State Printing House Plc realized growth above the industry average of the region

State Printing House Plc. increased both its consolidated net sales and its net income by 23% in 2006. Compared to 2005, the HUF 2.6 billion growth of sales was generated most of all by the production of security products which is the main profile of the Company and the dynamically growing export sales. This development trend is in accordance with the report of the international research company PIRA on regional and international trends, which states that the focus of services is turning towards segments that require enhanced expertise. The more than HUF 1 billion consolidated net income demonstrated the dynamic growth of State Printing House Plc. in its first whole year at Budapest Stock Exchange.

The growth was generated by the expansion of security printing products and exports. As the 2007 report of the international research company PIRA pointed out, the security printing segment is growing dynamically in the CEE region. State Printing House Plc. has exceeded the regional security printing market growth rate which was forecasted by PIRA, and it increased its sales in security printing products and solutions by 43% compared to 2005. The market research trends are confirmed by the fact the increase in the sales of State Printing House Plc was supported by the jump in export sales. Exports amounted to HUF 1,772 million in 2006, an increase of HUF 1,235 million compared to the corresponding 2005 figure. The share of export within total sales rose to 12.5% in 2006 from the 4.6% seen in 2005. 88% of export sales were generated by products sold in the region. The production activities of the regional subsidiaries and joint ventures of the Company, the security products delivered to Romania, the production of Slovakian health cards won at a tender, the sales of Albanian biometric driving license cards, and the 68% growth of mainly exported phone card sales played a significant role in the expansion of export sales.

General Manager György Gyergyák commented:
“Állami Nyomda has completed one of the most successful year in its history, we could increase our sales revenue and profit in a rate exceeding the market expansion. The segment of traditional printing products is decreasing on the market while those segments are expanding that require enhanced expertise and more developed technology. As a result of international trends and our own developments, the production of security printing products and solutions and the production and personalization of cards has increased significantly compared to the previous year. The document security and RFID research and development activities will notably support the realization of the medium-term and long-term strategy of the Company in the future. On the last meeting of the Board of Directors, we unanimously decided to continue the regional expansion, and to develop the dividend policy of State Printing House Plc. accordingly.”

ANY Preliminary report 2006

State Printing House Plc.

For further information, please contact:
Mr Gábor Zsámboki deputy general manager Phone: +36 1 431 1222