Gamma Holding posts improved earnings in first quarter

• Turnover: € 175 million (2009: € 162 million)

• EBITDA¹ excluding restructuring expenses: € 20.4 million (2009: € 14.4 million)

• Marked increase in EBITA ² excluding restructuring expenses and impairment:
  € 13.2 million (2009: € 6.8 million)

• Restructuring charges: € 6.3 million (2009: € 2.0 million)

• Net group result: € -0.3 million (2009: € -2.4 million).

‛Despite the still difficult economic climate, we have made a good start to 2010. In the first quarter almost all business units managed to improve earnings, mainly thanks to the tough measures which have been taken. This demonstrates our resilience and gives us confidence that the positive trends will continue in the course of the year.'

Jan Albers, CEO

In the first three months of 2010 group turnover amounted to € 175 million (2009: € 162 million).

Group EBITDA¹ excluding restructuring expenses rose by 42% in the first three months from € 14.4 million in 2009 to € 20.4 million in 2010.

EBITA² excluding restructuring expenses and impairment increased by 93% to € 13.2 million (2009: € 6.8 million).

Restructuring expenses - mainly related to Clear Edge Filtration - totalled € 6.3 million in the first quarter (2009:
€ 2.0 million). Financial income and expense amounted to € 8.9 million (2009: € 6.5 million). Taxes came to € 2.3 million (2009: € 0.6 million). This led to a net group result of € -0.3 million (2009: € -2.4 million).

At the end of the first quarter the balance of interest-bearing liabilities was € 268.9 million (2009: € 310.3 million). The Interest-Bearing Funds/EBITDA ratio improved to 4.0, thus remaining well below the bank covenant of 5.3.

Developments per business unit

The turnover of Ammeraal Beltech (including PTFE) amounted to € 65 million (2009: € 60 million). EBITDA¹ excluding restructuring expenses rose by 73% to € 5.9 million (2009: € 3.4 million). The business unit is benefiting from the recovery in Asia and America and posted increased sales of, in particular, endless woven belts, timing belts and lightweight rubber belts. Turnover also rose in the textile, leather, automotive and metalworking industries.

At Clear Edge Filtration turnover amounted to € 26 million (2009: € 24 million). EBITDA¹ excluding restructuring expenses totalled € 2.9 million (2009: € 1.1 million). Demand for filtration products rose on the back of a more stable economic climate in Asia Pacific and America and positive developments on the European market. In order to become stronger, cheaper and more market-focused than the competition, it was decided to close the Swedish facility and to transfer the development and weaving activities to Germany, leading to the loss of approximately 80 jobs in Sweden. This consolidation process is expected to be completed by early 2011.

The turnover of Dimension-Polyant amounted to € 10 million (2009: € 8 million). EBITDA¹ excluding restructuring expenses rose by 80% to € 1.6 million (2009: € 0.9 million). The business unit took part in various boat shows and successfully stepped up its sales efforts, particularly in Europe and the United States. The replacement market remained stable and demand for high-quality sailcloth also remained strong. Furthermore, both the OEM market and the wind surfing segment picked up.

Of all the business units, Bekaert Textiles showed the greatest improvement. Turnover totalled € 37 million (2009: € 30 million). EBITDA¹ excluding restructuring expenses improved from € 2.3 million in 2009 to € 7.0 million in 2010. The business unit is clearly benefiting from the significant cost-saving measures it took in the last few years and managed to increase its market share. Successful new products and favourable developments, particularly in the United States, helped drive the recovery. In April, Bekaert Textiles reached agreement with the local authorities in Waregem, Belgium about the sale of a large part of its former facility. This transaction will have a limited impact on earnings.

The turnover of Vlisco Group amounted to € 37 million (2009: € 40 million). Turnover was down on the very strong first quarter of 2009, but in line with the rest of 2009. EBITDA¹ excluding restructuring expenses totalled € 3.9 million (2009: € 7.1 million).

Outlook

Gamma Holding will continue to closely monitor market conditions and make changes to the organisation as necessary. In that respect, restructuring expenses of approximately € 4 million are expected to be incurred in the remainder of 2010. Barring unforeseen circumstances, the positive trend in operating result is expected to continue in 2010.

Executive Board of Gamma Holding N.V.

Helmond, 28 April 2010

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

¹ Group result before income tax, interest, depreciation/amortisation and impairment of property, plant and equipment and intangible assets

² Group result before income tax, interest and amortisation/impairment of goodwill and acquired intangible assets