Results Gamma Holding under pressure

• Turnover: EUR 561 million (2007: EUR 532 million)

• EBITA: EUR 36.4 million (2007: EUR 40.5 million)

• Net group result: EUR 18.4 million (2007: EUR 23.7 million)

• Postponement sale Verseidag Ballistic Protection and Sailcloth

• Restructuring Sleep Care Fabrics in Europe

• Lower net group result over 2008 than previously expected

In the first nine months of 2008 Gamma Holding's turnover excluding discontinued operations increased by 6% to EUR 561 million (2007: EUR 532 million). This includes a positive effect of 7% arising from the acquisition of the Danish company uni-chains and an effect of -6% due to currency movements. Organic growth was 5%.

EBITA came to EUR 36.4 million (2007: EUR 40.5 million). This includes a limited effect arising from the uni-chains acquisition and an effect of -13% due to currency movements. Organic growth of EBITA was 3%. EBITA as a percentage of turnover amounted to 6.5% (2007: 7.6%).

The net group result fell by 22% and came to EUR 18.4 million (2007: EUR 23.7 million), due to a lower operating result and higher financing costs. Adjusted to take account of EUR -3.2 million in currency effects, the net group result is 9% lower than last year.

Developments third quarter

Gamma Holding's turnover increased by 7% to EUR 186 million (2007: EUR 175 million). Acquisitions had an effect of 7% and currency movements an effect of -7%. Organic growth of turnover came to 7%. EBITA came to EUR 10.1 million (2007: EUR 11.7 million). Currency movements had an effect of
-15%. Organic growth of EBITA was 2%. EBITA as a percentage of turnover amounted to 5.4%
(2007: 6.7%). The net group result came to EUR 2.8 million (2007: EUR 6.0 million) due to a lower operating result, higher financing costs and decreased results from Discontinued Operations.

Industrial Solutions

Turnover of the Industrial Solutions sector rose by 4% to EUR 111 million (2007: EUR 107 million). Acquisitions had an effectof 11% and currency movements an effect of -8%. Organic growth of turnover was 1%. The sector's third quarter result was lower, partly due to a reduction of stocks, currency movements and increased margin pressure.

Belting had to contend with a globally weak economic climate. Particularly in the United States and Europe, customers delayed purchases, causing the organic growth of turnover to remain the same. The recently acquired Danish producer of modular belts uni-chains is now operating under the new name of Ammeraal Beltech Modular. The company succesfully introduced durable, hygienic modular belts specially designed for the processing of poultry.

The global economic headwinds also influenced Filtration. Despite disappointing developments, particularly in America, organic growth of turnover was stable. In order to meet the increased Asian demand for compact filter elements, the business unit created a new manufacturing line in its Chinese plant in Suzhou. This new line will primarily be used to develop filter applications for laser cutters. Production in Europe and the United States will be optimised in order to further cut costs.

Despite the weak economic situation, Coating & Composites' organic growth of turnover rose by 4% compared to last year. In particular the product groups duraskin^® (roofing materials) and seemee^® (printable media fabrics) showed an increase in turnover in the United States, the Middle East and North Africa. The business unit supplied the material for huge banners that covered several streets of the Swiss town of Basel during the annual art fair. The performance of the ptfe-solutions product group (PTFE-coated glass fibres for industrial applications) was at the same level as last year.

Lifestyle Fabrics

Turnover of the Lifestyle Fabrics sector rose by 10% to EUR 75 million (2007: EUR 68 million). Currency movements had an effect of -6%. Organic growth of turnover was 16%.

The repositioning of all the Exotic Fabrics brands is clearly starting to pay off. Organic growth of turnover was 45%, also aided by the positive economic developments in West Africa and an increased demand for virtually all brands. For the Vlisco top brand another collection was launched succesfully. This was also done for Woodin, which introduced a complete autumn line for both men and women for the first time.

On a comparable basis, turnover at Sleep Care Fabrics fell by 8%. Partly as a result of the global financial crisis and the stagnating housing market the business unit had to contend with declining demand. In addition, the shift from woven to knitted mattress fabrics continues, causing an overcapacity in the area of woven fabrics in Europe and increased margin pressure.

As announced in the press release of 26 September 2008, Sleep Care Fabrics has the intention to considerably lower production costs in Western Europe by closing the facility in Münchberg, Germany as well as a large part of the plant in Waregem, Belgium before the end of 2009.

Discontinued Operations

Turnover at Discontinued Operations came to EUR 13.5 million (2007: EUR 15.0 million). Turnover of Verseidag Ballistic Protection increased, also as a result of the delivery of bullet-proof vests to France and Sweden. Sailcloth had to contend with economic headwinds in this traditional low season, causing turnover to fall on a comparable basis. On the other hand, the increased focus on high-quality membrane sails was rewarded by the delivery of D4 sailcloth for the American super yacht segment.

Due to the current global financial crisis, a limited amount of capital is available in the financial markets for mergers and acquisitions. This development, combined with the lower results at Sailcloth, have a negative impact on the sales process of both Sailcloth and Verseidag Ballistic Protection. Therefore, Gamma Holding expects to be able to continue both processes in the spring of 2009.

Outlook

In view of the weak and uncertain economic situation in the many markets in which Gamma Holding is active, the pressure on its results will increase in the fourth quarter. The net group result for 2008 is expected to be 30% lower than last year, barring any unforeseen circumstances. The expected restructuring costs for Sleep Care Fabrics have not been taken into account.

As a result of the new strategy 'Towards leadership 2010', Gamma Holding announced its financial targets in January of this year. Given the global economic turmoil, these will have to be adjusted for the years to come. At the presentation of the annual results on 20 February 2009, the new financial targets will be announced.

Executive Board Gamma Holding N.V.

Helmond, The Netherlands, 24 October 2008

The figures in this trading update have not been audited.

Profile

Gamma Holding develops, manufactures and sells innovative, high-quality textile-based products throughout the world. The company has some 7,200 employees in 42 countries. Its headquarters are located in Helmond (Netherlands) and its shares are listed on Euronext Amsterdam.

Gamma Holding comprises two sectors. Industrial Solutions comprises process and conveyor belts,

filtration products and coated fabrics for roofing structures, tents and printable media. The Lifestyle Fabrics sector comprises mattress ticking and exotic fabrics. With these industrial and consumer-related textile products, the company is a leading global player in its selected niche markets.

More information: www.gammaholding.com