8-Months Report 1998 of the EMS Group

With its companies combined in EMS-CHEMIE HOLDING AG, the EMS Group with its world-wide activities conducted in the fields of Performance Polymers, Fine Chemicals and Engineering boosted consolidated net sales by 5,1 % to CHF 719 million (corresponding period, previous year: CHF 684 million) in the first 8 months of the 1998 financial year, operational cash flow by 1,2 % to CHF 163 million (CHF 161 million), and income from operations by 0,8 % to CHF 126 million (CHF 125 million).

On the one hand, the Performance Polymers and Fine Chemicals divisions with their primary focus on Europe and the USA report a good development of sales and income. On the other hand, in particular the Engineering division with its plant construction unit EMS-INVENTA has been hit by the crisis in Asia. The decline in sales and income is the result of the company's over 90 % focus on construction activities for synthetic fibre production in Asia.

The deterioration of business in Asia is offset by better results in the main markets Europe and USA; overall income from operations has been maintained and overall sales boosted.

Although the situation has become more unsatisfactory over the past months, we expect that income from operations will nevertheless be maintained on the level of the previous year (CHF 188 million).