Gamma Holding stands by profit forecast for 2004

Performance in third quarter

Gamma Holding's turnover and profit in the third quarter were relatively favourable in comparison with the first six months of 2004. Turnover amounted to EUR 205 million, 3% down on the same period of last year (2003: EUR 212 million). Net profit fell by 13% to EUR 5.7 million (2003: EUR 6.5 million).

The balance of interest-bearing liabilities improved by EUR 13 million, mainly because of an

improvement in net working capital. At the end of the quarter this balance stood at EUR 266 million.

Performance in first nine months

Turnover showed a 5% decline in the first nine months from EUR 675 million in the same period of

2003 to EUR 643 million. Net profit fell by 23% to EUR 18.8 million (2003: EUR 24.5 million).

Outlook

Gamma Holding stands by its previous forecast that profit for the year 2004 as a whole will be considerably lower than in 2003 (30% - 45%). The projected figure includes the restructuring charges to be taken in the Exotic Fabrics business unit in the fourth quarter.

Developments by sector

Gamma Holding consists of two sectors, namely Gamma Technologies and Gamma Comfort & Style,

with activities in process and conveyor belts, filters, coatings and composites, sailcloth, mattress ticking, car upholstery and exotic fabrics. With these products, the Company is a world leader in selected niche markets.

In the first nine months there was an increase in the cumulative turnover of the Gamma Technologies sector as a result of upward trends in the Coating & Composite Technology business unit. The turnover posted by Belting Technology and Filtration Technology fell slightly short of last year's figures. Turnover in Sailcloth Technology remained stable. There was a net increase of 1% in the cumulative turnover of this sector, which rose to 342 million (2003: EUR 338 million).

The cumulative turnover of the Gamma Comfort & Style sector fell by 11% in the first nine months to EUR 301 million (2003: EUR 337 million). While turnover remained the same in Sleep Care Fabrics, it was down in Car Fabrics and, above all, Exotic Fabrics.

In the Exotic Fabrics business unit it was necessary to adapt the organisation in Helmond to

the lower level of turnover. Agreement has now been reached with the trade unions and the

Works Council on a plan to reduce the number of jobs at Vlisco Helmond to 450, which

represents 200 persons fewer than at the beginning of this year.

In the third quarter, 13,450 shares were purchased to cover the exercise of option rights under the management stock option plan. The total number of shares purchased is 177,350.

Gamma Holding will publish the provisional annual results for 2004 on Thursday, 3 February

2005.

Executive Board of Gamma Holding N.V.

Helmond, 4 November 2004