Weakened Growth in the 3rd Quarter

Eching, Germany, November 22, 2001 -
Kontron Embedded Computers AG, the worldwide leading supplier of miniaturized computers, has attained a sales volume of 275 m. DM within the last three quarters of 2001 as compared to 136 million DM during the same period last year. This represents an increase of 100 percent. Nevertheless, in the 3rd quarter a considerably weakened growth was recorded with a sales volume of 74 million DM. On the one hand, the generally poor worldwide economic trend was responsible for this as well as - particularly in the month of September - the events in the USA and the natural disaster in Taiwan. A typhoon at the production sites of the Kontron subsidiaries caused more than a two-week loss of production with considerable consequences for the Kontron group there. The weakened sales growth has resulted in a slow down in the equity earnings adjustment. The EBITDA, which amounted to 2.5 m. DM in the 3rd quarter, accumulated 28.4 million DM within the last three quarters of the financial year (the same period last year: 18 million DM). Kontron is expecting considerably better sales again within the last three months of the current financial year as compared to the 3rd quarter due to orders delayed in September. The company is assuming a sales volume for the complete financial year 2001 within the scope that was generally expected. Growth of the EBITDA, which is being financially strained due to restructuring costs in the course of the reorientation in America (esp. the acquisition of ICS), will presumably grow considerably less than expected. Therefore, despite the fact that Kontron has not managed to achieve the results planned, it is still considered to be an expanding and profitable company with high liquidity in this very tough current environment. Thus, cash resources and short term investments were 84 million DM by 30.09.2001. The operative cash flow increased within the first three quarters to 24 million DM. Kontron had a total liquidity in the form of cash resources and non-exhausted credit lines of more than 129 million DM on the 30.09.2001. The share of capital resources was 67 percent of the balance amounting to 476 million DM.

Investor Relations:
Gaby Moldan, Kontron Embedded Computers AG,
Oskar-von-Miller-Str. 1,
85386 Eching,
Tel: +49 8165/77643,
Fax 08165/77219,
Email: gaby.moldan@kontron.com