Oberkirch, May 8, 2007 - Progress-Werk Oberkirch AG has begun the 2007 financial year with a solid performance. Benefiting from a steady stream of exports, the company managed to expand its business over the course of the first three months, particularly in Europe. Overall, the Group lifted sales revenue to EUR 60.9 million (Q1 2006: 57.4) and total output to EUR 62.8 million (Q1 2006: 59.2). EBIT totalled EUR 3.8 million in the first quarter of 2007, compared with EUR 3.9 million in the same period a year ago. The inclusion of the newly acquired Mexican site in the consolidated group for the first time contributed EUR 4.2 million to revenue and total output respectively - with positive EBIT - in line with forecasts. Having to contend with sluggish conditions in the North American automobile market, the Kitchener-based unit in Canada nevertheless managed to contribute earnings that were significantly above par. On the same time, the Oberkirch location in Germany performed better than originally anticipated. Despite the acquisition in Mexico, finance costs remained relatively stable year on year at EUR 0.9 million (Q1 2006: 0.8). With income tax expense remaining unchanged at EUR 1.1 million, net profit for the period stood at EUR 1.8 million (Q1 2006: 2.0). Earnings per share amounted to EUR 0.70 (Q1 2006: 0.79). Buoyed by net profits, equity rose significantly in the first quarter of 2007, as a result of which the equity ratio remained at a solid 40.9 per cent, compared with 41.8 per cent at the end of the 2006 financial year. This was achieved against the backdrop of an expanded balance sheet total following the first-time consolidation of the newly acquired Mexican enterprise. At the end of the first quarter of 2007 net debt had risen to EUR 40.1 million, compared with EUR 33.0 million at the end of the 2006 financial year. At 55.2 per cent, compared with 48.0 per cent, the gearing remained at the lower end of the company's strategic corridor of between 50 and 80 per cent. An amount of EUR 2.7 million was invested in property, plant and equipment in the first quarter of 2007, as budgeted. Net cash from operating activities, which at EUR 3.1 million remained under last year's figure of EUR 4.2 million due to reporting date factors, was sufficient to cover maintenance capital expenditure of EUR 2.1 million as well as interest payments of EUR 0.5 million. Capital expenditure in Germany and Canada was aimed at maintaining the scope of operations. Beyond this, the investments of EUR 0.6 million channelled into expanding operations at the Czech plant were also financed to a large extent from internal funds. Overall, the first quarter of the current financial year was encouraging. The Group lies within its target range for the year as a whole, which stipulates revenue of around EUR 250 million and EBIT comparable to last year's figure - irrespective of PWO's significant efforts to expand the Group at an international level. As outlined on previous occasions, the Group will be investing heavily in sales, development and controlling structures over the course of 2007. Revenue, total output and earnings are expected to grow significantly in the Czech Republic, boosted in particular by the phase-in of a fourth forming press. Encouraged by the first signs of a market upturn and positive customer responses in Canada, the company is hopeful that business will develop more favourably in the coming months. In Mexico, earnings trended higher in the course of the first quarter of 2007. In view of this, the earnings contribution from this entity is expected to be above par for the 2007 financial year as a whole. The Group's operating unit in China is currently working in close cooperation with customers to speed up approval processes; full-scale production is likely to commence in the second half. Against the backdrop of favourable market conditions, the prospects for further growth in Germany are good. In the first quarter, surging exports proved sufficient to offset the dip in domestic demand. In addition, economic research institutes have forecast additional growth for the coming quarters, which should have a favourable impact on the employment market and private consumption. Progress-Werk Oberkirch AG The Management Board --- End of Message --- Progress-Werk Oberkirch AG Industriestrasse 8 Oberkirch WKN: 696800; ISIN: DE0006968001; Index: CLASSIC All Share, Prime All Share, CDAX; Listed: Amtlicher Markt in Frankfurter Wertpapierbörse, Prime Standard in Frankfurter Wertpapierbörse, Freiverkehr in Börse Berlin Bremen, Freiverkehr in Bayerische Börse München, Freiverkehr in Börse Düsseldorf, Amtlicher Markt in Börse Stuttgart, Freiverkehr in Hanseatische Wertpapierbörse zu Hamburg, Freiverkehr in Niedersächsische Börse zu Hannover;