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Zurich, March 6, 2007 - Von Roll increased both orders received and sales in the 2006 financial year by 19% to CHF 574.2 million and CHF 547.9 million respectively and continued herewith the growth of the previous year. The PAT of CHF 23.5 million represents an above-average increase of 53% com-pared to CHF 15.3 million earned in 2005.

The demand for Von Roll’s electro insulation solutions to improve the energy efficiency of electricity generators and electric motors was positive in all geographical markets. Interest in the Von Roll range of fibre-reinforced composites also increased. The technological innovations in this field were well received by the market. This was reflected in the Electrical Business Unit, where orders received with CHF 441.2 million and sales with CHF 415.3 million grew by 21%. Orders received in the Industrial Busi-ness Unit rose by 13% to CHF 133.0 million and sales by 12% to CHF 132.6 million.

Market opportunities utilized Against the background of a positive market environment, the rise in the price of copper by approx. 70% over the course of 2006 resulted in a sales increase of approx. 9%, as the fluctuations of the copper price were passed on to customers. Discounting the copper effect, sales in Europe rose by 11% in 2006. The American region showed no change against the previous year due to a slight slow-down in the final two quarters. In the strategically important Asian market, an impressive increase of 22% was achieved. With the additional production capacity operational since the beginning of 2006 at the plant in Bangalore (India) and due to the plant in Shanghai (China) opened in September 2006, the chances of capitalizing on the substantial growth potential in these markets have improved significantly.

Demanding raw material situation The positive development of the market demand is however confronted with a continually demanding raw material situation. As indicated above the copper price volatility was significant, although it was possible to secure availability. For other raw materials such as aramid and carbon fibres, epoxy resins and certain chemicals however, a significant rise in the purchase price and supply bottlenecks were observed. Rising energy costs also dragged results downwards.

Increase of productivity In spite of these negative factors the EBIT for the 2006 business year without non-recurrent effects was almost doubled from CHF 17.9 million to CHF 35.3 million and the PAT, at CHF 23.5 million, rose considerably more than the increase in turnover. This was made possible solely by additional measures taken to increase productivity. Additional streamlining measures in terms of organization were thus undertaken in 2006 and efforts were devoted to optimizing business processes.

Outlook In its core business solutions for electrical insulations, Von Roll has a leading market position. This market will keep growing: expansion of the power generation, public traffic, industrial capacity etc. worldwide. Thanks to its strategic positioning and its regained financial strength, Von Roll is able to tap this potential pro-actively. Measures for further strengthening of the market position as well as increasing productivity are taken, among others an investment program of about CHF 100 million over the coming three years. These measures and further growth can be financed by own means.

From today’s view, the formerly set mid-term targets of about 8% operating EBIT and 5% PAT will probably be already reached during the current year, that means one year earlier than previously communicated. based on the foreseen market development and its strategic and financial positioning, Von Roll set new mid-term targets: 8% growth of sales p.a. and an operating EBIT margin of 12%. According to the expected course of business in the current year, Von Roll assumes to pay a dividend in 2008.

Von Roll: Key Figures

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