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Kontron AG acquires 100 percent of its Malaysian production subsidiary

- Cost-reduction and securing of independence
- Long-term strengthening of important Asian business

Eching, Munich, June 30, 2008. Kontron AG, one of the world's leading providers of embedded computer systems, has acquired 100 percent of its production location in Penang, Malaysia. According to today's communication from Kontron CEO Ulrich Gehrmann, this step allows both a further improvement in production costs, and the additional securing of independence through the total control of production now established. Manufacturing capacities in comparably expensive locations such as North America will continue to be gradually discontinued, and relocated to Asia. The acquisition will also allow contacts with Asian end-customers to be intensified.

At the same time, the purchase of the remaining shares will enable the "Quanmax" joint-venture with the world's largest manufacturer of laptops, Quanta Computer Inc., to concentrate to a greater extent on favorable purchasing terms, and on the supply chain. The intention is to secure an additional strong joint-venture partner with the aim of further raising purchasing volumes, while at the same time reducing Kontron's leadership in the joint-venture with the aim of equal entitlement of the partners. Ulrich Gehrmann went on to comment: "Besides cost leadership, and our own production, we are also continuously raising our direct involvement in what continues to be a highly profitable Asian market". With the production location in Penang, which was acquired at the end of 2005, the Kontron Group has already realized significant cost advantages in recent years. In parallel, the Group's production capacities were also doubled, and new customers have been won.

As part of the regular annual Shareholders General Meeting, Kontron AG has just recently reconfirmed its growth targets for 2008: the aim is to achieve double-digit growth in sales on a currency-adjusted basis, and earnings growth in excess of sales growth is anticipated. The Group achieved sales of EUR 105.9 million (+10 percent compared with the prior year period), and EBIT of EUR 8.7 million (+30 percent) in the first quarter of 2008 alone. In the previous 2007 financial year, the Group reported sales of EUR 446.5 million (10 percent more than in 2006), and operating EBIT earnings of EUR 46.3 million (41 percent more than in 2006).



Investor Relations:
Gaby Moldan
Kontron AG
Oskar-von-Miller-Str. 1,
85386 Eching
Tel: 08165/77212, Fax 08165/77222
Email: Gaby.Moldan@kontron.com

For further information:
Dr. Udo Nimsdorf
Engel & Zimmermann AG
Agentur für Wirtschaftskommunikation
Schloss Fußberg, Am Schlosspark 15,
82131 Gauting
Tel: 089-89 35 633, Fax: 089-89 39 84 29
Email: info@engel-zimmermann.de

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