CURANUM AG

euro adhoc: Curanum AG
quarterly or semiannual financial statement
CURANUM raises EBITDA in first half-year of 2007 to EUR14.5 million

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6-month report/HY 1/Q2-figures

09.08.2007

Revenue in the second quarter of 2007 rose from EUR52.8 million to EUR56.9 million, representing an increase of 7.9%. Earnings before interest, tax, depreciation and amortization (EBITDA) fell slightly from EUR6.5 million to EUR6.4 million, and the EBITDA margin amounted to 11.2% in the second quarter (previous year: 12.3%). As in the previous year, depreciation rose in line with the first quarter, from EUR1.6 million to EUR2.1 million, and EBIT operating earnings consequently fell from EUR4.9 million to EUR4.3 million. The EBIT margin in the second quarter amounted to 7.6%, following 9.3% in the second quarter of the previous year.

As a result of the higher interest burden, the net financial result also developed negatively to -EUR3.0 million (previous year: -EUR1.8 million). Pre-tax earnings correspondingly fell from EUR3.1 million to EUR1.3 million, and earnings after tax amounted to EUR0.8 million in the second quarter (previous year: EUR2.0 million). Earnings per share totaled EUR0.02 for the second quarter of 2007 (previous year: EUR0.08).

Revenue in the first half-year of 2007 rose from EUR103.7 million by 9.5% to reach EUR113.5 million. Earnings before interest, tax, depreciation and amortization (EBITDA) climbed from EUR14.0 million to EUR14.5 million, and the EBITDA margin declined to 12.8% (previous year: 13.5%). After deducting depreciation of EUR4.2 million (previous year: EUR3.2 million), EBIT operating earnings in the first half-year amounted to EUR10.3 million (previous year: EUR10.7 million). As a result of the disproportionate fall in the net financial result and an unchanged tax rate, consolidated net earnings in the first half of 2007 fell from EUR4.6 million to EUR3.2 million, and earnings per share amounted to EUR0.10 (previous year: EUR0.17). Operating cash flow increased from EUR6.2 million in the previous year to EUR0.7 million in the first half-year of 2007.

We are adjusting our forecasts for the full financial year as a result of the negative developments in the second quarter. We correspondingly expect revenue of EUR228.4 million, EBITDA of EUR30.4 million, EBIT of EUR22.2 million, and consolidated net income for the year of EUR8.1 million. As far as the second half of the year is concerned, we are already working on rapidly turning around the negative effects, and further raising profit margins. We continue to focus on pursuing our acquisition strategy, and we are retaining the growth objective of 800 - 1,000 beds in the planned timeframe. We are confident that we can achieve the planned EBITDA margin of 15% for 2008.

Munich, August 8, 2007

The Management Board

End of the ad hoc announcement Notes

Revenue growth: We are largely within budget with respect to revenue despite the negative impact of three effects. Only a few facilities were able to implement rises in care rates due to the restrictive positions adopted in care rate negotiations by care funds and providers of social security benefits. Organic growth was consequently limited. The average care level also fell slightly as the result of a reticent classification practice, which had a direct impact on revenues from care services. The third effect concerns our new facility in Bad Lauterberg, which has been in operation since April 1 and whose occupancy has underperformed our expectations.

Operating earnings: The divergence of operating earnings from our budget arises from several effects overall, which, although having little effect on an individual basis, nevertheless led to the significant fall in earnings in aggregate terms. Besides the matters already mentioned, which resulted in lower revenues relative to planning, high personnel costs, higher legal and consulting fees arising from the financial statements, as well as the delay in converting facilities to our laundry, brought about the above result. Moderate rises in care rates also only partially covered higher costs and the VAT expense.

Interest payments: As a result of higher levels of borrowing on the part of properties included in the balance sheet, higher leasing payments for acquired operations, as well as a higher interest expense for acquisition loans, the interest expense rose compared with the previous year from EUR2.1 million to EUR3.0 million in the second quarter of 2007. Compared with the first quarter of the reporting year, this item was also burdened further by the fact that poor payment practices meant that credit lines were utilized to a greater degree, and interest income fell.

Cash flow: It was not only the tax paid of EUR3.7 million (previous year: EUR0.5 million), interest paid, and the release of provisions and value adjustments made in the previous year amounting to EUR1.5 million, that catered for an optical decline in cash flow. The change in net current assets amounts to a negative EUR4.5 million as the result of a one-off and early payment of salaries. This effect will unwind as of the next reporting date, however, so that, when adjusted for this effect and the actual tax expense, cash flow will be achieved equivalent to the amount in the previous year.

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

Further inquiry note:
Bernd Rothe
Tel.: +49 (0)89 242065-60
E-Mail: bernd.rothe@curanum.de

Branche: Healthcare Providers
ISIN:      DE0005240709
WKN:        524070
Index:    CDAX, Classic All Share, Prime All Share, SDAX
Börsen:  Börse Frankfurt / regulated dealing/prime standard
              Börse München / regulated dealing
              Börse Berlin / free trade
              Börse Hamburg / free trade
              Börse Stuttgart / free trade
              Börse Düsseldorf / free trade



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