euro adhoc: AvW INVEST AG / Successfully 1. Quarter 2003 (AVWI.VI) (E)

Disclosure announcement transmitted by euro adhoc. The issuer is responsible for the content of this announcement.

The AvW Group informs you about business developments during the 1st quarter of 2003 and about the company's prospects for the whole of 2003. AvW Invest AG prepares its financial statements according to IAS, and adheres to the balance sheet preparation proposals applicable to banks.

in EUR million 1st quarter, 2003 1st quarter, 2002 Operating result 1.125 1.113 Result of ordinary activities before tax 0.832 0.605 Net income over the period 0.525 0.386 Operating expenses 0.502 0.319 Workforce 103 89

The anticipated improvement in the financial situation of the AvW Group led to a significant recovery in operating income in financial services, investment business and the real estate sector to EUR 1.655 mill. (2002: 1.483 mill.). The result of ordinary activities and the net income over the period were all significantly higher than during the same period last year.

Market situation of the AvW Group
During the 1st quarter of 2003, we expanded the financial services business in Austria. At the end of the reporting period AvW Invest AG had 92 AvW financial partners under contract (2002: 79).
In investment business, the AvW Group extended its investments in the value area and acquired over 5% of the Styrian company Pankl Racing Systems AG.
High brokerage and commission income was reported during the 1st quarter of 2003 by FGN Wertpapierhandelshaus und Beteiligungs AG, with its corporate domicile in Frankfurt (in which AvW holds a 40% interest).
The publishing company New Econ AG, with its corporate domicile in Wiesbaden (in which AvW and FGN each hold a 40% interest) was again commissioned by Dresdner Bank in 2003 to produce the magazine "Am Sonnenplatz - Magazin für Wohnen, Leben und Bauen", which the Bank circulates to 140,000 building society savers. The 1st half of the year 2003 also produced highly satisfactory results for this company. In the real estate sector, the tourist operation "Seebungalows Auer von Welsbach" on Lake Wörthersee was completed and was awarded four star status, the highest grade available to holiday homes.

The financial services sector is being expanded in Austria, and in particular in Germany, so that we expect continued satisfactory operating income in our core operational business.
Investment purchases are being made when favourable opportunities arise. Dividend payments will bring a positive increase in income during the 1st half of the year.
We are constantly reviewing interesting real estate projects.

The 1st quarter 2003 report is published on our homepage at

Further inquiry note:
Mag. Alexandra Anthofer
Tel: +43(0)4229 3621
FAX: +43(0)4229 2386

end of announcement euro adhoc

Emittent: AvW INVEST AG
Hauptstrasse 118
AT-9201 Krumpendorf
Tel: +43(0)4229 3621
FAX: +43(0)4229 2386
ISIN: AT0000930409
WKN: 093040
Börsen: official dealing Wiener Börse AG; free trade Baden-Württembergische Wertpapierbörse, Frankfurter Wertpapierbörse Branche: Financial & Business Services
Sprache: Englisch