Press Releases

AMSTERDAM, NETHERLANDS -- (MARKET WIRE) -- 11/11/09 -- Key Highlights

  * Revenue was $205.4 million in Q3 2009; YTD 2009 revenue was
    $636.1 million
  * EBITDA[1] was $18.6 million in Q3 2009; YTD 2009 EBITDA was $56.7
    million
  * EPS on a fully diluted basis was ($0.76) in Q3 2009
  * Advanced Materials Division performance improved, generating
    revenue of $110.1 million and EBITDA of $5.0 million, in Q3 2009
  * Engineering Systems Division was impacted by the global slowdown,
    generating revenue of $61.6 million and EBITDA of $11.0 million,
    in Q3 2009
  * Graphit Kropfmühl revenues and EBITDA improved to $33.7 million
    and $2.6 million, respectively in Q3 2009
  * Timminco was deconsolidated during the quarter as AMG's ownership
    dropped below 50% due to Timminco's issuance of additional shares
  * As of September 30, 2009 cash on hand was $124.4 million, net
    debt was $77.9 million; Q3 2009 free cash flow[2] was $8.8
    million

[1] EBITDA is defined as earnings before interest, tax, depreciation
and amortization and excludes nonrecurring items
[2] Free cash flow is defined as EBITDA less change in working
capital and maintenance capital expenditures

Amsterdam, 11 November 2009 (Regulated Information) --- AMG Advanced Metallurgical Group N.V. ("AMG", EURONEXT AMSTERDAM: "AMG") reported third quarter 2009 revenue of $205.4 million, a decrease 45% from $371.0 million in the third quarter 2008.

Net loss attributable to shareholders for the third quarter 2009 was ($20.3) million, or ($0.76) per fully diluted share, compared to net income of $20.8 million or $0.75 per fully diluted share for the third quarter 2008. EBITDA declined 71% to $18.6 million in the third quarter 2009 from $63.7 million in the third quarter 2008.

In commenting on results, Dr. Heinz Schimmelbusch, Chairman of the Management Board and CEO, said, "The decline in market conditions moderated during the third quarter 2009. During the quarter, Advanced Materials prices and volumes increased slightly from the lows of the second quarter 2009, but both volumes and prices remain adversely affected by the unprecedented slowdown in global industrial activity. The Engineering Systems Division's financial performance was significantly impacted by the low levels of order intake and seasonal slowdowns. Graphit Kropfmühl improved profitability during the quarter due to a slight rebound in silicon metal prices. Despite the apparent bottoming of economic activity, the recovery process may be slow and uneven. AMG continues to limit capital investment and is reducing costs to preserve free cash flow."

Accounting Note

AMG owned less than 50% (47.9%) of Timminco as of September 30, 2009, and therefore going forward AMG will account for Timminco under the IFRS equity method of accounting. For purposes of this release, this accounting treatment requires AMG to deconsolidate its investment in Timminco and include Timminco's quarterly and year to date financial results as one line item - "discontinued operations" on the profit and loss statement. The carrying value of AMG's investment in Timminco is included as an "Investment in Associate" on the asset portion of AMG's balance sheet. As such, the Key Figures below except for net income attributable to shareholders exclude the financial performance of Timminco during the period and all prior year figures have been restated to exclude Timminco.

While AMG no longer owns more than 50% of Timminco, Timminco remains a strategic asset of AMG.

Key Figures

In 000's US Dollar
                                                Q3'09    Q3'08 Change

Revenue                                      $205,406 $370,982  (45%)
Gross profit                                   39,949   82,805  (52%)
Gross margin                                    19.4%    22.3%

Operating income                                (110)   45,609    N/A
Operating margin                               (0.0%)    12.3%

Net Income attributable to shareholders
                                             (20,302)   20,769    N/A

EPS- Fully diluted                             (0.76)     0.75    N/A
Adjusted EPS- Continuing Operations Fully
diluted  (1)                                   (0.30)     0.99    N/A

EBITDA (2)                                     18,602   63,725  (71%)
EBITDA margin                                    9.1%    17.2%

Notes:
(1) Adjusted for non-recurring, restructuring charges and equity
accounting treatment for AMG's investment in Timminco
(2) EBITDA is defined as earnings before interest, tax, depreciation
and amortization and excludes nonrecurring items

Operational Review

Advanced Materials Division

                        Q3'09    Q3'08 Change
Revenue              $110,143 $199,396  (45%)
Gross profit           15,736   42,702  (63%)
Operating income      (8,444)   22,620    N/A
EBITDA                  5,012   25,427  (80%)
Capital expenditures    1,937    7,643  (75%)

The Advanced Materials division's third quarter 2009 financial results were impacted by continued weak demand for the majority of its products, most notably in the steel, superalloy and titanium markets. Third quarter revenue decreased 45% to $110.1 million from the third quarter 2008.

Gross margin percentage decreased from 21% of revenue in the third quarter of 2008 to 14% in the third quarter of 2009. This was caused by a sharp decline in end product prices and lower volumes, particularly in ferrovanadium, from the third quarter of 2008. The decrease in revenue and margins was primarily caused by ferrovanadium, with reference prices decreasing by 59% and volumes declining by 42% over the third quarter 2008. Titanium master alloys, vanadium chemicals, ferronickel-molybdenum and ferrotitanium products were also impacted by falling end market prices. Even more significant were the decreased volumes as the result of decreased global demand. Aluminium master alloys volumes decreased 43% and titanium master alloys volumes declined by 77% during the third quarter 2009 compared to the third quarter 2008. The global recession continued to impact industrial production across all markets, although less so than in the second quarter of 2009.

The Division's working capital increased slightly during the third quarter 2009, after decreasing by over $18 million since December 31, 2008. To mitigate the decrease in revenue, the Advanced Materials Division has reduced SG&A expenses by approximately 21% from the third quarter 2008.

The third quarter 2009 EBITDA decreased by $20.4 million to $5.0 million, compared to the same period in 2008. This was the result of the decrease in revenue and gross margin, which were slightly offset by a decline in SG&A. Sequentially, third quarter 2009 EBITDA improved by $7.0 million over the second quarter 2009 driven by cost saving measures.

Capital expenditures were $1.9 million for the third quarter 2009, 75% less than the comparable period in 2008. The Division was only performing maintenance capital investment during the quarter because of the cost containment measures.

Engineering Systems Division

                               Q3'09    Q3'08 Change
Revenue                      $61,598 $135,155  (54%)
Gross profit                  20,637   44,326  (53%)
Operating income               7,132   30,836  (77%)
EBITDA                        11,036   34,241  (68%)
Capital expenditures           1,239    4,392  (72%)

The Engineering Systems division's order intake was significantly affected by the global economic slowdown as customers continued to defer investment decisions during third quarter 2009 because of the weak credit markets and a slow recovery in their end market demand. Order backlog was at $204 million on September 30, 2009, down 9% from $223 million on June 30, 2009. The decrease was primarily due to a significant reduction in orders for solar furnace systems to $16.7 million during the quarter. Overall, order intake was $44.2 million during the third quarter 2009, down from $53.5 in the second quarter 2009. The backlog consists primarily of melting and remelting systems for the titanium and specialty steel industries and solar silicon DSS furnaces.

Third quarter 2009 revenue decreased by $73.6 million or 54%. Sales of solar silicon DSS melting furnaces for the photovoltaic industry decreased 66% in the third quarter 2009 compared to the same period a year ago. During the third quarter 2009, 39% of revenue was generated by sales of solar silicon and melting furnaces, down from 51% in the same period 2008. Revenue from remelting systems, primarily for the aerospace and specialty steel industries, decreased by 59% during the third quarter 2009. The recently implemented nuclear business contributed $1.8 million in revenue during the third quarter.

Despite these challenging markets, the Engineering Systems division was able to stabilize gross margin at 34% of revenue in the third quarter 2009 up from 33% in the same period in 2008. The stable gross margin was due to constant prices per unit and a slight decrease in raw material prices.

Third quarter 2009 EBITDA was $11.0 million, a 68% decrease over the same period in 2008. The EBITDA margin decreased to 18% during the third quarter 2009 compared to 25% for the same period in 2008. The EBITDA margin decrease was attributable to the economy of scale impact of lower revenue as well as one-time research and development expenses.

Capital expenditures decreased to $1.2 million for the third quarter 2009, 72% less than the comparable period in 2008. This decrease was a result of the completion of the expansion of the Berlin facility during 2008 and the focus on minimizing capital investment during the third quarter 2009.

Graphit Kropfmühl

                       Q3'09   Q3'08 Change
Revenue              $33,665 $36,431   (8%)
Gross profit           3,576 (4,223)    N/A
Operating income       1,202 (7,847)    N/A
EBITDA                 2,554   4,057  (37%)
Capital expenditures     385   1,727  (78%)

Graphit Kropfmühl ("GK") was impacted by the decline in global economic activity during the third quarter 2009, particularly in the natural graphite division. Third quarter 2009 revenue decreased by $2.8 million or 8% primarily due to a 30% reduction in natural graphite revenues.

Gross margin improved to 11% of revenue in the third quarter 2009. The third quarter 2008 gross profit of negative $4.2 million was a result of purchase accounting adjustments related to the acquisition of GK by AMG.

Third quarter 2009 EBITDA was $2.6 million, a 37% decrease compared to the third quarter 2008. The EBITDA margin decreased to 8% during the third quarter 2009 compared to 11% in the same period 2008. The EBITDA margin decrease was attributable to lower selling prices and volumes in both silicon and graphite, which were slightly offset by a decrease in SG&A expenses.

Capital expenditures decreased to $0.4 million for the third quarter 2009, 78% less than the same period 2008. The decrease in capital expenditures was a result of the completion of the expansion of the silicon metal facilities in 2008.

Timminco

AMG's ownership in Timminco decreased as the result of issuance of shares by Timminco. Following the decrease in AMG's common equity ownership of Timminco to 47.9% as of Septermber 30, 2009, AMG now accounts for its investment in Timminco via the equity accounting method. Timminco's net loss is included on its own line item on AMG's income statement and the carrying value of AMG's investment in Timminco of $41.8 million is listed as an asset on AMG's balance sheet. Additional information on Timminco and its third quarter 2009 financial statements can be found at www.Timminco.com.

Financial Review

Tax

AMG recorded a tax expense of $5.7 million in the quarter ended September 30, 2009 as compared to a tax expense of $11.9 million in the quarter ended September 30, 2008. A tax benefit for the pre-tax losses was not booked in the third quarter 2009 due to the losses being generated in jurisdictions where AMG already has significant net operating losses.

Liquidity

                           Q3'09 Q4'08 (1)               Change
Total debt              $202,332  $183,352                 10%
Cash & cash equivalents  124,391   139,786                (11%)
Net debt                  77,941    43,566                 79%

Notes:
(1) Restated to account for Timminco under IFRS equity accounting
method.

AMG had a net debt position of $77.9 million as of September 30, 2009. The Company's liquidity position decreased by $34.4 million, due to $20.8 million of capital investments and $23.8 million of capital infusions in Timminco, offset by positive operating cash flows from continuing operations.

Cash Flow

                                           Nine Months Ended
                                   September '09        September '08

Cash Flows (used in) / from             $(6,033)              $76,038
Operations
Capital expenditures                    (20,755)             (42,060)
Acquisitions, net of cash                      -             (66,484)
Other investing                         (31,964)             (50,211)
Cash Flows used in Investing            (52,719)            (158,755)
Activities
Cash Flows generated from                 35,415               73,124
Financing Activities

The significant decline in net income was partially offset by lower investments in working capital and lower tax payments during the nine months ended September 30, 2009 resulting in negative cash flows from operations totaling $6.0 million, down from positive operating cash flows of $76.0 million in the first nine months 2008. The lower level of cash flows from operations is primarily due to the operating loss from the Advanced Materials Division, and a decline in the operating income from the Engineering Systems Division offset by improvements in inventory and accounts receivable balances of approximately $40.0 million.

Cash flows used in investing activities of $52.7 million for the nine months ended September 30, 2009 decreased from $158.8 million in the first nine months of 2008. This is due to the $21.3 million decrease in capital investments, primarily in Advanced Materials and Engineering Systems, and the $62.9 million cost for the purchase of approximately 79.5% of Graphit Kropfmühl in April 2008.

Cash flows from financing activities were $35.4 million, a decrease of $37.7 million in the same period of 2008. This decrease was primarily the result of two factors, $20.0 million borrowed on the credit facility for the acquisition of approximately 79.5% of Graphit Kropfmühl in April 2008, and borrowings to fund the working capital increases in Advanced Materials during 2008, offset in the first nine months 2009 by a net draw down from various credit facilities.

Outlook

The markets continue to be challenging. Although signs of an ongoing bottoming of the severe drop in demand are evident, it is still undetermined if the markets are improving. Demand and prices remain fragile and are both subject to near term economic swings. Engineering Systems' order intake continues to be sluggish as companies delay investment decisions into the new year. Advanced Materials prices have rebounded from historic lows, but demand and pricing increases have moderated and they continue to be far below normal market conditions. AMG continues to address this situation by adjusting production levels, limiting capital investment and cost reduction programs. These actions position AMG to take advantage of opportunities as markets improve.

About AMG

AMG, incorporated in the Netherlands, is a global leader in the production of highly engineered specialty metal products and advanced vacuum furnace systems. AMG serves growing industries worldwide with its unique combination of metallurgical engineering expertise and production know-how. AMG is a market leader in many of its products and systems, which are critical to the production of key components for the aerospace, energy (including solar and nuclear), electronics, optics, chemicals, construction and transportation industries. AMG has two operating divisions, Advanced Materials and Engineering Systems, and owns interests in publicly-listed companies Graphit Kropfmühl AG (Deutsche Börse: GKR.DE) and Timminco Limited (TSX: "TIM").

The Advanced Materials Division develops and produces niche specialty metals and complex metals products, many of which are used in demanding, safety-critical, high-stress environments. AMG is one of a limited number of significant producers globally of niche specialty metals, such as ferrovanadium, ferronickel-molybdenum, aluminum master alloys and additives, chromium metal and ferrotitanium, used by steel, aluminum, chemical and superalloy producers for aerospace, automotive, energy, electronics, optics, chemicals, construction and other applications. Other key products produced by AMG include specialty alloys for titanium and superalloys, coating materials, tantalum and niobium oxides, vanadium chemicals and antimony trioxide.

The Engineering Systems Division designs, engineers and produces advanced vacuum furnace systems and operates vacuum heat treatment facilities. AMG is a global leader in supplying technologically-advanced vacuum furnace systems to customers in the aerospace, energy (including solar and nuclear), transportation, electronics, superalloys and specialty steel industries. Examples of furnace systems produced by AMG include vacuum remelting, solar silicon melting and crystallization, vacuum induction melting, vacuum heat treatment and high pressure gas quenching, vacuum precision casting, turbine blade coating and sintering. AMG also provides vacuum case-hardening heat treatment services on a tolling basis to customers through facilities equipped with vacuum heat treatment furnaces.

Graphit Kropfmühl AG is a majority controlled, publicly listed subsidiary of AMG. Based on its secure raw material sources in Africa, China and Europe, Graphit Kropfmühl is a specialist in the production of silicon metal and the extraction, processing and refining of natural crystalline graphite for a wide range of energy saving industrial applications.

Timminco Limited is a publicly listed associate of AMG. Timminco is a leader in the production of upgraded metallurgical silicon for the rapidly growing solar photovoltaic energy industry. Timminco also produces silicon metal for use in a broad range of industrial applications.

AMG operates globally with production facilities in Germany, the United Kingdom, France, Czech Republic, the United States, Canada, Mexico, Brazil, Sri Lanka and Australia and also has sales and customer service offices in Belgium, Russia, China and Japan (website: www.amg-nv.com).

For further information please contact:

AMG Advanced Metallurgical Group N.V.  +1 610 975 4901
Jonathan Costello
Vice President of Corporate Communications
jcostello@amg-nv.com

Disclaimer

Certain statements in this press release are not historical facts and are "forward looking." Forward looking statements include statements concerning AMG's plans, expectations, projections, objectives, targets, goals, strategies, future events, future revenues or performance, capital expenditures, financing needs, plans and intentions relating to acquisitions, AMG's competitive strengths and weaknesses, plans or goals relating to forecasted production, reserves, financial position and future operations and development, AMG's business strategy and the trends AMG anticipates in the industries and the political and legal environment in which it operates and other information that is not historical information. When used in this press release, the words "expects," "believes," "anticipates," "plans," "may," "will," "should," and similar expressions, and the negatives thereof, are intended to identify forward looking statements. By their very nature, forward looking statements involve inherent risks and uncertainties, both general and specific, and risks exist that the predictions, forecasts, projections and other forward looking statements will not be achieved. These forward looking statements speak only as of the date of this press release. AMG expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward looking statement contained herein to reflect any change in AMG's expectations with regard thereto or any change in events, conditions or circumstances on which any forward looking statement is based.

AMG Advanced Metallurgical Group N.V.
Condensed interim consolidated statement of income


For the three months ended
September 30
In thousands of US Dollars                     2009              2008
                                          Unaudited        Unaudited*
Continuing operations
Revenue                                     205,406           370,982
Cost of sales                               165,457           288,177
Gross profit                                 39,949            82,805

Selling, general and
administrative expenses                      31,876            39,069
Restructuring expense                         5,302                 -
Environmental expense                         4,075                10
Other income, net                           (1,194)           (1,883)
Operating (loss) profit                       (110)            45,609

Interest expense                              6,109             5,771
Interest income                               (617)           (1,611)
Foreign exchange (gain) / loss                 (27)             1,272
Net finance costs                             5,465             5,432

Share of (loss) profit of
associates                                  (1,285)                24
(Loss) profit  before income tax            (6,860)            40,201

Income tax expense                            5,694            11,921
 (Loss) profit for the period from
continuing operations                      (12,554)            28,280

Loss after tax for the period from
discontinued operations                    (14,240)          (12,956)
(Loss) profit for the period               (26,794)            15,324

Attributable to:
         Shareholders of the
         Company                           (20,302)            20,769
         Minority interests                 (6,492)           (5,445)
                                           (26,794)            15,324

(Loss)/Earnings per share
Basic (loss) earnings per share              (0.76)              0.77
Diluted (loss) earnings per share            (0.76)              0.75

(Loss)/Earnings per share from
continuing operations
Basic (loss) earnings per share
from continuing operations                   (0.50)              1.02
Diluted (loss) earnings per share
from continuing operations                   (0.50)              0.99

*Restated
AMG Advanced Metallurgical Group N.V.
Condensed interim consolidated statement of income


For the nine months ended September 30
In thousands of US Dollars                   2009                2008
                                        Unaudited          Unaudited*
Continuing operations
Revenue                                   636,059           1,000,045
Cost of sales                             516,825             773,347
Gross profit                              119,234             226,698

Selling, general and administrative
expenses                                   94,932             101,473
Restructuring expense                       5,696                 129
Environmental expense                       4,162                  31
Other income, net                         (4,277)             (4,896)
Operating profit                           18,721             129,961

Interest expense                           15,880              16,376
Interest income                           (2,617)             (5,027)
Foreign exchange (gain) / loss              (176)               2,095
Net finance costs                          13,087              13,444

Share of loss of associates               (2,685)                 581
Profit before income tax                    2,949             117,098

Income tax expense                         17,642              33,092
(Loss) profit for the period from
continuing operations                    (14,693)              84,006

Loss after tax for the period from
discontinued operations                  (54,580)            (22,356)
(Loss) profit for the period             (69,273)              61,650

Attributable to:
   Shareholders of the Company           (45,415)              68,548
   Minority interests                    (23,858)             (6,898)
                                         (69,273)              61,650

(Loss)/Earnings per share
Basic (loss) earnings per share            (1.69)                2.56
Diluted (loss) earnings per share          (1.69)                2.49

(Loss)/Earnings per share from
continuing operations
Basic (loss) earnings per share from
continuing operations                      (0.65)                2.98
Diluted (loss) earnings per share from
continuing operations                      (0.65)                2.90

*Restated


 AMG Advanced Metallurgical Group N.V.
Condensed interim consolidated statements of
financial position
In thousands of US Dollars
                                     September 30,
                                              2009  December 31, 2008
                                         Unaudited            Audited
Assets
       Property, plant and equipment       220,308            313,470
       Intangible assets                    27,877             47,060
       Investments in associates            55,269             15,700
       Deferred tax assets                  22,797             29,181
       Restricted cash                      13,578             15,889
       Notes receivable                      2,221              2,132
       Derivative financial
       instruments                              57                  -
       Other assets                         12,481             11,612
Total non-current assets                   354,588            435,044

       Inventories                         197,886            318,793
       Trade and other receivables         149,277            173,422
       Derivative financial
       instruments                           5,821              6,393
       Other assets                         35,293             52,804
       Short term investments                    -                 95
       Cash and cash equivalents           124,391            143,473
Total current assets                       512,668            694,980
Total assets                               867,256          1,130,024




AMG Advanced Metallurgical Group
N.V.
Condensed interim consolidated
statements of financial
position (continued)
In thousands of US Dollars


Equity
       Issued capital                          724                724
       Share premium                       379,297            379,297
       Other reserves                       28,049            (2,215)
       Retained earnings (deficit)       (168,539)          (123,110)
Equity attributable to shareholders of
the Company                                239,531            254,696
Minority interests                          19,627             57,115
Total equity                               259,158            311,811

Liabilities
       Loans and borrowings                165,367            138,990
       Employee benefits                    91,004            103,176
       Provisions                           11,986             12,841
       Government grants                       750                291
       Other liabilities                    10,221              9,245

       Derivative financial instruments      6,318              3,530
       Deferred tax liabilities             44,247             56,013
Total non-current liabilities              329,893            324,086

       Loans and borrowings                  3,204              3,021
       Short term bank debt                 33,761             83,566
       Related party debt                        -              6,456
       Government grants                     2,330              8,360
       Other liabilities                    45,492             53,882
       Trade and other payables             80,556            156,697
       Derivative financial instruments      7,528             15,419
       Advance payments                     47,945             94,049
       Unearned revenue                          -             35,624
       Current taxes payable                35,769             14,708
       Provisions                           21,620             22,345
Total current liabilities                  278,205            494,127
Total liabilities                          608,098            818,213
Total equity and liabilities               867,256          1,130,024

AMG Advanced Metallurgical Group N.V.
Condensed interim consolidated statement of cash flows


For the nine months ended September 30
In thousands of US Dollars                            2009       2008
                                                 Unaudited Unaudited*
Cash flows (used in) / from operating
activities
(Loss) / Profit for the period from continuing
operations                                        (14,693)     84,006
(Loss) for the period from discontinued
operations                                        (54,580)   (22,356)
Profit for the period                             (69,273)     61,650
Adjustments to reconcile profit to net cash
flows:
   Depreciation and amortization                    17,491     18,271
   Amortization of purchase accounting
adjustment to inventory                                  -      8,178
   Restructuring expense                             5,696        129
   Environmental expense                             4,162         31
   Net finance costs                                13,087     13,444
   Share of loss / (profit) of associates            2,685      (581)
   Equity-settled share-based payment
transactions                                        10,451      7,439
   Income tax expense                               17,642     33,092
Change in working capital and provisions          (35,117)   (59,273)
Other                                                4,420      3,606
Interest paid, net                                 (7,502)    (4,663)
Income tax paid, net                               (6,101)   (17,526)
Cash flows from discontinued operations             36,326     12,241
Net cash flows (used in) / from operating
activities                                         (6,033)     76,038

Cash flows used in investing activities
Proceeds from asset sales                                -         90
Acquisition of associates, net of cash                   -   (66,484)
Acquisition of property, plant and equipment
and intangibles                                   (20,755)   (42,060)
Change in short-term investments                         -      (842)
Change in restricted cash                            1,228    (3,866)
Other                                                   16    (5,217)
Cash flow from discontinued operations            (33,208)   (40,376)
Net cash flows used in investing activities       (52,719)  (158,755)

Cash flows from financing activities
Proceeds from issuance of debt                      19,255     48,984
Repayment of borrowings                            (8,171)          -
Capital infusion                                  (23,832)      (180)
Other                                                  439        379
Cash flow from discontinued operations              47,724     23,941
Net cash flows from financing activities            35,415     73,124

Net (decrease) in cash and cash equivalents       (23,337)    (9,593)
Cash and cash equivalents at January 1             143,473    172,558
Effect of exchange rate and consolidation
changes on cash held                                 4,255    (8,803)
Cash and cash equivalents at September 30          124,391    154,162

*Restated

The full press release including tables can be downloaded from the following link:

AMG reports third quarter 2009 results: http://hugin.info/138060/R/1354151/328212.pdf

This announcement was originally distributed by Hugin. The issuer is solely responsible for the content of this announcement.

Copyright © Hugin AS 2009. All rights reserved.

HONG KONG, Nov. 11 /PRNewswire-Asia-FirstCall/ -- Galaxy Entertainment Group Limited ("Galaxy" or the "Group") (HKEx stock code: 27) today announced the unaudited financial performance of the Company and its subsidiaries (collectively the "Group") for the third quarter ended 30 September 2009.

    Key Highlights:

    -- Galaxy records fourth consecutive quarter of EBITDA growth
    -- StarWorld continues to outperform the market with record VIP turnover
       and fifth consecutive quarter of revenue and EBITDA growth
    -- StarWorld's Q3 2009 VIP turnover up 50% over Q2 to an all-time record
       HK$81 billion
    -- Strong and liquid balance sheet with HK$3.8 billion of cash
    -- Completed the acquisition of the Cotai site, securing Galaxy's long-
       term development future
    -- Galaxy Macau resort in Cotai to open in Q1 2011; estimated budget of
       HK$14.1 billion

During the quarter under review, Galaxy's revenue was HK$2,853 million, an increase of 16% over Q3, 2008 and an increase of 5% over Q2, 2009. Galaxy's EBITDA (earnings before interest, taxation, depreciation, amortization and non-recurring items) for Q3, 2009 was HK$278 million, a slight increase versus Q2, 2009 but up 181% compared to Q3, 2008.

Dr. Lui Che Woo, Chairman of Galaxy Entertainment Group said: "Galaxy continued to demonstrate strong growth momentum during the third quarter, with StarWorld outperforming the market and recording its fifth consecutive quarter of revenue and EBITDA growth and reported market leading occupancy levels."

StarWorld

In the third quarter of 2009, StarWorld delivered its fifth consecutive quarter of revenue and EBITDA growth. VIP turnover was HK$81,107 million, an increase of 50% compared to Q2, 2009. Revenue and EBITDA reached HK$2,195 million and HK$218 million respectively, increases of 8% and 1% compared to Q2, 2009.

StarWorld experienced a below average VIP win rate of 2.3% during the quarter, well under the theoretical expected win rate of 2.8%. On a normalized basis (at the win rate of 2.8%) Galaxy would have reported an EBITDA of approximately HK$300 million for the quarter.

Occupancy of StarWorld Hotel, which remains Macau's only Five Star Diamond award wining hotel, was 97% up from 85% in Q2, 2009 and well above the average of Macau's Five Star Hotels in the quarter of 76%. StarWorld's average daily rate (ADR) remained solid at HK$1,020 for the quarter.

    StarWorld's segmented revenue results for the quarters were as follows:



    VIP Table Games:

    VIP                              Q1             Q2           Q3
    VIP Table Turnover (HK$)      $55 b          $54 b        $81 b
    Win %                          3.0%           3.2%         2.3%
    Gaming Revenue (HK$)         $1.7 b         $1.7 b       $1.8 b

    Mass Table Games:

    Mass Tables                      Q1             Q2           Q3
    Table Drop (HK$)             $1.5 b         $1.4 b       $1.5 b
    Win %                         16.8%          13.4%        15.6%
    Gaming Revenue (HK$)         $253 m         $187 m       $230 m

City Clubs and Construction Materials

Both City Clubs and Construction Materials had a solid quarter. City Clubs contributed HK$41 million in EBITDA to the Group and Construction Materials contributed HK$63 million. The Group continues to see signs that Construction Materials may be benefiting from the Chinese Central Government's stimulus package which saw increased spending on infrastructure, and the division is well positioned for future growth.

Cotai Development

When complete, Galaxy Macau will be Macau's first fully-integrated resort destination with a total area of approximately 550,000 square meters, 2,200 hotel rooms, suites and floating villas and more than 7,700 predominantly local staff.

Galaxy Macau will house the Group's own highly regarded five star Galaxy Hotel (based on the hugely successful StarWorld property), the five star Japanese Okura Hotel and an ultra exclusive Banyan Tree suite and villa complex; together comprising three very diverse and world-class Asian hotel brands.

The resort's gaming facilities will have a capacity of over 600 tables and 1,200 electronic gaming machines in five auspiciously themed areas. Above the gaming facilities will be a 52,000 square meter oasis resort, with the world's largest sky wave pool, a beach comprising 350 tonnes of white sand, lush gardens and water falls. A carefully selected portfolio of more than 50 largely Asian food and beverage outlets and two distinct areas of retail will further add to Galaxy Macau's uniquely Asian offering.

Completion of the building's exterior is imminent and internal fit-out will follow early in 2010 with opening in the first quarter of 2011. Galaxy is forging numerous partnerships to ensure world-class concept, construction, and services, creating an authentic Asian customer experience. The total budget for the development will be approximately HK$14.1 billion.

Commenting on Galaxy Macau, Dr. Lui Che Woo, Chairman of Galaxy Entertainment Group said: "We are extremely excited about the opening of Galaxy Macau. As the first element in a multi-phase long-term development plan, this project is a clear statement of our confidence and conviction in the potential of Macau."

Strengthened Balance Sheet

During Q3, 2009 the Group took the opportunity to further strengthen Galaxy's already strong balance sheet through the repurchase of an additional HK$117 million (US$15 million) of debt. After this debt repurchase, Galaxy's cash on hand as at 30 September was HK$3.8 billion.

Outlook for the Fourth Quarter of 2009

Dr. Lui Che Woo, Chairman of Galaxy Entertainment Group said: "We are cautiously optimistic about the outlook for the fourth quarter of 2009. The macro trends are good and we are expecting Macau to achieve healthy growth based on, the new Macau Chief Executive taking office; continuing progress of the Macau Gaming Chamber in cooperation with the Macau Government to maintain healthy sustainable growth in the market; and the celebration of 10th anniversary of Macau reverting to Mainland China"

US GAAP Comparisons

In comparing Galaxy's results to those of US corporations whose results are prepared under generally accepted accounting principles in the United States ("US GAAP"), it should be noted that gross gaming revenues, presented under US GAAP, are reduced by commissions and discounts paid to players, to arrive at net gaming revenues. An adjusted EBITDA margin would then be calculated based on these reduced net gaming revenues, resulting in a significantly higher EBITDA margin than that calculated under Hong Kong accounting standards. Galaxy complies with Hong Kong accounting standards.

                                          StarWorld's EBITDA Margin
                                  Q1 2009          Q2 2009          Q3 2009
    Under US GAAP                   16%               18%              17%
    Under HK GAAP                   10%               11%              10%

About Galaxy Entertainment Group Limited (HKEx stock code: 27)

Galaxy Entertainment, through its subsidiary, Galaxy Casino, S.A., holds a Macau gaming concession. Galaxy is authorized to carry out casino games of chance in Macau, which is the only legal gaming location in China.

Galaxy Entertainment owns and operates StarWorld Hotel and Casino - a luxury 5-Star property located on the Macau peninsula, and operates four CityClub Casinos in Macau. The Group is well positioned for long-term growth on the Macau peninsula and in Cotai where the Group is developing a major resort and has a substantial development landbank.

    For more details, please visit http://www.galaxyentertainment.com/eng

    For further information, please contact:

     Galaxy Entertainment Group
     Mr. Peter J. Caveny
     Principal, Investor Relations
     Tel:   +852-3150-1111
     Email: ir@galaxyentertainment.com

     Ms. Vivian Fu
     Senior Investor Relations Manager
     Tel:   +852-3150-1111
     Email: ir@galaxyentertainment.com

SOURCE Galaxy Entertainment Group Limited

    AMSTERDAM, November 11 /PRNewswire-FirstCall/ --

    - Net income from operations in third quarter 12% higher
    - Gross revenues increase 10%, organic decline stable at 7%
    - Continued growth in infrastructure, environment stabilizes, buildings
      weak
    - Margin remains above 10% due to cost savings
    - Malcolm Pirnie merger contributes positively to revenues and profit
    - Outlook for full year 2009 adjusted upwards: from slight decline to
      slight increase in net income from operations

ARCADIS (EURONEXT: ARCAD), the international design, consulting, engineering and management services company, in the third quarter of 2009 produced net income from operations of EUR 18.2 million, 12% more than last year. Gross revenues increased 10% to EUR 470 million, also as a result of the merger with Malcolm Pirnie early in July. Organic gross revenue decline stabilized at 7%. Continued infrastructure growth was offset by an increased decline in buildings and a clearly reduced decline in environment. The better than expected results were achieved by excellent performance in infrastructure and environment, keeping the margin above 10%, while Malcolm Pirnie also contributed well. As a result of a weaker U.S. dollar the currency effect on revenues and profits was limited.

In the first nine months, gross revenues increased by 4% to EUR 1.3 billion aided by a positive currency effect of 3%. Due to the recession, gross revenues declined organically by 5%. The decline in environment and buildings was partially compensated by growth in infrastructure. Net income from operations increased 6% to EUR 50.8 million, despite restructuring charges of EUR 7.6 million. Good working capital management resulted in strong cash flow.

Malcolm Pirnie, a leading U.S. consultancy and engineering company in the water and environmental markets (1700 people, gross revenues $392 million), with whom we merged early July, was consolidated as of the third quarter. This merger provides us with a leading position in the fast growing water market and a top 10 position in the U.S.

CEO Harrie Noy said: "The positive results can be attributed to our strong market positions, strict cost controls and a strong focus by our staff on clients. Government investments are keeping the infrastructure market at a good level. In the third quarter we won some large GRiP(R) contracts indicating stabilization in the environmental activities. The buildings market remains very challenging, especially since private sector investments have declined strongly. The merger with Malcolm Pirnie is already starting to bear fruit in the form of numerous initiatives for top line synergy."

    Key figures

    Amounts in EUR million, unless                 Third       First nine
    otherwise noted                               quarter        months
                                              2009 2008   D  2009  2008   D
    Gross revenue                              470  427 10% 1,302 1,254  4%
    Net revenue                                318  284 12%   895   850  5%
                                                          -               -
    EBITA                                     29.8 30.3  2%  86.1  87.2  1%
    EBITA recurring 1)                        32.0 30.3  6%  88.3  87.2  1%
    Net income                                13.9 11.4 22%  50.7  40.0 27%
    Net income per share (in EUR)             0.21 0.19 11%  0.82  0.66 24%
    Net income from operations 2)             18.2 16.3 12%  50.8  47.8  6%
    Ditto per share (in EUR) 2)               0.28 0.27  4%  0.82  0.79  4%
    Average shares outstanding (in millions)  65.6 60.6      62.1  60.5

1) Excluding effect share participation plan Lovinklaan Foundation; see analysis under third quarter

2) Before amortization and non-operational items

Third quarter

Gross revenues increased 10%. The currency effect was 1%, while acquisitions contributed 16%, driven primarily by the merger with Malcolm Pirnie at the beginning of the third quarter. The organic gross revenue decline stabilized at 7%.

Net revenues (revenues produced by our own staff) increased by 12%. The currency effect was 1%, the contribution from acquisitions was 17%. Due to less subcontracting organic decline was 6%

Organic revenue growth was mainly seen in the Netherlands, Poland and to a lesser extent France. Due to the poor conditions in the real estate market, especially in England and with RTKL activities declined. In the United States, revenues increased as a result of the merger with Malcolm Pirnie, but organically revenues declined, albeit less than in previous quarters due to a pick up in environmental activities.

EBITA is impacted by EUR 2.2 million in costs related to the share participation program of the Lovinklaan Foundation, a main shareholder in ARCADIS. Under this program, employees can buy shares in ARCADIS at a discount. In 2009 participants have also received one-off bonus shares. Although the costs of this program are entirely paid for by the Foundation, IFRS requires these to be included in the profit and loss account of the Company. This results in the earlier noted amount of EUR 2.2 million, which has been earmarked as non-recurring. The regular cost of the current Lovinklaan program amounts to approximately EUR 0.1 million per quarter. There is no effect on cash flow or on the equity of the Company.

Recurring EBITA rose 6% to EUR 32.0 million. Acquisitions contributed 16%, the currency effect was limited. The organic decline of 10% was the same as in the first half year and was partly an effect of the reduced contribution from carbon credits due to slow procedures. Without this effect the organic decline was 8%. This was mainly the result of profit declines in England and in RTKL caused by poor conditions in the buildings market and a restructuring charge of EUR 2.3 million for further adjustment of our organization. This was offset by the continued good performance in the Netherlands and the United States. The margin (recurring EBITA as a percentage of net revenues) at 10.1% remained at a good level (2008: 10.7%). Excluding the impact from carbon credits the margin was 10.3%.

Financing charges amounted to EUR 3.3 million. This is higher than in the previous quarter due to the Malcolm Pirnie merger, but lower than the EUR 5.4 million (excluding the effect of derivatives) in 2008. This results from a lower working capital, while in 2008 exchange rate losses on loans in Brazil had a negative effect. The tax pressure is somewhat distorted by the cost of the Lovinklaan program. Excluding this impact, tax pressure was at 34.6%, slightly higher than the 32.4% of last year.

Net income from operations (which excludes the cost of the Lovinklaan program) rose 12% to EUR 18.2 million. This is better than the development of EBITA due to lower financing charges and a reduced minority interest due to lower profits from Brazil.

First nine months

Gross revenues increased 4%, while net revenues were 5% higher. The currency effect was 3%, the contribution from acquisitions 6%. Organically gross revenue declined 5%. Due to less subcontracting, the organic decline in net revenue was limited to 4%.

Recurring EBITA rose 1% to EUR 88.3 million. Acquisitions contributed 7%, the currency effect was 4%. Organically a decline of 10% occurred, in part due to a lower contribution from carbon credits. Excluding this effect the organic decline was 7%, also caused by a restructuring charge of EUR 7.6 million. The margin (recurring EBITA as a percentage of net revenue) was 9.9%, excluding the impact of carbon credits 10.2%, comparable with the 10.3% in 2008.

The unwinding of derivatives early in 2009 had a positive effect on financing charges of EUR 7.5 million. Excluding the effect of derivatives, financing charges declined to EUR 7.0 million (2008: EUR 12.2 million). This was a result of lower market interest rates, less working capital and an exchange rate gain on loans in Brazil which in 2008 still generated an exchange rate loss.

Net income from operations rose 6% to EUR 50.8 million and developed more favorably than EBITA. A higher tax pressure was offset by lower financing charges and a reduced minority interest due to a lower profit contribution from Brazil.

Developments per business line

Figures noted below concern gross revenues for the first nine months of 2009 compared to the same period last year, unless otherwise noted.

- Infrastructure

Gross revenues rose 17%. The currency effect was minus 1%. The contribution from acquisitions was 10% and mainly came from the water activities from Malcolm Pirnie, to be included in a separate business line next year. Gross revenue organically grew 9%, net revenue 5%. The difference results from strong subcontracting in Brazilian energy projects. Organic growth weakened somewhat because in the United States the municipal market is under pressure and the stimulus package is not yet showing a notable effect. In Brazil and Chile growth slowed due to less private investments. In Europe, government investments resulted in strong growth in the Netherlands, Poland, Belgium and France.

- Environment

Gross revenues were level with last year. The currency effect was 6%, the contribution from acquisitions 7% (LFR, SET and the environmental activities of Malcolm Pirnie). The organic decline was 13%, but in net revenues limited to 4% due to less subcontracting. In the quarter net revenues only declined by 1% which points to stabilization of the environmental activities. This partly resulted from two large GRiP(R) contract wins in the United States with a total value of $170 million. In Europe gross revenue increased, especially as a result of more government work. In Brazil, revenues for industrial clients declined, while in Chile mining sector work grew.

- Buildings

Gross revenues were 10% lower with a currency effect of 3%. Organically, gross revenues declined 13%, net revenues by 15%. The difference results from growth in facility management in the Netherlands with a significant amount of subcontracting. In the quarter the revenue decline accelerated, also because last year still saw growth. The commercial real estate market is depressed globally with the largest effects for ARCADIS in England and with RTKL where activities declined strongly. Services for industrial clients in Belgium also suffered from the recession. In addition to facility management, growth was realized in U.S. project management for education and government buildings.

Outlook

Although the first signals of an economic recovery are visible especially in the United States, it may take a while before the effects thereof are noticed in markets relevant to ARCADIS. This means that the uncertainty concerning market developments continues.

The infrastructure market is robust because governments continue to invest to speed up economic recovery. In Europe large programs are active to improve infrastructure. In the Netherlands this includes investments to upgrade rail infrastructure and increase road capacity. In Poland ARCADIS is involved in large cross country connections, while in Belgium and France large design-build projects are planned. In the United States the stimulus package is expected to produce effects as of 2010. Demand for water services is growing, also due to climate change. In South America the strong growth seen in recent years is weakening. The Olympic Games in 2016 in Brazil offer new opportunities.

In the environmental market regulation and sustainability provide a solid base. Although the recession has led to reduced demand for environmental services from private clients, activities in the United States appear to be stabilizing. The recent GRiP(R) contracts demonstrate that clients are using the downturn to refocus on their core business. ARCADIS was also recently selected as one of the prime contractors for the worldwide environmental program of the U.S. Air Force of $3 billion. Due to our advanced technologies, vendor reduction and outsourcing of environmental work by companies, we can increase our market share. Energy efficiency and reduction in carbon dioxide emissions are new themes that generate work.

The buildings market was hit hardest by the crisis. Both in England as well as for RTKL, market conditions are challenging and a recovery is not foreseen in the short term. RTKL partially compensates for the decline in the U.S. and English commercial market through projects in Asia (mainly China) and in the Middle East. In the U.S. the discussion about health care is leading to delays in hospital projects. For all of our services the emphasis remains on non-commercial segments, which benefit from stimulus funds. Facility management appears to be a growth market, as it fills a demand for cost savings.

CEO Harrie Noy concludes: "As a result of our timely adjustment we have been able to reasonably weather the recession until now. Our backlog is stable compared to the end of 2008 thanks to a good order intake across the board, partially offset by contract cancellations in buildings. In all three business lines we benefit from government stimulus programs. Because our capacity has been adjusted, revenues will also be lower in the coming quarters. Maintaining margins has priority, absorbing price pressure through cost reductions and a strong client focused approach. This year there is no contribution from the sale of energy projects, which last year generated EUR 2.2 million in net income in the fourth quarter. Because of the favorable results in the third quarter, the outlook for full year 2009 has been adjusted upwards: from a slight decline to a slight increase of 0 - 5% of net income from operations. This is barring unforeseen circumstances."

About ARCADIS:

ARCADIS is an international company providing consultancy, design, engineering and management services in infrastructure, environment and buildings. We aim to enhance mobility, sustainability and quality of life by creating balance in the built and natural environment. ARCADIS develops, designs, implements, maintains and operates projects for companies and governments. With more than 15,000 employees and over EUR 2.0 billion in revenues, the company has an extensive international network that is supported by strong local market positions. Visit us on the internet at: http://www.arcadis-global.com

    ARCADIS NV

    CONDENSED CONSOLIDATED STATEMENT OF INCOME

    Amounts in EUR millions,         Third quarter      First nine months
    unless otherwise stated
                                     2009    2008      2009         2008

    Gross revenue                     469.6   427.2      1,302.3     1,254.5
    Materials, services of third
    parties and subcontractors      (151.6) (143.4)      (407.1)     (404.9)
    Net revenue                       318.0   283.8        895.2       849.6
    Operational cost                (282.0) (249.3)      (792.0)     (747.3)
    Depreciation                      (6.3)   (5.6)       (17.9)      (17.0)
    Other income                        0.1     1.4          0.8         1.9
    EBITA                              29.8    30.3         86.1        87.2
    Amortization identifiable
    intangible assets                 (3.3)   (2.6)        (5.3)       (8.2)
    Operating income                   26.5    27.7         80.8        79.0
    Net finance expense               (3.3)   (9.5)          0.5      (14.9)
    Income from associates                -       -            -         0.1
    Profit before taxes                23.2    18.2         81.3        64.2
    Income taxes                      (8.8)   (5.9)       (29.7)      (21.3)
    Profit for the period              14.4    12.3         51.6        42.9

    Attributable to:
    Net income (Equity holders
    of the Company)                    13.9    11.4         50.7        40.0
    Minority interest                   0.5     0.9          0.9         2.9

    Net income                         13.9    11.4         50.7        40.0
    Amortization identifiable
    intangible assets after
    taxes                               2.1     1.8          3.4         5.6
    Lovinklaan employee share
    purchase plan                       2.2     0.1          2.3         0.2
    Net effects of financial
    instruments                                 3.0        (5.6)         2.0
    Net income from operations         18.2    16.3         50.8        47.8

    Net income per share (in
    euros)                             0.21    0.19         0.82        0.66
    Net income from operations
    per share (in euros)               0.28    0.27         0.82        0.79
    Weighted average number of
    shares (in thousands)            65,606  60,613       62,093      60,501


    ARCADIS NV

    CONDENSED CONSOLIDATED BALANCE SHEET
    Amounts in EUR millions              September 30, 2009 December 31, 2008
    Assets
    Non-current assets
    Intangible assets                                  335.6            249.3
    Property, plant & equipment                         77.3             66.5
    Investments in associates                           22.7             15.7
    Other investments                                    0.4              0.2
    Other non-current assets                            16.9             14.8
    Derivatives                                            -              3.8
    Deferred tax assets                                 13.8             12.2
    Total non-current assets                           466.7            362.5
    Current assets
    Inventories                                          0.6              0.8
    Derivatives                                          0.1              0.2
    (Un)billed receivables                             588.6            538.5
    Other current assets                                42.2             32.0
    Corporate tax assets                                11.7              6.5
    Cash and cash equivalents                          129.6            117.9
    Total current assets                               772.8            695.9
    Total assets                                     1,239.5          1,058.4
    Equity and Liabilities
    Shareholders' equity                               318.6            207.6
    Minority interest                                   15.9             12.3
    Total equity                                       334.5            219.9
    Non-current liabilities
    Provisions                                          28.7             26.7
    Deferred tax liabilities                            10.6              6.0
    Loans and borrowings                               341.0            266.8
    Derivatives                                          0.8             16.9
    Total non-current liabilities                      381.1            316.4
    Current liabilities
    Billing in excess of cost                          167.6            182.7
    Corporate tax liabilities                            5.3             18.7
    Current portion of loans and
    borrowings                                           5.5              4.9
    Current portion of provisions                        3.7              4.4
    Derivatives                                            -              0.1
    Accounts payable                                   119.2            133.2
    Accrued expenses                                    23.0             12.3
    Bankoverdrafts                                       7.1              6.2
    Short term borrowings                               11.0              3.6
    Other current liabilities                          181.5            156.0
    Total current liabilities                          523.9            522.1
    Total equity and liabilities                     1,239.5          1,058.4


    ARCADIS NV

    CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS'
    EQUITY

    Amounts in EUR millions   Share    Share    Hedging   Cumulative
                             Capital   Premium  Reserve   Translation
                                                            Reserve


    Balance at December 31
    2007                       1.0      36.4               (29.8)
    Exchange rate
    differences                                              7.2
    Taxes related to
    share-based compensation
    Other comprehensive
    income                                                   7.2
    Profit for the period
    Total comprehensive
    income for the period                                    7.2
    Dividends to
    shareholders
    Stock split                0.2     (0.2)
    Own shares purchased for
    granted options
    Share-based compensation
    Options exercised
    Expansion ownership
    Balance at September 30
    2008                       1.2      36.2                (22.6)

    Balance at December 31
    2008                       1.2      36.2                (40.2)
    Exchange rate
    differences                                               8.0
    Effective portion of
    changes in fair value of
    cash flow hedges                              (1.0)
    Taxes related to
    share-based compensation
    Other comprehensive
    income                                        (1.0)       8.0
    Profit for the period
    Total comprehensive
    income for the period                         (1.0)       8.0
    Dividends to
    shareholders
    Share-based compensation
    Additional paid in
    capital                    0.1      70.6
    Options exercised
    Balance at September 30
    2009                       1.3     106.8      (1.0)     (32.2)

    (Table continued below)

    Amounts in EUR millions     Retained    Total       Minority  Total
                                Earnings Shareholders'  Interest Equity
                                            Equity
    Balance at December 31
    2007                          180.1     187.7          11.5  199.2
    Exchange rate
    differences                               7.2         (0.4)    6.8
    Taxes related to
    share-based compensation        0.2       0.2                  0.2
    Other comprehensive
    income                          0.2       7.4         (0.4)    7.0
    Profit for the period          40.0      40.0           2.9   42.9
    Total comprehensive
    income for the period          40.2      47.4           2.5   49.9
    Dividends to
    shareholders                  (24.8)   (24.8)         (1.2) (26.0)
    Stock split                                 -             -
    Own shares purchased for
    granted options                (4.5)    (4.5)                (4.5)
    Share-based compensation        4.6       4.6                  4.6
    Options exercised               1.2       1.2                  1.2
    Expansion ownership                                   (0.6)  (0.6)
    Balance at September 30
    2008                          196.8     211.6          12.2  223.8

    Balance at December 31
    2008                          210.4     207.6          12.3  219.9
    Exchange rate
    differences                               8.0           2.8   10.8
    Effective portion of
    changes in fair value of
    cash flow hedges                        (1.0)                (1.0)
    Taxes related to
    share-based compensation        1.3       1.3                  1.3
    Other comprehensive
    income                          1.3       8.3           2.8   11.1
    Profit for the period          50.7      50.7           0.9   51.6
    Total comprehensive
    income for the period          52.0      59.0           3.7   62.7
    Dividends to
    shareholders                  (27.1)   (27.1)         (0.1) (27.2)
    Share-based compensation        6.9       6.9                  6.9
    Additional paid in
    capital                                  70.7                 70.7
    Options exercised               1.5       1.5                  1.5
    Balance at September 30
    2009                          243.7     318.6          15.9  334.5

    ARCADIS NV

    CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
    Amounts in EUR millions                               First nine months
                                                           2009      2008
    Cash flow from operating activities
    Profit for the period                                     51.6      42.9
    Adjustments for:
    Depreciation and amortization                             23.2      25.3
    Taxes on income                                           29.7      21.3
    Net finance expense                                      (0.5)      14.9
    Income from associates                                       -     (0.1)
                                                             104.0     104.3
    Share-based compensation                                   6.9       4.8
    Sale of activities and assets, net of cost               (0.8)     (1.1)
    Change in fair value of derivatives                      (0.2)
    Dividend received                                          0.2       0.5
    Interest received                                          4.1       4.1
    Interest paid                                           (12.8)    (17.8)
    Corporate tax paid                                      (37.3)    (27.0)
    Change in working capital                                (9.9)    (83.9)
    Change in deferred taxes and provisions                    7.5     (0.7)
    Net cash from operating activities                        61.7    (16.8)

    Cash flow from investing activities
    Net change in (in)tangible fixed assets                 (17.5)    (18.3)
    Acquisitions/divestments                                (78.5)    (54.7)
    Net change in associates and other investments           (6.8)     (7.6)
    Net change in other non-current assets                     1.2       5.1
    Net cash used in investing activities                  (101.6)    (75.5)

    Cash flow from financing activities
    Options exercised                                          1.5       1.2
    Issued shares                                              5.8
    Purchase own shares                                                (4.5)
    Change in borrowings                                      73.3      96.7
    Dividends paid                                          (27.2)    (24.9)
    Net cash from financing activities                        53.4      68.5
    Net change in cash and cash equivalents less bank
    overdrafts                                                13.5    (23.8)
    Exchange rate differences                                (2.7)       1.3
    Cash and cash equivalents less bank overdrafts at
    January 1                                                111.7      71.7
    Cash and cash equivalents less bank overdrafts at
    September 30                                             122.5      49.2

SOURCE ARCADIS NV

AMSTERDAM, NETHERLANDS -- (MARKET WIRE) -- 11/11/09 --

  * 3Q09 underlying net result of EUR 778 million, compared with EUR
    229 million in 2Q09 and EUR -568 million in 3Q08

       * Pre-tax market impacts of EUR -882 million include
         impairments on debt securities and real estate revaluations
         and impairments
       * Results excluding market impacts and risk costs were EUR 2.4
         billion, primarily attributable to the Bank
       * Cost reduction programmes brought operating expenses down
         9.3%, or EUR 330 million, from the third quarter last year
       * Divestments and special items totalled EUR -278 million,
         bringing the 3Q09 net result to EUR 499 million or EUR 0.25
         per share

  * Bank underlying net result of EUR 264 million, versus a loss of
    EUR -25 million in 2Q09 and EUR -101 million in 3Q08

       * Market impacts of EUR -1,121 million include EUR -664
         million impairments on debt securities, EUR -423 million on
         real estate
       * Strong interest income and Financial Markets results, lower
         costs drive results excl. market impacts and risk costs of
         EUR 2.0 billion

  * Insurance underlying net result of EUR 514 million, compared with
    EUR 254 million in 2Q09 and EUR -467 million in 3Q08

       * Favourable pre-tax market impacts of EUR 240 million
         including realised gains on equities and positive DAC
         unlocking
       * Lower investment margins and stable cost base lead to result
         excluding market impacts of EUR 346 million

  * Shareholders' equity and capital ratios strengthened

       * Shareholders' equity increases by 19%, or EUR 4.2 billion,
         in 3Q09 to EUR 26.5 billion as market values of debt
         securities increased
       * Core Tier 1 ratio increases to 7.6% from 7.3% at the end of
         2Q09; Risk-weighted assets decline EUR 8 billion to EUR 337
         billion
       * Group debt/equity ratio improves slightly to 13.1% from
         13.5% in 2Q09

  * Back to Basics transformation programme progressing on track or
    ahead of original targets

       * Cumulative reduction in Bank balance sheet of EUR 176
         billion, or 16%, since 30 September 2008 exceeds 10%
         reduction target
       * EUR 1 billion of cost savings achieved in fi rst nine months
         of 2009 versus revised annual target of EUR 1.3 billion
       * Total FTE reduction of 10,239 realised by end of September
         2009

CHAIRMAN'S STATEMENT

"ING achieved a strong commercial performance in the third quarter, illustrating the strength of our Banking and Insurance franchises even in this challenging economic environment," said Jan Hommen, CEO of ING Group. "The Bank continued to benefi t from resilient interest results and strong Financial Markets performance. Insurance sales improved from the second quarter, although investment margins were under pressure following de-risking measures taken earlier this year. Negative market impacts were less severe than in previous quarters as equity markets improved; however, results continued to be impacted by impairments on mortgage-backed securities and negative revaluations on real estate investments. This resulted in an underlying net profi t of EUR 778 million for the Group in the third quarter, supported by our ongoing efforts to drive down expenses."

"We have achieved most of the targets set out in the fi rst phase of our Back to Basics programme thanks to the enormous efforts of our management and staff. Operating expenses have been reduced by EUR 1 billion on a comparable basis, and we expect to reach our EUR 1.3 billion target for the full year. We exceeded our target for de-leveraging the Bank's balance sheet, reaching a 16% reduction over the past 12 months, while improving our margins. Divestments of non-core activities gained pace in the third quarter, and we have demonstrated a disciplined approach to achieve attractive prices even in the current market environment."

"In the fourth quarter, we announced plans to take our Back to Basics programme a step further and move towards a full separation of Banking and Insurance. This was not a decision we took lightly, but I strongly believe it is the right choice and the right time. The financial services industry will be transformed as a result of the crisis and the winners will be those institutions that can regain their customers' trust, offering transparent products, value for money and superior service. The split will enable both the Bank and the Insurer to adapt more quickly and emerge from the crisis more effi cient, more agile, and more focused on meeting our customers' needs."

"In the Netherlands we have proven that ING can achieve attractive returns in the most competitive retail banking market in Europe. ING Direct has set the global standard for internet banking with high customer satisfaction and one of the lowest cost bases in the industry. Our One Bank strategy will leverage these skills across the organisation to grow our retail banking franchise, offering customers a different kind of banking experience while delivering attractive returns for shareholders."

"Our insurance company is a leader in retirement services with an attractive mix of mature and growth markets. We will take great care to ensure the separation of the business goes smoothly and that we continue to deliver business as usual for our customers. The divestment of insurance will be done carefully to ensure value for shareholders is protected while balancing the interests of all stakeholders."

"We have a lot of work ahead, but this is the beginning of an exciting new phase for ING. Our resolution with the European Commission on restructuring will put behind uncertainty and enable us to focus on the future. We are also raising equity to repay the first half of the capital support received from the Dutch State a year ago, which is an important milestone on our road to recovery. It is time to move forward, and I look forward to the journey ahead."

The full report including tables can be downloaded from the following link:

ING Group Q3 2009 Results: http://www.ing.com/cms/idc_cgi_isapi.dll?IdcService=GET_FILE&dDocName=420389_EN&RevisionSelectionMethod=latestReleased

The following documents can be downloaded from around 07:15 am CET from the following links:

Analyst Presentation: http://www.ing.com/cms/idc_cgi_isapi.dll?IdcService=GET_FILE&dDocName=420393_EN&RevisionSelectionMethod=latestReleased

Quarterly Report: http://www.ing.com/cms/idc_cgi_isapi.dll?IdcService=GET_FILE&dDocName=420396_EN&RevisionSelectionMethod=latestReleased

Group Statistical Supplement: http://www.ing.com/cms/idc_cgi_isapi.dll?IdcService=GET_FILE&dDocName=420399_EN&RevisionSelectionMethod=latestReleased

US Statistical Supplement: http://www.ing.com/cms/idc_cgi_isapi.dll?IdcService=GET_FILE&dDocName=420405_EN&RevisionSelectionMethod=latestReleased

Investor enquiries
T: +31 20 541 5460
E: investor.relations@ing.com


Press enquiries
T: +31 20 541 5433
E: mediarelations@ing.com

Conference calls and webcasts

Jan Hommen, Koos Timmermans and Patrick Flynn will discuss the results in an analyst and investor conference call on 11 November 2009 at 9:00 CET. Members of the investment community can join in listen-only mode at +31 20 794 8500 (NL), +44 208 515 2315 (UK) or +1 480 629 9771 (US) and via live audio webcast at www.ing.com.

A press conference call will be held on 11 November 2009 at 11:30 CET. Journalists are invited to join the conference call in listen-only mode at +31 20 794 8500 (NL) or +44 207 190 1537 (UK).

This announcement was originally distributed by Hugin. The issuer is solely responsible for the content of this announcement.

2009 Third Quarter Results ING Group: http://hugin.info/130668/R/1354120/328186.pdf

Copyright © Hugin AS 2009. All rights reserved.

NEW YORK, NY -- (MARKET WIRE) -- 11/11/09 -- Morgan Stanley is the prime brokerage preferred by hedge fund managers with more than $1 billion in assets in the fifth annual Alpha Awards, which rank the top service providers as chosen by managers of hedge funds large and small.

The complete list of winning firms and analysts can be found on our web site, www.iimagazine.com.

BNP Paribas is the broker of choice among managers of funds with less than $1 billion.

The awards, which originated in Institutional Investor's sister publication Alpha and are being published for the first time in Institutional Investor this year, rank service providers in five broad categories: accounting, administration, law firms (onshore and offshore), and prime brokerage.

Administrators -- regardless of what size hedge funds they service -- report that business has never been more brisk, even though total hedge fund assets are still down about $400 billion from their 2008 peak of $1.9 trillion, according to Chicago-based Hedge Fund Research. The unprecedented $65 billion investment fraud perpetrated by Bernard Madoff underscored the importance of independent, third-party administration.

"Largely because of events such as Madoff and the collapse of Lehman, there's a drive from investors to see self-administered funds have third-party administration involved," says Cory Thackeray, head of Goldman Sachs' administrative services group, which is ranked No. 1 for a third straight year among managers of large hedge funds.

The financial crisis has also sparked a surge in business for law firms serving the hedge fund industry. With fund launches down precipitously and liquidations at record levels, restructuring has become the name of the game.

"This was a year in which you needed, as a hedge fund lawyer, to have not just legal experience but real business experience to add that value to clients," observes Steven Nadel, one of seven partners in the investment management group at Seward & Kissel, in first place as the onshore law firm of choice among managers of bigger hedge funds.

The complete list of winning firms and analysts can be found on our web site, www.iimagazine.com.

For more information about this ranking, please contact Michele Bickford at mbickford@iiresearchgroup.com or (212) 224-3360.

Contact:
Michele Bickford
mbickford@iiresearchgroup.com
(212) 224-3360