aap Implantate AG publishes consolidated financial statements for 2001

Consolidated sales revenues approx. € 12 million (previous: approx. € 11 million)
EBITDA -€ 1.171 million (previous: € 2.6 million)
Restructuring program achieves initial successes
Outlook for 2002: Return to profitability

aap Implantate AG, a life science company specialized in metal and biological implants for the musculoskeletal system, increased sales revenues last fiscal year by roughly 9% to approx. € 12 million from approx. € 11 million. It must however be borne in mind that the Mebio-Coripharm group companies acquired in fiscal 2000 were only consolidated pro rata from the fourth quarter. German sales revenues totaled € 9.3 million (previous: € 7.1 million) and were accordingly up by approx. 31%, so the company's market position in Germany was consolidated.

EBITDA without taking stock options into account totaled -€ 1.171 million (previous: € 2.6 million). Unadjusted for acquisition-related depreciations totaling € 1,436 million and stock options totaling € 804,000, the operating result fell to -€ 2.399 million from € 1.596 million. The adjusted DVFA/SG consolidated result in the reporting period was -€ 1.896 million (previous: € 888,000) and DVFA/SG earnings per share -€ 0.40 (previous: € 0.21). Adjusted DVFA/SG cash earnings declined sharply to -€ 737,000 (previous: € 2.141 million) in the reporting period. Taking into account the abovementioned special effects (stock options and acquisition-related depreciation), the following figures apply: operating result down to -€ 4.639 million from € 1.145 million. The DVFA/SG consolidated result was -€ 3.372 million (previous: € 614,000) in the review period, DVFA/SG earnings per share were -€ 0.71 (previous: € 0.15) and DVFA/SG cash earnings were -€ 777,000 (previous: € 1.793 million).

The main reasons for a revenues and earnings trend that fell short of plan were U.S. business below expectations, delays in approvals and certification procedures for biological implants and the failure of projected large orders anticipated from exclusive sales partners to materialize. In addition, planned R & D orders were postponed until the current financial year.

To return to profitability this financial year the company embarked last year on a restructuring program consisting of extensive cost reduction measures and cross-group reorganization. Given the consistent implementation so far of the cross-group restructuring program, the turnaround planned for mid-2002 seems likely to occur after the first three months.

For the current fiscal year the Management Board anticipates double-digit growth in sales revenues and a positive operating result.