Turnaround One Year Ahead of Schedule Operating Profit 44 Million Euros Profit after Tax 170 Million Euros Expenditures for Research & Development and Investments up 24% The Spanish brand SEAT gained an operating profit of 44 million Euros according to Spanish accounting standards in 2007. The result represents an improvement of 136 million Euros on 2006. At the same time profit after tax was 170 million Euros, wich represents an improvement of 219 million Euros on 2006. Operating income was 5,971 million Euros, 1.5 percent up on 2006 (5,880 million Euros). Expenditures for Research & Development, for investments in new products, improved processes and product related facilities increased to 504 million Euros, 24.4 percent up on 2006 (405 million Euros).   At its headquarter in Martorell the CEO of SEAT, Erich Schmitt, commented on the company’s performance: “SEAT’s workforce and management has worked hard to reach the financial turnaround one year ahead of schedule. It provides the necessary basis for the future of SEAT. We are focussing on sportive and well designed cars that are environmentally sound and built in highest precision.”   In 2007 the Spanish car manufacturer increased its deliveries to customers by 0.4 percent to 431,000 (2006:429,300). Best performing markets were France (+5.1%) and the United Kingdom (+5.8%) as well as the new markets of Central and Eastern Europe (+27.3%), development being outstanding in Poland (+70.6%). The most popular SEAT models were the León and the Ibiza.   In an outlook for future strategy and projects Schmitt underlined: “Our strategy for the next ten years aims at selling more than 800,000 cars, gaining a return of investment of 15 percent, gaining leadership in design and quality in our model segments and become Spain’s most attractive employer.”   For the near future he announced a new model in the A0-class to be launched in 2008 as well as a sedan and a saloon in the B-class to be launched in 2009.   Schmitt expects for this year: “In 2008 SEAT will continue to strictly follow the SEAT Excellence Program and will thereby increase its sales volume and further improve its operating profit.”