aap: 47% Nine-Month Sales Growth to EUR 14.2m, EBIT EUR 2.1m

aap Implantate AG, a medical technology company listed in the Prime Standard Segment on the Frankfurt Stock Exchange and active in the fields of biomaterials and implants for trauma and joint reconstruction, boosted sales revenues by 48% to EUR 4.9 million (previous year: EUR 3.3 million) in the third quarter of fiscal 2006. Sales growth in the first nine months was 47% to EUR 14.2 million (previous year: EUR 9.6 million).

In the first nine months of the financial year the aap Group’s earnings before interest, taxes, depreciation and amortization (EBITDA) totaled EUR 3.2 million (previous year: EUR 1.5 million. The Group’s operating result (EBIT) improved in the first three quarters to EUR 2.1 million (previous year: EUR 0.5 million): EBT over this period amounted to EUR 2.0 million and was therefore well above the previous year’s EUR 0.4 million. Net nine-month profit after capitalizing deferred taxes for Jan. to Sept. was EUR 1.3 million (previous year: EUR 60K). The equity ratio on a balance sheet total of EUR 27.7 million was 77%.

For the full year 2006 aap anticipates an EBT of EUR 2.0 Million below the stated EUR 2.7 million due to unscheduled expenses (new recruitments and projects in Biomaterials, stock option related personnel costs, and an interruption of bone cement production to take automation forward). Due to strong sales growth in 2006, to the transfer of commercial trading in bone cements to Biomet Germany in the fourth quarter and to the interruption of bone cement production, aap expects in the event of any delay in new projects a limited negative organic sales and income trend in the first half of 2007 (i.e. excluding the planned acquisition of the FAME Medical Group). But in the second half of 2007 double-digit organic sales growth is to be achieved and will have a disproportionate effect on profits.

The transaction process for the biomaterials segment takeover of the Dutch FAME Medical Group announced in September is under way alongside current business and is going ahead on schedule.