X-FAB announces record sales and earnings for 2004

Erfurt, Germany, 五月 3, 2005.

X-FAB Semiconductor Foundries AG, one of the world's leadinganalog mixed-signal semiconductor foundries, today announced a substantial increase in salesand a profit for fiscal year 2004.

At EUR 142.4 million, the company achieved the highest sales in its history. Compared to fiscal year 2003, in which X-FAB recorded sales worth EUR 112.0 million, this is an increase of 27%. This result is negatively affected by currency effects as X-FAB records about half of its sales in US dollars. In US dollar terms, which is the customary calculation in the industry, the 2004 revenues amounted to USD 178 million, up 40% from the previous year.

The improved performance and capacity utilization resulted in clearly positive earnings figures across the board. The operating result came in at EUR 5.9 million compared to a loss of EUR 14.7 million last year. Net income was EUR 6.7 million compared to a net loss of EUR 26.2 million the year before.

Research and development expenses amounted to approximately 10% of sales in 2004. New technologies were introduced to prepare for further growth. These innovations include a special smart power technology, a module to integrate optical receivers and an expansion of the 0.35µm process family to include high-voltage
and BiCMOS variants. Group-wide investments totaled EUR 20.0 million.

To streamline the balance sheet and improve transparency, the company offset the accrued loss carryforwards of X-FAB with capital reserves and repaid liabilities of the major shareholder by redeeming shares in fiscal year 2004. The equity ratio is 71.5%.

X-FAB continued its positive performance in the first quarter 2005 - despite a moderate economic situation in the industry. Quarterly sales increased to EUR 37.9 million, up 22% versus the same period of last year (EUR 31.0 million). At EUR 1.5 million, the operating result more than tripled in the first quarter of 2005
compared to the first quarter of 2004. X-FAB recorded a net income of EUR 2.3 million. This compares to a net income of EUR 4.1 million in the first quarter of 2004, which had been substantially boosted by currency translation effects.

The book-to-bill ratio in the first quarter was approximately 1 so that bookings were on par with sales. At X-FAB, this key figure thus is significantly higher than the average ratio for the industry.

X-FAB believes that there is a good chance to further improve its earnings in fiscal year 2005. Longer-termvisibility has decreased due to the weaker economic environment in the industry. In order to provide transparent communication, X-FAB will continue to publish quarterly results as it did in 2004.