FINANCIAL RESULTS 3Q

The Kleemann Group maintained in the third quarter of the year, the efficiency gains accomplished during the second quarter, and combined them with improved liquidity. At the same time, it tries to mitigate the fall in turnover by entering new markets abroad and promoting new products.

For example, a change in the cooperation has helped the access to a significant market share in Poland while the cooperation with one of the largest independent elevator companies in Australia, has given a significant boost to the Group products. As a result, over 20% of export turnover comes from new clientele. Simultaneously, new products such as escalators, parking systems, mechanical lifts, the flexy lift and cabins for lifts for goods have depicted considerable dynamic increase.

In particular, the consolidated turnover amounted to euros 70.51 million, compared with euros 87.42 million in the corresponding period of 2008, a decrease of 19.3%. Gross profit of the Group remained reduced at 21.0%, from euros 30.09 million to euros 23.78 million. Consolidated earnings before interest, tax and amortization (EBITDA) showed a smaller decrease of 27.3% from euros 14.87 million to euros 10.81 million while in the first semester it was 28.2%, which demonstrates the efforts being made on cost-reduction. Similarly, pre-tax profits of the period amounted to euros 8.41 million compared to euros 11.74 million in the corresponding period of last year, while profit after tax and minority interests decreased from euros 7.37 million to 5.05 million, showing a fall 28.4% and 31.5% respectively, while similar changes in the first half of the year were 30.8 % and 32.9%.

It must be reminded that the financial data of the parent company have been burdened with 325 thousand euros due to the impairment of the subsidiary Moda Cabina ABEE. Without this, the profit margin before tax of the parent would be improved by about 5.9%. It should be noted that during the third quarter, careful consideration was given into reducing part of customer balances and withholding supplier balances, thus leading to improved operating cash flow by euros 13.38 million and bank debt reduction by euros 7.5 million.

At the same time, investments in infrastructures in the examined period reached at euros 1.61 million with most notably the construction of the high speed testing tower, the total cost of which, will exceed the amount of euros 4,00 million

Finally, within the context of developing strategic moves and in collaboration with the well known industrial designer A. Zapatinas, the company in the recent international elevator fair "Interlift 2009", has introduced its new innovative brand "Kleemann design" that refers to pioneering cabin and door design.