Rieter Reports Record 2006 Earnings

The Switzerland-based Rieter Group
reported the combined sales of its Textile Systems and Automotive Systems divisions rose by 15
percent in 2006 to a record 3,579.9 million Swiss francs (US$2,950 million). Operating result
before interest and taxes and excluding special charges increased by 31 percent to 256.3 million
Swiss francs (US$211.1 million); and net profit rose by 14 percent to 157.4 Swiss francs (US$129.7
million), equal to 4.6 percent of corporate output. As a result, the company’s Board of Directors
is proposing a dividend increase of 50 percent to 15 Swiss francs (US$12.36) per share for 2006.

Rieter Textile Systems saw positive momentum through the year in all staple fiber
activities, with particularly strong demand in Asian countries including most notably India, Turkey
and China. Although the division lost about 48.5 million Swiss francs (US$40 million) as a result
of the divestment of its man-made fiber operations during the year, it realized an overall increase
in orders of 46 percent to 1,724.3 million Swiss francs (US$1,421.1 million) and in sales of 29
percent to 1,400.7 million Swiss francs (US$1,154.3 million). The operating result for the year
rose by 84 percent to 148.2 million Swiss francs (US$122.1 million), equal to 11.1 percent of
corporate output. Earnings before interest and taxes totaled 92.7 million Swiss francs (US$76.4

Editor’s note: Currency conversions are based on a rate of 1 Swiss franc equals

April 3, 2007