Niederweningen, 18 March 2008

In 2007, Bucher Industries once again posted a significant increase in the Group's sales and profitability over the high prior year numbers. Sales rose by 18% year on year to CHF 2 459 million. Organic growth was 15%. Order intake totalled CHF 2 704 million, 25% ahead of the previous year. Operating profit climbed by 85% to CHF 229 million, an increase that far outpaced the sales growth. The Group's profit for the year grew by 79% to CHF 171 million.

Positive market environment
The economic situation in all the markets in which Bucher Industries operates continued to be favourable throughout 2007. The Group benefited from rising prices for agricultural products, the favourable tax revenues of cities and municipalities, the high growth rates in the markets for hydraulic systems and the worldwide shortage of high-quality glass containers. The weakness of the US dollar against the euro and Swiss franc reduced exports from Europe to the United States and to other countries tied to the dollar.

High volume increases within all divisions
Bucher Industries' sales rose by 17.8% over the previous year, or by 14.5% after adjustment for currency effects, to CHF 2 458.8 million. The effects of acquisitions and disposals were offset. Organic growth was 14.6%. The high production outputs of all divisions should be emphasized in particular since the divisions handled the increase in volume with existing infrastructures. Order intake increased by 25.0%, or by 21.6% when adjusted for currency effects, to CHF 2 704.3 million. All divisions contributed to this upward trend with double-digit growth rates. The Group's operating profit totalled CHF 229.4 million, up 85.4% on the 2006 figure. Excluding the prior year's one-off costs, the increase was still 45.3%. Gains from securities sales and lower interest rates had a positive impact on the financial result, which reached CHF 10.6 million. After deduction of CHF 69.0 million in tax expense, the Bucher Group's profit for the year increased by 79.1% to CHF 171.0 million.

Equity rose to CHF 872.8 million, and the equity ratio increased to 41.0%, up from 39.4%. At year end net operating assets reached CHF 692.0 million. This disproportionate increase is mainly due to the high volume of deliveries in the 4th quarter of 2007. Higher net operating assets and capital expenditure resulted in a decrease of CHF 58.5 million in operating free cash flow to CHF 42.7 million. At year end Bucher Industries had 7 484 employees in 30 countries, an increase of 10.5%.

Divisions
Kuhn Group generated CHF 929.2 million in sales of specialised agricultural machinery, up 19.3%, or 16.4% when adjusted for currency effects. The division was able to boost operating profit by CHF 66.1 million to CHF 107.7 million and generated an EBIT margin of 11.6%. This was due not only to positive one-off effects of approximately CHF 9 million but also to additional optimisation measures. Order intake reached CHF 1 045.3 million, topping the previous year's level by 29.8% and passing the billion mark for the first time. The order book grew by CHF 122.4 million to CHF 333.1 million. Rising prices for agricultural products and favourable weather conditions overall contributed to the positive business trend. If the euro remains stable against the Swiss franc and US dollar, Kuhn Group expects higher sales in 2008 and an operating profit in the region of last year's result.

Bucher Municipal operated at full capacity in a favourable economic environment, generating CHF 556.6 million in sales, up 3.6% on the high prior year figure or 0.6% adjusted for currency effects. Organic growth was 3.7%. This increase was driven by several major public-sector contract awards and brisk demand in Western and Eastern Europe. Operating profit reached CHF 36.9 million, a year-on-year improvement of 27.7%. Order intake, totalling CHF 602.9 million, was 12.4% ahead of the previous year, and Bucher Municipal started 2008 with a 40.6% higher order book of CHF 178.1 million. For 2008 the division anticipates that sales and operating profit will be slightly higher.

Bucher Process grew sales by 24.1% or currency-adjusted 20.9% to CHF 173.8 million in 2007. The good performance was driven by organic growth in equipment for wine and apple juice concentrate production. Demand was supported by the sharp rise in apple juice concentrate prices and the upswing in the French wine market. Operating profit improved by 77.6% to CHF 19.0 million, increasing disproportionately to sales. The EBIT margin rose to 10.9%, up from 7.6%. Order intake at Bucher Process was CHF 201.6 million, surpassing the 2006 total by 33.0%. For 2008 the division expects another significant increase in sales and operating profit.

Bucher Hydraulics posted a 25.6% increase in sales of hydraulic system solutions to CHF 386.6 million, up 22.9% after adjustment for currency effects. Operating profit reached CHF 58.5 million, advancing 51.2% over the previous year's high level. Order intake rose by 31.1% year on year to CHF 414.0 million. The high growth rates in almost all application areas were fuelled by the economic tailwind, internal efforts and continuous enhancement of the division's product range. The healthy profitability and ability to handle the high volume were the result of a high level of organisational flexibility, short decision-making channels, and strict cost management. For 2008 the division expects another increase in sales and a higher operating profit.

Emhart Glass generated CHF 419.6 million in sales of glass container manufacturing and inspection machinery during 2007, an increase of 26.6%. The growth was 21.4% after adjustment for currency effects and 21.7% when adjusted for acquisitions. Operating profit rose by 42.5% to CHF 33.2 million. Order intake reached CHF 440.5 million, up 24.5% on the previous year. The good economic environment and worldwide shortage of high-quality glass containers, coupled with the strong global market position held by Emhart Glass, contributed significantly to the encouraging growth in business. For 2008 the division expects sales to reach levels comparable to 2007, with continued improvement in operating profit.

Outlook for 2008
Bucher Industries expects performance to continue at the same high level in 2008. The development of the global economy, the financial crisis and a possible recession in the USA, and movements in exchange rates are significant sources of uncertainty. The Bucher Group therefore anticipates continued but less marked growth in sales, operating profit and profit for 2008.

Dividend
In view of the excellent profit for the year, the board of directors proposes that the annual general meeting on 15 April 2008 approve payment of a dividend of CHF 5.00 per registered share. The previous year's dividend amounted to CHF 2.50. This proposal represents a dividend payout ratio of 30.9%.

Annual general meeting
The annual general meeting will be held at 4.00 p.m. on 15 April 2008 at the Hotel Mövenpick in Regensdorf. The terms of directors Ernst Bärtschi, Thomas W. Hauser and Erwin Stoller are expiring. The board of directors proposes that they be reelected for another term of three years. Notice of the meeting will be mailed on 20 March 2008. The Bucher Industries annual report can now be downloaded from the Internet at www.bucherind.com, where the notice of the annual general meeting will be published from 20 March 2008. The annual report will be available in printed form from 25 March 2008 and as an advance copy for anyone attending the financial press and analyst conference.

Contact
Philip Mosimann, CEO
Roger Baillod, CFO
Phone +41 44 857 22 07

In 2007, Bucher Industries celebrated its 200th anniversary commemorating its successful evolution from a blacksmith's shop to a global technology group with leading market positions in speciality areas of mechanical and vehicle engineering. The company's operations currently include specialised agricultural machinery, municipal vehicles, wine and fruit juice production equipment, hydraulic components, and manufacturing equipment for the glass container industry. Bucher Industries' shares are traded on the SWX Swiss Exchange (SWX: BUCN).