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Amazys Group first-half Results 2002: Strong Profit Rebound

Press release from the issuing company

August 30, 2002 -- Accelerated progress in improving operational efficiencies together with actions announced and initiated at the end of last year and strong demand for our Color Management Software have contributed to a 10% return on sales at the EBITA level. EBITA for the first half of 2002 was CHF 5.4 million. While down from prior year first half EBITA of CHF 6.4 million, these results reflect a healthy recovery from a difficult second half 2001 and set the foundation for an improving earnings leverage in future periods. Net income for the first half was CHF 2.0 million (CHF 2.6 million). Net sales for the period from January to June 2002 were CHF 55.5 million, up 10% from the second half of 2001. As expected, net sales for the first half 2002 were below the corresponding figure for 2001 (CHF 62.2 million) due to unfavorable currency movements and the sluggish demand for industrial applications. In contrast, demand for products and services in the digital imaging market was strong, with incoming orders significantly exceeding the second half 2001, in particular for color management software. Operating expenses declined by CHF 2.2 million or 8% in the first six months compared to first half of 2001. Despite strong price pressure and lower net sales, the gross margin improved by a full percentage point, from 54.2% to 55.2%. The combination of the company's profitability and its ongoing efforts to improve asset management has generated a positive cash flow from operating activities of CHF 4.9 million (CHF 4.5 million). This has further strengthened the balance sheet with the remaining debt essentially retired in the period. Business Outlook If the early signs indicating a stronger demand for the second half of 2002 are confirmed, the Amazys Group is well positioned for continued earnings growth.