ETEX GROUP: Consolidated results for the first half of 2010

Etex Group publishes its results for the first semester.

• Revenue increased by 6% at € 918 million
• Operating income benefited from the restructuring measures taken in 2009 and shows strong signs of recovery at € 71 million (+58%)
• Change of CEO as of January 2011

Revenue amounted to € 918 million, increasing by 5.7% compared to last year. Positive exchange rate movements positively influenced the evolution in revenue by 2.5%.

Split by industrial activity and by geographical area

in millions of EUR	First half 2009	First half 2010	% var.
Roofing	396	405	2.3%
Boards	248	275	11.1%
Floors and walls	72	83	15.8%
Others	153	155	1.0%
Total	869	918	5.7%

in millions of EUR	First half 2009	First half 2010	% var.
Europe	579	575	-0.7%
Latin America	172	222	29.5%
Rest of the world	118	121	2.5%
Total	869	918	5.7%

Revenue of the European Building Materials division (EBM) increased by 2.5% compared to 2009. The poor results of the first quarter (due to harsh winter conditions) were offset by a more promising second quarter. Germany, UK and Poland contributed to this evolution whereas the markets remained very weak in Ireland and Spain.

Revenue in the International Building Materials division (IBM) increased by 19.3% compared to 2009 (14.7% in real terms), mainly due to satisfactory performances in Latin America and Indonesia.

The Fire Protection and Insulation division (FPI) suffered from the postponement of projects and the weak environment in non residential building. Revenue decreased by 4.1% compared to 2009.

Consolidated Key Figures

in millions of EUR	First half 2009	First half 2010	% var.
Revenue	869	918	5.7%
Operating cash flow (EBITDA)	98	123	26.1%
% Revenue	11.3 %	13.4 %
Operating income (EBIT)	45	71	57.9%
% Revenue	5.2%	7.7%
Financial result	-15	-17
Profit before income tax	30	54	80.0%
Profit for the period	20	35	79.4%
Group share	15	31
Non controlling interests	5	5

EUR / share	First half 2009	First half 2010	% var
Earnings per share	0.19	0.39	107.8%

in millions of EUR	31.12.09	30.06.10	% var.
Total equity	762	832	9.1%
Group share	671	729	8.5%
Non controlling interests	91	103	13.4%
Net financial debt	393	426	8.5%

Operating income amounted to € 71 million, an increase of € 26 million when compared to the prior year. The overall recovery in Latin America and the effect of the restructuring measures supported this performance.

The financial result deteriorated by € 2 million due to higher margins paid on interest charges. In August 2010 the Group has extended its syndicated credit facility by one year and reduced its margins in line with the market trend.

During the third quarter of 2010 the Group acquired Microtherm, an important player in the high performance insulation business that fits perfectly in the strategy of the Fire Protection and Insulation division.

PROSPECTS FOR 2010

In Europe, the market conditions remain challenging. This is particularly true in certain markets which have a substantial surplus stock of houses (Ireland and Spain) or where mortgage financing remains difficult (Eastern Europe). Expectations for
the commercial and office market remain weak.

On the basis of the stronger performance of our affiliates in Latin America and Asia, and the improvement of the profitability resulting from continuous efficiency gains, the Group expects its second semester results to improve compared to last year.

CHANGE OF CEO

After 36 years in the Group and having reached retirement age, Philippe Coens, CEO and Chairman of the Executive Committee, will retire from his function at the end of the year and will remain member of the Board. Fons Peeters, currently head of the European Building Materials division, has been appointed as CEO and Chairman of the Executive Committee as from January 1, 2011.

FINANCIAL COMMUNICATION
Shareholders’ agenda:
Annual results - April 2, 2011
Annual general meeting - May 25, 2011

Contact:
Frederic Deslypere
Finance Director
Tel. 32-2-778 13 64
E-mail: communication@etexgroup.com