EUROTECH S.p.A : LE CONSEIL D'ADMINISTRATION APPROUVE LE PROJET DE RAPPORT ANNUEL ET DES RÉSULTATS CONSOLIDÉS

Amaro (Italie), le 16 mars 2009


- Chiffre d'affaires consolidé : +20 % de 76,54 millions d'euros à 91,73 millions d'euros
- Bénéfice brut consolidé : +32 % de 38,11 millions d'euros à 50,41 millions d'euros
- EBITDA consolidé : de 1,90 million d'euros à 5,92 millions d'euros
- EBITDA consolidé ajusté * : de 2,41 millions d'euros à 7,80 millions d'euros
- EBIT consolidé : de -4,11 millions d'euros à -13,52 millions d'euros
- EBIT consolidé ajusté* : de -0,56 million d'euros à +3,33 millions d'euros
- EBT consolidé : de -4,16 millions d'euros à -15,68 millions d'euros
- EBT consolidé ajusté : de -0,35 million d'euros à +2,91 millions d'euros
- Perte nette du Groupe : de -4,92 millions d'euros à -12,71 millions d'euros
- Perte nette du Groupe ajustée : de -2,60 millions d'euros à -0,38 million d'euros
- Position financière nette : 0,57 million d'euros, une amélioration de 6,95 millions d'euros
- Capitaux propres du Groupe : 134,06 millions d'euros, contre 121,47 millions d'euros en 2007

The Board of Directors of Eurotech S.p.A. examined and approved today 2008 Draft Annual Report and Consolidated Financial Statements, that will be submitted to Shareholders Meeting.

Group consolidated revenues reported 20% growth over the financial year 2007, increasing from E76.54 million to E91.73 million, mainly because of a change in the consolidation area due to the acquisition of the Japanese Group Advanet, finalized during the fourth quarter of 2007.

Gross profit came to E50.41 million (+32% year on year), for a margin on sales of 55%, which is a significant improvement over 2007 (E38.11 million, equal to 49.8% of sales revenues), due to the joint effect of the business model, which is based on selling high value products, and the integration of management processes of purchased materials among all Group's subsidiaries.

EBITDA in the financial year 2008 came to E5.92 million, for a clear improvement over the E1.90 million of the previous year. Thanks also to the significant increase in the gross profit margin, the EBITDA margin on sales increased from 2.5% in 2007 to 6.5% in 2008.

The process of integration and consolidation of the acquisitions made in the last few years already started at the end of last year and continued throughout 2008. This process began in 2007 when Arcom Control Systems Ltd changed its name and Eurotech Ltd was born. This year's key move was the merger of two American companies Applied Data Systems Inc (ADS) and Arcom Control Systems Inc with the consequent establishment of Eurotech Inc. This operation also meant that we reconsidered entirely the presence of the different brands in the North American market; management decided to use a single "Eurotech" brand in all the sectors other than defence and consequently write down by Euro 10.77 million the residual value posted for the ADS and Arcom brands no longer used. The reduction in amortisation charges will already have a positive effect on the 2009 EBIT and on net profits, equating to approximately 2.1 and 1.2 million Euros respectively. Also the Japanese Group Advanet has been rationalized, through the merger of Vantec Inc in Spirit 21 Inc and the liquidation of the company Advanet R&D Inc.

Certain amounts of non-recurring costs deriving from this integration and reorganization of Group's subsidiaries had an impact on EBITDA: in particular, following the merger of ADS and Arcom write-downs have been applied in respect of account receivables and of inventories for an amount of approximately 0.7 million Euros; furthermore, a write-down has been applied in respect to inventories (finished goods and work in progress) held by the Japanese subsidiary Advanet for an amount of approximately Euro 0.9 millions, related to completed and partly completed customised products for which production volumes were in excess of demand. Excluding these non-recurring amounts and price allocation effects, 2008 adjusted EBITDA works out at 7.80 million Euros, which is 8.5% of consolidated revenues for the year (2.41 million Euros in 2007, which is 3.2% of consolidated revenues)

EBIT in the financial year 2008 came to a loss of E13.52 million, while 2007 showed a loss E4.11 million. EBIT was significantly affected by the non-monetary impact of the write-off of the brands ADS and Arcom, totalling E10.77 million. Net of all non-recurring and non-monetary effects, adjusted EBIT was positive for E3.33 million, while it was negative for E0.56 in 2007.

The pre-tax loss came to E15.68 million (vs. a loss of E4.16 million for 2007). Such a result was affected by the considerations mentioned above. The price allocation, write downs and integration and reorganisation costs had an effect on the result before tax equal to E18.59 million in 2008 and E3.81 million in 2007.

In 2008, the net loss for the Group amounted to E-12.71 million, compared with the loss of E4.92 million for the previous year. Net of the non-monetary effects of write-offs and price allocation and net of non-recurring costs, this result would be negative for E0.38 million (negative for E2.60 million in 2007).

As of 31 December 2008, the Group posted a net financial position of E0.57 million, better than the value posted at the end of 2007, which was negative for E6.38 million. Moreover, the cash flow generated by operating activities was E6.05 million.

Group's shareholders equity came to E134.06 million (2007: E121.47 million) and including also contribution from minority interests the Consolidated shareholders equity came to E137.47 million (2007: E123.93 million)

On this day the Board of Directors also approved the annual report on the company's Corporate Governance. This report is made public through the website www.eurotech.com in the dedicated section, c/o the company's headquarters and c/o Borsa Italiana.

(*) Amounts net of non-monetary effects of Price Allocation related to acquisitions of Arcom Group, Applied Data Systems Inc. and Advanet Group, of non-recurring costs arising from one-time write-downs applied in respect of account receivables and inventories of American and Japanese subsidiaries and net of accounting impact deriving from Advanet's put option. Specifically:
- EBITDA was adjusted for recognition in the income statement of the higher value of the inventory identified at the time of acquisition and for netting costs for integration and reorganization of the Japanese and American subsidiaries;
- EBIT was adjusted for the aforesaid EBITDA impact and for depreciation of fixed assets recognised for business combinations;
- EBT was adjusted also to account for financial charges stemming from the put option issued on Advanet Inc.;
- Group's net loss was adjusted as per the above and to account for tax charges related to above adjustments and for minority interests on overall impact of Price Allocation.

In accordance with the article 2.2.3, subsection 3, letter a) of the Regulation of Borsa Italiana S.p.A., the Company informs that it made use of the exemption from publishing the 2008 fourth quarter report, since it has published the Draft Annual Report and Consolidated Financial Statements within 75 days after the end of 2008.

In accordance with section 2 of Article 154-bis the Consolidated Finance Act, Financial Reporting Manager, Sandro Barazza, declared that the accounting information contained in this press release corresponds to accounting records, corporate books, and accounting entries.

About Eurotech

Eurotech (ETH.MI) is a company based in Italy and with operating locations in Europe, North America and Asia. It is active in the research, development and marketing of miniaturised computers for special applications (NanoPCs) and high-performance computers (HPCs). With these two classes of products, Eurotech aims at becoming a leader in the pervasive computing Grid infrastructure, which can enable an entire range of value-added services and functions in the transportation, defence, industrial, medical and research sectors.

Company contacts:

Investor relations
Andrea Barbaro
Tel. +39 0433 485411
e-mail: [email protected]

Corporate Press Office
Cristiana della Zonca
Tel. +39 0433 485411
e-mail: [email protected]

International Press Office
Giovanni Sanfelice di Monteforte
Barabino & Partners UK Plc.
Tel.: +44 (0)20 71526425
e-mail: [email protected]

ANNEXES - FINANCIAL STATEMENTS

CONSOLIDATED INCOME STATEMENT

+---------------------------------------------+-----------+-------+-----------+-------+
|   OPERATING RESULTS (Thousands of Euro)     |31/12/2007 |  %    |31/12/2008 |  %    |
+---------------------------------------------+-----------+-------+-----------+-------+
|                                             |           |       |           |       |
+---------------------------------------------+-----------+-------+-----------+-------+
|Revenues from sales of products and services |    76,537 |100.0% |    91,731 |100.0% |
+---------------------------------------------+-----------+-------+-----------+-------+
|                                             |           |       |           |       |
+---------------------------------------------+-----------+-------+-----------+-------+
|Operating costs:                             |           |       |           |       |
+---------------------------------------------+-----------+-------+-----------+-------+
|                                             |           |       |           |       |
+---------------------------------------------+-----------+-------+-----------+-------+
|                                             |           |       |           |       |
+---------------------------------------------+-----------+-------+-----------+-------+
|Cost of materials                            |  (38,424) |-50.2% |  (41,320) |-45.0% |
+---------------------------------------------+-----------+-------+-----------+-------+
|Gross profit                                 |    38,113 | 49.8% |    50,411 | 55.0% |
+---------------------------------------------+-----------+-------+-----------+-------+
|Service costs                                |  (14,797) |-19.3% |  (17,268) |-18.8% |
+---------------------------------------------+-----------+-------+-----------+-------+
|Lease & hire costs                           |   (1,439) | -1.9% |   (2,124) | -2.3% |
+---------------------------------------------+-----------+-------+-----------+-------+
|Payroll costs                                |  (22,583) |-29.5% |  (27,433) |-29.9% |
+---------------------------------------------+-----------+-------+-----------+-------+
|Other provisions and other costs             |     (844) | -1.1% |   (1,289) | -1.4% |
+---------------------------------------------+-----------+-------+-----------+-------+
|Other revenues                               |     3,447 |  4.5% |     3,624 |  4.0% |
+---------------------------------------------+-----------+-------+-----------+-------+
|                                             |           |       |           |       |
+---------------------------------------------+-----------+-------+-----------+-------+
|Profit before depreciation and amortization  |     1,897 |  2.5% |     5,921 |  6.5% |
+---------------------------------------------+-----------+-------+-----------+-------+
|Depreciation & amortisation                  |   (5,774) | -7.5% |   (7,945) | -8.7% |
+---------------------------------------------+-----------+-------+-----------+-------+
|Asset impairment                             |     (237) | -0.3% |    (11,5) |-12.5% |
+---------------------------------------------+-----------+-------+-----------+-------+
|Operating profit                             |   (4,114) | -5.4% |  (13,524) |-14.7% |
+---------------------------------------------+-----------+-------+-----------+-------+
|Share of associates' profit of equity        |     (348) | -0.5% |      (97) | -0.1% |
+---------------------------------------------+-----------+-------+-----------+-------+
|Finance expense                              |   (2,539) | -3.3% |    (6,71) | -7.3% |
+---------------------------------------------+-----------+-------+-----------+-------+
|Finance income                               |     2,842 |  3.7% |     4,652 |  5.1% |
+---------------------------------------------+-----------+-------+-----------+-------+
|Profit before taxes                          |   (4,159) | -5.4% |  (15,679) |-17.1% |
+---------------------------------------------+-----------+-------+-----------+-------+
|Income tax                                   |     (847) | -1.1% |     3,201 |  3.5% |
+---------------------------------------------+-----------+-------+-----------+-------+
|Net profit (loss) before minority inerest    |   (5,006) | -6.5% |  (12,478) |-13.6% |
+---------------------------------------------+-----------+-------+-----------+-------+
|Minority interest                            |      (84) | -0.1% |       230 |  0.3% |
+---------------------------------------------+-----------+-------+-----------+-------+
|Group net profit (loss) for period           |   (4,922) | -6.4% |  (12,708) |-13.9% |
+---------------------------------------------+-----------+-------+-----------+-------+
|                                             |           |       |           |       |
+---------------------------------------------+-----------+-------+-----------+-------+
|Base earnings (losses) per share             |   (0.141) |       |   (0.359) |       |
+---------------------------------------------+-----------+-------+-----------+-------+
|Diluted earnings (losses) per share          |   (0.141) |       |   (0.359) |       |
+---------------------------------------------+-----------+-------+-----------+-------+

CONSOLIDATED BALANCE SHEET

+-----------------------------------------+---------------------+---------------------+---------+
|                (E'000)                  |at December 31, 2007 |at December 31, 2008 |Changes  |
+-----------------------------------------+---------------------+---------------------+---------+
|                                         |                     |                     |         |
+-----------------------------------------+---------------------+---------------------+---------+
|ASSETS                                   |                     |                     |         |
+-----------------------------------------+---------------------+---------------------+---------+
|Intangible assets                        |             111,918 |             114,399 |   2,481 |
+-----------------------------------------+---------------------+---------------------+---------+
|Property, Plant and equipment            |               6,737 |               7,885 |   1,148 |
+-----------------------------------------+---------------------+---------------------+---------+
|Investments in affiliates companies      |                 109 |                 875 |     766 |
+-----------------------------------------+---------------------+---------------------+---------+
|Investments in other companies           |                 930 |                 249 |   (681) |
+-----------------------------------------+---------------------+---------------------+---------+
|Deferred tax assets                      |               1,802 |               1,533 |   (269) |
+-----------------------------------------+---------------------+---------------------+---------+
|Other non-current assets                 |                 630 |                 749 |     119 |
+-----------------------------------------+---------------------+---------------------+---------+
|Total non-current assets                 |             122,126 |              125,69 |   3,564 |
+-----------------------------------------+---------------------+---------------------+---------+
|Inventories                              |              22,129 |              19,783 | (2,346) |
+-----------------------------------------+---------------------+---------------------+---------+
|Contracts in progress                    |               2,364 |                 383 | (1,981) |
+-----------------------------------------+---------------------+---------------------+---------+
|Trade receivables                        |              18,807 |              22,063 |   3,256 |
+-----------------------------------------+---------------------+---------------------+---------+
|Income tax receivables                   |               2,203 |               4,124 |   1,921 |
+-----------------------------------------+---------------------+---------------------+---------+
|Other current assets                     |               2,793 |               2,792 |     (1) |
+-----------------------------------------+---------------------+---------------------+---------+
|Other current financial assets           |                   0 |                 719 |     719 |
+-----------------------------------------+---------------------+---------------------+---------+
|Derivative instruments                   |                  82 |                   0 |    (82) |
+-----------------------------------------+---------------------+---------------------+---------+
|Cash & cash equivalents                  |              56,604 |              38,684 |(17,920) |
+-----------------------------------------+---------------------+---------------------+---------+
|Total current assets                     |             104,982 |              88,548 |(16,434) |
+-----------------------------------------+---------------------+---------------------+---------+
|Total assets                             |             227,108 |             214,238 |(12,870) |
+-----------------------------------------+---------------------+---------------------+---------+
|                                         |                     |                     |         |
+-----------------------------------------+---------------------+---------------------+---------+
|                                         |                     |                     |         |
+-----------------------------------------+---------------------+---------------------+---------+
|                                         |                     |                     |         |
+-----------------------------------------+---------------------+---------------------+---------+
|LIABILITIES AND EQUITY                   |                     |                     |         |
+-----------------------------------------+---------------------+---------------------+---------+
|Share capital                            |               8,879 |               8,879 |       0 |
+-----------------------------------------+---------------------+---------------------+---------+
|Reserves                                 |              117,51 |             137,888 |  20,378 |
+-----------------------------------------+---------------------+---------------------+---------+
|Net profit (loss) for period             |             (4,922) |            (12,708) | (7,786) |
+-----------------------------------------+---------------------+---------------------+---------+
|Group shareholders' equity               |             121,467 |             134,059 |  12,592 |
+-----------------------------------------+---------------------+---------------------+---------+
|Minority capital and reserves            |               2,549 |               3,184 |     635 |
+-----------------------------------------+---------------------+---------------------+---------+
|Minority profit (loss) for period        |                (84) |                 230 |     314 |
+-----------------------------------------+---------------------+---------------------+---------+
|Equity attributable to minority interest |               2,465 |               3,414 |     949 |
+-----------------------------------------+---------------------+---------------------+---------+
|Total shareholders' equity               |             123,932 |             137,473 |  13,541 |
+-----------------------------------------+---------------------+---------------------+---------+
|Medium-/long-term borrowing              |              34,172 |              24,654 | (9,518) |
+-----------------------------------------+---------------------+---------------------+---------+
|Employee benefit obligations             |               1,512 |               1,742 |     230 |
+-----------------------------------------+---------------------+---------------------+---------+
|Deferred tax liabilities                 |              15,055 |              12,556 | (2,499) |
+-----------------------------------------+---------------------+---------------------+---------+
|Other non-current liabilities            |               1,345 |               1,921 |     576 |
+-----------------------------------------+---------------------+---------------------+---------+
|Business combination liabilities         |              15,864 |               8,049 | (7,815) |
+-----------------------------------------+---------------------+---------------------+---------+
|Total non-current liabilities            |              67,948 |              48,922 |(19,026) |
+-----------------------------------------+---------------------+---------------------+---------+
|Trade payables                           |              14,506 |              15,207 |     701 |
+-----------------------------------------+---------------------+---------------------+---------+
|Short-term borrowing                     |               9,787 |               5,782 | (4,005) |
+-----------------------------------------+---------------------+---------------------+---------+
|Derivative instruments                   |                   0 |                 346 |     346 |
+-----------------------------------------+---------------------+---------------------+---------+
|Income tax liabilities                   |               2,112 |               1,461 |   (651) |
+-----------------------------------------+---------------------+---------------------+---------+
|Other current liabilities                |               5,581 |               5,047 |   (534) |
+-----------------------------------------+---------------------+---------------------+---------+
|Business combination liabilities         |               3,242 |                   0 | (3,242) |
+-----------------------------------------+---------------------+---------------------+---------+
|Total current liabilities                |              35,228 |              27,843 | (7,385) |
+-----------------------------------------+---------------------+---------------------+---------+
|Total liabilities                        |             103,176 |              76,765 |(26,411) |
+-----------------------------------------+---------------------+---------------------+---------+
|Total liabilities and equity             |             227,108 |             214,238 | (12,87) |
+-----------------------------------------+---------------------+---------------------+---------+

CASH FLOW

+------------------------------------------------------------------------------+---------+---------+---------+---------+
|                             CASH FLOW STATEMENT                              |         |FY 2007  |         |FY 2008  |
+------------------------------------------------------------------------------+---------+---------+---------+---------+
|(E'000)                                                                       |         |         |         |         |
+------------------------------------------------------------------------------+---------+---------+---------+---------+
|                                                                              |         |         |         |         |
+------------------------------------------------------------------------------+---------+---------+---------+---------+
|CASH FLOWS GENERATED BY OPERATIONS:                                           |         |         |         |         |
+------------------------------------------------------------------------------+---------+---------+---------+---------+
|Group net profit                                                              |         | (4,922) |         |(12,708) |
+------------------------------------------------------------------------------+---------+---------+---------+---------+
|Adjustments to reconcile reported net profit with cash &                      |         |         |         |         |
+------------------------------------------------------------------------------+---------+---------+---------+---------+
|cash equivalents generated (used) in operations:                              |         |         |         |         |
+------------------------------------------------------------------------------+---------+---------+---------+---------+
|Minority interests                                                            |         |    (84) |         |     230 |
+------------------------------------------------------------------------------+---------+---------+---------+---------+
|Depreciation & amortization intangible assets, property, plant and equipment  |         |   6,011 |         |  19,445 |
+------------------------------------------------------------------------------+---------+---------+---------+---------+
|Write-down of receivables                                                     |         |     232 |         |     332 |
+------------------------------------------------------------------------------+---------+---------+---------+---------+
|Affiliated companies booked at equity                                         |         |     348 |         |      97 |
+------------------------------------------------------------------------------+---------+---------+---------+---------+
|Cost for bringing up-to-date and exchange adjustment for put option           |         |     261 |         |   1,742 |
+------------------------------------------------------------------------------+---------+---------+---------+---------+
|Stock option expenses                                                         |         |     260 |         |       0 |
+------------------------------------------------------------------------------+---------+---------+---------+---------+
|Provision for (use of) long-term employee severance indemnities               |         |     382 |         |     230 |
+------------------------------------------------------------------------------+---------+---------+---------+---------+
|Provision for (use of) risk provision                                         |         |    (24) |         |     576 |
+------------------------------------------------------------------------------+---------+---------+---------+---------+
|(Provision for) / use of deferred tax asset / Provision for (use of) deferred |         |         |         |         |
+------------------------------------------------------------------------------+---------+---------+---------+---------+
|tax liability                                                                 |         | (1,175) |         |  (2,23) |
+------------------------------------------------------------------------------+---------+---------+---------+---------+
|                                                                              |         |         |         |         |
+------------------------------------------------------------------------------+---------+---------+---------+---------+
|Changes in current assets and liabilities                                     |         |         |         |         |
+------------------------------------------------------------------------------+---------+---------+---------+---------+
|Trade receivables                                                             |         |   1,773 |         | (3,588) |
+------------------------------------------------------------------------------+---------+---------+---------+---------+
|Other current assets                                                          |         |    5,82 |         | (1,919) |
+------------------------------------------------------------------------------+---------+---------+---------+---------+
|Inventories and contracts in process                                          |         |   (599) |         |   4,327 |
+------------------------------------------------------------------------------+---------+---------+---------+---------+
|Trade payables                                                                |         | (6,223) |         |     701 |
+------------------------------------------------------------------------------+---------+---------+---------+---------+
|Other current liabilities                                                     |         | (3,059) |         | (1,185) |
+------------------------------------------------------------------------------+---------+---------+---------+---------+
|Total adjustments and changes                                                 |         |   3,923 |         |  18,758 |
+------------------------------------------------------------------------------+---------+---------+---------+---------+
|                                                                              |         |         |         |         |
+------------------------------------------------------------------------------+---------+---------+---------+---------+
|Cash flow generated (used) in operations                                      |         |   (999) |         |    6,05 |
+------------------------------------------------------------------------------+---------+---------+---------+---------+
|                                                                              |         |         |         |         |
+------------------------------------------------------------------------------+---------+---------+---------+---------+
|CASH FLOW FROM INVESTMENT ACTIVITIES:                                         |         |         |         |         |
+------------------------------------------------------------------------------+---------+---------+---------+---------+
|Sales of tangible and intangible assets                                       |         |       9 |         |     108 |
+------------------------------------------------------------------------------+---------+---------+---------+---------+
|Interest income                                                               |         |   2,672 |         |   1,805 |
+------------------------------------------------------------------------------+---------+---------+---------+---------+
|Purchase of intangible fixed assets                                           |         | (3,879) |         | (3,066) |
+------------------------------------------------------------------------------+---------+---------+---------+---------+
|Purchase of tangible fixed assets                                             |         | (1,515) |         | (2,495) |
+------------------------------------------------------------------------------+---------+---------+---------+---------+
|Increases decreases other financial assets                                    |         |       0 |         |   (719) |
+------------------------------------------------------------------------------+---------+---------+---------+---------+
|Net investments in long-term investments and non-current assets               |         |    (12) |         |   (301) |
+------------------------------------------------------------------------------+---------+---------+---------+---------+
|                                                                              |         |         |         |         |
+------------------------------------------------------------------------------+---------+---------+---------+---------+
|Business acquisition net of cash acquired:                                    |         |(69,446) |         | (3,365) |
+------------------------------------------------------------------------------+---------+---------+---------+---------+
|Intangible assets                                                             |   (349) |         |       0 |         |
+------------------------------------------------------------------------------+---------+---------+---------+---------+
|Goodwill                                                                      |(54,094) |         |       0 |         |
+------------------------------------------------------------------------------+---------+---------+---------+---------+
|Trademark, customer relationship and order book                               |(36,613) |         |       0 |         |
+------------------------------------------------------------------------------+---------+---------+---------+---------+
|Tangible assets                                                               | (2,255) |         |       0 |         |
+------------------------------------------------------------------------------+---------+---------+---------+---------+
|Other non-current assets                                                      | (3,728) |         |       0 |         |
+------------------------------------------------------------------------------+---------+---------+---------+---------+
|Current assets                                                                |(27,797) |         |       0 |         |
+------------------------------------------------------------------------------+---------+---------+---------+---------+
|Provisions for risks & contingencies and employee severance indemnities       |   1,556 |         |       0 |         |
+------------------------------------------------------------------------------+---------+---------+---------+---------+
|Liabilities                                                                   |  41,356 |         |       0 |         |
+------------------------------------------------------------------------------+---------+---------+---------+---------+
|Equity attributable to minority interest                                      |   2,478 |         |       0 |         |
+------------------------------------------------------------------------------+---------+---------+---------+---------+
|Minority purchase                                                             | (8,394) |         |   9,434 |         |
+------------------------------------------------------------------------------+---------+---------+---------+---------+
|Business combination liabilities                                              |  18,395 |         |(12,799) |         |
+------------------------------------------------------------------------------+---------+---------+---------+---------+
|Cash flow generated (used) in investment activities                           |         | (72,17) |         | (8,033) |
+------------------------------------------------------------------------------+---------+---------+---------+---------+
|                                                                              |         |         |         |         |
+------------------------------------------------------------------------------+---------+---------+---------+---------+
|CASH FLOW FROM FINANCING ACTIVITIES:                                          |         |         |         |         |
+------------------------------------------------------------------------------+---------+---------+---------+---------+
|Capital increases                                                             |         |   1,739 |         |       0 |
+------------------------------------------------------------------------------+---------+---------+---------+---------+
|Other changes in shareholders' equity                                         |         |      64 |         | (1,296) |
+------------------------------------------------------------------------------+---------+---------+---------+---------+
|Minorty                                                                       |         |       0 |         |    (52) |
+------------------------------------------------------------------------------+---------+---------+---------+---------+
|Loans taken                                                                   |         |    15,2 |         |     158 |
+------------------------------------------------------------------------------+---------+---------+---------+---------+
|Increases (decreases) short term loan                                         |         |   1,168 |         |  (1,11) |
+------------------------------------------------------------------------------+---------+---------+---------+---------+
|Repaid loans medium/long term                                                 |         | (7,333) |         |(14,376) |
+------------------------------------------------------------------------------+---------+---------+---------+---------+
|                                                                              |         |         |         |         |
+------------------------------------------------------------------------------+---------+---------+---------+---------+
|                                                                              |         |         |         |         |
+------------------------------------------------------------------------------+---------+---------+---------+---------+
|Cash flow generated (absorbed) by financial assets                            |         |  10,838 |         |(16,676) |
+------------------------------------------------------------------------------+---------+---------+---------+---------+
|                                                                              |         |         |         |         |
+------------------------------------------------------------------------------+---------+---------+---------+---------+
|Changes in the conversion difference                                          |         |   (679) |         |     739 |
+------------------------------------------------------------------------------+---------+---------+---------+---------+
|Increases (decreases) in cash & cash equivalents                              |         |(63,010) |         |(17,920) |
+------------------------------------------------------------------------------+---------+---------+---------+---------+
|                                                                              |         |         |         |         |
+------------------------------------------------------------------------------+---------+---------+---------+---------+
|Opening amount in cash & cash equivalents                                     |         | 119,614 |         |  56,604 |
+------------------------------------------------------------------------------+---------+---------+---------+---------+
|                                                                              |         |         |         |         |
+------------------------------------------------------------------------------+---------+---------+---------+---------+
|Cash & cash equivalents at end of period                                      |         |  56,604 |         |  38,684 |
+------------------------------------------------------------------------------+---------+---------+---------+---------+
|                                                                              |         |         |         |         |
+------------------------------------------------------------------------------+---------+---------+---------+---------+
|Interest paid                                                                 |         |   1,628 |         |   4,027 |
+------------------------------------------------------------------------------+---------+---------+---------+---------+
|Income taxes paid                                                             |         |   2,392 |         |    5,78 |
+------------------------------------------------------------------------------+---------+---------+---------+---------+

NET FINANCIAL POSITION

+-----------------------------------------+----------+---------------------+---------------------+
|                (E'000)                  |          |at December 31, 2007 |at December 31, 2008 |
+-----------------------------------------+----------+---------------------+---------------------+
|                                         |          |                     |                     |
+-----------------------------------------+----------+---------------------+---------------------+
|Cash & cash equivalents                  |        A |            (56,604) |            (38,684) |
+-----------------------------------------+----------+---------------------+---------------------+
|Cash equivalent                          |      B=A |            (56,604) |            (38,684) |
+-----------------------------------------+----------+---------------------+---------------------+
|Other current financial assets           |        C |                   0 |               (719) |
+-----------------------------------------+----------+---------------------+---------------------+
|Derivative instruments                   |        D |                (82) |                 346 |
+-----------------------------------------+----------+---------------------+---------------------+
|Short-term borrowing                     |        E |               9,787 |               5,782 |
+-----------------------------------------+----------+---------------------+---------------------+
|Business aggregation liabilities         |        F |               3,242 |                   0 |
+-----------------------------------------+----------+---------------------+---------------------+
|Short-term financial position            |G=C+D+E+F |              12,947 |               5,409 |
+-----------------------------------------+----------+---------------------+---------------------+
|Short-term net financial position        |    H=B+G |            (43,657) |            (33,275) |
+-----------------------------------------+----------+---------------------+---------------------+
|                                         |          |                     |                     |
+-----------------------------------------+----------+---------------------+---------------------+
|                                         |          |                     |                     |
+-----------------------------------------+----------+---------------------+---------------------+
|Business aggregation liabilities         |        I |              15,864 |               8,049 |
+-----------------------------------------+----------+---------------------+---------------------+
|Medium-/long-term borrowing              |        J |              34,172 |              24,654 |
+-----------------------------------------+----------+---------------------+---------------------+
|Medium-/long-term net financial position |    K=I+J |              50,036 |              32,703 |
+-----------------------------------------+----------+---------------------+---------------------+
|                                         |          |                     |                     |
+-----------------------------------------+----------+---------------------+---------------------+
|                                         |          |                     |                     |
+-----------------------------------------+----------+---------------------+---------------------+
|NET FINANCIAL POSITION                   |    L=H+K |               6,379 |               (572) |
+-----------------------------------------+----------+---------------------+---------------------+

NET WORKING CAPITAL

+--------------------------+---------------------+---------------------+--------+
|         (E'000)          |at December 31, 2007 |at December 31, 2008 |Changes |
+--------------------------+---------------------+---------------------+--------+
|                          |                 (a) |                 (b) |  (b-a) |
+--------------------------+---------------------+---------------------+--------+
|                          |                     |                     |        |
+--------------------------+---------------------+---------------------+--------+
|Inventories               |              22,129 |              19,783 |(2,346) |
+--------------------------+---------------------+---------------------+--------+
|Contracts in progress     |               2,364 |                 383 |(1,981) |
+--------------------------+---------------------+---------------------+--------+
|Trade receivables         |              18,807 |              22,063 |  3,256 |
+--------------------------+---------------------+---------------------+--------+
|Income tax receivables    |               2,203 |               4,124 |  1,921 |
+--------------------------+---------------------+---------------------+--------+
|Other current assets      |               2,793 |               2,792 |    (1) |
+--------------------------+---------------------+---------------------+--------+
|Current assets            |              48,296 |              49,145 |    849 |
+--------------------------+---------------------+---------------------+--------+
|Trade payables            |            (14,506) |            (15,207) |  (701) |
+--------------------------+---------------------+---------------------+--------+
|Income tax liabilities    |             (2,112) |             (1,461) |    651 |
+--------------------------+---------------------+---------------------+--------+
|Other current liabilities |             (5,581) |             (5,047) |    534 |
+--------------------------+---------------------+---------------------+--------+
|Current liabilities       |            (22,199) |            (21,715) |    484 |
+--------------------------+---------------------+---------------------+--------+
|Net working capital       |              26,097 |               27,43 |  1,333 |
+--------------------------+---------------------+---------------------+--------+

Copyright Hugin

The appendixes relating to the press release are available on:
http://www.hugingroup.com/documents_ir/PJ/CO/2009/150709_88_6V49_20090316-cs-1-en.pdf

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