ISRA has significantly increased its revenue and profit -profitability has improved even further

ISRA VISION AG: Report for the First Six Months of the 2007/2008 Fiscal Year
(PresseBox) (Darmstadt, ) .
- Growth in revenue of 29 percent in comparison to the first half of the previous fiscal year
- EBT margin of 16 percent, five percentage points better than in the 2006/2007 fiscal year
- Earnings per share rose by 17 percent to 0.83 Euros
- Increased order backlog of 35 million Euros
- Four acquisitions are being quickly integrated into the ISRA group

ISRA VISION AG, one of the global top five suppliers for industrial image processing (Machine Vision) and the world's market leader for surface inspection systems, continues its successful launch into the 2007/2008 fiscal year (October 1, 2007 to September 30, 2008) with a successful second quarter. The group's sales increased by 29 percent to 30 million Euros in comparison to the first half of the previous fiscal year. The integration of the latest acquisitions, Image Automation Ltd. (December 2006), Image Automation Inc. (January 2007), Parsytec AG (July 2007) and Metronom (November 2007) is still progressing on schedule. The EBT margin (profit before taxes to total operating revenue) improved to 16 percent - five percentage points more than in the entire 2006/2007 fiscal year. At 35 million Euros, the order backlog has grown relative to the first quarter.

ISRA has considerably increased its revenue on the German markets and in international business.

The largest growth drivers in the first half of the 2007/2008 fiscal year came from Asia. In Europe, ISRA also saw sound growth in revenue. Only customers in North America have reacted to the insecure economic developments with a reluctance to invest. ISRA expanded its already dominant market position in the Surface Vision sector. In comparison to the corresponding period in the previous year, the total operating revenue increased by 35 percent to 25.0 million Euros in the Surface Vision sector. In the Industrial Automation segment, ISRA's total operating revenue increased by 18 percent to 9.1 million Euros.

Growth in revenue and profit increased - profitability has improved even further In the first six months of 2007/2008 fiscal year, the ISRA group's sales increased by 29 percent to around 30 million Euros. The total operating revenue rose by 30 percent to 34.1 million Euros. The integration of the acquisitions is proceeding successfully. This can be seen in the increase in efficiency, especially when measured against the figures from the previous 2006/2007 fiscal year. The material costs climbed by 19 percent to 6.4 million Euros. The ratio of material costs therefore dropped by two percentage points to 19 percent. In comparison to the entire previous fiscal year, the ratio for costs of materials even decreased by three percentage points. The gross margin thus reached 58 percent (previous year: 59 percent). ISRA VISION spent 5.4 million Euros for research and development (previous year 3.7 million Euros). The marketing, sales & administration costs increased to 6.6 million Euros (previous year: 4.9 million Euros). At 19 percent of the total operating revenue, their proportion sank in comparison to the value of the same period of the previous year, three points below the value of the entire previous fiscal year. The EBITDA (Earnings before Interest, Taxes, Depreciation and Amortization) improved by 25 percent to 8.4 million Euros. Thus, the EBITDA margin

(EBITDA to total operating revenue) is at 25 percent (at the end of the fiscal year September 30, 2007:19 percent). The EBT, the primary performance indicator for value-oriented corporate governance, reached 5.3 million after having been 4.5 million Euros in the corresponding period in the previous year. At 16 percent of the total operating revenue (previous year: 17 percent), the EBIT margin fully achieved the Executive Board's target for earnings. After taxes and minority interests, the net profit rose by 17 percent to 3.6 million Euros. The result increased to 0.83 Euros per share (previous year:0.71 Euros) - based on 4,332,726 shares (previous year: 4,337,940 shares).

Outlook

ISRA will be continuing the growth that it has been ceaselessly pursuing for ten years now, without losing any of its momentum. This is what has made ISRA one of the most growth-intensive technology companies on the stock market. The integration of the four acquisitions have progressed as planned, especially the largest one, Parsytec; the synergies have already had a positive impact on the business figures. Besides printed electronics, ISRA also wants to expand the area of application for its inspection solutions for components of large solar power plants. ISRA has developed a measurement technology especially for this purpose, a technology that checks the optical characteristics of the components in order to ensure and optimize energy efficiency. The international sales team, the important drivers for dynamic expansion, has been expanded and now has an office on the Iberian Peninsula.

With its current order backlog of 35 million Euros, ISRA intends to reach more than 65 million Euros in revenue in this fiscal year and over 75 million Euros in revenue in the coming one. The gross margin should increase in the long term from its current 58 percent to 60 percent. The earnings target for 2007/2008 remains an EBT margin of 15 percent (relative to the total operating revenue) and at 19 percent for 2008/2009 relative to the total operating revenue.

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ISRA VISION
Industriestr. 14
D-64297 Darmstadt
Sandra Braun
ISRA VISION AG
Investor Relations
Dagmar Edler
ISRA VISION AG
Investor Relations
ISRA VISION SYSTEMS AG
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