TRUMPF IS GEARED TOWARDS GROWTH

– Income before Taxes is 8.1 Percent Higher for Fiscal 2002/03

– New Jobs Result from the Success

– Product Innovations and Customer Proximity are Boosting Growth in All Sectors

Ditzingen, Germany, October 22, 2003 – The TRUMPF Group achieved consolidated sales of 1.19 billion Euros for fiscal 2002/03 (July 1, 2002 through June 30, 2003). This is equivalent to an increase of 2.4 percent. In the light of adverse global economic and political conditions and the drop in investment expenditure worldwide, Professor Berthold Leibinger, CEO of the TRUMPF Group, rates this performance as an extraordinary success for the company.

All TRUMPF Divisions Successful

Sales growth in the Group's four divisions was varied, with Laser Technology registering the most dynamic growth. Electronics/Medical Technology had above-average sales, and the Power Tools division also achieved growth. Sales of Machine Tools remained at the previous year's level.

At 1,083 million Euros, orders received Group-wide were down by 5.2 percent on the previous year, despite the fact that it increased in all the divisions apart from Laser Technology. A major order for lasers placed in fiscal 2001/02 had a distorting effect here.

Sales and Orders Buoyed by Foreign Business

"Investment demand for plant and equipment was subdued worldwide. The only dynamic developments were in the Asian markets and the countries of Central and Eastern Europe. The lack of demand was especially marked in Germany, but was softened," as Professor Leibinger put it in his speech at the annual press conference in Ditzingen, "by penetration of the automotive industry by the laser." The strong Euro affected sales and profits in North America, with sales in US-Dollar terms almost retaining the levels of the previous year. The foreign share of consolidated sales rose to 66 percent.

Higher Result, Improved Equity Ratio, More Personnel

The income before taxes also rose – by 8.1 percent to 91 million Euros – and the net operating margin was 7.6 percent. At 47 million Euros, the consolidated net income for the year was 14 percent lower than the level of the previous year. This decrease was primarily due to an external tax audit.

At 90 million Euros, cash flow remained at the previous year's level, while the equity ratio rose to 44.2 percent. Professor Leibinger saw this as a clear sign: "TRUMPF has excellent capital resources and liquidity, and can make active use of opportunities for growth."

TRUMPF created 203 new jobs during the fiscal year. The overall number of personnel increased by 3.7 percent to 5,764 employees. In Germany TRUMPF had 3,757 employees (+2.9 percent), while the personnel figure for overseas increased by 5.0 percent to 2,007 employees.

High Investments in Research and Development and Intensification of Customer Proximity

Investments in research and development for new products and technologies rose sharply by 25 percent to 89 million Euros. The R+D quota increased to 7.4 percent. Investments in plant, equipment and intangible assets were 12 percent higher at 72 million Euros, whereby expansion of sales and service centers played a primary role.

Outlook: 2003/04 Will Bring Further Growth

Many people are expecting the economic upturn. The TRUMPF Group is fully prepared for it, and is planning sales growth in all its divisions and in all major markets. Target sales are sharply in excess of 1.2 billion Euros, with projected sales growth of between 6 and 8 percent. The result is also expected to increase.