Ad-hoc Announcement, May 18, 2004
Positive start to the new year

Sales and earnings up further
Compared to the previous year, turnover went up by 5.7 % from EUR 725.1 M to EUR 766.7 M, of which EUR 657.1 M or 85.7 % referred to multimedia products (the year before: 86.3 %). Entertainment and household electronics contributed EUR 96.7 M or 12.6 % to total sales (2003: 12.7 %). In communications technology sales of EUR 12.9 M, which is 1.7 % (2003: 1.0 %) of group sales, were achieved.

EBIT improved by 5.8 % from EUR 43.0 M to EUR 45.5 M. Net earnings rose by 6.4 % from EUR 25.4 M to EUR 27.0 M. Earnings per share could be lifted from EUR 0.53 to EUR 0.56.

Growth trend abroad still intact
In the past quarter we have further expanded our international activities. On total, foreign sales went up by 22.7 % from EUR 231.0 M in the previous year to EUR 283.5 M in the current year. This reflects a foreign exposure of 37.0 % versus 31.9 % the year before. Sales in Europe amounted to EUR 264.1 M, compared to EUR 219.5 M in 2003. This corresponds to a growth rate of 20.3 %. On overseas markets we have raised turnover in the same period from EUR 11.5 M to EUR 19.3 M.

We will continue to focus particularly on the expansion of our foreign business.

Outlook
We believe that there will be no sustained improvement in the German consumer climate over the next months. However we are confident that we will again generate double-figure growth rates in fiscal year 2004 for both sales and earnings.