Gamma Holding's net group result up 12%

• Turnover: EUR 194 million (2006: EUR 199 million)
• Operating result: EUR 17.2 million (2006: EUR 17.3 million)
• Net group result: EUR 10.0 million (2006: EUR 8.9 million)

Gamma Holding's turnover totalled EUR 194 million in the first quarter of 2007. Adjusted to take account of currency effects of EUR -6 million, turnover is comparable to the strong first quarter of 2006.

The operating result amounted to EUR 17.2 million. Adjusted to take account of currency effects of EUR -1.4 million, this represents an increase of 7% on last year. As in 2006, no restructuring charges were taken in the first quarter of 2007.

The net group result increased by 12% from EUR 8.9 million in 2006 to EUR 10.0 million in 2007, mainly as a result of an improved result of associates and joint ventures. Adjusted to take account of currency effects of EUR -0.5 million, the net group result was 19% up on last year.

Gamma Technologies

The turnover of the Gamma Technologies sector totalled EUR 124 million. Adjusted to take account of currency effects of EUR -5 million, this is comparable to last year's figure.

Within the Gamma Technologies sector, Belting Technology benefited from previous efficiency measures and continuing strong demand for processing belts for the food processing industry. Turnover growth was posted mainly in America, where last year the business unit acquired Goodyear Rubber Supply & Co, and in Asia.

Filtration Technology's turnover increased on a comparable basis. The business unit is expanding its sales network across the globe and strengthened its position in South-East Asia through the acquisition in March of Kirin, a company specialising in wet and dry industrial filtration products, with facilities in Singapore and Malaysia. Kirin posted turnover of approximately EUR 4 million in 2006. In addition, Filtration Technology managed to resolve the labour conflict at National Wire Fabric in Arkansas.

The turnover of Coating & Composite Technology declined in comparison with the first quarter of 2006, when large volumes of tent cloth were supplied for the FIFA World Cup. In the second quarter the business unit is expected to start delivery of the delayed order for bullet-proof vests to the French police force.

Sailcloth Technology's turnover increased, in particular in the United States.

Gamma Comfort & Style

Gamma Comfort & Style posted turnover of EUR 70 million. Adjusted to take account of currency effects of EUR -1 million, the sector's turnover is comparable to last year.

Within the Gamma Comfort & Style sector, turnover of Exotic Fabrics rose due to increased demand for all brands. The newly launched and cheaper GTP Nustyle was well received in the market.

Lower sales volumes of Sleep Care Fabrics in Europe were only partially offset by higher volumes in the rest of the world. The business unit still has to contend with increased price pressure. Furthermore, the business unit is hindered by start-up costs as a result of the ongoing transformation process, which entails the reduction of production in Western Europe and the setting-up of new production locations in low-wage countries.

Outlook

The transformation process is going according to plan. Gamma Technologies is starting to reap the benefits of the ‘Planning for growth' project. In order to remain competitive, Sleep Care Fabrics is slashing capacity in Western Europe and will increase production in low-wage countries such as Turkey, the Czech Republic and Mexico. The repositioning of the Exotic Fabrics brands is on course.

As stated before, in order to complete the transformation process, restructuring costs of approximately EUR 3 million may have to be incurred in 2007. Additionally, a strategic plan for the coming years will be developed, which will be completed this autumn.

Gamma Holding seeks to achieve an operating result of at least 8% of turnover for the Gamma Technologies sector and at least 9% of turnover for the Gamma Comfort & Style sector. For each of these sectors Gamma Holding aims for a return on capital employed of 15%. Gamma Holding is well on course to achieve its profitability targets in 2007.

Executive Board Gamma Holding N.V.

Helmond, Netherlands, 25 April 2007

The figures in this trading update are unaudited.