WashTec stands its ground in a continued difficult environment

- 13.4% revenue growth to EUR 63.4m (prior year: EUR 55.9m) due primarily to expansion of market position; market environment remains difficult

- EBIT climbs to EUR 0.2m (prior year: EUR -0.3m); EBIT (after adjusting for non-recurring effects) remains stable despite higher costs

- Validation of Guidance for 2011: Revenue increase as compared to 2010 and improvement of EBIT margin to 8 - 9%

Augsburg, May 4, 2011 - WashTec AG - the leading supplier of innovative solutions for the car wash business worldwide - began its 2011 fiscal year with a good first quarter. Thus, revenues improved by 13.4% to EUR 63.4m in this quarter (prior year: EUR 55.9m), which is traditionally the weakest of the year. This increase resulted primarily from the expansion of market positions in the regions North America (above all, Canada) and Asia/Pacific (above all, Australia). At the same time, the overall environment remained difficult due to the relatively severe winter, the tight credit conditions, and the resulting investment restraint still exhibited by customers. EBITDA rose by 35% to EUR 2.7m (prior year: EUR 2.0m). Despite a decline of the personnel expense ratio, the Company is reporting increasing personnel costs as well as a rise in the cost of materials caused in part by the higher prices for raw material. Each of these higher expense items could be offset only in part through additional efficiency measures. EBIT improved to EUR 0.2m compared to last year (prior year: EUR -0.3m). After adjusting for non-recurring effects in the amount of EUR 0.5m, which were incurred last year, the operating result held steady. Although the consolidated net income after taxes (EUR -0.5m) and the earnings per share (EUR -0.03) improved significantly compared to last year, that figure nevertheless remained negative, as had been expected. The most important balance sheet indicators continued to improve. Based on this background, WashTec is verifying its full-year forecast that revenues will once again rise and that the EBIT margin will increase from 7.6% as of Dec. 31, 2010 to 8-9%.

'Considering the continuing investment restraint, we have started fiscal year 2011 relatively well. The targeted expansion of our global market position and numerous efficiency measures have had a favorable effect. For this reason, we remain confident that we will achieve increasing revenues and improved profitability in 2011', noted the spokesman of the WashTec AG management board, Thorsten Krüger, in addressing the performance in the first quarter of 2011.

Continued very solid balance sheet structure
Net cashflow declined to EUR 0.8m (prior year: EUR 3.4m). Net current assets also declined in the reporting period from EUR 68.2m to EUR 66.6m. In the first quarter of 2011, important balance sheet indicators once again improved: the equity ratio climbed from 43.5% at the end of 2010 to a very solid 44.9%. Since the net finance debt (net bank debt plus long-term and short-term finance leasing debt) climbed slightly from EUR 26.6m to EUR 27.2m, the gearing rose marginally from 0.28 to 0.29.

Validation of the annual Guidance
The first quarter of the fiscal year is traditionally the weakest quarter for the WashTec Group. Due to the relatively high order backlog, WashTec is expecting an improvement in the course of business during the second quarter and the second half of the year. For this reason, the Company is holding to its goals for all of 2011: In 'Core Europe', the Company is anticipating a slight increase in revenues and stable earnings growth. In North America, due to its improved market position (specifically in Canada), WashTec is aiming for a significant jump in revenues and earnings in 2011, despite the still difficult market environment for car wash equipment. In the »Emerging Europe« region, WashTec is assuming that the stronger revenue growth in the first quarter compared to last year will even-out over of the year and that earnings will develop accordingly. In the 'Asia/ Pacific' region, the Company is projecting a considerable growth in revenues due to the acquisition effects in Australia.

Overall, WashTec is seeking significant single-digit revenue growth over the prior year, although the pace of that growth will be slower than the pace in the first quarter. Together with the measures implemented for improving the efficiency and cost structures, this should lead to an earnings increase over 2010, with the Group aiming for an EBIT margin of 8 - 9% margin.

Additional information about the company and the first quarter 2011 report of WashTec AG are available for download from our website at www.washtec.de.

Key Group financial information as of the first quarter:

*: Basis: unchanged number of shares 13,976,970
**: Trade receivables + Inventories - Trade payables
***: Net finance debt to equity capital

Information on WashTec:
The WashTec Group has its registered offices in Augsburg, Germany, and is the leading supplier of innovative solutions for the car wash 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 also 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