GPV presents stronger sales

In Q3 2005/06, GPV has been carrying on the activities set out in the strategy plan Fit For the Future - the activities are progressing as planned and have resulted in an earnings improvement. GPV's collaboration with businesses within energy and defense as well as aerospace and aviation is developing in a positive direction. Sales in Q3 totaled DKK 255 million and income from operations (EBIT) DKK 13 million. (Sales expectations for 2005/06 are upgraded while earnings are maintained). Sales in Q3 2005/06 have been rising, totaling DKK 254.8 million against DKK 228.0 million in Q3 2004/05. Performance in the Electronics and Mechanics division progressed as planned and satisfactorily. Sales and results in the Printed Circuit Board (PCB) division developed favorably, but the results are still not fully satisfactory. Sales in the first three quarters of 2005/06 came to DKK 715.2 million against DKK 700.5 million in the same period in 2004/05. Income from operations (EBIT) in Q3 2005/06 was DKK 12.9 million against DKK 10.0 million in Q3 2004/05. Year-to-date, EBIT was DKK 24.6 million versus DKK 15.5 million in the same period in 2004/05. Q3 2005/06 has been impacted by start-up costs of DKK 3.6 million in connection with establishing the factory in China. Income before tax was DKK 8.8 million in Q3 2005/06 compared with DKK 5.5 million in the same period last year. Year-to-date, income before tax was DKK 11.7 million against DKK 5.8 in the same period in 2004/05, which included an extraordinary income of DKK 5.1 million. Cash flow from operations came to DKK 17.8 million in Q3 2005/06 compared with DKK 30.0 million the prior year. Based on the performance in the first nine months and the expectations for the rest of the fiscal year, GPV now expects sales in the range of DKK 975-1,000 million, income before tax of around DKK 25 million and a positive cash flow. Results expectations for 2005/06 include start-up costs of around DKK 6 million for the factory in China.