Preliminary consolidated figures for fiscal 2007

Hamburg - Leading media service group reporting higher sales, earnings down as expected. Group restructuring proceeding according to plan.
Further dividend planned. 

According to its preliminary consolidated financial statements for fiscal 2007 (October 1, 2006 - September 30, 2007), edel AG was able to increase its sales despite difficult market conditions, with earnings matching the Company’s forecasts. 
At the moment, edel AG is systematically restructuring the Group to convert it from a music to a media services provider. The focus of the Group’s strategy is to make book publishing and service business a key mainstay of its activities. At the same time, recorded music business is being managed on an increasingly risk-optimized basis. Integration of the recently acquired book publishing company Moewig-Verlag is proceeding according to schedule, with Group member optimal media production to start handling fulfillment activities for the entire book catalog next February. On the basis of current indications, edel AG’s management considers its strategy to be vindicated and already expects to be able to harness sustained earnings contributions from the restructuring activities in fiscal 2007/08. 
The Company’s sales increased slightly to EUR 138.6 million, up from EUR 137.0 million in the previous year. By contrast, at EUR 2.4 million, consolidated net income for the year was down on the previous year (EUR 11.2 million). In addition to a significant effect from changes to deferred taxes (EUR 4.1 million), this reflects the Company’s ongoing investment in integrating and extending book publishing activities as well as narrower margins on distribution and production activities.
Earnings per share came to EUR 0.12, down from EUR 0.52 in 2006. EBIT dropped to EUR 5.0 million, down from EUR 11.6 million in the previous year. EBITDA amounted to EUR 13.2 million compared with EUR 19.4 million in 2006.
Cash and cash equivalents as of September 30, 2007 were valued at EUR 10.8 million (September 30, 2006: EUR 12.6 million), testifying to the Company’s stable financial position.  At EUR 9.7 million, cash flow from operating activities remained very solid (2006: EUR 16.4 million). Capital spending was increased to EUR 11.1 million (2006: EUR 10.4 million). Equity stands at EUR 45 million, down from EUR 47 million in the previous year, due to the dividend paid in 2006. 
edel AG intends to distribute a divided to its shareholders again for 2007. Accordingly, shareholders will be asked to approve a dividend of EUR 0.10 per share at the annual general meeting to be held on February 26, 2008, equivalent to a dividend return of 7.1% on the basis of the current stock price.
Following the promising start to fiscal 2008, the Management Board is confident that the Company’s upbeat performance will continue as the year unfolds. Priority is still being given to extending book business, with partnership ventures and acquisitions expected to generate immediate additional growth. At the same time, global consolidation in the music market is currently giving rise to opportunities for edel AG to optimize its portfolio. 
The Company will be publishing its full annual report in January 2008.