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  Disclosure announcement transmitted by euro adhoc.
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15.08.2006

AD HOC ANNOUCEMENT PURSUANT TO SECTION 15 WPHG



           LPKF: Further increase in consolidated turnover and profit


The Group generated the following performance in the first six months:

|                   |2006 (6 months)|2005 (6 months)|Change     |
|                   |               |               |           |
|Turnover TEUR      |18,279         |15,787         |+15.8%     |
|Profit TEUR        |1,554          |1,435          |+8.3%      |
|Net margin         |8.5%           |9.1%           |           |
|EBIT TEUR          |3,112          |2,762          |+12.7%     |
|EBIT margin        |17.0%          |17.5%          |           |
|EPS EUR            |0.14           |0.13           |+7.7%      |
|Cash and cash      |               |               |           |
|equivalents        |4,791          |6,987          |-31.4%     |
|bestand TEUR       |               |               |           |
|Capital ratio      |67.0%          |69.4%          |           |
|Orders in hand of  |               |               |           |
|group 30.6. TEUR   |6,325          |5,630          |+12.3%     |
|Orders received by |               |               |           |
|group 30.6. TEUR   |17,271         |17,018         |+1.5%      |

Notes on the quarterly results:
In the first six months of the 2006 financial year, LPKF Laser & Electronics  AG
boosted turnover by 15.8% to E 18.3 million. The operative profit grew by  12.7%
to E 3.1 million.

The Laser Systems segment reported a  rise  in  turnover  of  29.7%  to  E  11.2
million. Significant growth was posted by the Laser Plastic-Welding segment  and
the 3D MID segment. Laser Plastic-Welding broke into  the  international  market
and pushed turnover up 90% to E 1.7 million.  A  significant  step  forward  has
been made with systems  for  the  production  of  3D  electronic  carriers.  The
systems are now being used by clients for the mass production  of  mobile  phone
antennae. Turnover rose to E 1.8 million.

The slight decline in turnover in the StencilLaser segment is attributed by  the
Group to the preannounced change in models scheduled for this autumn.
Turnover  dropped  in  the  Inspection  Systems  segment.  Bad  debt  allowances
totalling TE 121 were reported in the accounts.
The  turnover  in  PCB  Processing  Systems  was  boosted  by  41%.  Rapid   PCB
Prototyping also reported good business with a rise in turnover of 11.6%.


Outlook 2006

The level of orders received is slightly up year-on-year.  The  decline  in  the
StencilLasers segment and  Inspection  Systems  is  compensated  by  the  strong
demand for Laser Plastic-Welding systems and 3D MID systems. The  Group  expects
the growth of the StencilLaser segment to be boosted by  the  launch  of  a  new
system generation in the ongoing quarter for which numerous orders have  already
been received.

The management expects to achieve its overall annual target, and sticks  to  its
published medium term forecasts for turnover. Turnover in the ongoing  financial
year is forecast to reach E 41 million, and grow to E 50 million by the  end  of
2007.

LPKF Laser & Electronics AG shares are quoted  in  the  Prime  Standard  of  the
Frankfurt stock exchange (ISIN 0006450000).

Further inquiry note:
Bettina Schäfer
Tel.: +49 (0)5131 7095 382
b.schaefer@lpkf.de

emitter:      LPKF Laser & Electronics AG
              Osteriede  7
              D-30827 Garbsen
phone:        +49(0)5131 7095 382
FAX:          +49(0)5131 7095 90
mail:         b.schaefer@lpkf.de
WWW:          ¿U1http://www.lpkf.de¿U0
ISIN:         DE0006450000
indexes:      CDAX, Prime All Share, Technologie All Share
stockmarkets: regulated dealing/prime standard: Frankfurter Wertpapierbörse,
              free trade: Börse Berlin-Bremen, Hamburger Wertpapierbörse,
              Baden-Württembergische Wertpapierbörse, Börse Düsseldorf,
              Niedersächsische Börse zu Hannover, Bayerische Börse 
sector:       Semiconductors & active components
language:     English