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Public disclosure of inside information pursuant to Article 17 MAR

Vtion Wireless Technology AG: Q3 2009 results and outlook for the fiscal year 2009

Frankfurt, 5. November 2009

Vtion's financial performance for the third quarter of 2009 demonstrates the company's strong market position, its operational strength and the enormous growth of the Chinese 3G telecommunications market: During the third quarter of 2009 sales increased by 150 % year-on-year to EUR 26.6 million, EBIT was up 138 % yearon-year to EUR 8.2 million and net profit rose by 157% year-on-year to EUR 8.5 million. This excellent company performance was driven by the rollout of the 3G networks by the Chinese telecom operators since May 2009 leading to strong sales figures of wireless data cards of 625,427 units (+264% year-on-year), stable average selling prices for wireless data cards and a positive one-off tax effect.

In the first nine months of 2009 sales increased by 62% year-on-year to EUR 47.7 million, EBIT was up 50% year-on-year to EUR 14.2 million and net profit rose by 49% year-on-year to EUR 13.9 million which surpasses the company's net profit of EUR 12.4 million for fiscal year 2008.

In October 2009, Vtion has seen a lower sales volume of wireless data cards at stable selling prices in comparison to September, with the sales volume for October amounting to approx. 148,000 wireless data cards. This is primarily due to the fact that businesses in China were closed for several days at the beginning of the month following the Chinese National Day on October 1st, 2009 leading to a substantially lower number of active business days in October compared to September. In addition, telecom operators and data card wholesalers made a strong sales push at the end of September to increase sales prior to the holidays period resulting in extraordinary strong sales in September. Thus, the management expects substantially higher sales volumes in November and December 2009 compared to October. Average selling prices of wireless data cards for the month of October held steady compared to September at approx. 400 RMB.

Given the strong performance of Vtion in the year so far and the current trading, the management expects for the full year 2009 to generate consolidated group sales of EUR 6670 million and expects to realize an EBIT margin of approx. 29%.

 

Additional information:

ISIN: DE000CHEN993
Securities Identification No. (WKN) CHEN99
Listing: Regulated Market / Prime Standard at Frankfurt Stock Exchange
Registered office of the company: Germany

 

Investor Relations

Daphne Miller Kirchhoff Consult AG Herrengraben 1 20459 Hamburg Tel. 040-60918650 Email:daphne.miller@kirchhoff.de 

 

Disclaimer:

This document contains forward-looking statements and information - that is, statements related to future, not past, events. These statements may be identified by words such as 'expects,' 'looks forward to,' 'anticipates,' 'intends,' 'plans,' 'believes,' 'seeks,' 'estimates,' 'will,' 'project' or words of similar meaning. Such statements are based on our current expectations and certain assumptions, and are, therefore, subject to certain risks and uncertainties. A variety of factors, many of which are beyond Vtion's control, affect our operations, performance, business strategy and results and could cause the actual results, performance or achievements of Vtion to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements. For us, particular uncertainties arise, among others, from changes in general economic and business conditions (including margin developments, the legal and regulatory framework, changes in currency exchange rates and interest rates. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in the relevant forward-looking statement as expected, anticipated, intended, planned, believed, sought, estimated or projected. Vtion does not intend or assume any obligation to update or revise these forward-looking statements in light of developments which differ from those anticipated.

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