First-quarter developments at Gamma Holding

In the first quarter of 2004 Gamma Holding's turnover fell by 7% from EUR 234 million to EUR 218 million. As a consequence, the company's net profit in the first quarter of 2004 amounted to EUR 7.8 million, 20% down on the first quarter of 2003. As indicated at the publication of the annual results for 2003, this decrease was mainly due to disappointing developments in the Exotic Fabrics business unit.

Gamma Holding consists of two sectors, Gamma Technologies and Gamma Comfort & Style, with activities in process and conveyor belts, filters, coatings and composites, sailcloth, mattress ticking, car fabrics and exotic fabrics. With these products, the company is a world leader in selected niche markets.

The turnover posted by the units in the Gamma Technologies sector was varied. Lower turnover in Belting Technology and Filtration Technology contrasted with an upward trend in Coating & Composite Technology. The turnover in Sailcloth Technology remained stable. The turnover of the Gamma Technologies sector showed a net decline of 3%, from EUR 116 million in 2003 to EUR 113 million in 2004.

Within the Gamma Comfort & Style sector, the turnover of Sleep Care Fabrics increased. However, there was a fall in turnover of Car Fabrics and, in particular, Exotic Fabrics. Exotic Fabrics was adversely affected by the unstable political and economic situation in Ivory Coast. Furthermore, the business had to contend with import restrictions imposed by the Nigerian government, which may be of a temporary nature. The scale of production within Exotic Fabrics is now being adjusted to the lower level of sales. The turnover of the Gamma Comfort & Style sector showed a net decline of 11%, from EUR 118 million in 2003 to EUR 105 million in 2004.

Outlook

As a consequence of a growing order portfolio in combination with the effects of ongoing efficiency measures, Gamma Holding expects profits to recover gradually in the second half of the year. It is still too early, however, to make specific forecasts regarding the results for the year 2004 as a whole.

This press release replaces the scheduled trading update of 10 May 2004.

Executive Board of Gamma Holding N.V.

Helmond, 22 April 2004

Profile

Gamma Holding develops, manufactures and sells innovative, high-quality textile-based products throughout the world. A total of 163 companies, with 9,353 employees, are operational in 35 countries. Gamma Holding's headquarters are located in Helmond (The Netherlands) and its shares are listed on Euronext Amsterdam.