aap Implantate AG: Figures for the first quarter of 2004 published

In the first three months of fiscal 2004, aap Implantate AG, a specialist in the field of artificial and biomedical implants for the musculo-skeletal organ system, was able to halt the negative trend in business development. Consolidated sales revenues as at March 31, 2004 were up 4.5% on the year at EUR 3.1 million. While restraint continued to characterize order behavior in Germany, foreign sales growth was to 63.8%, due in part to special orders from China.

Before acquisition-related write-downs, the company's first-quarter EBITDA was EUR 773,000 (previous year: EUR 299,000). Adjusted for these write-downs, the operating result was EUR 444,000 and was therefore better than the previous year's minus EUR 41,000. Without taking this special factor into account, the DVFA/SG consolidated result for the reporting period was EUR 56,000 (previous year: minus EUR 449,000) and DVFA/SG earnings per share were EUR 0.01 (previous year: minus EUR 0.09).

Taking acquisition-related write-downs into account, the figures were as follows. EBITDA was EUR 773,000 (previous year: EUR 299,000) and operating result EUR 329,000 (previous year: minus EUR 407,000). The DVFA/SG consolidated result was EUR 19,000 (previous year: minus EUR 701,000) and DVFA/SG earnings per share were EUR 0.00 (previous year: minus EUR 0.15).

Until May 28, 2004, aap was in a very tight liquidity position that was solved only by a bridging loan provided by a consortium of investors. In view of the current uncertainty about the company's financial situation and ongoing restraint in the German market we anticipate sales development that will tend to be more on the negative side in the second quarter of the current financial year.