DGAP-Adhoc: Jack White Productions AG: Group Sales 2006 slip fro...

JACK WHITE PRODUCTIONS AG / Final Results 27.04.2007 Release of an Ad hoc announcement according to § 15 WpHG, transmitted by DGAP - a company of EquityStory AG. The issuer is solely responsible for the content of this announcement. =-------------------------------------------------------------------------- * JWP AG: Group sales 2006 slip from EUR 23.3 million to EUR 11.7 million * Earnings position constrained by special audits in the United States * Net loss for the year of EUR 8.1 million, as against net income of EUR 3.3 million the year before * 2007 - slight increase in sales and net income expected In business 2006, on the basis of figures that have not yet been audited, Jack White Productions (JWP) AG booked sales of around EUR 11.7 million compared with EUR 23.3 million one year earlier. The key factors: the dwindling US music market and the consequent sharp drop in the business performance of subsidiary VI Music LLC in Puerto Rico; the de-consolidation of US company HoT JWP Music Inc. in Miami, which was only included in the consolidation until June 30, 2006; and weaker business in Germany, Austria and Switzerland. At the parent company, JWP AG, which in 2005 scored several best-selling releases, sales decreased about 38 % from EUR 9.8 million to EUR 6.1 million. Group EBIT dropped from EUR 4.9 million to a loss before interest and tax of EUR 2.2 million, with both the lower business volume and above all a high number of returned goods impacting here. Moreover, the special audit of US activities initiated by JWP CEO Thomas M. Stein in the second half revealed a massive need for value impairments. Amortization was entered for all company segments, in particular for HoT JWP Music Inc., leading to high other expenses. On balance, the consolidated net loss for the year was EUR 8.1 million, as compared with a profit of EUR 3.3 million one year earlier. In this way, all the main negative factors were charged to the 2006 financial statements. JWP AG intends in the current year to focus on improving profit levels and - following completion of the investigations in the United States - to concentrate more strongly on operating business. In particular, for 2007 the Group expects to slightly boost sales and post a profit. This forecast does not take account of new artists to be taken under contract, or additional takeovers and alliances that the company is planning. JWP AG has already taken a first step in this direction by acquiring a 51% stake in Berlin-based 313 MUSIC, as was announced yesterday. Numerous releases are also being planned with artists in the JWP AG repertoire for 2007. These include the new Hansi Hinterseer album, which is already on the market and went Gold in Austria after only two days on the shelves. In the course of the year, two further releases are planned with him, as well as CDs by Die Firma and other artists. JWP AG will bring out the new album by DSDS-Star ELLI on the Hitch-Records label, with whom an exclusive agreement has been reached. Hitch-Records was founded by US producers Gary Baker (Grammy Award winner) and Anthony Little. They were the minds behind All4One's hit 'I Swear' and have produced world famous artists such as the Backstreet Boys, LeAnn Rimes, Ronan Keating, Justin Timberlake and many others. ELLI's first single 'Can't deny it' will be released on June 1, and the related album in early September. The audited annual financial statements for 2006 can be downloaded as of 30 April, 2007, from www.jack-white.de. Contact: Thomas M. Stein, CEO JWP AG, Tel. +49-89-9509490 DGAP 27.04.2007 =-------------------------------------------------------------------------- Language: English Issuer: JACK WHITE PRODUCTIONS AG Uhlandstr. 173/174 10719 Berlin Deutschland Phone: +49( 0)30 882-7383 Fax: +49 (0)30 882-5903 E-mail: investorrel@jack-white.de www: www.jack-white.de ISIN: DE0005087506 WKN: 508750 Indices: GEX, Prime All Share , Prime Media Performance-Index , Prime IG Movies & Entertainment Listed: Geregelter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin-Bremen, Stuttgart, München, Hamburg, Düsseldorf End of News DGAP News-Service =-------------------------------------------------------------------------- (END) Dow Jones Newswires

   April 27, 2007 04:05 ET (08:05 GMT)- - 04 05 AM EDT 04-27-07