Adhoc Statement

SINGULUS TECHNOLOGIES has once again experienced sharp rises in sales volumes across a broad front and gained worldwide market share in the rapidly growing market for CD, DVD, and CD-R optical disks.

It now appears that the sales target of DM 240 million for the current fiscal year(DM 198 million reported for the preceding fiscal year), announced at the press conference held earlier this year in conjunction with the release of its annual closing statements will be exceeded by a large margin. Earnings will also be substantially greater than had been expected at the outset of the current fiscal year, and should exceed those reported for the preceding fiscal year by about 30 %.

As was recently reconfirmed at the "Replitech North America" trade show in San Francisco, the DVD-market in the USA is growing at an increasingly rapid rate. Here in Europe, DVD's will be one of the major topics covered at a special show to be held in conjunction with the International Radio and Television Exhibition ("Internationale Funkausstellung" (IFA)), Berlin. Asian capacities for manufacturing CD-R's are thus being rapidly expanded.

SINGULUS TECHNOLOGIES is reaping more than its fair share of the benefits of both market developments, since its SPACELINE DVD-produc-tion lines have already established leading positions for themselves in their field, and its STREAMLINE CD-R-production lines have become best sellers over the few short months since their introduction earlier this year.

SINGULUS TECHNOLOGIES is thus expanding its manufacturing facilities and adding personnel in order to allow it to rapidly reduce its high backlog and provide sufficient manufacturing capacity for handling its continued very high order receipts.