Nuremberg – Nuremberg based LEONI Group’s external sales posted in the first half of 2004 an increase of about nine percent to Euro 593.7 million as compared with the previous year’s Euro 545.4 million. The successful start of production of the cable harness for the new Opel Astra was the principal contributory factor to this increase in sales. Further required advance spending on the construction of new facilities as well as cost cutting measures in the Wiring Systems division weighed on Group’s earnings in the second quarter. With aggregate EBIT of Euro 17.5 million, the result falls about 42 percent below the previous year’s 6-month EBIT of Euro 30.4 million, as expected. Consolidated net income amounted to Euro 8.2 million in the first half of 2004 (previous year: Euro 13.3 million). The number of LEONI employees rose to nearly 25,000 worldwide. Compared with the first quarter, the number increased by about nine percent in the second quarter of 2004.Scaling up production at the new facilities in Slovakia and Romania will give substantial growth impetus in the second half of the year. This is why LEONI expects its consolidated sales for fiscal 2004 to be at least ten percent above the figure of the previous year. Earnings can also be expected to recover substantially in the second half of 2004. The measures to restructure the Wire Division have almost been completed, and the Wiring Systems Division already absorbed, in the second quarter, most of the exceptional charges associated with cost cutting measures. A fiscal 2004 consolidated net income of at least Euro 30 million is therefore still possible.