Gamma Holding: developments in the first nine months

• Turnover: EUR 583 million (2006: EUR 576 million)
• Operating result excluding restructuring costs: EUR 45.7 million (2006: EUR 44.2 million)
• Net group result: EUR 23.7 million (2006: EUR 21.2 million)
• Upward trends, especially in Belting Technology and Exotic Fabrics
• Lower volumes and continuing price pressure in Europe for Sleep Care Fabrics
• Expected increase in operating result (excl. restructuring costs) for 2007 as a whole: circa 5%

In the first nine months of 2007 Gamma Holding's turnover came to EUR 583 million (2006: EUR 576 million). Adjusted to take account of currency effects (-3%), turnover rose by 4%.

The operating result excluding restructuring costs increased by 3% to EUR 45.7 million (2006: EUR 44.2 million). Adjusted to take account of currency effects (-9%), the operating result excluding restructuring costs increased by 12%. Restructuring costs totalled EUR 2.1 million, compared to EUR 2.3 million in 2006. The operating result increased by 4% and amounted to EUR 43.6 million (2006: EUR 41.9 million).

The net group result rose by 12% to EUR 23.7 million (2006: EUR 21.2 million). Adjusted for currency effects of EUR -1.7 million, the net group result increased by 20% compared to last year.

Developments in third quarter

Gamma Holding's turnover totalled EUR 189 million (2006: EUR 183 million). Adjusted for currency effects (-2%), turnover showed a rise of 6%. The operating result excluding restructuring costs came to EUR 12.4 million (2006: EUR 11.9 million). Adjusted for currency effects (-10%), the operating result rose by 14%. The net group result increased by 10% to EUR 6.0 million (2006: EUR 5.4 million).

Gamma Technologies

Gamma Technologies' turnover totalled EUR 121 million (2006: EUR 117 million). Adjusted for currency effects (-3%), turnover showed an increase of 7%.

Belting Technology's turnover was up as a result of rising demand for synthetic belts and highperformance flat belts. Good progress was made on the relocation of activities to the central assembly facility in the Czech Republic. Together with Filtration Technology, the business unit developed gauze belts for, among others, the food industry. The belts have the unique quality to wash and dry products such as fruit, vegetables, meat and fish.

In spite of the weaker economy in the United States, Filtration Technology's turnover showed a slight increase, mainly due to the sale of filter products for the mining, minerals and chemical process industries. The business unit is undergoing expansion, with new assembly locations in Poland, Mexico and China. Furthermore, Filtration strengthened its sales and marketing organisation.

Coating & Composite Technology also posted slightly higher turnover. The business unit saw growth mainly in the duraskin® (roofing structures) product group, but lower volumes were sold by seemee® (printable media fabrics), particularly in the United States. Coating & Composite supplied fabric providing sun and wind protection for an innovative double-walled facade of the office building of the Directorate-General for Public Works and Water Management, thus enabling appreciable energy savings to be realised.

Sailcloth Technology's turnover showed an upward trend. The business unit introduced a new marketing campaign to further strengthen the Dimension-Polyant brand in the sailing world.

Gamma Comfort & Style

Turnover in the sector Gamma Comfort & Style totalled EUR 68 million (2006: EUR 66 million). Adjusted for currency effects (-2%), turnover rose by 6%.

The repositioning of all the Exotic Fabrics brands is clearly starting to pay off. Turnover increased as a result of growing demand for all brands. The first seasonal collection was well received and the expansion of both Vlisco flagship stores and Woodin stores is now fully underway.

Turnover in Sleep Care Fabrics lagged behind. The business unit still has to contend with increased price pressure and lower volumes in Europe. Furthermore, Sleep Care has been impacted by start-up costs as a consequence of the transformation process that has been launched, involving the scalingdown of Western European production and the establishment of new production locations in lowwage countries. In the United States, strategic growth towards the middle segment has been set in motion. Although this is resulting in higher volumes and an altered price mix, growth is being inhibited by the weakened economy.

Composition of Executive Board

Since 1 September 2007 Mr M. Frequin MBA from the Océ Group has been working as a proposed member of the Executive Board. In this connection an extraordinary general meeting of shareholders will be held on Thursday 13 December 2007. It is intended that he should succeed Mr M.H. Zegger, who stepped down with effect from 1 June. Within Gamma Holding Mr Frequin will have particular responsibility for the Gamma Technologies sector.

Outlook

Despite adverse currency effects, the operating result excluding restructuring costs increased by 3% in the first nine months, compared to the corresponding period of 2006, and totalled EUR 45.7 million.

Taking into account the weakened economic situation in the United States and the low rate of the US dollar, Gamma Holding expects the operating result (excluding restructuring costs) for 2007 as a whole to grow by circa 5% compared to 2006.

The strategic plan that is being developed for the coming years will be finalised before the end of this year and presented in January 2008.

Executive Board, Gamma Holding N.V.

Helmond, 26 October 2007

The figures contained in this trading update have not been audited.