Press Release

Board approves the Interim Report at June 30, 2009

Cembre (Star): the global recession continues to influence revenues and margins
while net financial position is growing

In the 2nd Quarter, however, sales declined less than in the previous quarter on the corresponding periods in 2008
The net financial position at June 30, 2009 improves to €2.2 million

Consolidated figures (€ ‘000)	1st Qtr. 2009	marg. %	1st Qtr. 2008	marg.%.	var. %	full year 2008	marg. %
Sales	38.132	100	50.131	100	-23,9	94.288	100
Gross operating profit	5.813	15,2	10.649	21,2	-45,4	19.273	20,4
Operating profit	4.344	11,4	9.101	18,2	-52,3	16.221	17,2
Pre-tax profit	4.444	11,7	8.795	17,5	-49,5	16.031	17
Net profit	2.872	7,5	6.263	12.5	-54,2	10.857	11,5
Net financial position	2.188		(5.110)			1.170

Brescia, August 27, 2009 – The Board of Directors of Cembre Spa – a STAR listed company and one of the largest European manufacturers of electrical connectors and tools for their installation– chaired by Managing Director Giovanni Rosani, approved at today’s meeting the Report on the 1st Half of 2009.

In the first six months of 2009, the Group reported consolidated sales of €38.1 million, down 23.9% on €50.1 million in the corresponding period in 2008.
In the 1st Half of 2009, domestic sales amounted to €15.1 million, down 30%, while sales outside Italy amounted to €23.1 million, down 19.4% the same period in the previous year. A total of 39.5% of Group sales were represented by Italy (as compared with 42.9% in the 1st Half of 2008), 48.4% by the rest of Europe (45.3% in the 1st Half of 2008), and the remaining 12.1% by the rest of the World (11.8% in the 1st Half of 2008).
In the 2nd Quarter of 2009, the decline in sales on the corresponding period in 2008 was considerably lower than in the 1st Quarter, declining from a 28.8% reduction at the end of March, to a reduction of 18.9% in the 2nd Quarter vs. the 2nd Quarter of 2008.
Consolidated gross operating profit for the first six months of 2009 was equal to €5.8 million, representing a 15.2% margin on sales, down 45.4% on €10.6 million reported in the first six months of 2008 (21.2% of sales).
In the first six months of 2009 the cost of goods sold as a margin on sales was in line with the 1st Half of 2008, while personnel costs grew as a percentage of sales from 26.6% to 32.5% despite declining in absolute terms by about €1 million.
Consolidated operating profit for the period amounted to €4.3 million, representing an 11.4% margin on sales, down 52.3% on €9.1 million in the 1st Half of 2008, when it represented an 18.2% margin on sales.
Consolidated profit before taxes amounted to €4.4 million, representing an 11.7% margin on sales, down 49.5% on €8.8 million in the 1st Half of 2008, when it represented a 17.5% margin on sales. The favorable foreign exchange performance determined gains amounting to €127 thousand.
Net profit for the first six months of 2009 amounted to €2.9 million, down 54.2% on €6.3 million in the 1st Half of 2008. The margin on sales declined from 12.5% in the 1st Half of 2008, to 7.5% in the corresponding period in 2009.
The consolidated net financial position at June 30, 2009 amounted to a surplus of €2.2 million, improving both on June 30, 2008, when it was equal to an indebtedness of €5.1 million, and on December 31, 2008, when it amounted to a surplus of €1.2 million. The financial position was affected by the payment in May of €2.7 million in dividends (as compared with €4.4 million in the 1st Half of 2009), and the payment of €1.8 million in taxes (2.1 million in 2008).
Capital expenditure for the period amounted to €1 million, as compared with €2.5 million in the 1st Half of 2008.

“The financial and economic crisis that exploded in the middle of 2008, influenced significantly results for the 1st Half of 2009. Revenues of the Group declined in fact by 23.9% on the 1st Half of
2008. In the 2nd Quarter of 2009, however, the contraction of sales on the same period of 2008, amounting to 18.9%, was sharply lower than in the 1st Quarter.
The Group reported a further improvement in the net financial position to a surplus of €2.2 million at June 30, 2009. At the end of July consolidated sales declined 23.6%” commented Cembre’s Managing Director Giovanni Rosani.

Cembre designs, manufactures and distributes electrical connectors and cable accessories. It enjoys a leadership position in Italy and significant market shares in the rest of Europe. It is also the world's largest producer of connector installation tools (mechanical, pneumatic and hydraulic) and tools for cable shearing. The products it has developed for connection to the rail and for other railway applications are used by major companies in the sector round the world.
Cembre owes its success to an insistence on innovative, high-quality products, a broad and thorough collection, and an extensive distribution network both in Italy and abroad.
Established in Brescia in 1969, the Cembre Group is now a full-fledged international force. Along with the parent company in Brescia it has seven subsidiaries: five trading companies (in Germany, France, Spain, the United States and Norway) and two manufacturing and trading subsidiaries (Cembre Ltd. in Birmingham, U.K. and General Marking S.r.l. in Bergamo), for a total workforce of 545 as of December 2008. Since 1990 its products have been certified by Lloyd's Register Quality Assurance for the design and production of accessories for cables, electrical connectors and tools for their installation.
Cembre has been listed on the Italian Stock Exchange since December 15, 1997, and on the STAR section since September 24, 2001.

Attachments - Financial Statements at June 30, 2009

The manager responsible for preparing the Company’s financial reports, Claudio Bornati, declares, pursuant to paragraph 2 of Article 154 bis of the Consolidated Law on Finance, that the accounting information contained in this press release corresponds to the document results, books and accounting records.

In the present press release use is made of certain alternative performance indicators that are not envisaged in IFRS-EU accounting principles, and whose significance and content are illustrated below, in line with the CESR/05-178b recommendation published on November 3, 2005:

Gross operating profit (EBITDA): defined as the difference between sales revenues and costs for materials, of services received, and the net balance of operating income and charges. It represents the profit before depreciation, amortization and write-downs, cash flow from financial activities and taxes.
Operating profit (EBIT): defined as the difference between Gross operating profit and the value of depreciation, amortization and write-downs. It represents the profit achieved before financial activities and taxes.
Net financial position: represents the algebraic sum of cash and cash equivalents, financial receivables and current and non-current financial debt.

Contact:
Ferruccio Peroni (Peroni e Vitale comunicazione) f.peroni@peronievitale.it

For further information please contact Mr. Claudio Bornati
Cembre S.p.A. - Tel. +390303692269