austriamicrosystems (SWX: AMS) recorded profitable growth also in the third quarter of 2005. The third quarter of 2005 shows substantial increases in revenues, operating profit and earnings, compared to last year.

Consolidated group revenues for the third quarter 2005 reached EUR 46.4 million, an increase of 13% compared to the same quarter in 2004. Gross margin increased considerably to 45% from 42% in the same period last year. The result from operations (EBIT) for the third quarter grew to EUR 6.3 million, an increase of 23% compared to the same quarter last year. For costs related to the ramp-down of our legacy 100mm fab which will be completed before year-end we recorded a one-time charge of EUR 2.2 million.

The third quarter net result increased by 41% to EUR 6.0 million from EUR 4.2 million in the same period in 2004. Basic (diluted) earnings per share for the third quarter were CHF 0.85 / EUR 0.54 (CHF 0.83 / EUR 0.53), strongly up from CHF 0.60 / EUR 0.39 (CHF 0.60 / EUR 0.39) in the same period last year. Total backlog stood at EUR 60.7 million on September 30, 2005 compared to EUR 56.4 million on September 30, 2004.

Our business units Industry & Medical, Communications and Automotive continue their market success with high-performance customized and standard products. We see increasing demand for our advanced power management and lighting solutions for portable devices including the next generation portable satellite receiver from XM Radio, and are successful

In other focus areas such as medical devices, metering and automation we experience continuing growth and strong customer interest. Our global network of sales and design locations allows us to take advantage of expanding market opportunities in North America, Europe and Asia. In operations, we are implementing the increase of production capacity in our 200mm wafer fab from 5,200 WSPM (wafer starts per month) to 6,500 WSPM and anticipate that the additional capacity will be operational by year-end.

We expect our business to continue its positive development and revenues and earnings to show further meaningful increases in the fourth quarter. Given the dependence of production ramp-ups for designed-in products on customers’ launch and order schedules, we anticipate full year revenue growth for 2005 to reach between 10 and 12.5%, based on current information. For the coming year 2006, we see continuing growth in revenues, margins and earnings for austriamicrosystems.

The complete third quarter report 2005 including detailed financial information is available on austriamicrosystems’ website under http://www.austriamicrosystems.com/08ir/report.htm

About austriamicrosystemss
austriamicrosystems is a leading designer and manufacturer of high performance analog ICs, combining more than 20 years of analog design capabilities and system know-how with its own state-of-the-art manufacturing and test facilities. austriamicrosystems leverages its expertise in low power and high accuracy to provide industry-leading customized and standard analog products. Operating worldwide with more than 840 employees, austriamicrosystems focuses on the areas of power management, sensors & sensor interfaces, portable audio and car access through its business units Communications, Industry & Medical, Automotive and Full Service Foundry. austriamicrosystems is listed on the SWX Swiss Exchange in Zurich (ticker symbol: AMS).