BWT Results First Half 2004 – Dynamic Growth in all Business Segments

In the first 6 months of the 2004 financial year, BWT – Best Water Technology Group – generated a significant year-on-year improvement in sales and earnings. Each business segment contributed to this pleasing development. The Management Board is therefore expecting a clear improvement in sales and earnings for the 2004 financial year as a whole.

Group sales +25.5%

In the first 6 months of 2004, consolidated BWT Group sales rose by 25.5% from € 193.4 m to € 242.7 m. The Aqua Ecolife Technologies segment grew by 24.2% to € 158.1 m, Aqua Systems Technologies business by 26.2% to € 83.2 m. The Fuel Cell Membrane Technologies segment generated sales of € 1.4 m. In the second quarter, there was total turnover of

€ 129.4 m, corresponding to an increase of 35.6% against the previous year (€ 95.4 m).

Order intake +37.1%

The order book level of the BWT Group as at 30 June 2004 was € 137.4 m, up 9% on the previous year. Order intake rose strongly in the first half of 2004, increasing by 37.1% against the previous year to € 275.4 m.

Group earnings +90.6%, EBIT +81.0%

The sales growth in all business segments resulted in an 81% increase in Group EBIT to € 16.3 m. In the second quarter, EBIT was at € 9.6 m, or 7.4% of sales; the comparative figures for the previous year were € 4.1 m and 4.3% respectively. Earnings before tax went up by 95.4% from € 7.8 m in the first half of 2003 to € 15.2 m. Consolidated earnings after minorities increased by 90.6% to € 8.7 m, earnings per share were € 0.49 (previous year: € 0.26).

Gearing further improved

Due to the increase in consolidated earnings, cash flow from result rose by 38% from € 11.3 m to € 15.6 m in the first six months. Despite intensified investment activities and the dividend payment of € 4.3 m, net debt was reduced to € 78.8 m. Gearing was at 60.9%, reaching a low point since the end of 2000. Investment activities in the BWT Group were increased to € 3.5 m, up 25% year-on-year.

As of 30 June 2004, the total number of employees in the BWT Group was 2,696. The increase over the previous year is attributable to the acquisition of HOH.

Outlook

The results of the first 6 months of 2004 confirm the expectations of the Management Board for the current financial year.

Based on the significant order intake to date in the AST segment, the stronger focus on the service business, the dynamic internationalisation of the pharmaceuticals division, as well as the sustained positive development in the AET segment, the Management Board is expecting a very successful business year. The BWT Group is anticipating a double-digit percentage sales increase for 2004 as a whole, resulting in a significant rise in consolidated earnings. Based on the pleasing earnings prospects and in line with the current dividend policy, the Management Board is planning a dividend increase for the current financial year.

About BWT

BWT Best Water Technology today is the leading European water technology group, comprising 65 companies over 2,700 employees. BWT devotes its efforts to the entire water cycle, “from source back to earth”. With its business segments Aqua Ecolife Technologies and Aqua Systems Technologies, the Group offers customised, sustainable products and solutions in the areas of drinking water, swimming pool water, process water, ultra-pure water, and waste water for individual homes, hotels, industry, and municipalities. With its third business segment Fuel Cell Membrane Technologies, BWT is well positioned as a premier supplier of innovative membranes for fuel cells.