First semester EBIT increases by 66% to CHF 7.8 million Steinhausen, November 17, 2006 - The Zug-based electronics group improved its performance significantly in the first semester of the current financial year, ended September 30, 2006. While bookings rose by 8.3% to CHF 114 million (in local currency +7.1%) and operating revenue increased by 4.6% to CHF 107 million (in local currency +3.4%), net profit improved by 49% to CHF 5.2 million over the prior year period. For the full year the group expects a moderate increase in operating revenue and a full achievement of its profit targets. Improvements of manufacturing processes and economy of scale effects hiked the gross profit margin to 45%, up 2.4 percentage points over the same period of the previous year and, therefore, the ongoing market price erosion was more than offset. Operating expenses as a percentage of sales were reduced slightly and, consequently, the EBIT margin improved from 4.7% to 7.3% of revenue. At September 30, 2006, equity amounted to CHF 116.6 million, an increase of CHF 5.0 million compared with March 31, 2006 and equalling 60% of total assets. After payment of the share capital reduction on October 17, 2006, the pro forma equity as per September 30, 2006 amounts to 54% of total assets. Please click on the link below to access the full 2006 Interim Report of the Carlo Gavazzi Group. http://hugin.info/100205/R/1088766/191250.pdf About Carlo Gavazzi: Carlo Gavazzi is a publicly quoted (SWX: GAV), international electronics group with activities in the design and marketing of electronic control components for industrial automation, in electronic packaging, embedded computing and in system integration. Please visit our website: www.carlogavazzi.com For further information please contact: Werner S. Welti Carlo Gavazzi Holding AG Phone +41 79 677 70 77 The press release can also be downloaded from the following link: --- End of Message --- WKN: 869279; ISIN: CH0011003594; Index: SPI, SPIEX, SSCI; Listed: Main Market in SWX Swiss Exchange;