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Micronas: Encouraging First Quarter

Key Data for First Quarter of 2003

FREIBURG, Germany, April 10 -- In the first three months of the current business year, the Micronas Group was able to build on the good results achieved in 2002. In the reporting period, consolidated net sales were up compared with the fourth quarter of 2002 by 3.4 percent to CHF 191.1 million; this represented a rise of 18.7 percent over the comparable quarter of 2002.

The operating profit before depreciation and amortization of goodwill (EBITDA) amounted to CHF 63.3 million in the reporting period. Compared with the same quarter a year ago, this is equivalent to an increase of CHF 16.5 million or 35.3 percent; while compared with the fourth quarter of 2002, it represents a decrease of 1.9 percent. The operating profit (EBIT) reached CHF 35.6 million, CHF 15.5 million or 77.1 percent up on the first quarter of 2002 and 3.8 percent lower than the fourth quarter of 2002.

The net profit for the first three months of 2003 reached CHF 23.5 million. This surpassed the result in the fourth quarter of 2002 by 2.2 percent and was CHF 15.4 million higher than in the same period a year ago, equivalent to an increase of 190.1 percent. Earnings per share amounted to CHF 0.87; adjusted for amortization of goodwill after tax, the figure was CHF 1.01.

Both the core businesses contributed to this encouraging first-quarter performance.

The strategy of focusing on high-value-added, application-specific semiconductor systems in the areas of multimedia, consumer and automotive electronics was vindicated once more in a persistently challenging business climate that is growing more difficult all the time.

A sign of the good market acceptance enjoyed by Micronas semiconductor chipsets was the fact that available machine capacity was 95 percent utilized during the reporting period.

Despite the generally good performance in 2003 so far, the present global political and economic developments make it difficult to give firm predictions about the short-term prospects for the Micronas Group. Unlike the first three months, we expect the second quarter to bring a decline in sales. On the present evidence, we expect single-digit sales growth for the first half-year and for 2003 overall, in contrast to the picture in 2002.

The Micronas Group is a leading independent supplier of innovative application-specific semiconductor solutions for multimedia, consumer and automotive electronics. Its shares are listed on the SWX Swiss Exchange and on the Prime Standard segment in Frankfurt.

  Detailed financial data can be accessed at www.micronas.com.

  Micronas Group -- Key figures for the first quarter 2003

  Consolidated profit             Q1/2003         Q4/2002       Q1/2002
   and loss statement           CHF 1 000       CHF 1 000     CHF 1 000

  Net sales                       191 134         184 947       160 979
  Margin                           80 859          84 536        63 905
  EBIT                             35 649          37 024        20 122
  EBITDA                           63 287          64 521        46 794
  Net profit before
   goodwill amortization*          27 316          26 769        11 948
  Net profit for the period        23 502          22 971         8 128
  Earnings per share in CHF
   before goodwill amortization*     1.01            1.01          0.51
  Earnings per share in CHF          0.87            0.86          0.35

  * Adjusted for goodwill amortization after deduction of tax

  Consolidated                          31.3.2003              31.12.2002
   balance sheet                        CHF 1 000               CHF 1 000

  Non-current assets                      616 407                 616 577
  Current assets                          209 536                 195 708
  Cash and cash equivalents
   and s-tfinancial investments           124 124                  97 135
  Total assets                            950 067                 909 420
  Shareholders' equity                    489 791                 459 095
  Minority interest                           645                     599
  Long-term liabilities                   288 083                 282 770
  Current liabilities                     171 548                 166 956
  Total shareholders' equity
   and liabilities                        950 067                 909 420
  Net debt (bank loans minus cash
   and cash equivalents and
   s-t financial investments)              83 288                 106 865

  Consolidated                    Q1/2003         Q4/2002       Q1/2002
   cash flow statement          CHF 1 000       CHF 1 000     CHF 1 000
  Cash flow from operating
   activities                    44 497           46 137          37 518
  Cash flow from investing
   activities                   -16 821           -9 873         -16 897
  Cash flow from
   financing activities          -2 186           -47 608         -6 422
  Change in cash and cash
   equivalents                    26 974          -12 376         13 564

  Orders on hand                  Q1/2003         Q4/2002        Q1/2002
   book-to-bill                 CHF 1 000        CHF 1 000      CHF 1 000
  Orders on hand,
   beginning of period            239 010         267 266       172 683
  Net sales                       191 134         184 947       160 979
  Order intake                    183 615         158 955       222 359
  Translation adjustment            4 011          -2 264        -1 835
  Orders on hand, end of period   235 502         239 010       232 228
  Book-to-bill                       0.96            0.86          1.38