EANS-News: SMT Scharf AG records significant increase in revenues and earnings in 2010

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Subtitle: - Revenues up 26% (preliminary figures) to € 67.0 million
(previous year: € 53.3 million)

- EBIT lifts 46% to € 11.1 million (previous year: € 7.6 million)

- Proposed dividend of € 0.85 (previous year: € 0.70) per share

Hamm (euro adhoc) - February 7, 2011 - SMT Scharf AG (German Securities Code
(WKN) 575198, ISIN DE0005751986), technology and world market leader for
rail-bound railway systems for the mining sector, has again substantially
increased its revenues and earnings (preliminary figures) in fiscal year 2010.
Over the year as a whole, the SMT Scharf Group´s revenues lifted to EUR 67.0
million compared to EUR 53.3 million in the previous year (+26%). Non-German
markets accounted for 91% of total revenue (previous year: 84%). China was the
most important individual market, followed by South Africa.

The company´s positive growth could also be clearly seen in its earnings. The
SMT Scharf Group increased its EBIT by a grand total of 46% to EUR 11.1 million
(previous year: EUR 7.6 million). This corresponds to an EBIT margin of 16.6%
compared to 14.2% in the previous year. EBIT includes non-cash income of EUR 0.8
million from the first time consolidation of the UK mining suppliers Dosco
Overseas Engineering and Hollybank Engineering, which SMT Scharf acquired in May
2010. Net income for the year grew by 60%, totaling EUR 8.1 million according to
preliminary figures (previous year: EUR 5.1 million).

"We are very pleased to have achieved this significant increase in revenues and
earnings in 2010," commented Dr. Friedrich Trautwein, SMT Scharf AG´s CEO, on
the company´s positive growth during the past year. "Our internationalization
strategy, which we have successfully implemented over the past few years, means
that we are now mostly independent of the German market. The two companies we
acquired last year also have developed well and have made a positive
contributions to earnings, as forecast. That is why we are confident that we
will be able to further increase our revenues and earnings on average over the
coming years."

The Managing and Supervisory Boards intend to propose the General Meeting for
fiscal year 2010 to pay a dividend of EUR 0.85 per share. Compared with the
dividend paid in the previous year of EUR 0.70 per share, the dividend is up
21%. In terms of the closing price of SMT Scharf´s shares on February 4, 2011,
this corresponds to a dividend yield of 4.6%.

The company expects to publish its final figures for 2010 on March 4, 2011 on
its website www.smtscharf.com in the Investor Relations section.

Company profile

The SMT Scharf group develops, builds and maintains transportation equipment for
mining and tunneling. The main product area is rail-bound railways which are
used all over the world, primarily in hard coal mines and underground mining for
gold, platinum and other metals. They are used to transport material and
personnel with working loads of up to 45 tons. Rail-bound railways are the only
means of underground transport that can be used on branching lines to cope with
inclines of more than 13 degrees. SMT Scharf´s other key products are
roadheaders, equipment for tunnel support and chairlifts. The SMT Scharf Group
has its own companies in Germany, Poland, the United Kingdom, South Africa,
China and Russia as well as additional dealerships worldwide. SMT Scharf records
more than 80% of its revenue in high-growth foreign markets, such as Russia,
China and South Africa. Business with spare parts and repairs accounts for
around 40% of revenue. The entire market for underground transport technology
comprises EUR 5 billion to EUR 7 billion per year according to the company´s
estimates. SMT Scharf AG has been listed in the Prime Standard (Regulated
Market) of the Frankfurt Stock Exchange since April 11, 2007.

Further inquiry note:
Contact

Investor Relations
cometis AG
Susanne Gremmler
Tel: +49(0)611 - 205855-23
Fax: +49(0)611 - 205855-66
e-mail: gremmler@cometis.de
end of announcement euro adhoc
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company: SMT Scharf AG
Römerstr. 104
D-59075 Hamm
phone: +49(0)2381-960212
FAX: +49(0)2381-960311
mail: ir@smtscharf.com
WWW: http://www.smtscharf.com
sector: Machine Manufacturing
ISIN: DE0005751986
indexes: CDAX, Classic All Share, Prime All Share
stockmarkets: regulated dealing/prime standard: Frankfurt, free trade: Berlin,
Hamburg, Stuttgart, Düsseldorf, München
language: English

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