- 97 mill. € Sales and 10 mill. € EBIT in fourth quarter
- Sales increased by more than 20 percent to 290.6 mill. € (2006: 241.8 mill. €)
- Operating profit (EBIT) grew by 42 percent to 14.4 mill. € (2006: 10.1 mill.€)
- In 2008 organic sales growth expected in spite of negative market conditions

Funkwerk AG could close a year of transition 2007 in spite of partly difficult markets with a good growth. The fourth quarter of the year contributed with sales in the amount of 97 mill € and an operating profit (EBIT) of more than 10 mill.€ significantly. For the full year Funkwerk increased sales by more than 20 percent to 290.6 mill € (2006:241.8 mill €). Profitability measured by the EBIT-figure improved by more than 42 percent to 14.4 mill € (2006: 10.1 mill €).

Operating result was impacted clearly positive initial successes of a commenced new orientation in all business divisions and by the acquisition and integration of Funkwerk Information Technologies (FIT former Vossloh Information Technologies). Profits after taxes of 6.5 mill € remained almost an the level of prior Year (6.9 mill €). Main reason therefore was a significant higher tax expense of 6.6 mill € (2006: 2.8 mill €) due to new consolidated companies and tax low changes.

In 2008 Funkwerk intends to strengthen its position as supplier of integrated system solutions and thereby increase sales in all business divisions. By product innovations and with an improved competence for systems already in 2007 the basis for continuing growth in 2008 and the following years was found. This became evident in a tremendous improvement of the order backlog. In total 304 mill € incoming orders in last year in comparison with 2006 (226 mill €) increased by appr. 35 percent. Order backlog by year-end 2007 in the amount of 130 mill € had been more than doubled since 2006 (60 mill €). Thereby a major part of 2008 sales plan could be secured.

Based a current analysis and estimations the Executive Board expects to grow sales in 2008 by appr. 7 percent. Annual sales are planned to be 310 mill €. Operating EBIT should be growing significantly again in 2009 due to burdens from restructuring activities and uncertain economic perspective in 2008.

For further information contact:

Funkwerk AG
Im Funkwerk 5
99625 Kölleda/Thuringia
Germany
Jörg Reichenbach
Investor Relations
Telephone: 0 36 35/6 00 -3 46
Fax: 0 36 35/6 00 -507
reichenbach@funkwerk.com