aap increases turnover

Result burdened by development and marketing costs In the first half of 2000

aap Implantate increased turnover by roughly 30 % to approx. DM 6.72 million (previous year: DM 5.15 million). Export growth could be more than doubled and presents approximately 34 % of group turnover. Turnover on the Asian Market increased by 163 %. On the African market ? due to the materializing of postponed tender-related export orders, turnover rose by 160 %. Domestic growth was in double digits too (Germany: approx. 11%). Group results for the period under review improved to minus DM 544 thousands as against minus DM 857 thousands. Group result according to DVFA/SG was minus DM 544 thousands (previous year: DM 274 thousands). Cash earnings according to DVFA/SG totaled DM 172 thousands (previous year: DM 758 thousands). The balance sheet total, at DM 35.9 million, was unchanged on the year. The DVFA/SG result per share is minus DM 0.14 (previous year: DM 0.07).

The result of ordinary business was down to minus DM 974 thousands from DM 651 thousands in the first half of 1999. This was due first to the strong focus on upcoming product launches: the new Trauma Shoulder and the Biorigid Femur System. That led to an extraordinary, time-limited tying-up of development and, above all, production capacity. Costs totaling over DM 500 thousands resulted during the review period and were included in the half-year?s figures as current expenditure, thus reducing earnings. Second, the result reflects a sharp increase in marketing and sales expenditure. The board expects this substantial advance outlay and the contribution, in turnover and profit, of HJS Gelenksysteme?s development contract, totaling nearly DM 6 million, to be reflected in a marked improvement in third- and fourth quarter results.