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Zurich, Switzerland--(JOBWERX NEWS)--APRIL 1, 2005--Quadrant achieved its best annual results ever in 2004. All profit and sales figures reached new all-time high levels. It is encouraging to note that those record results were achieved in a business environment which was neither particularly stable nor characterized by great optimism.

The 14% increase in sales (+15% in local currencies), to which both divisions contributed equally, was due entirely to organic growth. The signs of market recovery which were already apparent at the end of the previous year and in the first quarter of the year under review spread in the course of the second half to almost all geographical markets of relevance for Quadrant (Western Europe, North America, Asia). Fortunately, this recovery continued until year-end, despite the emergence of uncertainties affecting the market in general (dollar weakness, high oil price, higher raw material prices).

Customers in the capital goods industry regained confidence and increased their orders. Since a backlog of demand for replenishing their inventories was added to demand for current production, sales growth was disproportionately high. Our high-performance plastics business benefited especially from this, accounting for 72% of consolidated sales. Part of the strong rise in consolidated sales is therefore certainly non-recurring in nature. However, not only the general revival of our customers' appetite for investment contributed to sales growth, but also new products and applications which were launched successfully on the market. Thus the plastic composites / cable protection systems operations (accounting for 28% of total sales) recorded a substantial increase in net sales with innovative products and applications despite still sluggish automobile sales, thus more than making up for projects approaching the end of their life cycle.

Higher operating profitability and continued healthy cash flow

The decision not to reduce capacity in the years of recession, despite declining sales, has now paid off in the form of improved operating profits. Although higher raw material prices were still depressing results slightly at year-end, the higher sales and the resulting improvement in capacity utilization generated significantly higher earnings overall.

Confident outlook

Two aspects have to be considered with regard to growth prospects. On the one hand, the considerable geopolitical and macroeconomic uncertainties still prevailing continue to remind us of the need to exercise caution. The unabated boom in the price of oil and other raw materials could subdue our customers' appetite for investment. It therefore remains to be seen whether the European and North American markets in particular will be able to sustain their current gradual growth rates. For the first quarter 2005 it must also be borne in mind that a few months will elapse before price increases have an impact. Although the growth rate achieved in 2004 for group sales should not be extrapolated into the future, confidence is nevertheless justified for the years to come. This is because the pressure to launch new products and achieve further cost savings in the industry is undiminished. Quadrant's products help to achieve both objectives. Furthermore, the robust results achieved in a difficult business environment in the past three years demonstrate that Quadrant is strategically well positioned.

The focus on generating sustained levels of free cash flow in recent years has resulted in improved key financial figures. In the past four years alone a cumulative total of more than 150 million Swiss francs of free funds has been generated. Strategic advantages worth mentioning include in particular the company's strong market positions in growing markets and the global market presence already established in the main highly industrialized countries. The operational focus in the years to come will now be less on maximizing quantitative sales growth than on optimizing growth in qualitative terms within the framework of the group's strategic objectives. On this sound foundation Quadrant can approach the future with optimism and confidence from a position of strength.

Additional statistics and financials are available from Quadrant. With more than 1 300 employees at 27 specialized locations worldwide, Quadrant generates net sales of approx. 500 million Swiss francs. Thanks to its clear strategic orientation and focus Quadrant is well positioned and prepared to create added value on a consistent and sustainable basis for its customers and shareholders and to further expand its market leadership.

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