FINUCHEM

Improvement in operating profit

The profit and loss account for the first half-year shows an increase in theoperating profit to be compared with the 2005 financial year that already showedexcellent performance.

In accordance with standard IFRS 5 covering abandoned activities, the 2005figures have been reprocessed to be comparable with those for 2006 (reclassificationof abandoned activities on a separate line). The net profit for the continuingactivities has more than doubled, benefiting from the good performance of mostof these activities and a favourable tax effect worth €3m.

The net group part profit is however negative at -€2.9m, penalised bythe non-recurring charges relating to the sale of the vehicle integration activity.This operation has the mechanical effect of improving all the group margin ratios.The operational margin thus obtained is a new record.

Solid finances

The group balance sheet remains solid with a negative debt and more than €22mof cash available. The priority task for 2006, the working capital requirementhas been reduced by €2.6m in the first half year.

2006 Outlook

Our ECA subsidiary specialising in defence and aerospace has experienced excellentperformance over the half year, despite the efforts to integrate the 4 companiesacquired.

Since the start of the year, the vehicle sector has declined slightly on thecontinuing activities. The second half-year should be more favourable.

The other industrial robotics activities are performing well, particularlyin semiconductors, which should continue to benefit from a buoyant market.

Throughout the year, the management confirms its anticipation of two figuregrowth in the business for a turnover greater than €170m, to be comparedwith €155m obtained in 2005 within the continuing activities.

Finuchem will present its Q3 turnover in mid-November.

About FINUCHEM Group

The FINUCHEM Group markets robotic and automated systems, integrating state-of-the-art technologies developed by its design office. Today, the firm is present in the aeronautics and automotive industries, the marine and defence sectors, and the semi-conductor industry.

FINUCHEM Group is listed in the C compartment of Eurolist by Euronext, Paris.
Codes: ISIN FR0000062671 - Bloomberg FINU:FP