aap Implantate AG: Publication of consolidated financial statement for 2002

Approx. 11% sales growth to € 13.3 million
Clear increase in EBITDA excluding stock options to € 1.6 million
2003 target: double-digit profitable sales growth

At aap Implantate AG, a specialist in biomedical implants for the musculo-skeletal system, the sales and earnings trend in fiscal 2002 was positive. Sales revenues were up € 1.4 million to € 13.3 million (previous year: € 11.9 million), due mainly to expansion of business activity in the Asian market.

Total operating performance was up clearly on the year to € 14.770 million (previous year: € 12.156 million).

EBITDA including stock options was increased to € 1.03 million (previous year: -€ 1.97 million). After taking into account acquisition-related depreciations totaling € 1.461 million and € 579,000 in stock options carried as expenses, EBIT improved markedly by € 2.834 million to -€ 1.853 million (previous year: -€ 4.687 million).

EBITDA excluding stock options improved to € 1.6 million (previous year: -€ 1.171 million). EBIT before acquisition-related depreciations and stock options was € 188,000, or € 2.635 million above the previous year's -€ 2.447 million.

The marked improvements in operating result were due to restructuring measures implemented across the group, to the integration of corporate acquisitions, and to the creation of a uniform sales network throughout the group. The cost-reduction program initiated at the end of 2001 also achieved ongoing successes. Personnel expenditure was reduced markedly, the materials usage quota was reduced, and other operating expenditure was reduced in relation to total operating performance.

In the current business year aap's primary concern is to market intensively in Germany and abroad all the product systems developed successfully over the past three years. The focus of our activities will be on expanding our business in bone cement, launching our new ÆQUOS® knee endoprosthesis in the market and generating significant sales of our orthobiological products Cerabone® and Ostim®. In this process, our main sales region Germany will be of prime importance, but to ensure optimal use of these products' future potential, acquiring additional sales partners in the European region will be an important strategic element.

aap's medium- and long-term growth strategy calls in general for significant investment. In respect of the financing required for its implementation, aap is currently engaged in talks with potential strategic partners on possible market and product cooperation and equity procurement measures.

The target for the 2003 business year is to achieve double-digit profitable sales growth excluding acquisition-related depreciations.