euro adhoc: W.O.M. World of Medicine AG / Annual Reports / WORLD OF

MEDICINE Annual Figures for 2003: Sales Goal of EUR 31.3 Million Achieved (Last Year: EUR 30.9 Million) / EBIT Improved by Increased Profitability in Core Business of Minimally Invasive Surgery to EUR -1.5 million (Last Year: EUR -1.9 million) / Turnaround in Operative Results through Development of IB Laser Subsidiary Not Attained (E) =

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(Berlin, March 10, 2004)

WORLD OF MEDCINE has achieved its targeted goal of sales stability through a slight increase in sales to EUR 31.3 million (last year:
EUR 30.9 million). The core business, Flow&FluidWORLD® , improved its operating earnings before interest and taxes to EUR 1.9 million (last year: EUR 1.0 million). Improved profitability in all divisions of the core business in Minimally Invasive Surgery (MIS®) led to an improvement in EBIT to EUR -1.5 million (last year: EUR -1.9 million).

The operative turnaround goal, however, has not yet been reached. This can be attributed specifically to the fourth quarter performance of the IB Laser subsidiary, which clearly fell below expectations. The Chairman of IB Laser, Dr. Peter Wolff, has stepped down. Michael Ott, CFO for WORLD OF MEDICINE, will again assume increased responsibility for the management of IB Laser until its is sold as planned, or a sustainable turnaround is accomplished. As CEO of IB Laser, he had led the business into the profit zone as recently as 2002.

WORLD OF MEDICINE revenues after interest and taxes of EUR -3.7 million (last year: EUR -2.1 million) were negatively impacted by extraordinary expenditures amounting to EUR 1.9 million. These include costs generated by the closing of VisionWORLD production in Gröbenzell/Munich. In addition, as a precautionary measure to cover risk at IB Laser, accruals on accounts receivable were charged off in the amount of EUR 0.7 million.

The annual savings of EUR 3.5 million garnered from the cost reduction program implemented in mid-2002 will take full effect as of 2004, as planned. A higher volume of orders at EUR 9.1 million (last year: EUR 8.4 million), a 3% increase in orders filled in 2003, as well as general contract agreements concluded for existing and new products are all indicators of the continued upswing in demand. Management is anticipating an operative turnaround and a continued increase in sales volume for the current year.

WORLD OF MEDICINE is issuing its Annual Report on March 25, 2004, as scheduled.

The Management Board

Further inquiry note:
Stefanie Gehrke, tel.: +49 (0) 30 399 81 566, 0172-402 67 40, stefanie.gehrke@womcorp.com
Tel: +49 (0)30 39981 550
FAX: +49 (0)30 39981 545

Emittent: W.O.M. World of Medicine AG Kaiserin-Augusta-Allee 113 DE-10553 Berlin Tel: +49 (0)30 39981 550 FAX: +49 (0)30 39981 545 WWW: http://www.world-of-medicine.com ISIN: DE0006637390 WKN: 663739

end of announcement euro adhoc

Indizes: CDAX, Prime All Share, Prime Standard, Technologie All Share
Börsen: regulated dealing Frankfurter Wertpapierbörse; free trade Niedersächsische Börse zu Hannover, Berliner Wertpapierbörse, Bayerische Börse, Hamburger Wertpapierbörse, Bremer Wertpapierbörse (BWB), Börse Düsseldorf, Baden-Württembergische Wertpapierbörse Branche: Pharmaceuticals
Sprache: Englisch

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