Ad hoc / Announcements

30th May 2008

TELES: Q1 Results - Revenues Improved Compared to Prior Quarters; Result Still Negative

All in all, the Revenues in Q1/2008 increased compared to the prior year quarter and were thus the highest quarterly revenues since more than 2 years in the operating business. The operating loss (EBT) increased from -1.9 Mio€ to -3.1 Mio€ compared to the prior year quarter. This is mainly due to increased R&D and S&M expenses as a result of the acquired business and partial business in Israel and Austria in July 2007 and beginning of this year. These acquisitions serve in particular the optimization of the product portfolio and in addition the improvement of our distribution channels, on the one hand through acquired customer relationships and on the other hand through the establishment of a – so far very successful – distribution partnership for the North American market.

The key data for TELES for Q1/2008 (in accordance with IFRS, unaudited) can be summarized as follows:

Revenues: 5.7 Mio€ (in Q1/2007: 4.8 Mio€, +18%),
Gross Profit: 2.6 Mio€ (in Q1/2007: 2.5 Mio€, +4%),
EBITDA: -2.8 Mio€ (in Q1/2007: -2.1 Mio€),
EBIT: -3.2 Mio€ (in Q1/2007: -2.3 Mio€),
EBT: -3,1 Mio€ (in Q1/2007: -1.9 Mio€).

Attention is drawn to two further very important key figures at the end of the period under review:

Cash and cash equivalents reduced to 2.4 Mio€ as at 31st March 2008. In addition, TELES still owns 3.6 million freenet shares and almost 2.2 million treasury stock with a total market value of about 44 Mio€.
The equity ratio amounted to 74%.

Professor Sigram Schindler
CEO of TELES AG