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Singulus Sees Strong Blu-ray Demand

Singulus Technologies reaffirmed its financial forecast for 2011 as well as reiterated it expectation for strong sales of the company’s Blu-ray Disc (BD) replication lines.

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Unedited press release follows:

Blu-ray Continues To Grow
November 25, 2011

• Sales of Blu-ray discs grow with double-digit rates in the 3rd quarter as well
• Blu-ray players in the US below $ 40
• Still strong demand for production machines
• SINGULUS’ full-year forecast reaffirmed

Kahl am Main, November 24, 2011 – According to the Digital Entertainment Group (DEG), US, sales of Blu-ray discs in the US grew substantially by 58 % in the 3rd quarter 2011 compared with the same quarter one year ago. The number of households equipped with Blu-ray players increased by another 52 % year-over-year to 33.5 million households according to DEG. For the first time since 2008 also total sales in the home entertainment segment rose by 5%.

It is expected that the “Black Friday” and the upcoming Christmas activities will result in an additional boost in sales. During this year’s Black Friday on November 25 Blu-ray players will already be offered below US$ 40. Several special offers for blockbusters on Blu-ray disc and new releases in the coming months suggest a further rise in demand. The new releases of successful box office hits of diverse genres such as “Lion King”, “Titanic” and “Star Wars: Episode I” in 3D are only the beginning. In addition to numerous new movies, which will be released on Blu-ray, “Lord of the Rings” and the announced sequel of “Avatar” will further increase the demand for physical storage media in the next couple of years.

The SINGULUS TECHNOLOGIES AG (SINGULUS) feels this favorable market trend. Consequently, new orders for Blu-ray production machines are expected for the 4th quarter and additional project talks are being held with disc manufacturers. Therefore, SINGULUS has reached its goals for Blu-ray for 2011 to a large extent and also expects a favorable development in 2012.

Outlook reaffirmed
The Executive Board reaffirms the sales forecast for 2011. SINGULUS already generated sales of € 121.8 million (+50.4 %) in the first nine months of the current business year and therefore already exceeded the total sales in 2010 of € 120.1 million. In the first nine months of 2011 the operating result (EBIT) amounted to € 6.3 million compared with € -13.1 million in the previous year. For 2011, sales topping € 160 million are projected as well as a positive 4th quarter.

SINGULUS TECHNOLOGIES continues to expand its activities in the segments Solar and Optical Disc. The goal is to attain a leading position in the silicon and thin-film solar technology as a machine supplier as well as a development partner for new cell concepts and to further extend the technologic leadership in the Optical Disc segment. In the past couple of months SINGULUS has noticed increased activities in the area of MRAM memory by large semiconductor companies. SINGULUS expects that the development of MRAM memory will be further progressing. SINGULUS’ vacuum coating machine TIMARIS is already being utilized by customers to develop MRAM wafers. SINGULUS considers itself to be in an exceptional starting position for the upcoming growth market of MRAM memory. In addition, the company reviews other sectors and work areas, where new market segments can be developed on the basis of the present know-how in the area of vacuum coating.