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Garbsen (euro adhoc) - Garbsen, 30 March 2011 - With a boost in earnings of
149%, LPKF produces its best performance to date in the 2010 financial year. The
shareholders of the Garbsen-based laser specialist also have a lot to look
forward to with a planned year-on-year doubling of the dividend to 40 Euro cents
this year. 
LPKF boosted revenue in 2010 by 60% to Euro 81 million - to slightly exceed its
own forecast of Euro 79 million. The level of incoming orders rose from Euro 56
million (2009) to Euro 79 million. Earnings before interest and tax (EBIT)
climbed from Euro 7 million to Euro 17 million - with a corresponding rise in
the return on sales from 14% to 21%. The Group generated revenues of Euro 20
million in the fourth quarter, producing an EBIT of more than Euro 2 million.
The 2010 financial year was characterized by a number of major orders with a
total volume of Euro 14 million in the Cutting & Structuring Lasers segment.
'Although business with systems for laser direct structuring again played a
major role, almost all the segments played a part in the enormous growth this
time,' said CEO Dr. Ingo Bretthauer explaining the background to the business
performance at the mechanical engineering company´s balance sheet press
conference.
The only exception was the Thin-film Technologies segment that suffered from the
general weakness in the solar market in 2010. However, LPKF is expecting a
significant improvement in business in this segment as well in 2011. The company
has just won a major order worth almost Euro 7 million for systems for the
production of solar panels. This order heralds LPKF´s turnaround in the solar
business which had slackened in the recent past. 
The very robust balance sheet structure the company has enjoyed in the past
remained almost unchanged with an equity ratio of 71%. 'The investment in
prop-erty, plant and equipment, and intangible assets doubled from Euro 4
million to Euro 8 million. We were able to finance these projects from our own
cash flow,' explained CFO Kai Bentz. The cash flow from operating activities
rose from Euro 11 million to Euro 13 million; the free cash flow was  Euro 6
million (previous year Euro 8 million) despite the strong rise in investments.  
The current situation in Japan naturally also has an impact on a technology
com-pany like LPKF. The effects of the disaster are not foreseeable at the
present time. However, the emergency in Japan has no acute effect on the LPKF
Group in terms of either the earnings situation or material procurement. In the
2010 financial year, the share of revenue attributable to business with Japan
was only approx. 2 %. The expansion plans will be continued as soon as the
situation in Japan has stabilized.
After the record-breaking 2010 financial year, the Management Board is
optimistic about the future. Overall, if the global economy continues to develop
positively, the Management Board forecasts that revenue in 2011 for the LPKF
Group will be similar to that in the previous year. The internal structures will
be significantly en-larged in 2011 in the face of the strong expansion of the
company. This will give rise to a corresponding increase in operating costs. The
EBIT margin is therefore expected to lie between 15 and 19% in 2011. Bretthauer
also sees opportunities for much stronger growth in business arising from more
major orders, which have not yet been incorporated in the current forecasts.
If the economic background remains stable, the Management Board forecasts for
the 2012 and 2013 financial years are for an average growth in revenues of
around 10% per year, and a slight rise in EBIT margin.

About LPKF
LPKF Laser & Electronics AG specializes in the production of laser systems for
micro-material processing, and is the world leader in several segments. Founded
in 1976, the Group has its headquarters in Garbsen near Hannover in Germany, and
does business around the world together with its subsidiaries and
representa-tives. LPKF has around 470 employees globally, of which 200 are in
Garbsen. The shares in LPKF Laser & Electronics AG are traded on the Prime
Standard of the Frankfurt Stock Exchange (ISIN 0006450000).



Further inquiry note:
LPKF Laser & Electronics AG
Bettina Schäfer, Investor Relations
Tel: (05131) 7095-382

company:     LPKF Laser & Electronics AG
             Osteriede  7
             D-30827 Garbsen
phone:       +49(0)5131 7095 382
FAX:         +49(0)5131 7095 90
mail:        investorrelations@lpkf.de
WWW:         ¿U1http://www.lpkf.de¿U0
sector:      Semiconductors & active components
ISIN:        DE0006450000
indexes:     CDAX, Prime All Share, Technology All Share
stockmarkets: regulated dealing/prime standard: Frankfurt, free trade: Berlin,
             Hamburg, Stuttgart, Düsseldorf, Hannover, München 
language:    English