euro adhoc: SW Umwelttechnik Stoiser & Wolschner AG / other / SW Umwelttechnik affected by CEE exchange rates (E)

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14.01.2009

* Book losses due to RON and HUF course changes
* Restructuring actions in Hungary initiated in
fourth quarter already implemented
* Outlook for Water Conservation sector still positive in 2009

SW Umwelttechnik - a listed family business with its core markets in Central
and Southeastern Europe - is exposed to increased short-term currency risk by
its expansion investments. The recent course changes in the Hungarian forint
(HUF) and Romanian lei (RON) are likely to cause temporary book losses of about
EUR 5 million (m) in the 2008 financial year.

The Hungarian and Romanian currencies were highly volatile in 2008 due to the
economic crisis, and both lost almost 10% of the value against the euro in the
fourth quarter. SW Umwelttechnik will probably recognise EUR3m in
resultant
losses on the revaluation of assets in its income statement, and report a
further EUR2m on its balance sheet. The group expects the volatility of
these
currencies to abate during the second half of 2009, and the exchange rates to
return to their normal ranges, meaning that these non-cash write downs can be
reversed.

Restructuring exercises in Hungary, aimed at adjusting operations to the
changed market environment, have already been successfully implemented, leading
to the lay-off of 165 internal blue collar and 45 salaried staff, in addition
to the 210 redundancies among leased employees announced in the third quarter.
As a result of these actions and of the strong market position enjoyed by its
Water Conservation sector, SW Umwelttechnik anticipates a marked improvement in
earnings in 2009 despite the continued adverse economic situation in Hungary.
Management is confident the strong pipeline of EU-cofinanced municipal projects
will continue to drive high capacity utilisation at the two new factories, in
Timisoara and Bucharest. All the technical preparations for the planned
investment in expansion of the Bucharest works have been completed, and work on
the project is due to start towards the end of 2009, market conditions
permitting.

The Austrian operations are expected to deliver similar results to those in
2008, as the government's planned economic stimulus programmes will give a
particularly strong boost to the market segments served by SW Umwelttechnik.
In 2009 and 2010 the group will be concentrating on consolidating its positions
in its core markets - Austria, Hungary and Romania - and on its existing export
business with Bulgaria, Italy, Slovakia and Slovenia.

SW Umwelttechnik will publish a detailed review of business developments in
2008 and an updated outlook for 2009 when it announces its preliminary results
on 27 February 2009.

Founded in 1910, SW Umwelttechnik remains a family business, though it has been
listed on the Vienna Stock Exchange since 1997. The group is known for its
commitment to sustainable enterprise and rapid expansion in Central and
Southeastern Europe (CSE). Its innovative environmental technology products are
contributing to infrastructure renewal in CSE.

Further inquiry note:
Dr. Bernd Wolschner
CEO SW Umwelttechnik AG
T: +43/(0)7259/31 35 0

Michaela Werbitsch
Investor Relations
T: +43/(0)664/811 76 62
F: +43/(0)463/37 667
E: michalea.werbitsch@sw-umwelttechnik.com
W: www.sw-umwelttechnik.com

end of announcement euro adhoc
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emitter: SW Umwelttechnik Stoiser & Wolschner AG
Bahnstraße 87-93
A-9020 Klagenfurt
phone: 0043-463-321090
FAX: 0043-463-37667
mail: office@sw-umwelttechnik.com
WWW: http://www.sw-umwelttechnik.com
sector: Technology
ISIN: AT0000808209
indexes: WBI
stockmarkets: free trade: Börse Berlin, Börse Frankfurt, Regulated free trade:
Wiener Börse AG
language: English

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