Ad-hoc-Announcement, 14 May 2003
A good start to 2003
Sales and earnings rise significantly

In the first quarter of 2003, MEDION has again been able to raise both sales and earnings in a persistently difficult environment.

Compared to the previous year sales went up by 21.0 % from EUR 599.1 M to EUR 725.1 M.

EBIT improved by 22.2 % from EUR 35.2 M to EUR 43.0 M. Net earnings climbed from EUR 20.7 M to EUR 25.4 M. Finally earnings per share could be lifted from EUR 0.43 to EUR 0.53.

Growth trend remains intact on foreign markets
In the past quarter MEDION has continued to further expand its international activities. In total, foreign sales rose by almost 50 % from EUR 155 M in the previous year to EUR 231 M in 2003. European sales amounted to EUR 220 M, compared to EUR 152 M the year before, which represents a growth rate of 45 %. In the United States we have been able to raise our sales volume by more than three times from EUR 3 M to EUR 11 M in the same period.

Outlook
To our mind, it remains the crucial factor to succeed also in a difficult market environment to produce high quality at a fair price. We are therefore confident to fulfil our growth forecasts in the current year as well.