Marked gains in sales and earnings (0503)

Key data for fourth quarter of 2004 and for year overall

In a challenging economic environment, the Micronas Group succeeded in further increasing sales and earnings in 2004. Although the momentum of the earlier quarters slackened somewhat in the last three months of the reporting year, the Group sustained a high level of performance. Fabrication capacity was fully utilized in the core business areas of consumer electronics and automotive electronics thanks to buoyant demand for Micronas products.

In the fourth quarter, net sales reached CHF 224.1 million, against CHF 251.6 million in the previous quarter. Operating profit (EBIT) fell from CHF 42.2 million in the third quarter to CHF 25.0 million. Net profit for the last quarter of 2004 totalled CHF 18.4 million (Q3: CHF 28.1 million).

For the 2004 business year as a whole, consolidated net sales were up by 25.7 percent to CHF 963.4 million. Adjusted for currency effects this represents an increase of 23.9 percent. Order intake fell compared with the previous year from CHF 880.7 million to CHF 849.7 million.

The Group's operating profit before depreciation and amortization of goodwill (EBITDA) was CHF 305.6 million, 21.5 percent higher than in 2003. The operating profit (EBIT) also showed a clear improvement, reaching CHF 174.9 million, a year-on-year growth rate of 30.9 percent. In fiscal 2004, the Group generated a net profit of CHF 119.7 million, a rise of 26.7 percent over the previous year. This resulted in a net profit in percent of net sales of 12.4 percent. Earnings per share before amortization of goodwill increased again, rising from CHF 4.04 to CHF 4.24.

In 2004 Micronas invested CHF 127.6 million in research and development, while capital expenditures amounted to CHF 99.3 million. The disproportionate increase in R&D expenditure is due to the growing complexity of new products. The strong demand for semiconductor systems from Micronas kept the fabrication capacity at full stretch throughout the reporting year. Demand which exceeded the Group's own resources was covered by buying in capacity from foundry partners.

At the ordinary Shareholders' Meeting on March 18, 2005, the Board of Directors will propose to lower the age limit for Board members from 70 to 65 years. As a result, Dr. Leonardo Vannotti will step down from the Board of Micronas Semiconductor Holding AG on the date of this year's Shareholders' Meeting. The Company wishes to thank him for his years of service. The Shareholders' Meeting will receive a proposal for the election of a new Board member, Mr. Harald Stanzer.

For the 2005 business year as a whole we are reckoning with sales growth of 1 to 5 percent and net profit in percent of net sales at the lower end of our long-term forecast of 8 to 10 percent. However, we do not anticipate a revival of our markets in the first quarter of 2005 due to de-stocking customers and, as a result, we expect sales to drop by about 15 percent compared to the final quarter of 2004 leading to a balanced result.

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 17, 2005, Micronas Semiconductor Holding AG