aap boosts sales and earnings significantly

Profitable growth in Q1 / Triple-digit earnings growth / First quarter confirms success of restructuring program / New products with attractive growth potential

aap Implantate AG testifies with its sales and earnings figures for the first quarter of 2002 to profitable growth that is well above the market level. First-quarter sales revenues increased by roughly 15% on the year to approx. € 3.42 million from € 2.98 million. EBITDA excluding stock options improved by 118% to € 1.2 million (previous year: € 540,000). Excluding acquisition-related write-downs totaling € 365,000 (previous year: € 403,000) and € 170,000 of stock options exercised and booked as expenses (previous year: € 208,000), EBIT amounts to € 895,000, up 286% on the previous year's € 232,000. The consolidated DVFA/SG result adjusted to take these factors into account was € 380,000 in the review period (previous year: € 24,000) and DVFA/SG earnings per share were € 0.08 (previous year: € 0.01). Cash earnings adjusted in the same way totaled € 535,000 (previous year: € 372,000). Taking into account the above-mentioned special effects (stock options and acquisition-related write-downs), the figures are as follows. EBITDA increased to € 1.0 million (previous year: € 332,000). EBIT increased markedly by € 740,000 to € 361,000 (previous year: -€ 379,000). The consolidated DVFA/SG result for the review period, € 34,000, was substantially higher than the previous year's -€ 355,000. DVFA/SG earnings per share were € 0.01 (previous year: -€ 0.07). DVFA/SG cash earnings also improved in the review period to € 553,000 (previous year: € 395,000).

First-quarter progress reconfirms the successes of consistent enterprise-wide implementation of the restructuring program. The program is focused on cost optimization, sustained strengthening of the sales organization, integration of acquisitions, streamlining of the product portfolio and expansion in promising fields of competence. Strategic objectives for aap Implantate AG in the current financial year include intensifying sales activities in high-margin, high-growth foreign markets and extending product competencies into the orthobiological materials and bone cement/cementing technique segments. The bone replacement materials Cerabone, Cerabone granulate and Ostim that have already been granted approvals for the European market and are in the process of being launched constitute the starting-point for the extension of product competencies in this segment.

On the basis of the positive trend that is already emerging after the first quarter and of successes so far achieved with the restructuring program, aap reconfirms its forecast of profitable double-digit sales growth excluding special effects (stock options and acquisition-related write-downs) for the full year 2002.