|MEDION AG, ESSEN
Ad-hoc statement pursuant to section 15 of the German Securities Trading Act (WpHG)
Lower earnings forecast
Dividend payment planned
The earnings before interest and taxes (EBIT) reported by MEDION AG for fiscal 2005 will be significantly lower than the figure anticipated by the capital market. The company expects to report EBIT in the order of € 19 million on sales of around € 2.5 billion for 2005.
The main reasons for the sharp fall in EBIT are the difficult consumer and market environment as well as the fact that MEDION AG's Board of Management - in agreement with the Supervisory Board - plans the discontinuation of unprofitable product lines and order structures. This goes along with a necessary restructuring of MEDION’s product management and sales activities which has depressed the company’s results in 2005. The year-on-year rise in service costs and other selling expenses has also depressed the company's earnings.
||MEDION AG is currently examining possible ways of paying its shareholders a higher dividend than arithmetically possible on the basis of its earnings projections.|
The Board of Management is forecasting lower sales in 2006 due to the discontinuation of unprofitable sales revenues and the persistently difficult economic situation in Germany and key international markets.