CeWe Color Holding AG: CeWe Color confirms corporate planning for 2006

CeWe Color Holding AG / Half Year Results Ad hoc announcement according to § 15 WpHG transmitted by DGAP - a company of EquityStory AG. The issuer is solely responsible for the content of this announcement. ---------------------------------------------------------------------- CeWe Color confirms corporate planning for 2006 Oldenburg, 29. August 2006 – CeWe Color Holding AG (SDAX, ISIN DE 0005403901) has reported that the period up to mid-year 2006 went according to plan. Due to a market-related decline in the number of films the turnover, at EUR 174.9 million, falls short of that for the same period of the previous year by 11.1 %. Sales of digital photos on the other hand were increased by 32.1%, from 319.4 million photos to 422 million. Operational earnings (EBIT) of EUR 5.8 million in the period up to mid-year 2006 have declined by 17.3 % in comparison to the same period of the previous year. The second quarter of 2006 yielded EBIT to the amount of EUR 10 million (- 12.9 %). Sales of digital photos increased by 32.1 % - CeWe digital photo prices highly attractive In the period up to mid-year 2006 alone CeWe Color was able to increase sales of digital photos by 32.1 %, to 422.0 million photos. This means that CeWe Color has already produced more than 33 % of all of the photos produced from digital data. The Internet and the order terminals installed in stores (DigiFoto Makers) are still proving to be growth promoters when it comes to digital photos. Around a third of all of the digital photos produced are ordered in the Internet (147.4 million photos, + 45.8 %). Two-thirds of these digital photos (274.6 million, + 25.8 %) were ordered in the 60,000 retail stores of CeWe Color partners. The range of digital products offered by CeWe Color is distinguished by high quality and extremely competitive prices. Prices for CeWe digital photos generally start at 9 cents per photo. Digital photos from CeWe labs are far more favourably-priced than home prints and photos from instant printers (29c to 60c). Earnings on target – second-quarter EBIT totals EUR 10 million The decline in the number of photos from film rolls has lead to the anticipated decline in turnover, which is, however, largely compensated for in terms of earnings. CeWe Color installed higher prices for digital photos and value-added products such as photo books and photo gifts. This resulted in a reduction in material costs for the first six months, namely from 37 % of turnover to 34.6 %. Measures taken to adjust capacities, costs and product and customer portfolios are proving to be extremely positive for cost structures. Operational earnings (EBIT) amounted to EUR 10 million (- 12.9 %) for the second quarter of 2006, earnings before tax (EBT) amounted to EUR 7.8 million (- 27.7 %), earnings after tax were at EUR 3.7 million (- 26.5 %) and cash flow totalled EUR 11.8 million (- 12.6 %). The third quarter is decisive for the amount of annual net income. Half of all photos taken are snapped on holidays and on trips. The summer season and in the world of digital photography more and more the autumn season are resulting in higher capacity utilisations and higher profit margins in the photo labs. Target for 2006 confirmed Since 2004 CeWe Color has been able to significantly enhance its market position. The company has increased its market share to more than 40 %. For the 2006 business year CeWe Color is aiming for earnings before tax (EBIT) of EUR 21 million and earnings after tax of EUR 10 million. Earnings will fall slightly short of those for the previous year but they will nevertheless reach the second-best level of the past six years. This is confirmation of what has been said until now concerning the aims of the company for 2006. The corporate group is making good progress with the two packages of activities designed to enhance profitability in the areas of capacity, cost, product and customer portfolios and the generation of new, digital sales by means of intensifying product development and marketing efforts. 'CeWe Color has already achieved two-thirds of the shift in technology from conventional to digital photography. The last third is to be accomplished by 2008, by which point CeWe Color, after having reached the floor for photos from films, will once again be generating growth, primarily with digital products,' Dr. Rolf Hollander, CEO with CeWe Color Holding AG, emphasises. Should you have any queries, please: CeWe Color Holding AG, Hella Hahm Tel.: 0441 / 404 - 400 (Secretary – 234) or 0171 / 34 50 530, Fax: 0441 / 404-421 email: hella.hahm@cewecolor.de, Internet: www.cewecolor.com DGAP 29.08.2006 ---------------------------------------------------------------------- Language: English Issuer: CeWe Color Holding AG Meerweg 30-32 26133 Oldenburg Deutschland Phone: +49 (0)441 40 4-1 Fax: +49 (0)441 40 4-42 1 E-mail: info@cewecolor.de WWW: www.cewecolor.de ISIN: DE0005403901 WKN: 540390 Indices: SDAX Listed: Geregelter Markt in Berlin-Bremen, Frankfurt (Prime Standard); Freiverkehr in Düsseldorf, Hamburg, München, Stuttgart End of News DGAP News-Service ---------------------------------------------------------------------------