* Turnover: EUR 576 million (2005: EUR 547 million) * Operating result (excluding restructuring costs): EUR 44.2 million (2005: EUR 39.0 million) * Net group result: EUR 21.2 million (2005: EUR 12.7 million) * Good progress with transformation process * Expected growth in operating result (excluding restructuring costs) for the full year: 5-10%.

Over the entire nine month-period turnover increased by 5% to EUR 576 million (2005: EUR 547 million). Operating result excluding restructuring costs increased by 13% to EUR 44.2 million (2005: EUR 39.0 million). Restructuring costs amounted to EUR 2.3 million (2005: EUR 9.1 million). The net group result increased by 67% to EUR 21.2 million (2005: EUR 12.7 million).

Developments third quarter

In the third quarter Gamma Holding's turnover increased fractionally to EUR 183 million (2005: EUR 182 million). Operating result (excluding restructuring costs) increased by 6% to EUR 11.9 million (2005: EUR 11.2 million). Price pressure and considerably higher energy prices were compensated by, among other things, positive effects from the 'Planning for growth' process and cost-saving measures at Exotic Fabrics. Net group result increased by 81% to EUR 5.4 million (2005: EUR 3.0 million).

Compared to the same period last year, turnover of the Gamma Technologies sector remained unchanged at EUR 117 million. Belting Technology's turnover rose on the back of increased demand, particularly in the United States and Asia. Among other things, the business unit developed specialised process belts for mail-sorting companies, in which three different colours give an indication of the belt's remaining lifespan. Turnover at Sailcloth Technology also increased, mainly due to a more favourable product mix. At Coating & Composite Technology, turnover decreased, particularly in the area of personal protection materials. As reported earlier, this product group is faced with a delay in the delivery of bullet-proof vests to the French police force, as well as with initial delays at the recently set up American office. However, the first deliveries to the French police force will take place in December. Turnover at Filtration Technology is stable.

Turnover of the Comfort & Style sector rose fractionally in the third quarter to EUR 66 million (2005: EUR 65 million). Turnover at Exotic Fabrics increased due to rising demand for the Vlisco top brand and for the youthful Woodin brand. Turnover at Sleep Care Fabrics decreased, mainly due to the fact that on average sales prices were down. In the United States the business unit strengthened its market position in both woven and knitted mattress fabrics.

Good progress with transformation process

In the third quarter good progress was made with the transformation process started earlier, which is focused on both growth and improvement of the cost structure.

At Belting Technology a central assembly centre for the European market was opened in the Czech Republic. Here, modular belts are assembled, as well as PVC and polyurethane conveyor belts. The first belts have been delivered from this new centre. Furthermore, good progress has been made with efficiency improvements in the Netherlands, Spain, Switzerland and the United States, where the four major production locations are located.

Filtration Technology opened a new assembly centre in Mexico for both the Mexican and North American markets. It also started building new facilities in Poland, which will take over part of the Western European assembly activities. The relocation of several weaving activities from Germany to Sweden has been completed.

The restructuring process at Sleep Care Fabrics is going according to plan. More and more production is being relocated from Germany to the Czech Republic. In the meantime the first woven and knitted mattress fabrics have been produced in the new Turkish factory.

The Exotic Fabrics business unit is currently switching from a distribution organisation to a more customer-oriented one. The brands Vlisco, GTP/Uniwax and Woodin are being repositioned, each with its own market focus and approach.

Discontinued operations

Gamma Holding is striving to have the sale of both Ames Europe and the upholstery activities of the Car Fabrics business unit completed by the end of this year.

Outlook

Within both sectors the transformation process is bearing fruit.

In accordance with prior reports Gamma Holding expects the operating result over the full year (excluding restructuring costs) to increase by 5-10% compared to 2005, barring any unforeseen circumstances.

Gamma Holding will publish its annual figures for 2006 on Friday 23 February 2007.


Executive Board, Gamma Holding N.V. Helmond, The Netherlands, 3 November 2006

Profile Gamma Holding develops, manufactures and sells innovative, high-quality textile-based products throughout the world. The company has some 7,300 employees in 39 countries. Its headquarters are located in Helmond (The Netherlands) and its shares are listed on Euronext Amsterdam.

Gamma Holding comprises two sectors, Gamma Technologies and Gamma Comfort & Style, with activities in the field of transport and conveyor belts, filter products, coated fabrics and composites, sailcloth, mattress ticking and exotic fabrics. The company is a leading global player in its selected niche markets.

More information: www.gammaholding.com