Nextrom announces its half year interim results

General

The market development in the beginning of 2005 has been a disappointment against the expectations. The investment levels in the Fiber Optics industry continued extremely low and the expectations for the recovery of the market were not fulfilled.

Nextrom received new orders worth of CHF 4.0 million during the first 6 months of 2005 (first 6 months 2004: CHF 12.0 million). The order backlog amounted to CHF 2.7 million at the end of June 2005 (end of June 2004: CHF 8.2 million).

Gross sales for the first 6 months amounted to CHF 13.2 million (first 6 month 2004: CHF 7.9 million).

The operating result continued suffering strongly from the depressed market situation. The low sales combined with a cost structure for a bigger business activity has lead to losses. The operating loss of the first six months decreased however from previous year, being CHF 7.6 million (CHF 9.9 million for the same period in 2003). Since the market situation has continued to be more difficult than anticipated, the company has decided on major restructuring and reorganization program, the details of which will be published in a separate press release and to large extent to be carried out in September.

Outlook

The expectations of the recovery of the Telecommunication and Fiber Optics market have been continuously postponed. As a result, the development in Nextrom’s order intake has been slower than earlier anticipated. The company now estimates that sales for the whole year 2005 will be between CHF 15 million and CHF 20 million and that the company will show losses also from the second half of the year.

For further information please contact:

Mr. Lorenzo Schmid, Chairman of the Board
Phone +41 41 368 98 38
lorenzo.schmid@mindsetholding.ch

About MINDSET HOLDING AG:

MINDSET HOLDING AG is the listed entity of mindset ag

mindset is a new type of automobile that sets itself apart – both technically and aesthetically – from conventional automotive concepts. Mindset is the first European electric vehicle that was designed fundamentally for everyday use. It stands out for its high level of energy efficiency. The development and marketing of the zero-local-emission-vehicle mindset constitutes the core activity of the company.

The market for a reliable, zero-emission-vehicle based on proven technology has been long documented and is being supported at government level. The pent-up demand from the public for a “politically-correct car” is enormous.

To change your user profile or to unsubscribe from our mailing list, please send an email to investor@mindsetholding.ch. For more information about MINDSET HOLDING AG and further press releases, please visit our website www.mindsetholding.ch. For more information about mindset ag, please visit our website www.mindset.ch.

Contacts for investors

Would you like press releases sent to your e-mail or fax?
Subscribe >