- Increase in product range and development competence in the area of information systems - New subsidiary achieves two-digit margins and will make positive earnings contribution by the end of 2007 - microSYST is innovation leader in profitable niche markets Kölleda/Weiden, 23 February 2007. In its latest efforts to access new customer groups and development competences in the area of information systems for industrial applications, Funkwerk AG (ISIN: DE 0005753149) has acquired 100 per cent of shares of microSYST Systemelectronic GmbH, Weiden. This 3.25 million Euro investment will be effective retroactively to 1 January 2007. "microSYST is an important technological asset to us, with access to industrial customers in various sectors of the industry which have not previously been our focus," Dr. Hans Grundner, CEO of Funkwerk, explained today on signing the contract. The acquisition will provide Funkwerk with additional sales potential of well over 5 mill. Euro and a positive contribution to the group results as early as in the current financial year. In the medium to long term, the new subsidiary is also expected to bring about a lasting increase in corporate value. Dr. Grundner: "microSYST is a company which alone gives rise to expectations of steady growth in the two-digit range in both sales and earnings over the next few years. Through networking with other operating units in our Traffic & Control Communication segment, however, we will be able to achieve even more synergies." High innovative ability and flexibility produce two-digit margins Headquartered in the Upper Palatinate town of Weiden, microSYST Systemelectronic GmbH has planned, developed and produced electronic components and systems for special requirements in industry and logistics for over 20 years. Its efforts are focused on display systems for industrial applications and electronic solutions for voucherless goods picking for warehousing and logistics. Due to its innovative, customised product developments and flexible productions, microSYST has been able to achieve two-digit margins. The customers of microSYST include companies from different sectors of the industry, predominantly the automobile industry, along with mechanical engineering, automatic machine manufacturers and mail order businesses. On account of its high innovative ability, microSYST is leading in special industrial fields of application such as displays for production lines, goods picking systems and electronic controls for automatic machines. "Customers value the efficiency, robust nature and reliability of the products and solutions developed by microSYST. Ensuring increased productivity and quicker processes, their use will prove a good return on investment before very long," affirmed Dr. Grundner. Above-average growth in market niches By introducing innovations in various market niches, microSYST has gained a competitive edge of several years, presenting products such as its proprietary pick-to-light system. "This promises a unique position in the market, coupled with above-average growth. From that point of view, microSYST fits the Funkwerk business model perfectly, all the more since we can also use its creativity in product development for our entire Traffic & Control Communication segment," emphasised the Funkwerk CEO. In addition to extending the current range of displays and information systems of Funkwerk and increasing its customer base in the industrial sector, the acquisition will boost the company's own product development efforts in the long run. The bottom-line conclusion drawn by Dr. Grundner: "All these factors should provide for new dynamic growth not only in the current financial year but specifically also in the years to come." Further information on Funkwerk AG: Based in Kölleda near Erfurt, Funkwerk AG develops, produces and markets professional communication systems used in vehicles, transport and other companies and institutions. With its three segments Traffic & Control Communication (communication, management and information systems for transport and logistics companies), Automotive Communication (communication equipment for vehicles) and Enterprise Communication (personal security, messaging systems and access solutions for companies and institutions), Funkwerk occupies a strategically excellent position in future markets. For further information contact Funkwerk AG rw konzept GmbH Im Funkwerk 5 Emil-Riedel-Straße 18 99625 Kölleda/Thuringia 80538 Munich Germany Germany Katrin Schwarz Sebastian Brunner Investor Relations Tel: +49 89/13 95 96 -33 Telephone: +49 36 35/6 00 -3 35 Fax: +49 89/13 95 96 -34 Fax: +49 36 35/6 00 -3 99 Mobile: +49 1 75/5 60 46 73 [email protected] [email protected] Disclaimer "Diese Pressemitteilung sowie die darin enthaltenen Informationen dürfen nicht in die Vereinigten Staaten von Amerika (USA) gebracht oder übertragen werden oder an US-amerikanische Personen (einschließlich juristischer Personen) sowie an Publikationen mit einer allgemeinen Verbreitung in den USA verteilt oder übertragen werden. Jede Verletzung dieser Beschränkung kann einen Verstoß gegen US-amerikanische wertpapierrechtliche Vorschriften begründen. Aktien der Funkwerk Aktiengesellschaft werden in den USA nicht zum Kauf angeboten. 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