Sales for first half of ’08 equal all of ’07! Increase is 162% over same period last year

Deggendorf, Germany - July 24 2008 - congatec AG, an innovative manufacturer of embedded computer boards, announced today record sales growth for the first half of 2008. The company reported sales of 13.03 million Euros in the first six months of 2008, a 162% increase over the same period last year. In addition, sales for the first half of 2008 exceeded sales for all of 2007, which were reported at 12.2 million Euros.

“The dramatic increase in sales is a strong testament to the need for our computer modules by the marketplace,” stated Gerhard Edi, Director of congatec AG in Germany. “For instance, our earnings before interest and taxes margin was 61,000 Euros in the first quarter of 2008. We more than doubled that number in the second quarter to 132,000 Euros based on growing awareness of the benefits of our products, and as a result, a rapid increase in demand.”

The majority of sales in the first half were for the company’s computer modules based on the XTX module standard – a standard initiated by congatec. While a smaller percentage, growing interest in congatec’s COM Express modules is also responsible for the triple digit sales increase. congatec expects that its COM express sales will match those of the XTX product family by the end of the year.

While sales continue to increase, the company has managed costs efficiently, keeping them almost level from quarter to quarter. In the first quarter, the company reported expenses of 1.15 million Euros. In the second quarter, expenses rose slightly to 1.28 million Euros, due mainly to growth in headcount.

congatec AG estimates that sales will reach 30 million Euros by the end of 2008 – a 245% increase over sales for 2007.

About congatec

Based in Deggendorf Germany, congatec AG’s objective is to engineer and market industrial computer modules based on standard form factors. congatec's products are available for all business segments and industries. Customers can be found in the industrial control, medical, automotive supplies, aircraft and transportation fields. Typical applications are machine control, vending machines and visualization terminals. congatec AG has subsidiaries in Pilsen (Czech Republic), Taipei (Taiwan) and San Diego, CA (USA). For more information, please visit http://www.congatec.com">www.congatec.com.

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