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Fall Press Conf. 2006, p. 2
 
Carl Zeiss Group Once Again Posts Profitable Growth Downloads and Links


Dynamic development continued during FY 2005/06 – revenues and EBIT reach peak values – first year-end financial statements using IFRSRTF Documents
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Deutsche Version

Fall Press Conf. 2006, p. 1


STUTTGART/Germany, 14.12.2006.

Developments In The Business Groups

The Semiconductor Technology Group achieved revenues of EUR 864 million, corresponding to a rise of 31 percent over the previous year (EUR 658 million). Semiconductor Technology, which operates as Carl Zeiss SMT AG, thus posted the strongest growth within the Carl Zeiss Group.

The lithography optics business showed a particularly strong increase. Carl Zeiss successfully expanded its technology leadership in this area with the Starlith® 1700i immersion lens. This basis enabled the company, together with its strategic partner and customer ASML in Veldhoven, the Netherlands, to once again increase its global market leadership in wafer scanners.

The Nano Technology System (NTS), Semiconductor Metrology Systems (SMS) and Laser Optics divisions at Carl Zeiss SMT also developed very dynamically during FY 2005/06 and contributed considerably to the growth of Carl Zeiss SMT AG.

The very positive business development enabled Carl Zeiss SMT AG to add 220 employees during fiscal year 2005/06, the majority of them in high- skill positions in Germany.

The new Carl Zeiss SMT AG factory in Oberkochen officially opened in October 2006. It is the world’s most advanced development and production center for lithography optics. More than 1,400 employees work there to create innovative technologies for the future. With a total value of EUR 450 million, the new factory is the single largest investment in the history of Carl Zeiss.

The Medical Systems Group also recorded a very positive trend in business. Revenues increased 14 percent to EUR 631 million (last year EUR 552 million).

The established IOL Master®, STRATUS OCTTM, and Humphrey® Field Analyzer, as well as the VISUCAM PRO NMTM fundus camera, which was introduced at the beginning of the fiscal year, contributed to this positive development in revenues. VisanteTM OCT for imaging diagnostics of the anterior segment of the eye, which was launched at the end of 2005, also contributed to revenue growth. Business with medical lasers was once again positive; demand was particularly high for the MEL 80TM refractive laser for the treatment of defective vision, and the VISULASTM 532s for diseases of the retina.

The OPMI Pentero, whose functionality has been once again enhanced, was a main source of revenues in the Surgical Systems area.

In order to further strengthen international competitiveness and develop additional growth options, Carl Zeiss Meditec AG, which is listed on the Prime Standard of the German Stock Exchange, merged with Carl Zeiss Surgical GmbH and Carl Zeiss Surgical Inc. As a result, all medical technology areas of Carl Zeiss operate under the Carl Zeiss Meditec AG banner. The transaction was successfully completed at the end of fiscal year 2005/06 with an increase in share capital.

With this move, Carl Zeiss Meditec has taken a big step towards its goal of admittance to the TecDAX. With market capitalization of more than one billion euros, the company is now among the top three listed MedTech companies in Germany and the top ten in Europe.

With high growth rates in revenues and incoming orders, the Microscopy Group also completed a successful fiscal 2005/06: sales rose 14 percent to EUR 340 million (last year EUR 299 million). The group has operated as Carl Zeiss MicroImaging GmbH in Jena since March 1, 2006. The Göttingen location, as well as two group companies – Carl Zeiss Imaging Solutions GmbH in Hallbergmoos and P.A.L.M. Microlaser Technologies GmbH in Bernried – belongs to the wholly owned subsidiary of Carl Zeiss AG.

Several awards attest to the innovative power of the Microscopy Group: the group received the renowned R&D 100 Award for the fifth consecutive year. The LSM 5 Duo microscope for biomedical research was honored. US research magazine “R&D Magazine” presents the award annually to the globe's 100 most innovative products.

P.A.L.M. Microlaser technologies received the 2006 Berthold Leibinger Award for the development of a new laser technology for biomedical research – the laser micro-dissection and pressure catapulting procedure. Additionally, a team from P.A.L.M. Microlaser Technologies was nominated for the 2006 German Future Award from the German President, one of the most important awards for science in Germany.

The Industrial Metrology Group generated EUR 278 million revenue during fiscal year 2005/06 (2004/05 EUR 247 million), thus exceeding the previous year by 13 percent. Software and systems solutions were the main contributors to this success.

An upswing in European markets was noticeable, particularly in the second half of the fiscal year. The most important Asian and American markets also posted a substantial increase in revenues. Growth of over 30 percent was achieved in Asia.

The newly developed METROTOM system for computed tomography in metrology was successfully introduced to the market and provides customers with new solutions for their measuring tasks. As the first serially produced instrument of its kind, METROTOM can measure the interior and exterior of workpieces using x-rays, and is thus far superior to probing measuring systems. For example, Metrotomography can be used for assembly checks, damage analyses and material testing. Manufacturers of complex molded plastic or cast parts, in particular, can thus achieve new standards of quality.

The business units of the Opto-Electronic Systems Group generated a total of EUR 234 million revenues (last year EUR 280 million). The decline is primarily attributable to the majority sale of the display technologies business and the periodicity of the project business in optronics. Incoming orders in the Optronics Division clearly exceeded the previous year’s level. Carl Zeiss Optronics GmbH was able to improve its operating result despite a slight decline in revenues. The Sports Optics, Planetarium and Camera Lens Divisions posted growth in both revenues and incoming orders.

Hensoldt AG has operated as Carl Zeiss Sports Optics GmbH since the beginning of fiscal year 2006/07. This name change provides clarity and a uniform appearance to the public. Binoculars, spotting scopes and hunting optics from Sports Optics have already been marketed under the ZEISS brand for many years.

The world’s most advanced planetarium technology is manufactured by Carl Zeiss: the ADLIP all-dome laser projection system has already been in operation for more than two years in Peking and has fascinated more than one million visitors. The first ADLIP in Europe has been thrilling guests in Jena since October. The systems uses laser light to project the image content onto the entire dome of the planetarium. ADLIP is unparalleled in brilliance, color depth and contrast of the projected images.

The products from the Camera Lens Division are important ambassadors of the ZEISS brand: lenses for still and movie cameras, as well as the optics in the products from cooperation partners Sony and Nokia, make the name Carl Zeiss even more well-known around the world. More than 20 million users purchased cameras and camcorders from Sony with ZEISS lenses in the recently completed fiscal year.

Business with cine lenses was also very positive during FY 2005/06. Successful movies such as "King Kong" and "Perfume" were filmed using lenses from Carl Zeiss.

Carl Zeiss Vision International GmbH
Carl Zeiss Vision ended its first full fiscal year on September 30, 2006, with revenues totaling EUR 845 million (pro forma comparison 2005: EUR 789 million). Through organic growth and strategic acquisitions, the company made good headway in achieving its ambitious goals. The company also completed its global brand and sales positioning process.

On the balance sheet date, the global workforce of the Carl Zeiss Vision Group totaled 10,626 full time equivalents (FTEs) in over 30 countries. There are 1,263 FTEs working for the company in Germany. The business of the Carl Zeiss Group is valued at equity in the financial statements of the Carl Zeiss Group.

The Carl Zeiss Vision Group is the world number two in the eyeglass market. Around the globe, two people per second decide to purchase eyeglass lenses from Carl Zeiss Vision.

Outlook
“We have started the new fiscal year with full order books. We continue to expect sustained positive trends for the company in the coming months,” says President and CEO Dr. Dieter Kurz on the outlook for fiscal 2006/07.


Marc Cyrus Vogel
Vice President Corporate Communications
Carl Zeiss AG
Phone: +49 7364 20-3242
Fax: +49 7364 20-3122
E-Mail: vogel@zeiss.de

Number: 101/06 CC

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