Biogas Nord AG / Final Results

30.04.2008

Release of a Corporate News, transmitted by DGAP - a company of EquityStory AG.
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*** Result and turnover goals for 2007 not realised
*** Comprehensive cost-cutting programme to be implemented
*** Focus on successful core markets overseas
*** Growth projected in 2009 by virtue of improved statutory framework
conditions

Bielefeld, 30th April 2008. BIOGAS NORD AG, located in Bielefeld, Germany,
is adapting to changed market conditions for biogas facilities by taking a
path of consolidation. A cost-cutting programme will be implemented by the
company during the course of this year. In addition to the domestic market,
the business will focus on successful core markets overseas in a
continuation of its strategy of internationalisation. As well as a number
of measures to optimise business processes, a socially responsible 15%
reduction in personnel by the end of the year is also planned. As a result
of changes to the framework conditions in 2007, last year's annual
financial figures for the company stand at a turnover of 31.7 (previous
year: 28.7) million Euros, an overall operating performance of 25.7 (30.6)
million Euros and an EBIT of almost -4.0 (1.35) million Euros. This means
that the original goals set for the year have not been reached. 'In 2006 we
failed to position our sales activities correctly', summarised Gerrit Holz,
Chief Executive of BIOGAS NORD AG, in an analysis of the preliminary
financial result for 2007.

'2008 will be a year of consolidation for us. Further losses of up to 3
million Euros are expected by the middle of the year. After that, the
situation will ease considerably. Due to the present situation we expect an
EBIT of around -2.0 million Euros in 2008', explained Chief Financial
Officer Matthias Kubat. 'We are currently implementing a strict
cost-cutting programme in areas that are not relevant to growth. If
necessary, this will be accompanied by the introduction of shortened
working hours. At the same time, we have invested in the establishment of
strategic sales activities. We are also optimising our process workflows in
consultation with industrial coaches experienced in this sector. Overall,
this makes us confident that we can again achieve strong growth in 2009 and
return to profit', continued Kubat.

The disappointing figures for turnover and operating result are also due to
factors that have burdened the whole German biogas market in equal measure.
The ongoing discussions regarding amendment of the Renewable Energy Law
(Erneuerbare-Energien-Gesetz - EEG), a doubling of substrate prices in
recent years and the current debate about the use of vegetable raw
materials for energy generation have all led to customers, investors and
banks adopting a cautious wait-and-see attitude. Furthermore, overseas
orders have been delayed and/or booked into the current year. 'At the
moment, we are simultaneously faced with two problems: We have to wait for
new EEG directives in Germany and most of the overseas markets are only
just becoming established. The contributions to the balance sheet made by
overseas operations in 2008 cannot fully compensate for the losses that we
will incur in Germany', explained Kubat.

'The statutory framework conditions, however, will improve considerably in
2009, with the amended EEG coming into force and thus providing our
customers with a more secure foundation for investments in our products',
said Chief Executive Gerrit Holz. BIOGAS NORD therefore expects
significantly greater opportunities for improved growth in 2009. This year
BIOGAS NORD will prepare itself for such upcoming developments by adapting
the structure of the business. In addition to implementing consolidation
measures and increasing the cost-effectiveness of its business, BIOGAS NORD
will exploit the opportunities offered in successful core markets overseas.
In Europe, the company will concentrate on Spain, Italy, England and
Poland, without however completely ignoring other markets. As a result of
this focus, several planning orders have been received from Spain in recent
weeks. Also, the company has entered into partnership with a local business
in Italy. The first projects there have already reached the realisation
phase.

'We are very confident that the measures we have taken at BIOGAS NORD
provide the necessary change in course and that the coming year will see
renewed growth as a result. The German domestic market will continue to be
important for BIOGAS NORD. In addition, the triumphant international
advance of the multitalented biogas will be unstoppable and BIOGAS NORD
will play its part, being one of the few global players in the industry',
added Holz.

About BIOGAS NORD:
BIOGAS NORD AG is one of the largest technology suppliers in the biogas
industry. The services provided by the enterprise and its more than 160
employees encompass all areas of biogas technology, from concept
development, detailed planning, construction of facilities, to operations
and support services. The Bielefeld enterprise has already grown
significantly in the last few years. More than 180 biogas facilities have
been planned, built or developed since 1995. Currently about 50 additional
biogas facilities are in the construction, approval or planning phase in
Germany, the Netherlands, Belarus, the United States, England, Italy,
Spain, Romania, Cuba, India and Thailand. The electric power installed in
BIOGAS NORD biogas facilities comprises more than 75 megawatts (MW), with
which almost 100,000 households can be provided with electricity or heat
from regenerative energy.

BIOGAS NORD AG
Michael Hauck
Werningshof 2-4
D-33719 Bielefeld
Tel. +49(0)521 - 96 33 - 230
michael.hauck@biogas-nord.de
www.biogas-nord.com

german communications dbk ag
Jörg Bretschneider
Alsterufer 34
20354 Hamburg
Tel. +49 (0)40 - 46 88 33 0
presse@german-communications.com
www.german-communications.com


30.04.2008 Financial News transmitted by DGAP

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