congatec AG on steep growth curve

- 2007 sales revenue exceeded in the first half of 2008 - Sales revenue has increased by 162% in comparison to the previous year

Deggendorf, Germany, 24th July, 2008 * * * congatec AG achieved a revenue of 13.03 million euros in the first six months of 2008. This represents a 162% increase on the previous year’s figure. Furthermore, the entire revenue of 12.2 million euros achieved in 2007 was already exceeded in the first half of 2008.

With the results, Gerhard Edi, CEO of congatec AG, can happily report: “The planned investment phase is now complete and we are racking up very positive numbers. For instance, the EBIT margin was still at 61,000 euros in the first quarter of 2008, but we were able to raise this to 132,000 euros in the second quarter. That’s more than double.”

The main pillars of revenue are computer modules based on the XTX module standard initiated by congatec. The development of sales of COM Express modules is also pleasing. This area has just been rounded off with new products in the highest segment of computing power and the lowest class of power consumption. It is expected that COM Express sales will draw level with the XTX product family by the end of the year.

In contrast, very little has changed as far as costs are affected. In the first quarter, costs amounted to 1.15 million euros. This figure increased to 1.28 million euros in the second quarter due to planned staff expansion.

congatec AG expects a further increase in revenue to a total of 30 million euros in 2008 (compared to 12.2 million euros the previous year). The extension and cutting-edge technology of congatec AG’s product range, as well as the company’s intensive and excellent customer relations, are the foundations for this growth. Embedded computer modules can be used in a wide variety of devices and applications. The market for congatec products stretches across all technology sectors.