Armored and Protected Cars Drive pgam's Earnings

GEORGSMARIENHUETTE, Germany, August 31 --

- pgam With Significant Earnings Growth in First Half 2004

    
    - Focussing on the segment specialty vehicles drive sales and earnings
      growth
    - Sales growth of 10% to more than 39 million EUR (previous year 35.7
      mill EUR)
    - Increasing net profit of 57% to 1,078,000 EUR (previous year 687,000
      EUR)
    - Earnings per share increase from 8 Cent the year before to actual 11
      Cent
    - Outstanding performance within the peer group of listed companies

pgam advanced technologies AG (Prime Standard, ISIN DE0005138408) continues to follow the successful growth path impressively in the first half 2004 and took benefit from the early focus at the beginning of last year on the margin intensive segment of special protected vehicles. Sales and earnings growth as well as margin development compared to the same period the year before are outstanding within the peer group of listed companies and document the flexibility and efficiency of the "breathing fabrication" with its already in recent years implemented and well proven flexible models to manage the workforce capacity.

The ongoing reduction of the ratio personnel expenses to sales of four percentage points down to less than 40 % in the first half sunk already to less than 39 % in the second quarter stand alone despite the continuing sales growth of 10% in the first half 2004. "Increasing profitability and the creation of additional jobs at pgam are not in contrast to each other" underlined Josef A. Marold, Chairman and CEO of pgam advanced technologies AG, the increase in number of employees as of June 30th of approx. 2 % compared to the first quarter 2004 and of more than 11 % compared to the previous year from 723 to at least 805 employees.

Over-proportionate increase of all Group earnings figures in the first sixth months 2004:

    
    - Increase in sales of 10 % to EUR 39.9 mill (previous year EUR 35.7
      mill)
    - EBITDA margin increased from 13.5 % to 15.1 %
    - EBIT margin increased from 6.1 % to 6.8 %
    - EBIT increased by around 22 % to EUR 2.7 mill (previous year EUR 2.2
      mill)
    - Massive increase in net profit for the first six months of 57 % to EUR
      1.1 mill (previous year EUR 0.7 mill)
    - Earnings per share increased by 37.5 % to EUR 0.11 after EUR 0.08 the
      year before despite an increase in number of shares outstanding of 
      11.5 % due to a capital increase

Revenue and earnings development of the single business units of the pgam Group in detail mirror positively the strategic decision taken earlier to focus on the segment of armored and protected cars. This allowed pgam also to step aside from the rather difficult market situation of the automobile industry actually. Demand for specialty vehicles especially for armored and protected cars develops continuously pleasant. This results for the Business Unit 4 - Specialty Vehicles in tripled sales of EUR 20.3 mill actually (previous year EUR 6.7 mill) and an overproportionate more than five times higher segment earnings (EBT) of EUR 2,347,000 after EUR 437,000 in the same period the year before.

All the other single business units showed significant sales declines accordingly to the strategic focus of pgam Group with one exception, the BU 2 - Polymers which counted for rather constant sales of EUR 10.7 mill (previous year EUR 10.9 mill).

Concentrating on the specialty vehicle projects result in a sufficient capacity utilization of pgam`s prototype operating plants and ensures especially in the specialty vehicles after market a very good capacity utilization. Low volume production is mainly of interest for luxury cars and therefore offers good margins.

Demand for these armored and protected civilian cars develops extraordinary well because of a growing political instability in several parts of the world and the ongoing flashpoints on earth.

"pgam is in an excellent position in this market segment due to their customer penetration and their technological leadership. These are the two growth engines for the upcoming years", underlined Josef A. Marold the future opportunities for pgam again.

The Board of Management, August 2004

For further information and details about the company and the complete half year report which will be disclosed later today please use: www.pgam.com or contact:

    
    pgam advanced technologies AG
    Josef A. Marold
    Beekebreite 18-20
    D - 49124 Georgsmarienhuette

    Phone: +49-(0)5401-490-490
    Fax: +49-(0)5401-42705
    mailto: i-relations@pgam.com