In 2006, WMH Group net sales increased by 12.2% to CHF 773.9 million. Substantial improvements in income to record levels are expected in all business segments. WMH Group WMH, the distribution and industrial group, generated net sales of CHF 773.9 million in 2006 Compared to the previous year, this is an increase of 12.2%, or 10.7% net of exchange and consolidation effects. All business segments of WMH - WMH Tools, WMH Air Conditioning, and WMH Heating - contributed to this very pleasing performance. The most important influencing factors were the good economic situation and gains in market shares. The high income growth of the first half-year was maintained in the second half-year. Net sales in 2006 2005 Change Change CHF net of million exch. & consol. effects WMH Tools 335.4 290.0 15.6% 11.0% WMH Air 267.5 231.9 15.4% 14.2% Conditioning WMH Heating 171.0 168.1 1.8% 5.2% WMH Group 773.9 690.0 12.2% 10.7% WMH Tools WMH Tools increased its net sales by 11.0% to CHF 335.4 million after adjustment for exchange and consolidation effects. The profitability of WMH Tools was again sharply increased. In the USA, net sales by WMH Tool Group of woodworking and metalworking machines as well as material handling and workholding products were slightly higher than the previous year. Market-related lower sales of woodworking machines were compensated by other activities. Sales in Europe were almost doubled. This was mainly attributable to a pleasing expansion of the market in Russia. The expected costs of the product recall by a major customer in Canada were recognized in the income statement in the reporting year. The activities of Walter Meier Group with CNC machine tools and tools in the Swiss market and adjacent regions of other German-speaking countries developed well in the reporting year. At Mato CNC-Machines, loss of the distribution rights of the most important supplier caused total impairment of the goodwill. WMH Air Conditioning Also extremely pleasing was development of the WMH Air Conditioning business. Net sales of CHF 267.5 million surpassed last year's amount by 14.2% after adjustment for exchange effects. All business sectors and regions contributed to the sales growth. A record result is expected. Axair Products benefited from a worldwide increase in demand for unit air humidifiers and air humidification systems. In Canada, despite higher costs caused by the increased value of the local currency relative to the US dollar, Axair Nortec raised its income by improving efficiency. Good economic conditions in the relevant markets of Switzerland, Germany, France, and the UK brought record sales to Axair Distribution. Contributions came from the air humidification as well as the air conditioning activities. Faster-than-expected progress was made on the turnaround at Axair Climate in the UK, and profitability was reached in 2006. Axair Engineering also posted a solid increase in sales and income. A project-related fall in sales of inlet air cooling systems for gas turbines was compensated by expansion of the business in adiabatic air humidification and air cooling systems in North America. Charles Hasler also earned substantially higher sales and operating income than last year with components for refrigeration systems, air conditioning systems, and heat pumps. WMH Heating Sales of WMH Heating increased by 5.2% to CHF 171.0 million net of consolidation effects from the sale of Oertli Induflame. The previous year's record result should again be exceeded. Vescal was able to sharply increase net sales as well as income thanks to a strong Swiss construction industry as well as gains in market shares in the sector for heat production with alternative technologies (heat pumps, pellets, solar, etc.) and associated systems business. Oertli Service once more managed to improve both net sales and income despite falling service orders in the oil-fired heating sector. This was also not least thanks to expansion of the service offerings in the sector for alternative heat producers. WMH is a globally active group of distribution and industrial companies with three business segments: WMH Tools, WMH Air Conditioning, and WMH Heating. The main focus is on manufacturing and distributing leading-edge tools, machine tools, and systems for woodworking and metalworking, air conditioning, and heating. In all fields of activity the company holds, or strives for, positions of international market leadership (for heating systems, in Switzerland only). The companies of the WMH Group have a total workforce of around 1800 employees. The shares of WMH are listed on the SWX Swiss Exchange (security number 1594024). Dates: March 27, 2007 Media and financial analysts' conference for the annual report 2006 April 24, 2007 Annual shareholders' meeting Further Information: * Silvan G.-R. Meier, CEO * Daniel Maissen, CFO Stäfa, February 8, 2007 You will find this media release along with further information at www.wmh.ch. The media release can be downloaded in PDF format from the following link: --- End of Message --- WKN: 1594024; ISIN: CH0015940247; Index: SPI, SPIEX, SSCI; ;