ZMDI energy-efficient products fuel robust revenue growth

Thanks to the Company’s strong revenue start in this its 50th anniversary year, ZMDI has increased its revenue forecast for the entire year. In January, ZMDI had estimated revenue growth in the range of five to ten percent. However, 2011 first-quarter revenues rose by nine percent year-over-year. The Executive Board now expects that sales will increase by approximately 10 percent in 2011. Earnings (EBIT) are expected to rise to approximately EUR 4.5 million. ZMDI also announced that it would launch more than 20 new products in the current year with a focus on LED drivers, sensors and power management devices. Moreover, approximately 30 percent of revenue will again be invested in new product development, reflecting a new record in the Company's history.

Looking back on fiscal 2010, ZMDI confirmed the preliminary revenues it communicated in January. Revenues in fiscal 2010 rose 28 percent or EUR 55.1 million, year-over-year, from EUR 43 million in 2009. Accordingly, revenues again reached the pre-economic-crisis level of 2008. One key driver for this solid growth was strong demand in the automotive sector. Moreover, ZMDI took special advantage of growth opportunities for environmentally sound, eco-friendly technologies. Earnings (EBIT) for 2010 also improved significantly and rose by EUR 5 million over 2009 to EUR 1.1 million. With high investments in research and development, ZMDI had reported a loss of EUR 4.5 million in the recessionary year 2009.

Thilo von Selchow, CEO of ZMDI, commented on the Company’s report, saying, Modern semiconductors are the drivers of 'green technologies.' The strong growth and solid 2010 results are based on our consistent attention to energy-efficient products and solutions. Furthermore, our employees have made a critical contribution to our ability to overcome the effects of the 2009 recessionary year and re-attain the 2008 level faster than planned. The award of a bonus is therefore primarily recognition of our employees' excellent work and dedication to the Company. ZMDI also continued to develop strategically in 2010 and took important steps toward internationalization. By founding a subsidiary and a sales office in Korea, we have created the foundation for serving that country’s rapidly growing customer base. We are now represented by our own teams in all key geographical markets.



“We have also made significant progress in expanding our business with standard products. These now account for about 30 percent of revenues. Significant cooperative agreements with global market leaders such as Fairchild and prominent automobile manufacturers and suppliers are the visible expression of ZMDI's expertise in high-performance technologies that save electricity and resources. ZMDI is off to a solid start in our 2011 anniversary year, allowing us to anticipate continued growth in revenues and earnings. . One goal is certain: For ZMDI, growth means 'green' growth. We are working enthusiastically and at full speed to enable our customers to actively contribute to climate protection through lower consumption of gasoline and electricity.



Background information about the 50th year anniversary in 2011

ZMDI was founded in Dresden in 1961 by Prof. Dr. Werner Hartmann as Arbeitsstelle für Molekularelektronik (AME - Workplace for Molecular Electronics). Since then, Dresden has been known as the cradle of semiconductor technology throughout Germany and Europe. In the following decades the Company played a key role in microelectronics development and, with its innovative thinking, repeatedly defined new technological milestones in one of the world's most dynamic industries. In 2000 the company became ZMD AG, a fully privatized enterprise. In 2007 ZMDI was one of the first companies in its industry to divest its production. Its new business model as a fab-less company and its clear strategic focus on energy efficiency confirmed its role once again as a driver of microelectronics innovation.

Energy efficiency will be the dominant theme in the anniversary year 2011. More than 150 ZMDI developers are working on innovative ways to help customers protect the environment and resources. Today, energy efficiency is not just a key competitive criterion for many industries -- including the automotive industry, industrial automation, consumer white goods, medical technology and lighting -- it is synonymous with viability into the future.