DGAP-News: Ultrasonic AG / Key word(s): Quarter Results Ultrasonic AG: ULTRASONIC continues growth after three months in 2013 27.05.2013 / 08:10 --------------------------------------------------------------------- ULTRASONIC continues growth after three months in 2013 - Group sales increased 18.9% year-on-year, totalling EUR 33.7 million (3M 2012: EUR 28.3 million) - Group profit before income tax (EBT) of EUR 9.3 million (3M 2012: EUR 7.9 million) - EBT margin of 27.7% (3M 2012: 27.7%) - Net profit increased to EUR 6.9 million (3M 2012: EUR 5.9 million) - Cash inflow from operating activities of EUR 21.9 million (3M 2012: EUR 5.6 million) - Outlook for FY 2013 confirmed Cologne, May 27, 2013 - Ultrasonic AG (Prime Standard, ISIN DE000A1KREX3, US5), the German holding company of an established Chinese manufacturer and supplier of high-quality branded urban footwear products, today published its interim report for the first three months of fiscal 2013. Group sales revenues grew 18.9% in the first three months of 2013 to EUR 33.7 million (3M 2012: EUR 28.3 million). In the first quarter of 2013 the increase was partly due to an average year-on-year increase of around 1.4% in the exchange rate of the Chinese renminbi versus the euro. All segments increased both sales volumes and revenues in the reporting period. Although volumes increased by 5.9% in the Shoe soles segment, its revenues only rose 1.0% to EUR 9.9 million (3M 2012: EUR 9.8 million). It therefore reported the lowest growth rates. This was due partly to increasing price pressure on soles for sports shoes as a result of the sharp rise in competition on the Chinese sports shoe market, and partly to high utilisation of in-house production machinery for the manufacture of sandals and slippers. This trend will be countered in the coming quarters by new machinery and the manufacture of higher quality shoe soles with higher selling prices and better margins. Growth momentum continued in the Sandals and slippers and Urban footwear (including accessories) segments, with volumes rising 26.1% and 25.2% respectively, while revenues grew 27.8% and 28.9% respectively. Revenues in the Sandals and slippers segment advanced to EUR 11.0 million (3M 2012: EUR 8.6 million), while in the Urban footwear segment (including accessories) revenues rose to EUR 12.7 million (3M 2012: EUR 9.9 million). Revenues generated with the ULTRASONIC brand in the Urban footwear segment (including accessories) were EUR 7.4 million compared with EUR 5.3 million in Q1 2012, a rise of around 39.3%. This brand therefore accounted for around 58.1% of segment revenues (3M 2012: 53.8%) and 22.0% of total revenues (3M 2012:18.8%). Revenues from OEM business increased 16.8% to EUR 5.3 million (3M 2012: EUR 4.6 million). Compared with the previous year, the Group's gross profit rose 18.2% to EUR 10.3 million (3M 2012: EUR 8.7 million). The company was still able to pass on most of the rise in raw material and personnel expenses to customers through higher prices in the reporting period. Accordingly, the gross profit margin was 30.5%, only slightly below the prior-year figure of 30.7%. EBITDA was EUR 9.7 million in the reporting period, an improvement of 18.6% compared with the prior-year period's EBITDA of EUR 8.2 million. Group EBIT rose 19.1% year-on-year from EUR 7.8 million in Q1 2012 to EUR 9.3 million in Q1 2013, giving an EBIT margin of 27.7% (3M 2012: 27.7%). Earnings before taxes (EBT) increased to EUR 9.3 million in the reporting period, a rise of 18.8% from the year-back level of EUR 7.9 million. The EBT margin was 27.7% (3M 2012: 27.7%). After taxes (income tax rate: 25%), the Group's net profit for the year was EUR 6.9 million, a rise of around 18.4% year-on-year (3M 2012: EUR 5.9 million). Earnings per share (basic and diluted) were EUR 0.61 (3M 2012: EUR 0.51). The cash inflow from operating activities increased considerably in the reporting period to EUR 21.9 million (3M 2012: EUR 5.6 million). Cash and cash equivalents rose to EUR 94.1 million as of 31 March 2013 (31 December 2012: EUR 74.5 million). At the same time, the equity ratio improved to around 85%. The Group has no non-current borrowing from banks and current liabilities to banks amounted to EUR 3.7 million as of 31 March 2013. ULTRASONIC therefore still has an extremely sound financial base. 'Since 2012 was an extremely successful year for ULTRASONIC, we have set ourselves further ambitious targets for 2013. Our performance in the first three months shows that we are well on the way to achieving our targets this year as well. However, to ensure that our growth strategy can be realised successfully, we still face a number of challenges this year. The first production plants are scheduled to come into operation at our new site. Consequently, this year we will be able to report the first revenue and earnings contributions from the manufacture and distribution of our new 'Happy Dog' brand of children's shoes. In addition, marketing of our high-quality ULTRASONIC urban footwear brand through our own online shop is due to start this year. At the same time, we must not neglect our endeavours to support and expand our existing network of distributors. We are convinced that the growth strategy we have embarked on will position the company successfully for the future', states Qingyong Wu, the company's CEO and chairman of the Management Board. In view of the new capacity, some of which will come into operation in 2013, the Management Board still expects Group sales to grow by around 10-15% on a euro basis in 2013 (excluding currency effects). The successful expansion of distribution channels and the product offering open up further potential, but will also increase working capital requirements. Production start-up costs and expenses for gaining access to the new distribution channels will probably result in a slight lower margin. Accordingly, the Management Board still expects to report a slightly lower pre-tax margin (EBT) of 23-26% in 2013. The full interim report for the first three months of fiscal 2013 is available at Investor Relations/Publications on the company's website at www.ultrasonic-ag.de.

Financial Data                    3M 2013         3M 2012           Change
Overview                                                       vs. 3M 2012
in EUR thousands                                                      in %

Sales                              33,687          28,326            18.9%
thereof Urban Footwear             12,126           9,679            25.3%
thereof Shoe soles                  9,912           9,809            1.04%
thereof Sandals
& Slippers                         11,007           8,610            27.8%
thereof Accessories                   642             228           181.7%

Gross profit                       10,290           8,688            18.4%
EBITDA                              9,692           8,169            18.6%
EBT                                 9,333           7,858            18.8%
EBT margin                          27.7%           27.7%
Group net income                    6,941           5,860            18.4%
Return on Sales                     20.6%           20.7%
Earnings per share in EUR            0.61            0.51

                               31/03/2013      31/12/2012
Cash and bank balances             94,143          74,525            26.3%
Equity Capital                    133,976         122,321             9.5%
Equity ratio                        85.4%           81.8%

About Ultrasonic The Cologne-based company Ultrasonic AG is the German holding company of the Chinese ULTRASONIC Group, an established manufacturer and supplier of high-quality branded urban footwear. The Group has more than 1,400 employees and operates in three market segments, each of which currently contributes about a third of revenue. ULTRASONIC produces sandals and slippers for the upper price segment for the local and international market. It is also a long-term supplier of shoe soles to leading manufacturers in the established Chinese sport shoe industry such as Anta, Xtep and Unisuper. Moreover, the company has developed its own very successful high-quality urban footwear collection which is marketed under the ULTRASONIC brand and targets China's young, fashion-conscious urban middle class, which has high purchasing power and expects high quality. The ULTRASONIC product line is currently marketed via more than 100 mono-label shops. The ULTRASONIC Group has reported a compound annual growth rate (CAGR) of 31 percent per year since 2009. In 2012 it generated sales of around EUR 149 million and a net profit of EUR 30.8 million. For further information about the company visit: www.ultrasonic-ag.de For enquiries: Ultrasonic AG Chi Kwong Clifford Chan Vorstand und CFO E-Mail: [email protected] Tel.: +86 1525 947 9902 (China), +852 966 227 40 (Hong Kong) Disclaimer: This document is no offer for the purchase of securities in the United States of America. Securities may only be sold or offered for sale with the previous registration under the U.S. Securities Act of 1933 in the actual valid version or without previous registration only pursuant to an exemption. The shares of Ultrasonic AG (the 'Shares') have not been registered under the U.S. Securities Act of 1933 in the actual valid version and may not be sold or offered in the United States. This document is only being distributed to and is only directed at (i) persons who are outside the United Kingdom or (ii) to investment professionals falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the 'Order') or (iii) high net worth entities, and other persons to whom it may lawfully be communicated, falling within Article 49(2)(a) to (d) of the Order (all such persons together being referred to as 'relevant persons'). The Shares, which are referred to, are only available to relevant persons and any invitation, offer or agreement to subscribe, purchase or otherwise acquire such securities will be engaged in only with, relevant persons. Any person who is not a relevant person should not act or rely on this document or any of its contents. End of Corporate News --------------------------------------------------------------------- 27.05.2013 Dissemination of a Corporate News, transmitted by DGAP - a company of EquityStory AG. The issuer is solely responsible for the content of this announcement. DGAP's Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de --------------------------------------------------------------------- Language: English Company: Ultrasonic AG c/o BPG mbH, Graf-Adolf-Platz 12 40213 Düsseldorf Germany Phone: +86 1525 947 9902 (China); +852 966 227 40 (Hong Kong) Fax: +49 (0)211 172 9829 E-mail: [email protected] Internet: www.ultrasonic-ag.de ISIN: DE000A1KREX3 WKN: A1KREX Indices: CDAX, Classic All Share, DAXsector All Consumer, DAXsector Consumer, DAXsubsector All Clothing & Footwear, DAXsubsector Clothing & Footwear, Prime All Share Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin, Düsseldorf, Stuttgart End of News DGAP News-Service --------------------------------------------------------------------- 213100 27.05.2013