euro adhoc: init innovation in traffic systems AG / Financial Figures/Balance Sheet / init below plan in third quarter, but still on target for growth (E)

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04.11.2008

Karlsruhe, November 4, 2008. Although init innovation in traffic systems AG has
ended the third quarter with sales and earnings below target, it remains on
course for a new record year. From July to September 2008 sales by the
internationally leading provider of telematics and fare collection systems for
bus and rail reached EUR 12.7 million (previous year: EUR 15.1 million). Sales
revenues in the nine-month period, of about EUR 34 million, are thus equal to
the extraordinarily high level of the previous year (EUR 34.5 million).

The sales increase for the third quarter was delayed, until the fourth quarter
due to clients changing their plans, as well as delays in deliveries. This also
affects the share of earnings.

Based on the favorable order situation and the record level of orders as of the
end of September totaling EUR 103 million (previous year: EUR 90 million) the
Executive Board continues to assume that the sales target of some EUR 56 million
for 2008 can be achieved.

In order to complete contracts on schedule while at the same time taking
advantage of new growth opportunities in the market, init has expanded its
personnel capacity in the current fiscal year to 260 staff (previous year: 218).
Together with further preliminary expenses for development and production, this
has created a disproportionate increase in production costs compared to the
previous year. The gross profit from sales of EUR 8.4 million as of the end of
September was therefore below the figure for the previous year (EUR 12.2
million).

init generated earnings before interest and taxes (EBIT) of EUR 1.4 million in
the third quarter. On a nine-month basis, EBIT thus amounted to EUR 2.3 million
(previous year: EUR 4.5 million). The results for the period thus total EUR 1.2
million (previous year: EUR 3.4 million). This corresponds to earnings per share
of EUR 0.13 (2007: EUR 0.35).

The development of operative cash flow continues to be extremely positive. It
increased during the third quarter improving by EUR 7.5 million, to EUR 5.3
million (2007: EUR -2.2 million) during the first nine months of 2008 in
comparison to the previous year.

For the fourth quarter, init expects a new record figure for sales and earnings
based on existing orders. The EBIT for 2008 is thus projected to exceed the
previous year´s figure of EUR 7.2 million. Due to the somewhat extreme
fluctuations in the financial and foreign exchange markets, a more precise
projection in this regard has now been rendered impossible.

In the judgment of the Executive Board, the above-average growth perspectives in
the medium term for init remain intact. Furthermore, bids on major
projects will be decided upon in the next few weeks and months on four
continents.

The complete report for the third quarter of 2008 will be published on 11
November 2008.

Further inquiry note:
Alexandra Weiß
Investor Relations
Telefon: +49(0)721 6100-102
E-Mail: aweiss@initag.de

end of announcement euro adhoc
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emitter: init innovation in traffic systems AG
Käppelestrasse 6
D-76131 Karlsruhe
phone: +49(0)721 6100-0
FAX: +49(0)721 6100-399
mail: info@initag.de
WWW: http://www.initag.de
sector: Semiconductors & active components
ISIN: DE0005759807
indexes: CDAX, Prime All Share, Technologie All Share
stockmarkets: regulated dealing/prime standard: Börse Frankfurt, free trade:
Börse Berlin, Börse Hamburg, Börse Stuttgart, Börse Düsseldorf,
Börse Hannover, Börse München
language: English

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