Developments Gamma Holding first quarter 2005

Gamma Holding's turnover in the first quarter of 2005 was EUR 212 million (2004: EUR 218 million). Net profit came to EUR 6.0 million (2004: EUR 8.4 million). Margins were under pressure as a result of higher prices of raw materials, which could not be passed on in all cases. A lower US dollar also had an adverse effect.

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.

Gamma Technologies

The turnover of the Gamma Technologies sector showed an upward trend. Belting Technology was able to benefit from increased demand in nearly all the regions in which the business unit operates. Coating & Composite Technology also posted higher turnover, in particular as a result of favourable developments in tent cloth and billboards. Filtration Technology's turnover was down on last year's figure, mainly because of disappointing exports from Europe to Asia. Turnover in this sector showed a net increase of 2%, from EUR 113 million in 2004 to EUR 115 million in 2005.

Gamma Comfort & Style

In the Gamma Comfort & Style sector the turnover of the Sleep Care Fabrics business unit was down on last year. Net turnover in the sector was EUR 97 million (2004: EUR 105 million).

The Sleep Care Fabrics business unit was affected by a disappointing performance in the United Kingdom and Australia, in particular. In addition, increased competition in Europe resulted in further downward price pressure. To improve the cost position, Sleep Care Fabrics is intensifying its strategy of bringing costs into line with the spread of its operations. In that context, production will increasingly take place in low(er)-wage countries.

The situation at Exotic Fabrics seems to be improving in comparison with 2004. In order to further improve the business unit's cost position, Gamma Holding intends to terminate the business activities of Juapong Textiles Ltd. in Ghana with effect from 1 July 2005. Juapong spins and weaves cotton into cloth for its own production facilities in Ghana. Because of the low prices for cotton cloth in Asia, it has become cheaper to purchase rather than to produce. At present an investigation is carried out regarding the possibility of transferring part or all of Juapong's business to a third party.

IFRS

Starting in 2005, Gamma Holding's financial reporting will comply with International Financial Reporting Standards (IFRS). The comparative net profit for the first quarter of 2004 has, on this basis, been increased by 0.6 million (mainly as a result of goodwill no longer being amortised). Turnover remained unchanged.

Outlook

At this stage it is too early to make a forecast regarding Gamma Holding's results for the year 2005 as a whole.

This press release replaces the planned trading update of May 2005.

Executive Board of Gamma Holding N.V.

Helmond, 27 April 2005

Profile

Gamma Holding develops, manufactures and sells innovative, high-quality textile-based products throughout the world. The company has 9,072 employees spread over 36 countries. Its headquarters are located in Helmond (The Netherlands) and its shares are listed on Euronext Amsterdam.