euro adhoc: W.O.M. World of Medicine AG / Quarterly or Semiannual Financial Statements / Despite earnings improvement, WORLD OF MEDICINE faces continued risks to achieving net profits in 2004 (E)

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Weaker US dollar dampens the strong growth of Minimally Invasive Surgery (MIS®) in the USA/
MIS® - without industrial laser division - reaches operative turnaround after nine months/

WORLD OF MEDICINE, developer of medical device technology for Minimally Invasive Surgery (MIS®), faces risks to achieving its business year objective of overall net profits for 2004, especially due to the sharp rise in the euro to the US dollar.

In the first nine months of 2004, WORLD OF MEDICINE achieved a 7% increase in sales (currency-adjusted*: 15%). The EBIT improved by TEUR298 to -TEUR460 (last year: -TEUR758). Consolidated earnings after nine months totaled -TEUR712 (last year: -TEUR1,018). At last year’s exchange rate with the US dollar, WORLD OF MEDICINE would have already reached a turnaround after nine months.

In the third quarter, WORLD OF MEDICINE achieved a 44% increase in US dollar-based sales. WORLD OF MEDICINE attained a currency-adjusted* growth in sales of 4% worldwide in the third quarter. Based on the euro, sales declined in the third quarter by 10%.

After consolidation in the third quarter, the healthy level of orders should support growth in sales in the fourth quarter of 2004. The successful approval of prototypes for important projects at the IB Laser subsidiary places additional sales and earnings potential in the fourth quarter within reach. Developments in the currency exchange rate will be particularly decisive in being able to offset accumulated consolidated losses after nine months with consolidated earnings from the fourth quarter. The Management Board is expecting the shift to larger purchasing volumes in US dollars to cushion the impact of currency exchange rate fluctuations during the 2005 business year. Moreover, reaching the break-even point in the fourth quarter at IB Laser, the industrial laser division, is a condition to achieving net profits for the year 2004 as a whole.

The operative turn-around in MIS® was reached within nine months, with an EBIT of TEUR133 (last year: -TEUR453). Additional opportunities for MIS® in the fourth quarter are expected from the boost in demand after Medica, the most important trade show in the industry, in November, as well as the scheduled delivery of larger orders from Flow&FluidWORLD® and LaserWORLD through the end of the year.

The complete 9-Month Report is available for review via the internet at

Please find the html-version of the 9-Month Report at:

The Management Board

* Currency adjusted: Based on the US dollar/EUR exchange rate for the same period last year.

Further inquiry note:
Stefanie Gehrke
Tel.: +49 (0)30 39981 566

emitter: W.O.M. World of Medicine AG Kaiserin-Augusta-Allee 113 D-10553 Berlin phone: +49 (0)30 39981 550 FAX: +49 (0)30 39981 545 WWW: ISIN: DE0006637390

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sector: Pharmaceuticals language: English