Ostbevern, August 12, 2004 – Despite difficult conditions on the cost and currency side, CEAG AG continued to improve its results of operations in the first half of 2004. The globally operating manufacturer of high-quality FRIWO brand power supplies and chargers closed the first six months with a consolidated net profit.

The CEAG Group sold 66.5 million power supplies and chargers in the first half, up 11.7% on the comparable prior-year period (59.6 million units).

Consolidated revenue in the first six months came to EUR 70.4 million after EUR 78.0 million in the same period last year (down 9.7%). Net of currency effects, that is based on the same exchange rates as the prior year, revenues would have decreased by 1.8%. Despite the draining effect of the strength of the euro against the US dollar and much higher raw material costs (especially for copper and plastics), CEAG increased its earnings before interest and taxes (EBIT) from EUR 0.8 million to EUR 1.0 million. This increase is attributable to streamlined cost management and further improvements in processes.
Net profit for the first half of the year for the CEAG Group amounts to EUR 0.5 million or EUR 0.06 per share (prior-year period: EUR 0.00 per share).

Performance of the Business Units
The FRIWO Mobile Power (FMP) business unit, which covers the high-volume market for mobile telephones, CD/MD players, etc., benefited on the one hand from the continuing boom of the global mobile communications market. On the other hand, the currency impact of the strong euro was particularly noticeable in this business unit. FMP revenue for the first six months of 2004 came to EUR 48.9 million compared with EUR 59.9 million in the prior-year period, down 18.4% (or 9.8% net of currency effects). In addition to price reductions for chargers, the shifts in market shares of the mobile telephone manufacturers were also to the detriment of CEAG. EBIT amounted to EUR 0.7 million (first half of 2003: EUR 1.4 million).

The FRIWO Power Solutions (FPS) business unit, which focuses on highly fragmented markets such as medical technology or household appliances and power tools, performed well in the first six months, benefiting from new projects acquired in 2003. The business unit increased its revenues from EUR 18.1 million to EUR 21.6 million, up 19.0% (or 24.7% net of currency effects). EBIT made a turnaround in the first six months, from -EUR 0.5 million to EUR 0.3 million. This puts FPS back in the black, as previously announced.

Outlook: Stronger Second Half
The Management Board continues to expect higher revenues and earnings for the second half of 2004 due to seasonal fluctuations. Currency effects and high raw material prices are still risk factors for CEAG.

In response to the growing importance of the South Korean market, CEAG is opening a sales office in the capital city, Seoul, in the third quarter. In mid-August 2004, the Group will also significantly expand its production capacity by opening a new plant in Beijing. The pleasing performance of the FPS business unit is also expected to continue in the second half of the year.

Based on business in the first six months, the Management Board is forecasting positive EBIT in the Group for the whole of 2004. This would keep the Group well in the black after its return to profit in 2003.

More Information
CEAG AG
Gudrun Richter
Investor Relations
Tel.: +49 – 2532 – 81 158
E-mail: richter@friwo.de

CEAG AG
CEAG AG is the holding company of the FRIWO Group, and has its registered office in Bad Homburg and headquarters in Ostbevern, Westphalia, Germany. CEAG is listed in the Prime Standard and, with its FRIWO brand, is the world's leading supplier of chargers for mobile telephones. It held a market share of some 25% in 2003. The FRIWO Mobile Power (FMP) business unit operates in the telephone and IT technology market. The FRIWO Power Solutions (FPS) business unit manufactures custom-made power supplies and chargers for the four segments of IT and communications, power tools, industrial applications and medical technology. CEAG AG/FRIWO Group is present in all major world markets, with state-of-the-art development centers, production and sales in Europe, Asia and North and South America. Consolidated revenues amounted to EUR 167 million in 2003. CEAG AG's principal shareholder is DELTON AG, holding almost 77% of its capital.

About DELTON AG:
DELTON AG is a holding company headquartered in Bad Homburg, Germany. For its sole shareholder, Stefan Quandt, it runs value-creating operations in the business divisions Pharmaceuticals, Household Products, Logistics and Power Supply. DELTON is involved in clearly defined segments of high-growth markets in which it already occupies or is working towards an international leadership position.

With a workforce of more than 22,000 employees, the DELTON Group generated sales of around EUR 2.2 billion in fiscal 2003.