Micronas developing well (PR13)

Results as per end-September 1999

Zurich, October 29, 1999 - Micronas Semiconductor Holding AG

As announced a month ago, the business performance of Micronas Semiconductor Holding AG, Zurich, for the first nine months of 1999 was influenced by the positive development of key sales markets and a corresponding strong demand for Micronas chips. As per the end of September 1999, net profit reached CHF 13.3 million, while group sales were at CHF 222.0 million. After adjusting for divestments, this is equivalent to growth of 23.2 percent. The Micronas Group, which is listed on the Swiss Stock Exchange and the Neue Markt in Frankfurt, is thus on course to meet its targets for the 1999 business year. It is very likely that the fourth quarter will be in line with the third.

Both the companies' strategic business areas contributed to the growth in sales. The Consumer Division accounted for CHF 173.0 million of Group turnover (previous year CHF 139. 2 million). Compared with the year-back figure for nine-month sales, this is equivalent to growth of 24.3 %. In the Automotive Division, sales rose to CHF 49.1 million (previous year CHF 41.1 million), representing growth of 19.4 %.

During the period under review, cash flow came to CHF 33.9 million and net profit to CHF 13.3 million. Earnings per share are at CHF 7.36.

The capital increase which was carried out successfully in the summer, allied with the companies' renewed earnings power, has resulted in a long-term strengthening of the equity capital base. At the end of September, the Micronas Group had equity capital of CHF 146.2 million, compared with CHF 57.7 million at the end of 1998. The equity capital ratio has thus risen from 19.7 percent to 37.4 percent.

The additional listing of Micronas shares on Frankfurt's Neue Markt in the middle of July 1999 was a complete success. The shareholder base has been widened and the liquidity of Micronas shares has been increased. The stock market has rewarded the company's positive business performance this year.

Micronas is an internationally active manufacturer of applications-specific chip solutions, focusing particularly on multimedia, home entertainment and automobile electronics.