Increasing results and improving profitability

Consolidated operating income rose by 37% in Q1-Q2 2007 which can be attributed to increasing sales of higher value added security products which require advanced technology and to the improving profitability. Exports amounted to HUF 649 million in Q1-Q2 2007, which represents a 30% increase compared to the corresponding 2006 period.

State Printing House posted consolidated net sales of HUF 6.7 billion in Q1-Q2 2007, exceeding the corresponding 2006 figure by HUF 100 million. By filtering the single effect of parliamentary election forms’ sales revenue last year, this means a 7.8% increase. Consolidated EBITDA reached HUF 940 million, a growth of HUF 184 million compared to Q1-Q2 2006. Additionally, the EBITDA margin rose to 14%, exceeding the previous half-year by 2.6%. Exports amounted to HUF 649 million, due to stra-tegic target countries (Poland, Romania, Bulgaria, Slovakia, the Czech Republic and Ukraine).

General Manager György Gyergyák commented: ‘The trends that started in 2006 continued in Q1-Q2 2007 as well: export sales rose according to our plans, the demand for strategic products and solutions is still high, and our own developments are capturing even larger markets due to the reinforcement of our document security and IT research and development activities. In accordance with our strategic objectives, we emphasized the production of products with higher value added that require advanced technology, and we started to decrease the production of low profitability products – most of all traditional printing products. Board of Directors accepted the principles of management share option program.’

ANY Interim report Q1-Q2 2007

For further information, please contact:

Mr Gábor Zsámboki deputy general manager Phone: +36 1 431 1222