--------------------------------------------------------------------------------
  Disclosure announcement transmitted by euro adhoc. The issuer is responsible
  for the content of this announcement.
--------------------------------------------------------------------------------

20.11.2006

AD HOC ANNOUCEMENT PURSUANT TO Section15 WPHG

LPKF: Good growth in sales continues

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

~
                   2006 (9 months)  2005 (9 months)   Change
                                                      
Turnover TEUR          27,417           25,168         +8.9%
Profit TEUR             2,245            2,282         -1.6%
Net margin               8.2%             9.1%              
EBIT TEUR               4,210            4,492         -6.3%
EBIT margin             15.4%            17.8%             
EPS EUR                  0,21             0.21              
Cash and cash                                         
equivalents TEUR        4,494            8,159        -44.9%
Capital ratio           67.0%            69.2%             
Orders in hand of                                     
group 30.9. TEUR        7,555            5,786        +30.6%
Orders received by                                    
group 30.9. TEUR       27,519           26,844         +2.5%
~

Notes on the quarterly results:
LPKF Laser & Electronics AG boasts an increase in turnover of 9% in the first
nine months. Significantly, above average growth was posted by the Laser Systems
segment  where turnover expanded by 20% to EUR 16. 4 million. The Laser
Plastic-Welding business and the sale of 3D MID systems in particular have
developed very positively within this segment. 
In the StencilLaser segment, customers ordered fewer of the older models in the
run up to the launch of the new high performance standard systems. The many
orders received for the new system will significantly boost turnover in the
fourth quarter in this pivotal product segment.
The sales of inspection systems at EUR 2.0 million are below target. LPKF has
begun to expand the marketing and customer base for this segment to broaden the
base of the business.
Good performance was achieved in the Rapid PCB Prototyping segment with an
almost completely renewed product line. Turnover grew by 16% to EUR 8.0 million.
EBIT was influenced by special effects which have already been published.
Adjusted for these special effects, EBIT would have risen by around 3.5%. The
refund of interest on tax payments in Q3 2006 boosted the financial performance
by EUR 0.2 million. 

Outlook
Orders received of TEUR 7.555 create a good platform for a strong fourth
quarter. A consolidated turnover of EUR 41 million is therefore forecast for the
whole of the 2006 financial year. 
The Board of Managing Directors expects the main boost in growth in 2007 to come
from the 3D MID, the Laser Plastic-Welding segment and from the Rapid PCB
Prototyping. However, the growth rate for 2007 is expected to be in the area of
10% rather than 20%, which would correspond to a turnover forecast of EUR 45
million. 
The management is currently engaged in negotiations with a number of important
clients for 3D MID systems. The outcome of these negotiations could lead to a
significant increase of the above-mentioned forecast for the year 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