Sales in 2005/2006 fiscal year total EUR 2.54 bnMiele records 12% growthMarket leadership as premium brand consolidated

Gütersloh. During the past reporting period, the family-owned Miele company succeeded in expanding its position throughout the world as unchallenged market leader and premium marque. The five-strong Miele board of management is proud to present record results for the 2005/2006 financial year ending June 30. Miele group turnover grew by over 12% to EUR 2.54 bn compared with EUR 2.26 bn in the previous year. According to Horst Schübel, board member responsible for Finances, Controlling and Administration at Miele Central Headquarters, "this represents the highest turnover ever achieved throughout the company's history. During the past year, Miele managed to grow sales by EUR 280 m." The ratio of home market sales to exports has remained constant at 30% (Germany) and 70% (abroad).

Miele's start into the new financial year is marked with optimism. Miele management expects "dynamic growth to continue apace", based on a strategy to produce sustainable expansion worldwide in all divisions of the company. The focus is on new products, exploiting the market potential in the 37 countries in which Miele is already represented with its own subsidiary, and on establishing new markets.

Turnover outside Germany in the same period grew by almost 14% to EUR 1.77 bn. The greatest potential for turnover growth, in percent, is currently coming from Russia and the CIS states as well as the whole of Eastern Europe in general - from the Czech Republic to Hungary and Poland. Miele's traditional overseas subsidiaries in Australia, Japan, the US, Canada and South Africa also reported double-digit growth. Excellent progress was also made in new overseas markets from Hong Kong, Singapore and the United Arab Emirates to Mexico.

Miele subsidiaries in Scandinavia and Northern Europe had also obviously firmly set their sights on growth, with Norway, Denmark, Finland, the Republic of Ireland, Great Britain and Sweden all turning in high double-digit growth figures. Southern Europe, led by Spain and Italy, also recorded growth in double digits.

Excellent results were also achieved in traditional Miele markets bordering on Germany. With a sales share of almost 60%, these countries, together with Germany, still represent the backbone of the Miele group. Here, too, Miele is clearly ahead of its competitors in terms of turnover growth. Miele was able to improve its excellent position on markets in Germany, the Netherlands, Belgium and Switzerland.

The Miele Group invested EUR 135 m in the past business year compared with EUR 122 m in the previous year, including investments of over EUR 100 m in Germany. As per June 30, the Miele Group employed 15,019 persons (14,814 in the previous year). "Although restructuring measures already initiated at production plants and Central Headquarters continue to be implemented as a matter of priority, staffing levels in the Miele Group have nevertheless increased slightly on account of significant rises in unit output and work on expanding our worldwide sales organisation", explained Mr. Schübel. Since it was founded in 1899, the Miele company has been both run and owned by the Miele and Zinkann families. The board of management consists of Horst Schübel, responsible for financial and administrative affairs, Dr. Eduard Sailer, Technology, Dr. Reto Bazzi, Sales and Marketing, together with Dr. Markus Miele and Dr. Reinhard Zinkann, fourth-generation representatives of the respective founding families.

Note: The text can be downloaded from www.miele-presse.de. This site also contains a downloadable photograph of board members.


Miele & Cie. KG

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