FRIWO POWER UNLIMITED / CEAG AG

First Quarter Results for the CEAG Group Follow

05/13/2004

First Quarter Results for the CEAG Group Follow

Press Release
First Quarter Results for the CEAG Group Follow on From Prior Year's Positive Performance

- Significant growth in unit sales
- Quarterly results at prior-year level

Ostbevern/Bad Homburg, May 13, 2004 – CEAG AG, a globally operating manufacturer of high-quality FRIWO brand power supplies and chargers, continued its positive performance in the first quarter of 2004. Unit sales were increased significantly, while earnings were maintained at the prior year's level despite a decrease in revenues.

The CEAG Group sold a total of 34.1 million FRIWO brand power supplies and chargers in the first three months of 2004. This represents an increase of 19.2% against the same prior-year period (28.6 million units). At EUR 34.7 million, consolidated revenues for the first quarter fell 13.6% short of the figure for the same prior-year period (EUR 40.1 million). The drop in the value of the US currency against the euro compared with the prior-year quarter again took its toll – most of CEAG's revenues are invoiced in US dollars. If exchange rates had remained the same as the prior year, consolidated revenues of EUR 39.3 million would have been just under the prior year.

Despite the drop in revenues, the CEAG Group reports positive earnings before interest and taxes (EBIT) of EUR 0.6 million (first quarter 2003: EUR 0.5 million). Net profit after taxes for the quarter amounts to EUR 0.3 million (prior-year period: EUR 0.2 million).
In line with the usual seasonal pattern of CEAG's business, the first quarter made a relatively low contribution to revenues and earnings.

Performance of the Business Units
The FRIWO Mobile Power (FMP) business unit, which covers the high-volume markets for mobile telephones, CD/MD players, etc., recorded a 17.2% rise in sales to 31.6 million units (first quarter 2003: 27.0 million units). In this area, the Group benefited from the ongoing growth of the global mobile telephone market. Revenues came to EUR 24.7 million, down 19.0% on the first three months of 2003. Net of currency effects, revenues would have dropped 6%, price reductions having offset the increase in volume. At EUR 0.6 million, FMP's EBIT remained at the level of the prior-year period.

In the FRIWO Power Solutions (FPS) business unit, which focuses on highly fragmented markets such as medical technology, household appliances and power tools, the momentum that started to gather pace at the end of 2003 continued in the first quarter of 2004. FPS's sales rose from 1.6 million units in the prior-year period to 2.5 million units (up 51.6%), mainly driven by the start of new projects acquired during 2003. FPS increased its revenues by a slight 3.2% to EUR 10.0 million in the first quarter. This growth would have even been 10% if exchange rates had been constant. FPS reports break-even EBIT (first quarter of 2003: -EUR 0.1).

Outlook for 2004
Although the economic environment is more favorable overall than in 2003, currency effects and higher prices for raw materials are risk factors for CEAG's business. Against this background, the objective is to repeat the positive performance of earnings shown in 2003. Given the usual seasonal variances, the greatest contributions to revenues and earnings are expected in the second half of the year, provided that the economy continues to improve and that the momentum on the mobile telephone market continues.

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.

DELTON AG
DELTON AG, Bad Homburg, groups the entrepreneurial activities of its sole shareholder, Stefan Quandt. As a strategic management holding company, DELTON undertakes value-added business operations in the fields of logistics, pharmaceuticals and household products in addition to its activities through CEAG AG (power supply). The company thus operates in clearly defined segments of the growth markets of the future, in which it either holds or aims to hold a leading market position on an international scale. In 2003, the DELTON Group generated revenues of EUR 2.2 billion with over 20,000 employees.