First-quarter report 2008 of the EMS Group

With its companies combined in EMS-CHEMIE HOLDING AG and with global activities in the business areas Performance Polymers and Fine Chemicals / Engineering, the EMS Group reports for the first three months of 2008 an increase in net sales, with the same scope of consolidation, of 6.1% over the previous year in local currencies and of 3.3% over the previous year in Swiss Francs to CHF 405 million (392).

The takeover of EFTEC resulted in a change in the scope of consolidation compared with the previous year. Net sales taking into account the takeover of EFTEC lie 11.2% above the previous year in local currencies, corresponding to a growth in Swiss Francs of 7.7% to CHF 422 million.

Weaker foreign currencies against the Swiss Franc (in particular the US Dollar and Asian currencies), and a slowing of the economy, which is now also evident in the key sales markets Europe and Asia, led as expected to a worsening market environment.

Despite this, the main business area Performance Polymers was expanded further. The introduction of new products was particularly positive.

For 2008, EMS expects to see a further worsening of market conditions and continues to expect net sales and net operating income (EBIT) slightly above the previous year, with the same scope of consolidation.