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MEDION

Ad hoc-Service: Medion AG <DE0006605009> MEDION - Unrestricted Dynamic

Mülheim (ots Ad hoc-Service) -

The sender is solely responsible for the contents of this
announcement. 
Sales Plus                       
   Overproportional Increase in Earnings
In the first six months of the fiscal year 1999/00 MEDION
was able to generate a substantial improvement of both sales and
earnings and thus proved once again its status of being a fast
growing company. While sales rose by more than 37 % from DM 963.2 M
to DM 1,320 M (Euro 675 M) compared to the corresponding period in
1998/99, the first half net earnings improved overproportionally by
58.9 % and earnings per share rose from Euro 0.5 to Euro 0.79.
Successful Internationalisation By founding our own subsidiaries
and co-operating with reliable service partners MEDION has now become
able to offer its comprehensive service concept in nearly all major
European countries. Foreign sales went up by 600 % from DM 22.0 M in
the first half of 1998/99 to DM 135.2 M. Thus all our expectations
have been substantially exceeded.
Product Innovations as Factors for Success Due to its popularity
MEDION has acquired new sales potential also on the domestic market.
As a consequence co-operations were established with well known
companies such as petrol stations, book clubs and department stores.
Further co-operations are underway.
MEDION's know-how in realising and marketing innovative trend
products helped by our strong partners made our sales campaigns with
CD burners, modems, internet cameras, flat screens, DVD players and
dolby surround equipment to become top sellers. These product
innovations have already delivered DM 94.8 M - and thus are a
significant contribution to our sales volume. Additional product
innovations with high sales potentials are about to be launched in
the foreseeable future.
New Media The professionalisation and commercialisation of the
internet as well as the wish for mobile services generate large
growth markets. The bundling of internet-, ISDN-, tariff- and mobile
phone offers with our sales campaigns of PCs, modems, notebooks or
telecommunication hardware ensured substantial profit growth. Thus
MEDION has been able to market several ten thousands internet-, ISDN-
or mobile phone contracts in the first half of financial year of
1999/00.
Positive Perspectives MEDION's business strategy is focussed on
continuous growth. Our aim is to increase MEDION's acceptance by
investing in foreign countries in order to install a European wide
presence. Furthermore we invest in Germany in order to optimise our
service quality for our retail clients as well as the end users.
MEDION is certain to own a very solid and promising growth platform,
based upon the following four core elements: Expanding our
well-established partnerships, co-operations with important domestic
and foreign producers and retailers, product innovations and the
tackling of new attractive growth markets. The results after the
first half of the business year make us confident that we will exceed
our predicted growth rates of 25 - 30 % in the current business year
1999/00.
End
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