2006: Higher net return despite decrease in revenue

13 % decline in order entry, cash growth by 11 % Outlook: Just under double-digit revenue growth expected in 2007

Aachen (euro adhoc) -

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Aachen/Germany - 21 February 2007. Parsytec AG - the
world's leading supplier
of surface and web inspection systems for strip products - has announced its preliminary results for financial year 2006 and provided an outlook for 2007. The final audited and certified results will be published on 13 March 2007. The following figures have been calculated in line with the International Financial Reporting Standards (IFRS).

|(EUR m) |12M 2006 |12M 2005 |Q4 2006 |Q4 2005 | |Order entry |22.7 |26.0 |6.7 |8.6 | |Revenue |23.5 |28.6 |5.6 |6.6 | |Gross profit |13.1 |14.6 |2.9 |3.5 | |EBIT |1.5 |2.2 |0.02 |0.6 | |EAT |1.3 |1.5 |0.1 |0.4 | |Net return on revenue |5.5 % |5.2 % |1.9 % |6.2 % |

With annual figures of EUR 22.7 million for order entry and EUR 23.5 million for revenue, the revised target figures for 2006 were met. The main reason for the decline in order entry and revenue of 13 % and 18 % respectively was weak market demand, which manifested itself in the third quarter of 2006 in particular, the resulting decrease in order entry and its effect on revenue, which were accompanied by a reduction in prices due to competition. With 25 systems sold, Parsytec extended its market leadership in the steel industry. In 2006, its market share was approximately 55 %.

In 2006, the net return on revenue improved by 0.3 percentage points as against 2005 to 5.5 %. This was the result of increasing flexibility in operating expenses and reducing manufacturing costs. The cost reduction is also reflected in the development of the gross profit margin (as a ratio of gross profit to revenue) which increased from 51 % in 2005 to 56 % in 2006.

For the market for surface inspection systems as a whole, the Company expects the number of units sold to rise again in 2007 compared with the downward movement in 2006. Revenue in 2007 is expected to exceed the previous year’s figure with a growth rate of just under double digits. The gross margin is estimated to fall slightly compared with 2006 because of the prevailing price pressure. Following the slight increase in relative profitability in 2006, the Company is aiming for absolute growth in earnings and the achievement - once again - of a net return on revenue of a good 5 % in 2007.

Further inquiry note:
Parsytec AG
Investor Relations
Tel ++49(241)9696-200
Fax ++49(241)9696-500
e-Mail: ir@parsytec.de
Internet: www.parsytec.de

end of announcement euro adhoc

emitter: Parsytec AG
Auf der Hüls 183
D-52068 Aachen
phone: +49 (0)241 9696-200
FAX: +49 (0)241 167-664
mail: ir@parsytec.de
WWW: http://www.parsytec.de
indexes: Prime All Share, Technologie All Share, CDAX stockmarkets: regulated dealing/prime standard: Frankfurter Wertpapierbörse, free trade: Börse Berlin-Bremen, Hamburger Wertpapierbörse, Baden-Württembergische Wertpapierbörse, Börse Düsseldorf, Bayerische Börse
sector: Software
language: English