ELMOS Semiconductor AG (OJ:ELG) ELMOS: Declining Sales In Third Quarter 2008 Due To Car Manufacturer Crisis

ELMOS Semiconductor AG (OJ:ELG) Corporate news announcement processed and transmitted by Hugin AS. The issuer is solely responsible for the content of this announcement. ---------------------------------------------------------------------- --------------



Improved quality of results Dortmund: ELMOS Semiconductor AG (FSE: ELG) generated sales of 42.6 million Euro in the third quarter 2008, corresponding with a 6.3% decline from the prior-year quarter (Q3/2007: 45.5 million Euro). Because of the global economic crisis, the volume of orders received sagged considerably by the end of the third quarter.

"The car manufacturers are particularly affected by the weak economy. This affects our customers, the supplier industry, as the first links in the chain. For ELMOS this results in postponed or canceled orders on the part of the suppliers", says Dr. Anton Mindl, CEO of ELMOS Semiconductor AG.

The gross margin came to 44.1% of sales as opposed to 42.7% in the prior-year quarter and 43.3% for the first half-year 2008. Progress made at the new production location Duisburg, leading to a high production output, and the structural changes of the U.S. subsidiaries of ELMOS implemented at the beginning of 2008 contribute to cost relief. Earnings before interest and taxes (EBIT) of 5.2 million Euro remained at a steady level (Q3/2007: 5.2 million Euro). Expressed in percent of sales, the EBIT margin climbed from 11.5% to 12.1%. Net income for the quarter under report was increased in absolute and relative terms. In absolute figures, it gained slightly to reach 3.4 million Euro, or 7.9% of sales (Q3/2007: 3.3 million Euro or 7.1%).

In response to the current weakness of the automotive industry, ELMOS decided at short notice on measures addressing costs and investments. The already started conversion of the manufacture in Dortmund from 6-inch to 8-inch wafers for instance will be slowed down until the market environment is clearly positive again.

As has been announced on October 14, 2008, ELMOS anticipates sales for 2008 at the prior-year level. The quality of results is expected to rise over 2007. Market stimulation is not expected for the fourth quarter 2008. A positive free cash flow remains on the agenda.

The complete report on the third quarter 2008 is available in German and English at www.elmos.de. On November 5, 2008 at 11:00 a.m. (CET), ELMOS will hold a conference call (in English) for analysts and investors. The conference call will later be downloadable from the company website.

+-------------------------------------------------------------------+ | in million Euro | Q3/08 | Q3/07 | Diff. | 9M/08 | 9M/07 | Diff. | | or percent, | | | | | | | | unless otherwise | | | | | | | | indicated | | | | | | | |------------------+-------+-------+--------+-------+-------+-------| | Sales | 42.6 | 45.5 | -6.3% | 133.5 | 130.4 | 2.3% | |------------------+-------+-------+--------+-------+-------+-------| | Gross profit | 18.8 | 19.4 | -3.1% | 58.1 | 54.0 | 7.7% | |------------------+-------+-------+--------+-------+-------+-------| | Operating income | 4.3 | 5.6 | -22.5% | 14.1 | 11.7 | 20.6% | |------------------+-------+-------+--------+-------+-------+-------| | EBIT | 5.2 | 5.2 | -1.0% | 14.2 | 9.5 | 49.0% | |------------------+-------+-------+--------+-------+-------+-------| | Net income | 3.4 | 3.3 | 3.1% | 9.7 | 5.4 | 82.0% | |------------------+-------+-------+--------+-------+-------+-------| | EPS (Euro) | 0.17 | 0.17 | 3.1% | 0.50 | 0.28 | 82.1% | +-------------------------------------------------------------------+

ELMOS Semiconductor AG is a developer and manufacturer of system solutions on semiconductor basis. For more than 20 years, roughly 90% of sales have been generated with chips for automotive electronics. ELMOS Semiconductor AG Janina Rosenbaum Heinrich-Hertz-Str. 1 44227 Dortmund Germany Phone +49 231-7549-0 Extension -287 Fax +49 231-7549-548 info@elmos.de www.elmos.de

--- End of Message ---

ELMOS Semiconductor AG Heinrich-Hertz-Strasse 1 Dortmund Deutschland

WKN: 567710; ISIN: DE0005677108; Index: Prime All Share, CDAX, HDAX, MIDCAP, TECH All Share, GEX; Listed: Prime Standard in Frankfurter Wertpapierbörse, Freiverkehr in Börse Düsseldorf, Freiverkehr in Börse Berlin, Freiverkehr in Hanseatische Wertpapierbörse zu Hamburg, Freiverkehr in Niedersächsische Börse zu Hannover, Freiverkehr in Börse Stuttgart, Geregelter Markt in Frankfurter Wertpapierbörse, Freiverkehr in Bayerische Börse München;

ELMOS Semiconductor AG

http://www.elmos.de

ISIN: DE0005677108

Stock Identifier: XFRA.ELG