MEDION AG, Essen (Germany)
Ad-hoc-Announcement, August 20, 2002

Stable growth path continues in the first half
Sales rise by more than 27 %
The first half of 2002 was characterized by difficult economic circumstances. MEDION has emancipated from the unfavorable overall development and has been able to raise both sales and earnings significantly.
In the first six months of the current fiscal year turnover was raised versus the previous year by more than 27 % from EUR 818.8 M to EUR 1,040.4 M.
EBIT went up from EUR 44.8 M to EUR 57.3 M. Pre-tax earnings improved from EUR 44.2 M to EUR 55.5 M, while earnings per share rose by 27.3 % from EUR 0.55 to EUR 0.70.

Cash flow improved
In the first half of 2002 cash flow from ongoing business activities went up from EUR 104.6 M (first half of 2001) to EUR 125.5 M.

Foreign sales continue to increase overproportionally
Compared to the relevant period in the previous year foreign sales went up by more than 70 % in the first six months of 2002 from EUR 162.1 M to EUR 275.6 M, which covers 26.5 % (2001: 19.8 %) of total sales. Within sales abroad, EUR 264.5 M were generated in Europe and EUR 11.1 M on the North American market.

Investments amounted to EUR 6.3 M total in the first half of 2002 (EUR 0.8 M in 2001), of which a considerable amount (EUR 5.2 M) referred to hard- and software within the expansion of our IT-infrastructure.

In the second quarter of 2002 economic recovery has again failed to materialize. In spite of the problematic economic environment MEDION has been able to remain on its growth course.
In spite of the persistently difficult environment we are convinced we will be able to completely fulfil our growth and earnings forecasts.