SEZ

SEZ Group Reports Excellent Third Quarter 2006
- Record net sales of CHF 115 million
- Improvement of EBIT-margin to 13.8 percent shows high profit potential
- Sales expectation for full-year 2006 increased from CHF 360 million to approximately CHF 380 million

The SEZ Group (SWX Swiss Exchange: SEZN) realized another record quarter, reporting a sharp rise in net sales to 115.1 million. EBIT-margin of 13.8 percent shows the profit potential of the SEZ Group and the positive impact of economies of scale. The excellent third quarter once again shows the possible varying quarterly results, which is mainly due to the changes in capital expenditure cycles in different regional markets and production segments. Sales forecast for the full-year 2006 is increased from CHF 360 million to approximately CHF 380 million.

In its third quarter, SEZ increased net sales by 15.9 percent to CHF 115.1 million compared to the second quarter 2006. Also SEZ recorded a 21.7 percent increase in gross profit to CHF 48.6 million, while reporting a gross profit margin improvement from 40.2 percent to 42.2 percent. Operating profit (EBIT) rose by 69.4 percent to CHF 15.9 million, corresponding to a healthy EBIT-margin of 13.8 percent for the third quarter. Additionally, net profit grew significantly in the third quarter compared to the prior quarter, increasing from CHF 7.3 million to CHF 15.2 million. Also, the third quarter delivered another period where order intake surpassed CHF 100 million, recording an order intake of CHF 104.4 million.

In the first nine months of 2006, SEZ Group reported net sales of CHF 283.3 million. Operating profit (EBIT) increased significantly from CHF 6.6 million to CHF 26.0 million with an improved EBIT-margin of 9.2 percent versus 2.8 percent in the same period last year. Consolidated net profit rose from CHF 6.9 million to CHF 24.1 million, resulting in a net profit margin improvement from 3.0 percent to 8.5 percent. Additionally, order intake climbed 48.1 percent to CHF 300.4 million over the same period in the prior year. As of September 30, 2006, order backlog stood at CHF 75.1 million.

In the SEZ Group's key growth market front-end-of-line (FEOL) manufacturing, joint development and evaluation projects with customers continued as planned. The first multi-chamber, high-volume manufacturing tool for SEZ's Enhanced Sulfuric Acid (ESA™) photoresist strip process which was announced earlier this year in July will be available in the fourth quarter 2006.

In the 2006 business year, SEZ will further expand its strong market position in the wet chemical cleaning market. Due to this position and excellent visibility into the first half-year of 2007, SEZ expects further growth potential for the full-year 2007, based on a stable market in the equipment segment forecasted by industry analysts.

Key figures after nine months (unaudited)

in CHF million	09/06	09/05
Order intake	300.4	202.9
Net sales	283.3	231.2
Profit from operations (EBIT)	26.0	6.6
Net profit	24.1	6.9
Book-to-bill-ratio	1.06	0.88

Quarterly Key Figures (unaudited)

in CHF million	Q3/06	Q2/06	Q3/05
Order intake	104.4	104.7	70.3
Net sales	115.1	99.3	74.8
Profit from operations (EBIT)	15.9	9.4	0.3
Net profit	15.2	7.3	0.6
Order backlog (end of quarter)	75.1	86.2	51.6
Book-to-bill-ratio	0.91	1.05	0.94

Average exchange rates for January – September 2006:
EUR/CHF 1.56750; USD/CHF 1.25944

This press release includes tables of the results for consolidated income statements and balance sheets for SEZ Group's first nine months 2006 figures.

Conference Call
Today, 25 October 2006 at 9:30 a.m. (CET), the SEZ Group will conduct a conference call with analysts, investors and editors. A replay of the call will be available on the SEZ Group’s website beginning 25 October 2006 at 6:00 p.m. (CET). To participate in the call, please dial into one of the following numbers:
+41 (0) 91 610 56 00 (Switzerland)
+44 (0) 20 7107 0611 (United Kingdom)
+43 (0) 1 928 9575 (Austria)
+49 (0) 69 2 2222 0593 (Germany)

About SEZ Group
The SEZ Group is the leading provider of single-wafer, wet-clean processing solutions for the global semiconductor industry, with an installed base of over 850 tools. The company maintains operations in Europe, Asia-Pacific, Japan and North America. Since 1996, registered shares of SEZ Holding Ltd. have been traded on the SWX Swiss Exchange under the symbol SEZN. Additional information about the company is available on the Internet at http://www.cez.com/.