Dynamic development of Micronas Group (0401)

Key data for fourth quarter of 2003 and for year overall

The Micronas Group can look back on a successful year in 2003. Sales and earnings improved further in the fourth quarter of 2003. For the year overall, net sales and net profit reached record levels. The share capital increase launched in December met with strong demand.

Compared with the previous quarter, the fourth quarter of 2003 brought an 8.0 percent increase in net sales to CHF 216.5 million, the operating profit (EBIT) was up by 23.6 percent to CHF 42.4 million, while net income improved by 44.2 percent to CHF 31.0 million. The earnings per share, adjusted for amortization of goodwill after tax for the fourth quarter amounted to CHF 1.19.

The 2003 business year overall saw consolidated net sales increased by 8.4 percent to CHF 766.7 million compared with the previous year; adjusted for currency effects, this represents an increase of 4.4 percent. The Group's operating profit before depreciation and amortization of goodwill (EBITDA) was CHF 251.5 million, a rise of 11.1 percent compared with a year ago. The operating profit (EBIT) reached CHF 133.6 million, 14.4 percent higher than the previous year; net profit increased by 43.2 percent to CHF 94.5 million. This resulted in a net profit in percent of net sales of 12.3 percent. Earnings per share, adjusted for amortization of goodwill after tax at year-end were CHF 4.04, compared with CHF 3.13 in 2002.

In 2003, the spending in research and development amounted to CHF 95.0 million, while capital expenditures totalled CHF 73.6 million.

With demand for semiconductor systems from Micronas showing a marked upsurge in growth during 2003, the loading of available plant capacity increased to over 95 percent once more.

The capital increase carried out in December 2003 generated new capital resources of CHF 230.1 million. The increased liquidity enabled us to make early repayment of debts and secured the necessary flexibility for targeted expansion of the existing product, market and technology portfolio. Against this background, the Board of Directors is proposing to the General Meeting of Shareholders on March 26, 2004, to forgo payment of a dividend.

The new year has started very well. With the continuing brisk demand for new, high-end TV technologies, the 2004 business year should see the Micronas Group achieve sales growth of up to 20 percent.

The Micronas Group is a leading independent supplier of innovative application-specific semiconductor solutions for consumer and automotive electronics. Its shares are listed on the SWX Swiss Exchange and on the Prime Standard segment (TecDAX) in Frankfurt. Zurich, February 12, 2004 Micronas Semiconductor Holding AG