Deutsche Effecten- und Wechsel-Beteiligungsges. AG

DEWB increases Net Asset Value in 2007 markedly and sets the course for further growth

- Net Asset Value per share increased to 3.03 Euros - Assets under Management raised to over 70 million Euros - Photonics and sensor systems share of the portfolio exceeds 50 percent - Appointment of the members of the Management Board extended

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Jena (euro adhoc) - Key figures for DEWB 2007

2007      2006
Net Asset Value (NAV) per share              3.03      2.57
Assets under Management                          71,234  51,177
Portfolio                                                 40,565  40,818
Number of portfolio companies                 10         12
New investments                                        3,869    9,009
Income from the investment business        12,614  17,707
Operating result (EBIT)                          1,354    3,467

Jena, 28 February 2008 - Deutsche Effecten- und Wechsel- Beteiligungsgesellschaft AG (DEWB) posted a profit for the 2007 business year. The company generated an income from the investment business of 12.6 million Euros. The sale of EPIDAUROS Biotechnologie AG accounted for 6.6 million Euros of this figure and 4flow AG, 5.6 million Euros. In the previous year the company achieved income from sales of shares in the sum of 17.5 million Euros. The gross profit in the investment business for 2007 totalled 2.6 million Euros (2006: 5.3 million Euros). Administrative expenses in the sum of 1.8 million Euros showed a further reduction compared with 2006 (2006: 1.9 million Euros). DEWB was therefore able to markedly improve its expense ratio related to the Assets under Management.

In the business year just past the company posted earnings from operating activities (EBIT) of 1.4 million Euros (2006: 3.5 million Euros) and earnings after taxes of 0.8 million Euros (2006: 3.2 million Euros). The Net Asset Value, as the key figure for the development of value in the investment business, rose by 18 percent from 39.2 to 46.2 million Euros; representing 3.03 Euros per share. The increase was primarily attributable to a value adjustment of KSW Microtec AG. The very positive development of the RFID company, in which DEWB has a 100 percent stake, led to a six million Euro increase in the book value, not affecting the income statement. Assets under Management in 2007 rose to 71.2 million Euros against 51.2 million Euros in the previous year.

Forceful implementation of the growth strategy The chosen strategy of focusing the investment portfolio on DEWB´s technological core areas of expertise was pursued on a consistent basis by the company in the business year just past. The investment in Zenteris GmbH in July 2007 was the first new commitment for three years and an investment in the focused technologies photonics and sensor systems. At the same time the company is gradually value enhanced disposing investments in other fields of technology. With the sale of EPIDAUROS Biotechnologie AG and 4flow AG, DEWB sold two companies from the biotechnology and IT sector. In 2007 the company invested a total of approx. 3.9 million Euros in the investment business. Photonics and sensor systems increased their share of the portfolio to over 50 percent.

Ideally positioned for the future The company continued to press ahead with the reduction in debt during the 2007 business year. Bank liabilities were nearly halved by 4.7 million Euros to 4.9 million Euros. In the current business year the aim is to fully repay the balance. The issue of a convertible bond in the sum of 20 million Euros in October 2007, together with the inflows resulting from the sale of investments, gave DEWB liquid assets in the sum of 21.4 million Euros (2006: 6.3 million Euros) as of 31 December 2007. The company has therefore created the financial base so it can once again take advantage of attractive investment opportunities within its technology focus of photonics and sensor systems and markedly expand its new business.

"Following completion of the `tidying-up´ exercise DEWB is now ideally positioned for further growth. In KSW Microtec AG, one of the leading manufacturers of RFID components and NOXXON Pharma AG, surely at present the most promising German biotechnology company, we have very exciting investments which offer significant potential for added value", emphasises Bertram Köhler, member of the DEWB Management Board. "In addition, we are investing in photonics and sensor systems, one of the most exciting areas of technology for the future. We are currently looking at a number of highly promising investment opportunities and are already at an advanced stage of negotiations with two companies", continues Köhler.

Outlook In 2008 photonics will be one of the key areas of investment for the Venture Capital sector, as demonstrated by a current study undertaken by FHP Private Equity Consultants and the magazine VDI nachrichten. DEWB had already recognised the potential offered by these technologies and taken a corresponding position early on. "We are currently the only professional Venture Capital company in the German-speaking region to have focused on photonics. In addition to our extensive technological expertise we have a first class network in the sector. This makes us the preferred partner for companies seeking to raise capital and clearly sets us apart from our competitors", says Köhler confidently.

DEWB aims to increase its Assets under Management above 100 million Euros by 2010 by increasing the value of its investments and to further establish itself as a leading venture capital provider for companies in the photonics and sensor system area within the German-speaking region. During this period the objective is to achieve the increases in the value of the current portfolio companies primarily through disposals that consequently affect the bottom line. The cash earnings from these sales will be reinvested within the area of our technology focus.

Management Board appointments extended At its meeting on 18 February 2008, the DEWB Supervisory Board extended the mandates of the members of the Management Board Bertram Köhler, Falk Nuber and Mirko Wäckerle for a three further years up to 31 December 2011 with effect from 1 January 2009. "The Supervisory Board is consequently rewarding them for their successful work in the restructuring and strategic realignment of the company. The extension of the mandates underlines the confidence which the Supervisory Board has in the three members of the Management Board and provides a long-term perspective for the chosen growth strategy", stated Dr. Eckart von Reden, Chairman of the DEWB Supervisory Board.

The 2007 Annual Report which is being published today will be available for downloading on the DEWB website at The printed version of the report will be available from mid of March.

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ots Originaltext: Deutsche Effecten- und Wechsel-Beteiligungsges. AG
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Further inquiry note:
Marco Scheidler
Phone: +49 (0) 3641 573 3600
Fax: +49 (0) 3641 573 3610

Branche: Financial & Business Services
ISIN:      DE0008041005
WKN:        804100
Index:    CDAX, Classic All Share, Prime All Share
Börsen:  Börse Frankfurt / regulated dealing/prime standard
              Börse Berlin / free trade
              Börse Stuttgart / free trade
              Börse München / free trade

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