Nabaltec AG / Half Year Results

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Nabaltec AG:

  - Revenues in the first half of 2009 once again affected by difficult
    conditions in consumer industries all over the world

  - US revenues begin to recover in the second quarter of 2009 

  - Cost-cutting measures have an impact, nearly enabling balanced
    operating profit (EBIT) in the second quarter

  - Operating cash flow once again positive 

  - Revenues and earnings forecast for 2009 

Schwandorf, 25 August 2009 - Nabaltec AG's earnings stabilized considerably
in the second quarter of 2009: EBIT improved to EUR -0.2 million, as the
company nearly broke even. In all company sectors, cost structure was
adapted to current market conditions. EBIT was EUR -2.0 million for the
first half of the year. As in the first quarter, Nabaltec AG's revenues in
the second quarter of 2009 were affected by weak global demand in
Nabaltec's key consumer industries. In all, revenues fell by 36.2% in the
first half of 2009, from EUR 51.9 million in the first half of 2008 to just
EUR 33.1 million. In addition to the clear stabilization in earnings, the
improvement in cash flow demonstrates that the measures which Nabaltec has
taken are having an effect. Nabaltec's net cash flow from operating
activities was EUR 0.8 million.

According to Gerhard Witzany, a member of Nabaltec AG's Management Board:
'While we don't anticipate a turnaround in the second half, we certainly do
expect to see a clear stabilization in our business. Key consumer
industries seem to have broken the downward trend: the refractory industry,
an important consumer of our technical ceramics products, has reported that
it will soon be starting up new blast furnaces, and in the electric and
electronics industry, which is a consumer of our mineral based halogen-free
flame retardants, the order situation seems to be stabilizing all over the
world. However, other key industries are still in crisis, such as the
construction sector.'

This stabilizing trend is already visible in the figures for the
'Functional Fillers' business division, where revenues grew by around 13%
in the second quarter over the first quarter of 2009. Even compared to the
year before, the decline in revenues in the second quarter was less steep
than in the first quarter. On balance, revenues fell by 35.1% in the first
six months of 2009, to EUR 22.7 million. US revenues were especially
strong, growing by 6.4% in the first half of the year thanks to the
operations of Nabaltec's US subsidiary, Nashtec.

Revenues in the 'Technical Ceramics' business division did not yet reflect
the steel industry's announcement that it will be expanding capacity. In
fact, revenues fell by 38.5% in the first half of 2009, to EUR 10.4
million.

Nabaltec's earnings have largely been stabilized. Although revenues
continue to be under pressure, Nabaltec nearly broke even in the second
quarter, with an EBIT of EUR -0.2 million, as a result of cost-cutting
measures. For the first half of 2009, Nabaltec's EBIT comes to EUR -2.0
million. Earnings after depreciation and amortization (EBITDA) came to EUR
1.1 million in the first half, down from EUR 5.6 million the same period in
the year before. Earnings after taxes and minority interests came to       
EUR -3.6 million in the first six months of 2009, down from EUR 1.5 million
in the first half of 2008.

The effectiveness of the measures taken by Nabaltec AG is apparent not only
from the clear stabilization in earnings, but from the improvement in cash
flow as well. The consolidated cash flow statement shows a net cash flow
from operating activities of EUR 0.8 million in the first half of 2009
(down from                 EUR 4.4 million the year before). Investments
proceeded according to plan in the second quarter of 2009. Around two
thirds of investments in the first six months of 2009 went to the new
'Additives' business unit, for the construction of our ACTILOX(R) CAHC
production plant in Schwandorf. After subtracting pro-rata investment
grants, cash flow from investment activities came to EUR -9.7 million.

The 'Additives' business unit, where the investment focus is on, is
expected to have an impact on revenues and cash flow starting in the fourth
quarter of 2009. Due to changes in statutory requirements all over the
world, stabilizers which contain heavy metals will increasingly have to be
replaced by eco-friendly products, such as those currently offered by
Nabaltec.

Revenues in the 'Functional Fillers' and 'Technical Ceramics' business
divisions are expected to total over EUR 37 million in the third and fourth
quarters of 2009, more than 10% higher than in the first half of the year.
On the year, Nabaltec expects revenues to exceed the EUR 70 million mark.

Nabaltec also expects to see an improvement in earnings before interest,
taxes, depreciation and amortization (EBITDA) in the second half over the
first six months of the year.

Assuming a medium-term market growth rate of over 5% in both the
'Functional Fillers' and 'Technical Ceramics' business divisions,
Nabaltec's long-term goal continues to raising its EBIT margin to the
double digits.

Editorial note:

This press release, as well as the company's report for the first half of
2009, can be viewed on the company's website at www.nabaltec.de.

About Nabaltec AG

Nabaltec AG, with registered office in Schwandorf, a chemicals business
which has received multiple awards for innovativeness, manufactures,
develops and distributes highly specialized products based on aluminum
hydroxide ('ATH') and aluminum oxide, as well as other raw materials, on an
industrial scale through its 'functional fillers' and 'technical ceramics'
divisions. The company's product range includes flame-retardant fillers for
the plastics industry, used e.g. in cables in tunnels, airports, high-rise
buildings and electronic devices, as well as base materials for use in
technical ceramics, the refractory industry and catalysis. Unlike
halogenated flame-retardant fillers, the products manufactured by the
company's 'functional fillers' division contain no hazardous substances and
do not require separate disposal. Rather, the company's flame-retardant
fillers actually decrease the development of fumes hazardous to human
health and the environment in the event of fire. Nabaltec maintains
production sites in Germany and the US and plans to continue to consolidate
its market position by expanding capacity, further optimizing processes and
quality and making strategic extensions to its product range. On the
strength of its specialty products, the company strives to attain not just
the quality leadership, but also the market leadership in each segment.

Contact:

Heidi Wiendl       
Nabaltec AG       
Phone: +49 9431 53-202     
Fax: +49 9431 53-260      
E-mail: InvestorRelations@nabaltec.de     

Julie Bohac
Better Orange IR & HV AG
Phone: +49 89 8896906-25
Fax: +49 89 8896906-66
E-mail: julie.bohac@better-orange.de
25.08.2009  Financial News transmitted by DGAP
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Language:     English
Issuer:       Nabaltec AG
              Alustraße 50-52
              92421 Schwandorf
              Deutschland
Phone:        +49 9431 53-0
Fax:          +49 9431 53-260
E-mail:       info @nabaltec.de
Internet:     www.nabaltec.de
ISIN:         DE000A0KPPR7
WKN:          A0KPPR
Listed:       Freiverkehr in Berlin, Düsseldorf, München, Stuttgart; Entry
              Standard in Frankfurt
 
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