CeWe Color generates third-quarter results as planned

CeWe Color Holding AG / Quarter 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 generates third-quarter results as planned Oldenburg, November 27, 2006 – In 2006, CeWe Color Holding AG (SDAX, ISIN DE 0005403901) has earned good profits as planned in what is seasonally a strong third quarter. The corporate group generated operational earnings (EBIT) amounting to EUR 20.7 million (- 7.2 %), earnings before tax (EBT) of EUR 20.3 million (- 5.3 %) and earnings after tax of EUR 17.5 million (+ 17.2 %) in a difficult market environment. Due to a market-related 33.7 % decline in the number of films, turnover, at EUR 124.7 million, falls short of that for the same period of the previous year by 5.4 %. Sales of digital photos on the other hand were increased by 30.8 %, from 283.7 million photos to 371.2 million. The number of colour prints from films dropped by 33.7 %, to 576 million prints, in the 2006 third quarter. A high penetration of digital cameras in homes (nearly 50 %) meant that sales of digital photos and photos in photo books were raised by 30.8 % to 371.2 million during the same period. This means that CeWe Color developed 17.8 % fewer prints (947 million); however, due to higher average earnings per print, turnover only dropped by 5.4 % to EUR 124.7 million. Industrial photofinishing brings cost benefits for digital photos In the digital photo production sector there are two other production systems in addition to the production of high-quality yet low-priced prints in industrial labs: home-printing on consumers' personal printers and instant printing with thermal sublimation or inkjet printers in photo retail stores. Both of these systems deliver quickly, but prints, at 25 - 60 cents, are relatively expensive. Prices for digital photos from industrial labs on the other hand start at 9 cents. Orders for 67 % of all of the digital photos ordered are placed in industrial labs – and numbers are rising. However, new industrial lab competitors are pushing down prices with aggressive offers for photos in the Internet. Earnings on target In the first nine months of 2006 CeWe Color was able to generate operational earnings (EBIT) amounting to EUR 26.5 million (- 9.6 %), earnings before tax (EBT) of EUR 21.9 million (- 20.3 %), earnings after tax of EUR 14.5 million (+ 1.8 %) and cash flow (earnings after tax less depreciation) of EUR 39.4 million (- 5.0 %). These results are on target. The good results were achieved thanks to considerable growth in the number of digital photos, to marketing added-value products such as CeWe photo books and photo gifts and to a substantial decrease in expenditure for human resources and materials. Earnings after tax and cash flow for the third quarter of 2006, at + 17.2 % and + 9.9 % respectively, far exceed those for the same period of the previous year. The tax rate was markedly reduced by a remission of internal claims between the German and the French companies. Outlook: Financial aims achieved or exceeded In 2006 CeWe Color is set to achieve or exceed financial goals set. Anticipated turnover can be slightly raised to EUR 392.0 million (- 9.0 %). Earnings before tax (EBT) are expected to reach current forecasts of EUR 21.0 million. The target for earnings after tax and cash flow (earning after tax plus depreciation) are each being raised by EUR 2.0 million, to EUR 12.0 million and EUR 47.0 million respectively. Sales targets for 2006 are being adjusted down to 1.75 billion prints from films (- 33.0 %), 1.1 billion digital photos (+ 32.0 %) and 2.85 billion photos altogether (- 17.0 %) given the enhanced added value generated by an increasing proportion of top-quality photos in photo books. Targets for 2006 Change over previous year Colour prints analogue 1.75 billion prints - 33.0 % digital 1.10 billion prints + 32.0 % total 2.75 billion prints - 17.0 % Turnover EUR 392 million - 9.0 % Cash flow (earnings after tax + depr. on fixed assets) EUR 47.0 million - 8.6 % Earnings before tax (EBT) EUR 21.0 million - 16.0 % Earnings after tax EUR 12.0 million + 4.3 % Capital expenditure EUR 30.0 million - 17.1 % Should you have any queries, please contact: 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 27.11.2006 ---------------------------------------------------------------------- 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 ---------------------------------------------------------------------------