Deutsche Börse AG Reports Record Results for Q1/2005

Deutsche Börse reported record results for the first quarter of 2005: at EUR399.4 million, sales revenue was 5 percent higher than in Q1/2004. In addition the Group earned EUR25.9 million in net interest income from banking business. EBITA (Earnings Before Interest Taxes and Amortization of Goodwill) totaled EUR177.7 million - an increase of 18 percent (Q1/2004: EUR150.4 million). Earnings per share in the first quarter climbed to EUR0.97 (Q1/2004: EUR0.69).

Deutsche Börse also announced the full scope of its Capital Management Program outlining its capital management and distribution policy going forward. With this program, Deutsche Börse will distribute funds not required for the Group's operating business to shareholders, subject to specific investment needs and capitalization requirements. In total, Deutsche Börse aims to distribute approximately 1.5 billion euros to shareholders by May 2007, including approximately 800 million euros in 2005.

The distribution of funds is anticipated to occur through an increase in the company's dividend payout ratio to at least 50 percent complemented by an ongoing share buy back program. Under its current share repurchase program commenced on 13 April, Deutsche Börse has bought back 3.01 million shares or a total volume of 180.82 million euros, as of 28 April.

This program is the result of an intensive review, which considered the Group's capital needs from legal, regulatory, credit rating and economic capital perspectives. In particular, to ensure the continued success of its Eurex central counterparty and Clearstream custody businesses, which account for more than half of Group sales and operating cash flow, Deutsche Börse believes it is necessary that the Group maintains strong "AA" credit ratings. Deutsche Börse will continue to review its capital requirements as part of the company's regular planning process.

Segment reporting shows Clearstream maintains its position as the strongest segment in terms of revenues. Revenues (sales revenue and net interest income from banking business) increased by eight percent to EUR178.0 million (Q1/ 2004: EUR164.6 million). Supported by lower costs, EBITA in the Clearstream segment rose by 33 percent to EUR61.7 million (Q1/2004: EUR46.4 million).

The Eurex segment achieved a new record in the first quarter with sales revenue of EUR125.5 million (Q1/2004: EUR106.9 million). This record was achieved thanks to an eight percent increase in trading volumes in the first quarter and a higher distribution of Eurex's result to Deutsche Börse. From the beginning of 2005, Deutsche Börse's economic share in Eurex increased to 85 percent from 80 percent. EBITA climbed by 28 percent to EUR68.9 million (Q1/2004: EUR53.8 million).

The Xetra segment contributed sales revenue of EUR59.1 million in the first quarter after EUR65.2 million in Q1/2004. This quarter was the third-best ever quarterly result for the segment. EBITA reached EUR27.0 million (Q1/2004: EUR33.8 million). The decline was attributable to the lower volume of trading on the pan-European trading platform Xetra and on the trading floor of the Frankfurt Stock Exchange (FWB).

The Market Data & Analytics segment continued to grow in the first quarter of this year as well, increasing sales revenue by 9 percent to EUR31.8 million (Q1/ 2004: EUR29.2 million). EBITA climbed by 6 percent to EUR11.0 million (Q1/2004: EUR10.4 million).

The Information Technology business segment generated external revenue of EUR31.0 million in the first quarter (Q1/2004: EUR31.8 million). EBITA reached EUR17.4 million following EUR18.8 million in the first quarter of last year. The modest decline in external revenue was due to a lower volume of contract notes in floor trading on German exchanges.