Pankl Racing Systems AG

euro adhoc: Pankl Racing Systems AG
R&D expenditures and provisions burden Pankl's annual result (E)

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Turnover and development of result for the business year 2002/03:
~
MEUR                                        30.09.02 30.09.03 in % of turnover 03
Turnover                                  61,5        66,4                  -
EBIT before R&D a. provision + 6,8      + 3,2                + 5 %
R&D project expenditures          2,2         5,4                  8 %
Restructuring provision                -         1,5                  2 %
EBIT                                        + 4,6      - 3,7                - 6 %
~
With sales revenues of EUR 66.4 millon Pankl Racing Systems plc
achieves a sales growth of 8 percent in the expired business year (1
October 2002 to 30 September 2003). In the traditionally weak closing
quarter additionally the fall in demand in civil aviation could be
felt. In the last months Pankl tackled this development with a
successful sales offensive, which will, however, not allow to expect
increasing earnings before  the next business year. This year´s
result was particularly affected by the already known investments in
the two future projects "crank mechanism" and "racing gearbox" as
well as preliminary work for altogether 15 projects in the aviation
industry currently in preparation. All in all the R&D-project costs
accounted in the last year add up to EUR 5.4 million (last year EUR
2.2 million). In addition, the enterprise has with the annual
financial statement for the reporting period generated a
restructuring provision of EUR 1.5 million for the production of
crankshafts in the USA. In the USA Pankl manufactures products with
specific technological adjustments to each racing series.  This
multiplicity of products turned out to be unproductive. Pankl has
decided to terminate all negative mainstays of sales of the product
line crankshaft in the business year 2003/04. The enterprise intends
to concentrate on high-class crankshaft products and on crankshafts
for development projects in the framework of the crank mechanism. The
EBIT before R&D and restructuring provision is EUR + 3.2 million and
corresponds to an EBIT- margin of + 5 percent. After R&D project
expenditures and restructuring provision the EBIT is EUR - 3.7
million. By generating this provision Pankl takes a precaution in
order to react promptly to the planned changes in the
crankshaft-production next year, which have already been started. In
the current business year 2003/04 the Pankl group is expecting a
double-digit growth in turnover and a positive result again.

end of announcement            euro adhoc 09.12.2003
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Further inquiry note: Pankl Racing Systems AG Investor Relations Mag. Heidrun Sölkner Tel.: 0043 38 62 33999-114 mailto:ir@pankl.co.at

Branche: Technology
ISIN:      AT0000800800
WKN:        914732
Index:    Prime Standard
Börsen:  Frankfurter Wertpapierbörse / official dealing
              Nasdaq Europe / official dealing



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