ad pepper media Announces Significantly Improved Results

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Hoofddorp, The Netherlands, April 25, 2002

ad pepper media International N.V., one of the leading European marketers of online advertising and direct marketing solutions, has announced its provisional consolidated figures for the first quarter of fiscal year 2002:

Substantial Reduction of Losses and Positive Earning Results in Q1 2002 for Several Subsidiaries.

The first quarter of the current year continues to be characterized by the reduced advertising sales in the overall market. In contrast to general market developments, which continue to be slow, ad pepper media has succeeded in increasing its sales to EUR 2.4 million in Q1 2002 – up 20% compared to the previous quarter (EUR 2.0 million). These results are even more positive, considering that a number of the national companies, that have been closed down last year as part of the restructuring program, no longer contributed to sales.

The 2001 cost cutting program lowered operating costs by 64%, which significantly improved the provisional quarterly earnings. Provisional EBIT totaled EUR –1.1 million, a significant improvement of 71% over the same period from the previous year. The provisional loss for the quarter before taxes is EUR –0.8 million, is down 75% from the previous year`s loss of EUR –3.1 million.

ad pepper`s positive trend in results is due in particular to several key factors – cost cutting and new products offering with improved gross margins.
Following 2001`s restructuring program, the company effected a group-wide reduction in costs of 54% in the first quarter of 2002 – compared to the same period of the previous year. And, gross margins increased from 24% (Q1 2001) to 37%, which has also contributed to the company`s positive developments.

ad pepper media’s focus on innovative direct marketing solutions in the area of permission marketing has allowed the company to develop from a pure representative of advertising space, to become a full service provider for complex Internet marketing solutions. The company`s increased focus on developing its own technologies for enhanced marketing activities, is expanding in it`s roster of clients, agencies and direct business with “end user” companies. The company’s reinforced market position and its flexible adjustment to meet market needs will have a substantially positive effect on its earnings in 2002.

Success underlines the company’s new strategies.
ad pepper media`s companies in Germany, Denmark and Spain are already showing positive operating results (EBIT) for the past quarter.

For further information:
ad pepper media International N.V.