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Eckert & Ziegler To Take One-Time Charge For Cardio-Vascular Area

(Ad hoc press release)

Berlin, 01.10.2001. In light of recent announcements of competing companies about the efficiency of new products for the prevention of restenosis, the management board of Eckert & Ziegler this weekend decided to accept a one-time charge against 2001 earnings of 750.000 EUR for write-offs and restructuring cost in the area of cardio-vascular brachytherapy. In addition, the board stopped the investments into additional capacity for cardio-vascular radiation products and decided to intensify the use of the existing equipment by switching to a three-shift-production regime. Cardio-vascular products are the smallest of Eckert & Ziegler's market segments and contribute about 8% to its total sales of 30 mm EUR in 2001. Without the one-time charge of 750 kEUR, and without the cost of the recent diversification in therapeutic antibodies, Eckert & Ziegler had pre- dicted earnings for 2001 of about 6 mm EUR and earnings per share of about 1 EUR.

"The immediate impact of the new clinical data from competing developments is small, since it will take at least two years for new products to reach the market", explained board member Dr. Edgar Löffler. "Eckert & Ziegler, in addition to substantial investment contributions by its customers, also has long term revenue guarantees for existing product lines. Still, in order to avoid a distraction from Eckert & Ziegler's solid growth in other areas, the board decided to go ahead with an early and comprehensive write-off that should cover even worst-case-scenarios. A conclusive decision about the future of cardio-vascular brachytherapy products is not expected to happen before the end of next year."

The Board of Directors