euro adhoc: init innovation in traffic systems AG / Financial Figures/Balance Sheet / Further increase in projected 2005 earnings for init (E)

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After a successful third quarter, init innovation in traffic systems AG has made a further upward adjustment to its projected results for 2005: The earnings before interest and taxes (EBIT) in the current fiscal year are thus expected to exceed the 3 million Euro mark. The figures published in the nine-month report now available revealed that at 2.2 million Euro (2004: -3.5 million Euro), the previous annual projection, has already be exceeded as of the end of the third quarter. At the same time, the revenue increased by 34.7 per cent over the same period, from 17.0 million Euro in 2004 to 22.9 million Euro. These are the highest figures ever achieved at this point and means that init has surpassed its previous record set in 2001.
The consolidated surplus as of the end of September already aggregated 1.2 million Euro (2004: -2.3 million Euro) and thus also reached a new peak in this period. Consequently, the earnings per share stood at 0.12 Euro (2004: -0.24 Euro).
Along with the success of the savings measures introduced in 2004, this sustained increase in profitability also reveals an improvement in project margins.
On account of the successful completion of the large-scale project in Houston in the third quarter, init also recorded a distinctly positive cash flow trend. The influx of funds from operating activities thus reached the highest level to date, increasing from -0.4 million Euro in 2004 to 4.6 million Euro as of the end of September 2005.
In the fourth quarter - traditionally the period recording the highest sales -the Karlsruhe-based specialist in telematics and fare collection systems for buses and trains anticipates a continuation of its growth dynamism. This forecast is based both on the current level of incoming orders which, at 21.4 million Euro, exceeds the figure for the previous year (20.6 million Euro), and on the tender decisions expected in the next few weeks. The trend in Germany was also registered with particular satisfaction, as incoming orders here picked up sharply over the past few weeks. At 12.5 million Euro, this figure almost trebled the prior-year result.
The full nine-month report will be published in mid-November.

Further inquiry note:
Alexandra Weiß
Investor Relations
Telefon: +49(0)721 6100-102

end of announcement euro adhoc

emitter: init innovation in traffic systems AG
Käppelestrasse 6
D-76131 Karlsruhe
phone: +49(0)721 6100-0
FAX: +49(0)721 6100-399
ISIN: DE0005759807
sector: Semiconductors & active components
language: English