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  Disclosure announcement transmitted by euro adhoc.
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21.03.2006

The group generated the following results in the 2005 financial year:


~
                       2005      2004     Change
                                  
Turnover TEUR        34,871    25,167     +38.6%
Profit TEUR           3,021       899    +236.0%
Net margin             8.7%      3.6%   
EBIT TEUR             5,980     1,697    +252.3%
EBIT margin           17.2%      6.8%   
EPS EUR                0.28      0.08   
Cash and cash                      
equivalents TEUR      8,564     7,125     +20.2%
Capital ratio           74%       76%    
Orders in hand                    
AG 31.12. TEUR        5,422     2,368    +128.9%
Orders received                   
AG 31.12. TEUR       29,780    20,939     +42.2%
                                  
Current orders in                 
hand AG as at 21.3.   5,036     4,130     +21.9%
~
Notes on the 2005 results

With a turnover of EUR 34.9 million in the 2005 financial year, the LPKF Group
generated the highest turnover in its history. The turnover target was raised in
November 2005 to EUR 33 million and has now been exceeded by around 5.7%. The
EBIT margin of 17.2% also exceeded the target figure of 14.0%. The consolidated
profit of EUR 3.021 million was only just short of the previous record profit of
EUR 3.183 million generated in the 2000 financial year.

The strong rise in turnover reflects the successful implementation of new and/or
further developed products, and the continuation of strong demand in the Asian
market. Overall, all of the segments posted extremely positive development in
their business. 

The Laser Systems segment was again primarily responsible for the boost in
turnover. Laser Cutting Systems rose by 47.7%, 3D-MID grew by 56.1%, and Laser
Plastic-Welding increased turnover by 90.5% and generated its first profit.
The turnover in Inspection Systems also grew strongly by 221.8% to EUR 4.441
million in total, and thus made a considerable contribution to the overall
performance.
Turnover in the Rapid Prototyping segment only began to surge in the fourth
quarter but was still able to reach its overall planning target.

The Asian market grew further in importance in the 2005 financial year to
account for 47.8% of total turnover. 





Outlook 2006 

The expansion of the LPKF Group will continue with the aim of boosting turnover
and profit further in 2006. Turnover in the ongoing financial year is forecast
to reach EUR 41 million, and to rise further to EUR 50 million at the end of
2007.

The high level of current orders in hand indicates that the strong upswing in
2005 is continuing unabated. Innovations designed to give users the greatest
possible economic benefits will form the basis of LPKF's growth strategy. The
ongoing financial year will therefore also see new and improved products being
launched on the market, particularly in the Laser Cutting Systems segment. The
growth strategy also focuses on further penetration of the markets. 

The management primarily forecasts growth in the Laser Cutting Systems segment.
There is also further growth potential in the Rapid PCB Prototyping segment and
the Inspection Systems segment.

The Board of Managing Directors and the Supervisory Board will propose the
payment of a dividend of 10 cents per share to the annual general meeting on 8
June 2006 (previous year: 4 cents per share).

Klaus Sülter, Member of the Supervisory Board and one of the four founders of
LPKF Laser & Electronics AG, will resign from the Supervisory Board at the
annual general meeting. Mr Sülter communicated that he intends to reduce his
shareholding in LPKF Laser & Electronics AG. 

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