Hoeft & Wessel AG Boosts Sales Revenues in the Second Quarter of 2010

By Hoeft Wessel Ag, PRNE
Wednesday, August 4, 2010

Order Books Well Filled

HANNOVER, Germany, August 5, 2010 - During the second quarter of 2010, the Hoeft & Wessel Group generated EUR
23.2 million
in sales revenues. Compared with the same period of the previous
year, this represents a slight increase of 2.5 per cent (2009 Q2: EUR 22.6
), and a marked increase by 46 per cent over the first quarter of this
year (2010 Q1: EUR 15.9 million). This confirms the upward trend in business
anticipated by the Hoeft & Wessel AG for 2010, with sales revenues increasing
sequentially from quarter to quarter. For 2010 as a whole, the German IT and
engineering Group for ticketing, parking and mobile solutions forecasts a
slight increase in both sales revenues and earnings.

The sales revenues of EUR 39.1 million for the first half of 2010 were
still down by 17 per cent compared with the previous year (30/06/2009: EUR
47.1 million
); it must be noted that exceptionally high sales revenues were
recorded at the beginning of 2009.

The business activities of the Hoeft & Wessel Group during the first half
of the year 2010 were characterised by the start of delivery of ticket
vending machines to S-Bahn Berlin, the completion of the installation of
1,000 parking terminals in the U.S. city of Philadelphia, and the delivery of
mobile terminals to Netto Marken-Discount, Rewe and Lekkerland.

Operating result (EBIT) for the first six months of the year 2010 turned
out negative at EUR -0.9 million (2009: EUR 1.6 million). Temporary currency
effects in the amount of EUR 1.1 million, largely resulting from hedging
transactions, had a negative impact on the half-year result. Handling of the
hedged foreign orders results in contrary effects; as a result the
transactions are thus executed at the hedged rates.

Operating cash flow of EUR 3.8 million for the first half of 2010
represents a significant increase (previous year: EUR -1.6 million).

Order intakes continued to be very positive in the second quarter. In the
first six months, orders with a total volume of EUR 48.1 million were added
to the books. This is an increase of 9 per cent year-on-year (30/06/2009: EUR
44.0 million
). Orders received included those for e-ticketing systems in
Germany and Spain, for parking machines on the Isle of Wight in the UK, and
for a new mobile terminal in PDA form.

The order portfolio grew to EUR 83.4 million as at 30/06/2010
(31/12/2009: EUR 74.4 million).

"Our order books are well filled, and we plan to continue our expansion
on the international markets," said Hansjoachim Oehmen, CEO of the Hoeft &
Wessel Group, reviewing the positive business trend.

    Key Financials Hoeft & Wessel Group

    in EUR thousands          30/06/10   30/06/09   30/06/08
    Sales revenues              39,124     47,104     42,502
    EBITDA                       1,589      3,833      3,216
    Operating result (EBIT)       (863)     1,569        941
    in % of sales revenues           -        3.3        2.2
    Earnings before taxes (EBT) (1,315)     1,108        231
    in % of sales revenues           -        2.4        0.6
    Group earnings              (1,544)       741        174
    Earnings per share (in EUR)  (0.18)      0.09       0.02    

    Cash flow from current
    operat. activities           3,824     (1,578)    (2,353)
    Cash flow from Investment
    activities                  (2,268)    (2,083)    (2,567)
    Net cash flow               (1,347)      (278)      (633)    

    Average number of employees    499        499        502     


    in EUR thousands            30/06/07   30/06/06
    Sales revenues                42,536     38,795
    EBITDA                         2,653      2,471
    Operating result (EBIT)          312         89
    in % of sales revenues           0.7        0.2
    Earnings before taxes (EBT)     (347)      (222)
    in % of sales revenues             -          -
    Group earnings                  (511)       (90)
    Earnings per share (in EUR)    (0.06)     (0.06)

    Cash flow from current
    operat. activities              (542)     4,094
    Cash flow from Investment
    activities                    (2,330)    (2,719)
    Net cash flow                 (2,083)      (201)

    Average number of employees      502        502

Half-Year Report 2010 and further Reports:

Press kit with photos:

Further inquiry note: Arnd Fritzemeier Tel.: +49-511-6102-300 E-Mail:

Further inquiry note: Arnd Fritzemeier Tel.: +49-511-6102-300 E-Mail: af at hoeft-wessel.com

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