Gamma Holding records positive performance in first quarter

• Turnover: EUR 199 million (2005: EUR 180 million);
• Operating result: EUR 17.3 million (2005: EUR 13.4 million);
• Net group result: EUR 8.9 million (2005: EUR 6.0 million).

Gamma Holding recorded a positive performance in the first quarter of this year in comparison with the disappointing first three months of 2005. Group turnover rose by 11%. The Gamma Technologies sector performed well thanks to the measures taken as part of ‘Planning for growth' and as a result of increased demand, mainly in Belting, Filtration and Coating & Composite Technology. The Gamma Comfort & Style sector also improved, principally in Sleep Care Fabrics. In February the household linen business of Car Fabrics was sold to the French company HDM-Finance, a large European textile company that is strategically better placed to achieve further growth in this unit. As in the first three months of 2005, no significant restructuring charges were taken in the first quarter of 2006.

Gamma Technologies

Within the Gamma Technologies sector, Belting Technology was able to benefit from efficiency measures taken in the past and rising demand in almost all product groups. Turnover grew in all markets, partly due to the delivery of process and conveyor belts to international airports such as Beijing and Seoul. Turnover in Coating & Composite Technology likewise showed a strong increase, partly due to the strengthening of the marketing structure in France, Mexico and the United States. Sales were also higher in the Middle East and China. The business unit also supplied a lot of tent cloth as a consequence of the coming FIFA World Cup football tournament in Germany. Turnover in Filtration Technology also rose, principally because of quickening demand in Europe, Australia and South Africa. Furthermore, to strengthen its position in emerging markets, the business unit acquired Barimex B of Poland and Filtaflo of South Africa, two small companies specialising in filter products for both wet and dry filtration. Turnover in Sailcloth remained virtually the same. Turnover in the Gamma Technologies sector showed a net increase of 16% from EUR 111 million in 2005 to EUR 128 million in 2006

Gamma Comfort & Style

Within the Gamma Comfort & Style sector, the Sleep Care Fabrics business unit posted higher turnover, mainly thanks to Telartex, the recently acquired Mexican producer of mattress materials, and a hesitant market recovery in Europe. However, the business unit is still facing increased downward price pressure. Moreover, Sleep Care is intensifying its strategy of bringing costs into line with the spread of its operations. In that connection, the intention was expressed in the first quarter to transfer some of the activities of the German subsidiary Schoedel to the Czech Republic. In addition, a start has been made on the construction of a new production location in Turkey.

Turnover in Exotic Fabrics fell short of last year's figure. The business unit's local brands GTP and Uniwax have been affected by the difficult political and economic situation in West Africa. Moreover, the unit has to compete with low-priced imports from China. In this connection, further efficiency measures are being taken in Ghana, Côte d'Ivoire and the Netherlands. A survey aimed at strengthening the business unit's future prospects was launched at the end of 2005. The results will be made known in the second half of this year.

There was a net increase of 3% in the turnover of the Gamma Comfort & Style sector from EUR 69 million in 2005 to EUR 71 million in 2006.

Outlook

The first three months of 2006 were positive in comparison with the disappointing first quarter of 2005.

Prospects are favourable in the Gamma Technologies sector, and the ‘Planning for growth' programme is firmly in place. The measures already initiated in Gamma Comfort & Style are being speeded up. As a result, Gamma Holding is on track to achieve its growth and profitability targets in 2007.

The year 2006 should still be seen as a year of transition in which, as already indicated, further restructuring charges of approximately EUR 10 million will have to be taken. At this stage, therefore, it is still too early to make a forecast for Gamma Holding's results for 2006 as a whole.

Executive Board of Gamma Holding N.V.

Helmond, 26 April 2006

Profile

Gamma Holding develops, manufactures and sells innovative, high-quality textile-based products throughout the world. In 39 countries, approximately 7,500 employees are active. Its headquarters are located in Helmond (The Netherlands) and its shares are listed on Euronext Amsterdam.

Gamma Holding comprises two sectors, Gamma Technologies and Gamma Comfort & Style, with activities in the field of transport and conveyor belts, filter products, coated fabrics and composites, sailcloth, mattress ticking and exotic fabrics. With these products the company is a leading global player in its selected niche markets.