Further deterioration at Exotic Fabrics

As already indicated in the trading update on the first quarter issued on 22 April 2004, Gamma Holding was adversely affected by disappointing developments, particularly at its Exotic Fabrics business unit. This situation has deteriorated further, as a result of which the anticipated recovery in the second half of the year is taking longer to materialise than was previously anticipated. Accordingly, Gamma Holding expects to record a considerably lower net profit for the full year 2004 than in 2003.

Exotic Fabrics' sales in Africa have fallen sharply, particularly in recent months. The main reasons for this are the decline in purchasing power, as the deterioration in the political and economic situation in Ivory Coast, the unrest in Nigeria and the import restrictions in the country.

Exotic Fabrics is currently preparing to adjust the scale of production to the lower level of sales; compulsory redundancies cannot be rules out.

On Friday 3 September 2004 Gamma Holding will present its results for the first half of the year.

Executive Board, Gamma Holding N.V.

Helmond, 18 June 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.

Gamma Holding comprises two sectors, Gamma Technologies and Gamma Comfort & Style, which are active  in the fields of belting, filtration, coating and composites, sailcloth technology, as well as sleep care, car and exotic fabrics. The company is a leading global player in its selected niche markets.