SURTECO SE increased sales after three quarters in the current business year by 1 % to € 315.7 million. While sales in the Strategic Business Unit Paper fell short of the value for the previous year by 8 % at € 116.9 million, the plastics business posted growth of 7 % to € 198.8 million owing to the acquisition of Swedish company Gislaved AB in September 2007.

As a result of the sustained weak economic cycle in the construction and furnishing industry and the resulting lower utilization of capacity – particularly during the third quarter – SURTECO SE reacted by intensifying all current cost-cutting programmes and harmonization measures in the area of personnel. A cut of 200 established posts in the budget is planned (30 September 2008: 2,220 employees). Restructuring reserves amounting to € 4.0 million were formed for this purpose so that the operating result (EBITDA) in the third quarter of 2008 amounted to € 10.2 million (2007: € 17.4 million). EBITDA for the 9-month financial statements amounted to € 49.3 million. It fell short of the value for the previous year (€ 56.6 million) by 13 %.

A correction of the investment book value for the share package in Pfleiderer AG, Neumarkt, held by SURTECO also exerted a significant negative impact on the EBT amounting to € 14.4 million (1-9/2007: € 36.7 million). The negative developments in the equity markets and the unfavourable forecast for the economy mean that SURTECO carried out an impairment amounting to € 11.5 million.

On the basis of current events in the markets and the forecasts for 2009, SURTECO SE anticipates that the weak economic situation, particularly in the construction and furnishing sector, will continue to deteriorate as a result of the financial crisis.

The corporate targets for the current year are therefore no longer realistic. It must be assumed that sales (2007: € 414.5 million) and earnings (EBT 2007: € 46.6 million) will lag behind the figures for the record year 2007 – particularly on account of the impairment of the shareholding in Pfleiderer AG and restructuring provisions.

SURTECO SE will publish the 9-month report for 2008 on 11 November on the company’s website before official hours on the stock exchange (www.surteco.com).