KWS SAAT AG – strong performance in Q1 of 2007/2008

(Einbeck, November 30, 2007/No. 34/gf) – The business of KWS SAAT AG (ISIN: DE 0007074007) fluctuates strongly due to seasonal differences, as is typical of companies in the agricultural sector. KWS generates an average of just one tenth of its annual sales in the months July to September, since the main generators of revenue – corn and sugarbeet – are not planted until spring. Only winter cereal and winter rapeseed varieties are sown in the fall.

The KWS Group grew its net sales in the first quarter of fiscal 2007/08 (September 30) to €62 (52) million. The successful fall planting of the crops rye, barley and rapeseed is reflected in these earnings figures. As a result of the positive sales development, the KWS Group’s operating income (EBIT) was better than that of the year before. At € -15 (-20) million, however, it is negative due to the seasonal nature of its business. Moreover, the sale of the potato business at July 1, 2007, had a positive impact on the net income for the first quarter, which amounted to € -5 (-13) million euros.

The investments made in the first quarter of fiscal 2007/08 amounted to €8 (6) million and were aimed at improving seed quality and expanding production and breeding capacities. They lie clearly above the level of depreciation at €4 (3) million. In light of the positive development of the cereals segment as well as expected net sales increases in the corn segment, combined with stable business in the sugarbeet sector, the outlook for all of fiscal 2007/08 is for slight growth in net sales compared to the previous year (€538 million). The strong figure for operating income achieved last year (€64 million) is expected to be maintained. The continuing weakness of the dollar will presumably lower net sales for fiscal 2007/08 by approximately €10 million.

The quarterly report can be downloaded from www.kws.com/ir.

Contact:

Georg Folttmann
- Head of Investor Relations -
Phone:+49 (0)55 61/311-640
g.folttmann@kws.com