New Operating Orientation of pgam Groups Speciality Vehicles is Fully in Line

GEORGSMARIENHUETTE, Germany, October 11 -- pgam advanced technologies AG (Prime Standard, SDAX, ISIN DE0005138408) strenghten the existing Management Board of Josef A. Marold (Chairman and CEO) and Reiner Jung (CFO), by Oswald Gerl (44), beginning today his new responsibility within the Board in Georgsmarienhuette for sales and business development for speciality vehicles. Oswald Gerl was before Managing Director of Nitec Engineering GmbH, of which assets and approx. 60 employees were taken over by pgam with effect from February 1st, 2004. His worldwide network to military decision makers is excellent and his technological experience especially for ceramic based armoring for civilian as well as for military applications is very difficult to find a second time.

Main task for Gerl will be to improve and to attract sales in the highly profitable business of speciality vehicles based on new technologies and new applications with new customer groups e.g. in the military segment. Internally the new orientation towards the successful and highly profitable business of speciality vehicles was already done; very silent and discreet. Within less than a year pgam succeeded in transforming the Group from a former automotive engineering supplier to a manufacturer with a series production of special protected and body armored specialty vehicles in parallel with acquisitions and successful integration of their latest technological developments.

Extension and marketing of latest state of the art technological developments and applications to readiness for the market require especially in the sensitive markets for special protection an outstanding and cautious ramp up curve regarding quality. Therefore full year effects in financial figures are going to be seen in the coming year 2005 in total.

The reasons for less than originally planned customer orders (according to the target agreement) of one product series e.g. the Lincoln Town Car BPS are not in the responsibility of pgam and represent only delayed orders which did not questioning the fundamental success and concentration of the pgam Group on the wealthy and margin intensive business of special protection.

Well known facts already communicated with half year results which are going to be burden the former core business activities during 2004 are surely not the reasons for the latest share price developments which were completely independent from the successful operating business development in the special protection segment.

The latest criticism regarding the high level of trade accounts receivable is nothing new and especially in the automotive industry a well known and accepted fact due to the very good ratings of the OEMs and respectively the tier-one suppliers which result in a continuous and fixed cash inflow in the following quarters as in the years before.