• Group revenue increases by 12.4% to EUR 45.3 million.
• Consolidated net profit rises to EUR 1.5 million.
• Dividend payment proposed for first time

Based on preliminary figures, the 2006 financial year produced the best annual results ever for United Labels AG (ISIN: DE 0005489561), an enterprise specialising in comicware sold under licence. Group revenue rose by 12.4% to EUR 45.3 million (2005: EUR 40.3 million). Growth within this area was driven mainly by accelerated sales in the key account segment. EBIT increased to EUR 2.0 million (2005: EUR 1.4 million). The EBIT margin stood at 4.3% (2005: 3.4%). Consolidated net profit almost doubled year on year, rising to EUR 1.5 million (2005: EUR 0.8 million). Thus, earnings per share amounted to EUR 0.35 (2005: EUR 0.19).

In view of this performance, the Management Board will be proposing a dividend payment of EUR 0.20 per share.

Cash and bank deposits rose to EUR 4.5 million in 2006 (2005: EUR 3.5 million). At the reporting date, the Group equity ratio stood at 65.7% (2005: 68.6%).

In achieving these results, United Labels AG exceeded its targets for FY 2006 by a significant margin. The company is committed to driving growth in all of its business segments over the course of the current financial year.

Group earnings were buoyed in particular by the outstanding performance of United Labels AG Germany during 2006. Earnings before interest and taxes (EBIT) for this entity rose to EUR 1.9 million (2005: EUR -0.3 million). “Following our restructuring efforts, the Special Retail segment is contributing once again to the Group’s market growth in Germany,” said a delighted Peter M. Boder, CEO of United Labels.

Successful licence portfolio
United Labels AG is committed to maintaining a strong portfolio of licences within the Entertainment/Character category, the prime objective being to market trend-driven merchandise associated with the world’s leading cartoon characters. In 2006, United Labels generated the highest merchandise revenues in Germany with “The Peanuts” (United Feature Syndicate), “Disney Princess” and “SpongeBob SquarePants”. This is all the more impressive when one considers that “Disney Princess” and “SpongeBob SquarePants” were among the world’s most successfully marketed licences in 2006.

The company also recorded significant sales volumes with products featuring “The Wild Soccer Bunch” (Die wilden Kerle), a licence theme covered entirely by the specialist retail segment. Other popular characters for United Labels In addition to maintaining a strong presence with the portfolio of cartoon characters mentioned above, United Labels is particularly keen to drive sales of “Barbie” and “Dora” merchandise in 2007 – two new licences acquired in 2006. In the financial year just ended, the company also extended its existing agreements to include product categories with particularly high sales potential.

The audited financial statements for the financial year just ended will be published as part of the annual results press conference to be held in Münster/Germany in March 2007.