Sales of almost €300 million after nine months, pre-tax earnings of €8.8 million
Financing and business not affected by financial crisis

Nuremberg, November 12, 2008 – TA Triumph-Adler AG's consolidated sales in the first nine months of the 2008 financial year amounted to €298.5 million, 2.9% below the level of sales in the previous year period. The third-quarter share of sales amounted to €90.8 million, which meant quarterly sales were down 10.9% compared with the third quarter of 2007. The decline is attributable to a shortfall of sales at one important location, which is currently being re-established following criminal intrigues on the part of former employees, as communicated on September 19, 2008. The company also stated that it would fail to achieve its original sales targets for the full year, and notably pointed at delays relating to shipments of new color machines. In its quarterly report published today, TA Triumph-Adler confirms that, according to the current status of its business, it will achieve its pre-tax earnings target of €9-11 million (EBT), which reflects the revised target issued at that time. Earnings before tax amounted to €8.8 million after the nine-month stage.
The specialist for efficiency in the Document Business grew machines-in-field (MIF) from around 178,000 as of December 31, 2007 to approximately 194,000. The number of installed unit rose by around 4,000 in the third quarter.

The gross profit margin (calculated as sales minus materials expense, expressed as a percentage of sales) recovered to 37.6% during the quarter, so that this metric, which amounted to 35.0% over the first nine months of the year, is now only 0.4 percentage points below that of the prior year period. Personnel expenditure in the first nine months totaled €53.2 million (previous year period: €51.7 million). Operating expenses in the first nine months of the year declined 2.0% to €34.9 million. Operating earnings (EBIT) of €19.0 million were 7.8% below the €20.6 million achieved in the previous year period.

The net financial result improved during the first nine months from €-12.6 million in 2007 to €-10.2 million in the current year. The improvement is mainly a consequence of the new financing implemented in August 2007. TA Triumph-Adler is relatively secure from the consequences of the financial crisis thanks to this refinancing. The company is fully financed up to 2010, will not be materially burdened by rising interest rates, and has no need for further equity capital. There are currently no hindrances to the refinancing of operating business activities.

Despite the loss of sales and charges incurred at the third-quarter, pre-tax earnings improved from €8.0 million in the first nine months of last year to €8.8 million this year. The significant divergence from the earnings planning TA Triumph-Adler AG has had in place to date nevertheless necessitates a €2.8 million write-down of deferred tax assets. This gives rise to negative quarterly result of €-2.2 million. Net earnings of €4.7 million were achieved in the first nine months, which represents 28.8% decline compared with the €6.6 million generated in the comparable period last year.

As of September 30, 2008, total consolidated assets amounted to €300.9 million, a €16.1 million reduction of the balance sheet total compared with the level on December 31, 2007 (€317.0 million).

Following the determination of an error by the Deutsche Prüfstelle für Rechnungslegung (DPR / German Financial Reporting Enforcement Panel), and as has been reported on several occasions, the 2005 consolidated financial statements were corrected to reflect deferred tax assets of around €170 million. Consolidated equity after minority interests improved from €-49.2 million as of December 31, 2007 to €-44.8 million due to the nine-month profit.

TA Triumph-Adler continues to generate stable cash flow, and enjoys good liquidity backing. Cash flow in the first nine months of the current financial year rose in a year-on-year comparison from €16.8 million to €18.1 million. Cash and cash equivalents fell from €27.5 million as of December 31, 2007 to €17.9 million as of September 30, 2008 mainly due to a reduction of trade payables.

A total of 1,364 employees were active in the companies of the TA Triumph-Adler Group as of the September 30, 2008 reporting date (December 31, 2007: 1,365)
The Management Board announces in the quarterly report that TA Triumph-Adler continues to pursue its profitable growth path. In the light of the experiences and results of the current year, and the uncertainties relating to macroeconomic trends, the company is aiming for sales in a range of €450 million to €500 million for the 2010 financial year, and a pre-tax margin of 5%. Achievement of this new pre-tax earnings margin target would translate as an EBIT margin around one to one and a half percentage points below the previously targeted level of 9%.


Further information is available from:
TA Triumph-Adler AG Postal address:
 
TA Triumph-Adler AG
Dr. Joachim Fleing
Südwestpark 23
D-90449 Nuremberg
Telephone: 0911 / 68 98 - 499
Fax: 0911 / 68 98 - 200
ir@ta.ag
www.triumph-adler.de

TA Triumph-Adler is the specialist in the Document Business. The company analyses and provides consultancy services to corporate customers on an individual basis, and implements efficient document workflow - both in paper and in electronic formats, and including long-term service. The group is the market leader in Germany with over 170,000 installed systems at over 35,000 satisfied end-customers, and with 111 years of experience in the "Document Business". Over 450 of its own design consultants, and 400 of its own system supporters, provide comprehensive geographic service, and are available for customers at 60 German locations, as well as internationally. TA Triumph-Adler offers modular solution concepts (Hardware = TOM "Total Output Management"; Software = DIDO "Digital Document Organization"). The company offers a full range of products in the areas of printing, fax, copying, scanning, and DMS, and, with TA Leasing GmbH, has its own financial services provider that provides almost any type of financing to corporate customers. The Document Specialist provides services to major international customers through its specialized company, TA Triumph-Adler Corporate Consulting GmbH. TA Triumph-Adler AG is listed in the Prime Standard of the Deutsche Börse (WKN 749500), and generated revenue of €416 million in the 2007 financial year with an employee base of 1,400. The company engages with its social and social-political responsibilities via the Triumph-Adler "Children in Need" Foundation, feels itself obligated to protect environment, and pursues efficient and comprehensive corporate governance.


Important notice:
This press release contains forward-looking statements that are based on assumptions and estimates made by the management of TA Triumph-Adler AG. Although the management of the company is of the view that these assumptions and estimates are appropriate, future actual developments and future actual events may diverge significantly from these assumptions and estimates due to various factors. These factors may include, by way of example, changes in the macroeconomic situation, exchange rates, interest rates, as well as changes both within the market and in the competitive environment as the result of technological change. TA Triumph-Adler AG provides no guarantee, and accepts no liability, if future developments, and results achieved in the future, do not accord with the assumptions and estimates expressed in this press release