- Completion of legacy projects impacts on business performance and in the third quarter of 2014 and the forecast for the year

- Positive trend for incoming orders

- Consolidation and reorientation to be ramped up further under new Management

Hannover, 04/11/2014. In the third quarter of 2014 the Hoeft & Wessel Group continued to push ahead with the consolidation and reorientation of the Company. A major proportion of the consolidation effort is still taken up with the completion of legacy projects. In this connection, in the third quarter an unexpectedly high level of expenditure and additional delays associated with these activities had a negative impact on current business performance. In particular, a further delay in the process of acceptance for a large project had a major detrimental effect on business performance in the third quarter due to significant additional expenditure and delays in the receipt of payments, at the same time as personnel capacities remained tied up.

For these reasons, the results for the third quarter of 2014 fell short of expectations for the Hoeft & Wessel Group. With sales revenues of EUR 14.5 million and an operating result (EBIT) of ‑EUR 2.1 million, the result for the third quarter 2014 falls between the weak first quarter and the stronger second quarter of the current financial year. Sales revenues for the first nine months of the 2014 financial year amount to EUR 42.4 million and EBIT to ‑EUR 6.5 million. This means that, compared to the third quarter of the previous year (sales revenues EUR 19 million, EBIT ‑EUR 0.6 million) as well as in the nine-month comparison with 2013 (sales revenues EUR 55.9 million, EBIT ‑EUR 3.2 million), the Hoeft & Wessel Group is lagging well behind.

In contrast, order receipts have developed positively. Companies of note, both domestic and foreign, are placing their trust in products made by the Hoeft & Wessel Group. For instance, in the third quarter Deutsche Bahn placed a EUR 15 million order for a major project to equip train attendants throughout Germany with mobile terminals from Hoeft & Wessel in 2015. In addition, yet another EDEKA regional company will be deploying Hoeft & Wessel products in their mobile data capture operations in the future. As at 30 September 2014 the order portfolio amounted to EUR 53.6 million, which is well above the level at the end of 2013 (EUR 40.1 million).

The positive trend for order receipts shows that the strengthening of the Sales division and the reorientation of the product portfolio are bearing fruit, creating sound foundations for an improved business performance in the course of 2015. Hoeft & Wessel is set to continue on its established course of consolidation and further step up the reorientation already under way, in order to overcome what are still daunting challenges, and initiate the growth phase.

After the Supervisory Board, at its meeting of 28 October 2014, had discharged Rudolf Spiller from his duties as a member of the Board of Management with immediate effect, these plans will now be carried out under the new leadership of Thomas Dibbern, whom the Supervisory Board appointed as the new Chairman of the Board of Management. Thomas Dibbern will continue to be directly responsible for Sales and will be supported by Dr Kuhlmann, Research & Development, as well as by Paul Lebold, Finance, Controlling, Human Resources and Supply Chain Management.

In particular, work on legacy projects will continue to occupy the Company intensively over the coming months. The previous year's sales revenues of EUR 23.9 million will not be matched in the fourth quarter of 2014 either. This leads to a correction in the forecast for the full 2014 financial year. Had the Company previously anticipated sales revenues for the year below the previous year's figure and a slightly positive operating result, expectations now are for the sales revenues for the year to fall significantly short of the previous year's figure, and for EBIT to be negative in the upper single-digit million range.

About Hoeft & Wessel

The Hannover-based Hoeft & Wessel Group with its locations in the United Kingdom and in the United States is a leading solutions provider and service partner for data capture, validation and processing systems. The product portfolio includes ticketing systems, mobile terminals for data capture, and car park systems. Hoeft & Wessel has linked its fortunes to the global trend towards greater mobility, and its systems contribute towards more efficient processes in the transportation of passengers, goods and services. The Company's customers include Deutsche Bahn and FirstGroup, as well as leading grocery retailers in Europe. The principal shareholder of Hoeft & Wessel AG is the company Droege International Group AG, based in Düsseldorf, Germany.www.hoeft-wessel.com.

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