Kontron Maintains Dynamic Growth

Third-quarter sales of $83 (64.3€) million is an 18.4 percent increase year-on-year; EBIT climbs to $5.68 (4.4€) million in the third quarter, up from $3.7 (2.9€) million in Q3 2003; Positive outlook: all-time high fourth quarter and further growth in 2005

ECHING NEAR MUNICH (November 5, 2004) In the third quarter of 2004, TecDAX- listed Kontron AG raised its sales and profit as compared with the third quarter of 2003.. Sales increased 18.4 percent to $83 (64.3€) million, up from $70.2 (54.4€) million in the same period of 2003.

In the first nine months, the company boosted sales to $251.7 (195€) million, which represents an increase of 19.2 percent over $211 (163.6€) million for the same period of 2003. Adjusted for the effects of currency translation, growth stood at 23.7 percent. Year to date, EBIT was $19.3 (15€) million, compared to $8 (6.4€) million in the first nine months of 2003, with the third quarter contributing $5.68 (4.4€) million, compared to $3.7 (2.9€) million in third quarter 2003. Third quarter net income was $4 (3.1€) million, compared to net income of $2 (1.6€) million in third quarter 2003.

At the end of the third quarter, cash flow from operating activities stood at $14.2 (11€) million, significantly above the previous year´s level of $12.2 (9.5€) million. As of September 30, cash on hand was $73.8 (57.2€) million. As of September 30, 2004, orders on hand stood at $131.6 (102€) million, compared to $126.5 (98€) one year ago -- a currency-adjusted increase of 11.3 percent.

In terms of regional sales, Russia showed the company´s highest growth rate at 68 percent.

As it announced the figures for the third quarter, the Board of Directors also confirmed its profit and sales forecast for the financial year 2004 as a whole. Accordingly, organic growth in sales has been set at 20 percent and EBIT is expected to have doubled to $25.8 (20€) million as against the previous year. The fourth quarter should finish with a new all- time high in revenues and profits. The company substantiated its expectations by referring to the high amount of design wins within the past 12 months, which also indicate continued growth in 2005.

Note: A conversion factor of 1.2909 was used to convert EUROs to US Dollars throughout this document.

Investor Relations:
Gaby Moldan
Kontron AG
Oskar-von-Miller-Str.
185386 Eching
Tel. +49 (8165) 77212, Fax: +49 (8165) 77222
Email: Gaby.Moldan@kontron.com


Sally Thomas
Kontron America, Inc.
6260 Sequence Drive
San Diego, CA 92121
858-677-0877
sally.thomas@kontron.com

For more information, please contact:
Dr. Udo Nimsdorf
Engel & Zimmermann AG
Agentur für Wirtschaftskommunikation
Schloss Fußberg, Am Schlosspark 15
82131 Gauting
Tel. +49 (89) 89 35 633, Fax:+49 (89) 89 39 84 29
Email: info@engel-zimmermann.de