Feintool Group's business results for financial year 2008/09: Turbulent year for the Feintool Group

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As a result of the collapse of production and sales in the
international automotive markets, the Feintool Group ended financial
year 2008/09 with a 35% year-on-year fall in sales to CHF 370 million
and net earnings of CHF -67.5 million. The results were heavily
burdened by one-off costs of CHF 40 million. The operating result
(EBIT) came to CHF -58.7 million.

Net debt rose by nearly 12% on the previous year to CHF 64.8 million.
With shareholders' equity at CHF 142.3 million, the equity ratio fell
4.8% to 38.3%.

Order intake slumped at the beginning of the financial year, but
stabilized at a low level in the course of the year. A modest
recovery began to appear in certain sectors towards the end of the
financial year. Overall, order intake fell 49% to CHF 282.5 million.
Orders in hand fell 45.1% to CHF 120.9 million.

The steps that the company has initiated or already implemented will
enable it to benefit from any recovery in its markets. The Feintool
Group anticipates sales of CHF 340 to 350 million in financial year
2009/10. Making allowance for the closure of one production site,
this represents a slight increase. A slightly negative operating
result is expected.

Key financial figures at a glance:

+-------------------------------------------------------------------+
| Figures in CHF | Change | 30.09.2009 | 30.09.2008 |
| | in % | (CHF m) | (CHF m) |
|--------------------------------+--------+------------+------------|
| Fineblanking/Forming sales | -34.7 | 239.8 | 367.2 |
|--------------------------------+--------+------------+------------|
| Automation sales | -32.8 | 94.8 | 141.0 |
|--------------------------------+--------+------------+------------|
| Plastic/Metal Components sales | -42.3 | 35.9 | 62.2 |
|--------------------------------+--------+------------+------------|
| Feintool Group sales | -35.0 | 370.0 | 569.2 |
|--------------------------------+--------+------------+------------|
| Earnings before interest, tax, | | -29.6 | 56.1 |
| depreciation | | | |
| and amortization (EBITDA) | | | |
|--------------------------------+--------+------------+------------|
| Operating profit (EBIT) | | -58.7 | 33.9 |
|--------------------------------+--------+------------+------------|
| Net earnings | | -67.5 | 20.1 |
|--------------------------------+--------+------------+------------|
| Total assets | -21.8 | 371.7 | 475.3 |
|--------------------------------+--------+------------+------------|
| Shareholders' equity | -30.5 | 142.3 | 204.6 |
|--------------------------------+--------+------------+------------|
| Net debt | +11.9 | 64.8 | 57.9 |
|--------------------------------+--------+------------+------------|
| Orders received | -49.0 | 282.5 | 553.5 |
|--------------------------------+--------+------------+------------|
| Orders backlog | -45.1 | 120.9 | 220.1 |
+-------------------------------------------------------------------+

Chairman of the Board of Directors Alexander von Witzleben summarized
financial year 2008/09 as follows:

"The difficult situation on the international automotive markets was
directly reflected in the Feintool Group's figures. The result was a
double-digit slump in sales for the System Parts segment and a
dramatic fall up to 70% in incoming orders for the Technology and
Automation segments.

Our object was - and is still - to respond to these drastic
developments in a systematic manner. The measures taken dominated the
business year and have left obvious traces. We succeeded in
implementing key improvements and securing long-term financing in
financial year 2008/09. With a significantly lower cost base and
adjusted capacities we are equipped to deal with the challenges that
lie ahead and restore the Feintool Group to a profitable growth
trajectory."

Summary of financial year 2008/09
In financial year 2008/09, the economic situation had an obvious
impact on the Feintool Group as a leading technology and systems
provider in fineblanking/forming and assembly automation, as well as
a global supplier of fineblanked metal components to the automotive
industry. The operating result (EBIT) came to CHF -58.7 million owing
to the 35% year-on-year fall in sales to CHF 370 million and the
attendant decline in the contribution margin at gross profit level
due to order shortfalls in the United States and one-time expenses
amounting to CHF 40.0 million. The company's net earnings totalled
CHF -67.5 million.

Order intake virtually halved to CHF 282.5 million. Orders in hand
fell similarly heavily by 45.1% year-on-year, totalling CHF 120.9
million on 30 September 2009. At the same time net debt rose 11.9% to
CHF 64.8 million. With shareholders' equity at CHF 142.3 million, the
equity ratio fell to 38.3%.

Little cash outflow despite
loss

Cash flows from operating activities were modest at CHF -4.6 million
despite the high net loss. This was helped by the positive effect of
the reduction in net working capital (CHF 21.0 million). Investment
was reduced to a minimum owing to the business situation. This was
reflected in cash flows for investing activities of only CHF 8.1
million. Despite these measures, cash drain in financial year 2008/09
came to CHF 12.7 million.

Dividend

At the Annual General Meeting on 26 January 2010, the Board of
Directors will be proposing that no dividend be paid owing to the
challenging economic environment.

The Feintool segments at a glance:

Differing reactions in press and series parts business
Sales and earnings in Fineblanking/Forming, which comprises the
presses and systems business area and the parts manufacturing
business area, slumped as a result of global economic developments in
the segment's core markets in the automotive industry. Sales fell
34.7% on the previous year's record level to CHF 239.8 million. This
represents 64.7% of Group sales.

In the press and systems business, the economic crisis made its
impact felt around three to six months later than in series parts
production, where sales had started to fall substantially in October
2008. By contrast, press orders virtually dried up towards the end of
the financial year, whereas series parts staged a partial recovery.

In Japan in particular, monthly sales showed a year-on-year increase
in the final quarter. At CHF -20.2 million, the segment's EBIT was
significantly lower than in the strong financial year 2007/08 (CHF
32.1 million). At CHF 84.0 million on 30 September 2009, orders in
hand were 44.1% lower than the previous year, while order intake was
50.5% lower at CHF 178.1 million.

Overall significant cost savings and capacity adjustments were
achieved. However, there was a time lag in implementing these
measures because of the sudden nature of the collapse. This
technology-driven segment is vitally dependent on the expertise of
its employees, and for that reason headcount was adjusted only where
it did not affect any new projects.

Furthermore, a new generation of presses which will stimulate future
growth is ready for market launch. To improve transparency, the
segment will be divided into Fineblanking/Technology and System Parts
as of 1 October 2010 and the two areas' results will be reported
separately.

Delayed and varying impact on Automation
The Automation segment, which brings together the expertise of
leading automation specialists, benefitted from the very good order
situation in the first half of financial year 2008/09, but also felt
the effects of customers' declining willingness to invest in the
second half.

Sales dropped 32.7% to CHF 94.8 million or 25.6% of Group sales, At
CHF -6.8 million, the segment's EBIT was also significantly lower
than in financial year 2007/08 (CHF 10.2 million). Orders in hand
were 54.2% lower than the previous year at CHF 24.9 million due to
the modest new order intake of CHF 72.1 million (46.2% below the
previous year).

In all areas of the segment, Feintool responded by realigning itself
with the lower level of sales. Headcount at all sites was brought
into line with the order situation. Furthermore, the unprofitable
site in Aarberg (Switzerland) was merged with Afag Automation AG in
Huttwil (Switzerland). Sales and servicing activities for the IMA
brand in Switzerland will be managed from Huttwil in future.
Production at Aarberg will cease at the end of January 2010.

Feintool is continuing to successfully enter the solar and medical
technology markets with the aim of permanently reducing its
dependency on the automotive industry to under 50%. Afag Automation
AG's components business portfolio is being systematically expanded,
while Baltec, the world market leader in riveting technology, is also
conquering new markets.

Plastic/Metal Components segment being dissolved

The process of closing down the Plastic/Metal Components segment in
the form of Mühlemann AG in Biberist (Switzerland) is progressing on
schedule and will end on 31 March 2010. As expected, sales fell 42.3%
to CHF 35.9 million. EBIT was significantly negative due to high
restructuring costs. However, the smallest segment - with a 9.7%
share of sales - impacted heavily on the Feintool Group's results.

The Feintool regions
Sales by region displayed a varied trend. The year-on-year comparison
shows a shift in sales from Europe to North America and Asia. Sales
were down 41.1% in Europe, and 22.4% in North America. Sales in Japan
fell by only 7.4%. The Feintool Group generated 62.4% of its sales in
Europe, 18.5% in North America, 9.8% in Japan and 9.3% in the rest of
the world.

Outlook

The steps that the company has initiated or already implemented will
enable it to benefit from any recovery in its markets. The Feintool
Group anticipates sales of CHF 340 to 350 million in financial year
2009/10. Making allowance for the closure of one production site,
this represents a slight increase. A slightly negative operating
result is expected.

As things look at the moment, the series part business has bottomed
out. After a good start, the indications are that System Parts will
continue to develop positively in the second quarter of 2009/10.
Other factors - such as a fresh hike in oil prices - remain
uncertain. Feintool expects difficult conditions characterized by
short-term fluctuations in call-off volumes to continue in the new
financial year. Despite this, the Group anticipates a positive
operating result in all regions in financial year 2009/10

Feintool's system business is late-cyclical and benefits from
economic stimuli after a time lag of around six months. Even with a
nascent economic recovery, the current, lower order intake will
impact negatively for at least another six months in the new
financial year. An investment-driven boost can be expected as soon as
the business situation improves.

Within the Automation segment, Afag Automation AG is very well
equipped for financial year 2009/10 with new products and successful
site optimization. Baltec, the global leader in riveting machines,
will strengthen its involvement in the BRIC markets. In the
automation systems business, the groundwork has been laid for the
move into solar and medical technology. This direction is being
pursued rigorously. Feintool has responded systematically in all
three business areas of the segment. Despite this, Feintool expects
financial year 2009/10 to be difficult due to the time lag in the
systems business.

Additional authorized
capital

At the Annual General Meeting on 26 January 2010, the Board of
Directors will be proposing that authorized capital equivalent to
around 25% of existing capital be created by the issue of 191,000 new
shares with a nominal value of CHF 50.--. This authorized capital
will give the Board of Directors additional shareholders' equity if
it should require it.

Further information may be obtained from Karin Labhart, Media
Spokesperson, at any time by calling +41 (0)32 387 51 63 or e-mailing
karin.labhart@feintool.com.

Feintool International Holding AG
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

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 SIX Swiss Exchange;
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