ESCADA AG

euro adhoc: ESCADA AG
quarterly or semiannual financial statement
ESCADA publishes half-year figures and decides on comprehensive structural optimizations leading to a significant loss after taxes for full fiscal year 2006/2007

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6-month report

28.06.2007

Munich, June 28, 2007 - Over the first half of fiscal year 2006/2007 (reporting date: October 31) the ESCADA Group increased sales and earnings slightly against the same period of last year recording a moderate business performance overall. Group revenues for the women´s luxury fashion manufacturer were up by 3.7%, climbing from last year´s total for the period of 332.1 million Euro to 344.3 million Euro (currency adjusted: + 6.4%) At 37.6 million Euro, Group earnings before interest, taxes, depreciation and amortization (EBITDA) were up by 1.9% on the previous year (36.9 million Euro). Half-year earnings after taxes and minority interests came to 9.3 million Euro. Last year´s half-year loss of -3.0 million Euro had been considerably affected by one-time expenses during the second quarter.

The Group recorded a sales plus of 10.7% for the second quarter of 2006/2007, up from 165.4 million Euro in Q2 of 2005/2006 to 183.1 million Euro in 2006/2007. At 16.0 million Euro, EBITDA was marginally below the figure of last year (Q2 2005/2006: 16.4 million Euro).

Looking ahead over the full fiscal year 2006/2007, the Board of Management reckons Group sales and consolidated EBITDA both to grow moderately in the single percentage point range against the prior year.

The Board of Management and the Supervisory Board have agreed on the implementation of a strategic program, called "ESCADA Excellence", for the years ahead in order to set the stage for accelerated growth and higher profitability. The program will concentrate on the following five strategic objectives: build up a strong and clear brand identity, create the accessories business, focus on core markets, rationalize the retail network and adjust the Group´s organization and structure to the strategic objectives.

Furthermore, ESCADA´s Board of Management has decided to execute structural optimizations in order to improve the Group´s efficiency. The measures relate to management of the retail network, the organizational improvement of the subsidiaries and to the closing of contractual liabilities.

These structural costs will come to around 35 million Euro and will affect the Income Statement of the Annual Financial Statement 2006/2007. For the current fiscal year, the Board of Management furthermore estimates that the German company tax reform will have a negative effect on the Group as it will necessitate a re-valuation of capitalized deferred taxes leading to a write-down of around 14 million Euro. As a consequence of above two factors, the ESCADA Group will complete fiscal year 2006/2007 with a loss after taxes of approximately 25 million Euro.

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ots Originaltext: ESCADA AG
Im Internet recherchierbar: http://www.presseportal.ch

Further inquiry note:
Viona Brandt
Tel.: +49 (0)89 9944 1336
E-Mail: viona.brandt@de.escada.com

Branche: Clothing
ISIN:      DE0005692107
WKN:        569210
Index:    SDAX, CDAX, Classic All Share, Prime All Share
Börsen:  Börse Frankfurt / official dealing/prime standard
              Börse Berlin / free trade
              Börse Hamburg / free trade
              Börse Stuttgart / free trade
              Börse Düsseldorf / free trade
              Börse München / official dealing



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