WashTec earnings performance below prior year due to unanticipated losses in North America

- After three quarters, revenue increase by 11.8% to EUR 212.7m revenues in third quarter below expectations and order intake below prior year

- EBIT per end of September at EUR 11.7m, EUR 0.2m below prior year

- Outlook: Order intake significantly below prior year reflects poor market environment - no revenue growth expected in fourth quarter - full year earnings below prior year

- Group-wide program enacted for improving earnings; expenses will reduce earnings in 2011

Augsburg, November 4, 2011 - After the first three quarters of fiscal year 2011, WashTec AG - the leading supplier of innovative solutions for the carwash business worldwide - is still reporting solid revenue growth despite increasingly difficult general conditions. Group revenues rose 11.8% to EUR 212.7m in the first nine months (Q1-Q3 2010: EUR 190.3m). This increase resulted primarily from the improvement of the Group's market position in North America and Australia as well as the expansion of chemical activities following the acquisition of AdeKema in northern Europe. On an adjusted basis, WashTec is reporting a positive organic revenue growth of approximately 4%. The positive development in adjusted revenues is attributable above all to the considerable added growth in the »Emerging Europe« region and to the increase in revenues from the chemicals and operating business in Core Europe. On the cost side, WashTec has succeeded in largely offsetting the significant increase in the cost of raw materials by improving efficiencies. The personnel expense ratio was even improved yet again. After adjusting for non-recurring and foreign exchange effects, which were positive in 2010 and negative in 2011, EBIT (earnings before interest and taxes) rose significantly by approximately seven percent from EUR 11.7m to EUR 12.5m. EBIT under IFRS declined slightly from EUR 11.9m to EUR 11.7m. Whereas the development in the other regions was satisfactory in light of the difficult market conditions, the results reported for the North American business did not meet expectations. The profit before taxes of the WashTec Group increased by EUR 0.1m to EUR 10.5m. Earnings per share climbed from EUR 0.37 to EUR 0.41.

As of September 30, net cash flow declined by EUR 5.1m to EUR 13.5m due to the growth-related changes in net current assets. It should be noted in this regard that the cash flow in 2010 was unusually high because a large volume of trade payables was settled before they matured. Despite higher expenditures to expand the Group, free cash flow remained positive at EUR 6.5m. The most important balance sheet ratios remain very solid: the equity ratio grew from 43.5% at the end of 2010 to its current 45.3%. The gearing (debt-to-equity ratio) remained relatively stable at 0.31.

Addressing business development, the Chairman of Management Board of WashTec AG, Thorsten Krüger, remarked: 'On an aggregate basis over the first three quarters, WashTec is reporting a significant jump in revenue and solid earnings quality. Due to the deteriorating general conditions in the economy, however, we have had to acknowledge a slowdown in growth during the third quarter. This will mean that we will need to adjust our guidance downward'.

Despite revenue growth, operating result for 2011 presumably below last year's level
The poorer overall conditions and the concomitant lower order intake in the third quarter have already had an impact. thin addition, unanticipated losses occurred in North America during the third quarter. The findings, which were made after a management change in connection with the preparation of the quarterly financial statements, are currently being analyzed and verified. In the meantime, the person formerly responsible for the 'DACH' region, the largest entity of the WashTec Group, has been appointed as COO in the USA. Furthermore the local finance department has been strengthened by an employee from the German headquarters. The Management Board will take appropriate action and evaluate the strategic options and will be actively monitoring the next course of action to take in North America. Based on the findings at this time, the Company is expecting a decline in earnings of 10-15% compared to the prior year. In order to adjust the cost structures of the WashTec Group to account for the difficult market environment, a Group-wide program was enacted to improve earnings. One-time restructuring expenditures and write-downs made in connection with such measures will further reduce earnings significantly in the current fiscal year.

Due to the currently unclear overall situation in the markets, the 2012 forecast is subject to considerable uncertainties. Thus, a forecast for 2012 cannot be provided. WashTec will review the work and activities of the Group with an eye towards earnings contribution and optimization potential. Further expansion through acquisitions is not planned. WashTec will pursue conservative expense and investment policies and draw its focus on projects, areas and regions which promise the best mid-term growth prospects. Despite a consolidation, the Company will not abstain from future projects. By virtue of the long-term financing of the Company and its solid balance sheet, WashTec believes that it is well prepared for future challenges and will emerge even stronger from a difficult market situation.
Key Group Figures as of September 30, 2011:

* Adjusted for non-recurring effects including foreign exchange effects
** Basis: unchanged number of shares 13,976,970
*** Trade receivables + inventory - trade payables
**** »Return On Capital Employed« = adjusted EBIT / (total asserts - short-term liabilities - cash and cash equivalents); based on equal dividend payments
***** Net financial indebtedness to equity

Additional information about the Company and the WashTec AG report concerning the first three quarters of 2011 are available for download from our website at www.washtec.de.

Information on WashTec:
WashTec has its registered offices in Augsburg, Germany, and is the leading supplier of innovative solutions for the carwash business worldwide. WashTec employs more than 1,600 persons worldwide and has its subsidiaries in the core markets of Europe, the United States, and Canada as well as in China and Australia. WashTec has independent sales partners in roughly 60 countries.

Contact:
WashTec AG
Argonstrasse 7
86153 Augsburg

Tel.: +49 (0)821 - 55 84 - 0
Fax: +49 (0)821 - 55 84 - 1135