CEAG AG: Contrasting Performance of the FRIWO Business Units in 2007

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Ostbevern (euro adhoc) - Press Release: Publication of Provisional Figures

CEAG AG: Contrasting Performance of the FRIWO Business Units in 2007

. FRIWO Power Solutions (FPS) records pleasing growth in unit sales, revenues
and EBIT yet again
. Mobile telephone business falls short of strong prior-year performance
. FRIWO Mobile Power (FMP) sold to Flextronics in February 2008
. Timely distribution of a portion of the net proceeds from the sale planned
in 2008
. Annual shareholders' meeting on August 21, 2008

Ostbevern, Germany, February 29, 2008 - CEAG AG, manufacturer of high-quality
FRIWO brand power supplies and chargers, recorded contrasting performances by
its two business units, FRIWO Mobile Power (FMP) and FRIWO Power Solutions
(FPS), once again in fiscal year 2007. While FPS continued its pleasing growth
in unit sales, revenues and EBIT, FMP failed to match its prior-year
performance in the face of a sharp increase in competition. As reported, on
February 7, 2008, CEAG signed an agreement to sell FMP in the first six months
of 2008 to a subsidiary of the Singapore-based Flextronics International Ltd.
Thus, in the future, CEAG will focus its energies on the FPS business unit,
which is continually growing.

Unit Sales

In 2007, the CEAG Group sold a total of 289.2 million power supplies and
chargers, down 6.8% on the prior year (2006: 310.4 million). This drop is
entirely attributable to FMP, which serves the high-volume market for mobile
telephones. FMP posted an 8.4% drop in unit sales year on year to 259.2 million
units (prior year: 282.9 million units). As previously reported, this trend is
mainly due to the discontinuation of linear-device production in favor of more
technically advanced switch mode products. While CEAG was previously sole
supplier to the biggest buyer of linear devices, mobile telephone manufacturers
tend to have more than one supplier of switch mode products.

The FPS business unit, which serves various markets, such as IT and
communications, household appliances and power tools, and industrial
applications and medical technology, maintained its growth course and recorded
unit sales of 30.1 million power supplies and chargers. This represents an
increase of 9.3% (2006: 27.5 million units).

Revenues

The CEAG Group generated revenues of EUR 315.2 million in 2007, down 10.4% on
the prior year (EUR 351.7 million). On the basis of prior-year exchange rates,
the decrease was only 4.2%.

FMP generated revenues of EUR 230.9 million, 15.3% down on the prior year
(2006: EUR 272.6 million). The disappointing performance of some of FMP's
customers and the sharp increase in competition between suppliers to mobile
telephone manufacturers in particular have left their mark. If exchange rates
had been constant, the drop in revenues would have been 9.1%.

FPS posted revenues of EUR 84.3 million, up 6.7% on the prior year (2006:
EUR 79.1 million). This growth was mainly achieved on the back of new projects,
for example in IT and communications. Taking the exchange rate in the prior
year as a basis, revenues would have increased by 13.2%.

EBIT
Consolidated earnings before interest and taxes (EBIT) stood at EUR 12.0
million, a decrease of 10.5% on the prior year (EUR 13.4 million). The EBIT
operating margin, in relation to revenues, remained at the prior-year level of
3.8%.

The CEAG Group's earnings were encumbered by the following external influences:
The sharp increase in competition between suppliers to mobile telephone
manufacturers led to considerable price pressure, which had a negative effect
on recoverable margins. Wage increases and energy shortages in China, temporary
interruptions to production at the Chinese plants due to strike action, and
high prices of key raw materials also all impacted negatively on earnings.
Furthermore, the appreciation of the euro against the US dollar, the currency
used by CEAG for most of its invoicing, also damaged earnings.

Consolidated net profit amounted to EUR 9.8 million, after EUR 11.4 million in
fiscal year 2006 (down 13.4%). Accordingly, earnings per share fell from
EUR 1.48 to EUR 1.28.

FMP generated EBIT of EUR 9.5 million (2006: EUR 12.8 million; down 25.7%). The
EBIT of the FPS business unit came to EUR 5.7 million, compared with EUR 3.5
million in the prior year, an increase of 60.0%. This rise is due to increased
revenues, but also to effects arising from the well-balanced customer
structure.

Sale of the FMP Business Unit
On February 7, 2008, CEAG signed an agreement with a subsidiary of the
Singapore-based Flextronics International Ltd. to sell FMP in the first six
months of 2008. The transaction is subject to the approval of the competent
antitrust authorities as well as other normal market terms and conditions. The
purchase price is EUR 57.5 million, less the net financing debt. It is subject
to a standard working capital adjustment provision, which could reduce the net
proceeds from the sale. On the basis of the provisional figures for 2007, the
purchase price would drop slightly if the adjustment provisions were applied.
However, it looks as though application of these provisions as of the date of
sale will reduce the purchase price further due to fluctuations in the net
financing debt and the development of working capital in connection with the
business and seasonal trend.

Outlook for 2008
Following the sale of FMP, CEAG will focus resolutely on the development of
FPS, which is experiencing strong growth. After the successful performance of
the past few years, the Management Board considers the chances of FPS boosting
its revenues and EBIT again in 2008 to be good. The Management Board expects to
generate positive proceeds in 2008 from the sale of FMP to Flextronics.

Profit Distribution and Annual Shareholders' Meeting in 2008
The sale of FMP will be initially recognized in net profit or loss for fiscal
year 2008. Hence, it will not have any effect on the retained earnings of CEAG
AG for fiscal year 2007, on which the annual shareholders' meeting will decide
in 2008. Irrespective of this, and in order to provide the shareholders with a
timely and maximum dividend distribution in 2008, CEAG AG has released the
current revenue reserves of EUR 22.5 million. If FMP is sold at the time of the
annual shareholders' meeting, the Management Board will propose to the annual
shareholders' meeting to distribute most of the retained earnings. The annual
shareholders' meeting is due to take place on August 21, 2008.

Rolf Endress, CEO of the Management Board of CEAG AG: "In fiscal year 2007,
CEAG had to overcome numerous challenges. In view of the fierce headwinds
buffeting the Group, the EBIT we generated was relatively pleasing. Once the
FMP business unit has been sold, we will focus all our energies on the
development of FPS. CEAG will remain a player on the international stage, with
a focus on innovation, flexibility and excellence."

More information:
CEAG AG
Ms. Gudrun Richter
Investor Relations
Tel.: +49 - 2532 - 81 158
E-mail: [email protected]

Provisional Figures for the CEAG Group (IFRSs)

| | |2007 |2006 |Change |
| | | | |in % |
|Unit sales of power supplies and|In millions|289.3 |310.4 |-6.8 |
|chargers |of units | | | |
|Thereof FMP |In millions|259.2 |282.9 |-8.4 |
| |of units | | | |
|Thereof FPS |In millions|30.1 |27.5 |9.3 |
| |of units | | | |
|CEAG revenues |EUR million|315.2 |351.7 |-10.4 |
|Thereof FMP revenues |EUR million|230.9 |272.6 |-15.3 |
|Thereof FPS revenues |EUR million|84.3 |79.1 |6.7 |
|CEAG EBIT |EUR million|12.0 |13.4 |-10.5 |
|EBIT margin |in % |3.8 |3.8 |- |
|FMP EBIT |EUR million|9.5 |12.8 |-25.7 |
|FPS EBIT |EUR million|5.7 |3.5 |60.0 |
|Holding company EBIT |EUR million|-3.2 |-2.9 |-8.6 |
|Consolidated net profit |EUR million|9.8 |11.4 |-13.4 |
|Earnings per share |EUR |1.28 |1.48 |-13.4 |
|Employees (as of December 31) |No. |19,027 |22,223 |-14.4 |
|Thereof in Germany |No. |270 |270 |- |
|Thereof in other countries |No. |18,757 |21,953 |-14.6 |

Preliminary Income Statement of the CEAG Group as of December 31, 2007

|In thousands of EUR | |2007 | |2006 |
|Revenues | |315,219 | |351,659 |
|Cost of sales | |-284,299| |-316,513|
|Gross profit | |30,920 | |35,146 |
|Research costs | |-344 | |-659 |
|Selling expenses | |-6,830 | |-8,903 |
|General and administrative expenses | |-12,219 | |-12,808 |
|Other operating expenses | |-4,934 | |-3,644 |
|Other operating income | |5,408 | |4,284 |
|Income from investments | |17 | |17 |
| | | | | |
|Earnings before interest and taxes (EBIT)| |12,018 | |13,433 |
|Interest result | |-814 | |-1,131 |
|Earnings before income taxes (EBT) | |11,204 | |12,302 |
|Income taxes | |-1,362 | |-932 |
|Consolidated net profit | |9,842 | |11,370 |
| | | | | |

Preliminary Balance Sheet of the CEAG Group as of December 31, 2007

|Assets | | | | |
|In thousands of EUR | |Dec. 31| |Dec. 31,|
| | |, 2007 | |2006 |
| | | | | |
|Non-current assets | | | | |
|Intangible assets | |1,349 | |1,222 |
|Property, plant and equipment | |24,797 | |28,710 |
|Financial assets | |5 | |5 |
| | |26,151 | |29,937 |
|Deferred taxes | |2,147 | |1,731 |
| | |28,298 | |31,668 |
| | | | | |
|Current assets | | | | |
|Inventories | |48,354 | |56,771 |
|Trade receivables | |32,747 | |36,611 |
|Other assets | |2,855 | |3,649 |
|Prepaid expenses | |137 | |215 |
|Cash | |15,539 | |2,522 |
| | |99,632 | |99,768 |
| | | | | |
|Total assets | |127,930| |131,436 |
| | | | | |

|Equity and liabilities | | | | |
|In thousands of EUR | |Dec. 3| |Dec. 31,|
| | |1, | |2006 |
| | |2007 | | |
| | | | | |
|Equity | |44,557| |37,456 |
| | | | | |
|Non-current liabilities | | | | |
|Non-current liabilities to banks | |8,970 | |2,288 |
|Provisions for pensions and similar | |2,308 | |2,499 |
|obligations | | | | |
|Other non-current provisions | |1,321 | |1,114 |
|Deferred taxes | |586 | |1,693 |
| | |13,185| |7,594 |
| | | | | |
|Current liabilities | | | | |
|Provisions for income taxes | |659 | |693 |
|Other current provisions | |2,296 | |2,157 |
|Current financial liabilities | |631 | |6,057 |
|Trade payables | |53,247| |63,497 |
|Income tax liabilities | |956 | |128 |
|Other liabilities | |12,399| |13,854 |
| | |70,188| |86,386 |
| | |83,373| |93,980 |
| | | | | |
|Total equity and liabilities | |127,93| |131,436 |
| | |0 | | |

CEAG AG

CEAG AG has its registered office in Bad Homburg, Germany, and its business
address in Ostbevern, Westphalia, Germany. It is listed in the General
Standard, and is the holding company of the two FRIWO business units. The FRIWO
Mobile Power (FMP) business unit operates in the mobile telecommunications
market and is one of the world's leading manufacturers of chargers for mobile
telephones. The FRIWO Power Solutions (FPS) business unit manufactures custom-
made power supplies and chargers for the four segments of IT and
communications, household appliances and power tools, industrial applications,
and medical technology. CEAG AG/FRIWO Group is present in all major world
markets, with state-of-the-art development centers, production and sales
operations in Europe, Asia and North and South America. CEAG AG's principal
shareholder is DELTON AG, which holds almost 77% of its capital.

DELTON AG

DELTON AG is a holding company headquartered in Bad Homburg, Germany. With its
divisions Pharmaceuticals, Household Products, Logistics and Power Supply, it
manages the value-creating investment and entrepreneurial activities of its
sole shareholder Stefan Quandt. DELTON AG is active in clearly defined markets
offering future growth in which its divisions already hold or are intending to
achieve leading positions on an international scale. With a workforce of more
than 32,000 employees, the DELTON Group generated sales of around EUR 2.6
billion in fiscal 2006.
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Further inquiry note:
Gudrun Richter
Investor Relations
Telefon: +49 (0) 2532-81-158
E-Mail: [email protected]

end of announcement euro adhoc
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emitter: CEAG AG
Von-Liebig-Str. 11
D-48346 Ostbevern
phone: +49(0)2532-81-0
FAX: +49(0)2532-81-129
mail: [email protected]
WWW: http://www.ceag-ag.com
sector: Semiconductors & active components
ISIN: DE0006201106
indexes: CDAX
stockmarkets: free trade: Börse Hamburg, Börse München, regulated dealing: Börse
Berlin, Börse Stuttgart, Börse Düsseldorf, regulated
dealing/general standard: Börse Frankfurt
language: English

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