool added innovative products to its line-up. At CHF 10.2
million, EBIT was 39,7% higher than the figure for the previous year
(CHF 7,3 million) thanks to the higher volume. Due to an absence of
major orders, the segment's order intake fell by 8.6% to CHF 134.1
million and orders in hand by 6.2% to CHF 54.4 million.

The Plastic/Metal Components segment reported a 7.8% drop in sales to
CHF 62.2 million (previous year: CHF 67.5 million) and accounted for
10.9% (previous year: 12.9%) of Group sales. EBIT was below the
previous year's level at CHF -0.8 million (CHF -0.3 million). Owing
to the current economic situation, the search for a strategic partner
was suspended. Feintool will continue its optimization and
restructuring activities and its marketing drive with the aim of
achieving a breakeven result in the medium term.

Cash flow significantly increased thanks to optimization of net
working capital
The consolidated cash flow statement shows cash flows from operating
activities of CHF 64.0 million (previous year: CHF 36.6 million). On
practically unchanged cash flow for investing activities at CHF 29.1
million (previous year: CHF 28.5 million) Feintool disclosed a higher
free cash flow than in the previous year at CHF 34.9 million (CHF 8.1
million).

Sharp reduction in net debt
Due to the increase in cash and cash equivalents, total assets were
significantly higher than in the previous year at CHF 475.3 million
(CHF 460.4 million). Net debt was reduced by CHF 30.1 million from
CHF 88.0 million to CHF 57.9 million, primarily thanks to the
optimization of net working capital, and amounted to 28.3% of
shareholders' equity (previous year: 46.0%). As at 30 September 2008,
shareholders' equity stood at CHF 204.6 million (previous year: CHF
191.3 million) and the equity ratio increased to 43.1% (previous
year: 41.5%).

Difficult outlook
Feintool will not be immune from the effects of the global financial
crisis on the real economy. The declining trend in the automotive
industry in particular will have implications for Feintool. As things
stand, volumes and results for the current (2008/09) financial year
are expected to be lower than in the year under review. In the
absence of reliable projections on the part of our customers, it is
not possible to issue any forecasts at present.
In view of the economic environment, the Board of Directors will
propose at the Annual General Meeting on 20 January 2009 that a
reduced dividend of CHF 6.50 per registered share be paid.

Key figures (CHF m) 07/08 Prev. year Change %

Consolidated sales 569.2 520.4 + 9.4
Fineblanking/Forming 367.2 337.5 + 8.8
Automation 141.0 116.4 + 21.1
Plastic/Metal Components 62.2 67.5 - 7.9
EBITDA 56.1 49.9 + 12.4
Operating profit (EBIT) 33.9 25.8 + 31.4
Consolidated net income 20.1 11.8 + 70.3
Total assets 475.3 460.4 + 3.2
Shareholders' equity 204.6 191.3 + 7.0
Net debt 57.9 88.0 - 34.2
Order intake 553.5 586.6 - 5.7
Orders in hand 220.1 237.7 - 7.4

For further information, please contact:
Joachim Kaufmann, CEO, and Jürg E. Wenger, CFO
Phone +41 (0)32 387 51 11

Feintool is a leading technology and systems provider in
fineblanking/forming and assembly automation. It is also a global
supplier of metal and plastic components.

Feintool operates globally at the company's own facilities in
Switzerland (head office in Lyss), Germany, France, Italy, Great
Britain, the United States, Japan and China, where around 1,800
employees are committed to customer satisfaction.

Feintool International Holding
Industriering 8, CH-3250 Lyss
Phone +41 (0)32 387 51 11
Fax +41 (0)32 387 57 81
feintool-fim@feintool.com
www.feintool.com

Corporate Communications

Urs Feitknecht
Phone +41 (0)32 387 51 63
Mobile +41 (0)79 204 41 13
Fax +41 (0)32 387 54 16
urs.feitknecht@feintool.com

The media release can be downloaded from the following link:

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Feintool International Holding
Industriering 8 Lyss Schweiz

WKN:
905428; ISIN: CH0009320091 ; Index: SPI, SPIEX, SSCI;
Listed: Main Market in SWX Swiss Exchange;
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