d) CEO Thilo von Selchow: “The course is set for further growth.”

DRESDEN, GERMANY — June 18, 2008 - ZMD AG has concluded its 2007 financial year on a positive high note and now expects further growth in the course of the current financial year. Turnover climbed to EUR55 million in 2007, after reaching EUR45 million in the previous year. This corresponds to a growth of 23 percent, a figure well above general market rates. The improved operating earnings (EBIT) for 2007 were also well above the benchmark, achieving a final figure of approximately EUR4 million. Thus, ZMD has fully achieved its announced objectives for the 2007 financial year, resulting in a significant improvement in its market position over the same period the year before. The company had reported losses in 2006.

Focusing on its core business, ZMD was able to deliver a clear reduction in bank debts in 2007. An actual capital ratio of over 50 perecent provides ZMD with a solid financial base. At the end of 2007, ZMD employed a worldwide workforce of 240 persons; 30 more than in the previous year, and is set to add some 30 new jobs by the end of 2008.

Thilo von Selchow, CEO of ZMD AG, stated, “2007 was a successful year for ZMD. We achieved our business goals as planned, while continuing at the same time with our strategic development. The turnaround at ZMD is now complete. The company’s key ratios speak for themselves, clearly showing that a clear concentration on our core business has paid off. ZMD can now look confidently into the future. The company has both a robust financial base and excellent prospects for the future. The course is clearly set for further growth. At the same time, it is important for us to grow profitably and under our own steam.”

The company’s positive development has been based on success in its core markets of automotive electronics, mobile equipment for medical diagnosis and industrial automation technology. The automotive sector in particular proved to be one of the strongest sources of growth in 2007. ZMD has enjoyed three straight years of clear double-digit percentage growth in this segment, which now accounts for more than 50 percent of the company’s turnover. Exports accounted for around 75 percent of turnover during 2007 and, in the same year, over 20 percent of turnover was plowed back into research and development.

Concentration on core business pays off

The positive commercial development of the company in 2007 can be traced to its successful strategic realignment. Concentrating on the core business of developing analogue and mixed signal circuits for high-precision sensor based applications has paid off. Against a background of fast-changing markets and business models in the semiconductor industry, ZMD sold its wafer production at the start of 2007.

Thilo von Selchow stated, “Our withdrawal from wafer production was in anticipation of general developments in the sector. It is getting more and more obvious that manufacturing and development require different business models. Virtually all semiconductor companies have meanwhile started to realign themselves accordingly. We can already confirm that concentrating on our core business has paid off for ZMD. Our mission now exclusively consists of developing innovative products for our customers and on interacting with our manufacturing partners. The concentration on development has released our inspiration to create totally new products.”

With an especially high level of quality and correspondingly low defect rate, both of which are guaranteed by the company’s in-house testing capacity, ZMD is one of the leading suppliers of high quality solutions to the microelectronics sector.

Mr. von Selchow stressed that the successes of 2007 are due largely to the extraordinary and outstanding performance of the company’s employees, all of whom deserve thanks for their endeavors. As part of its efforts to take advantage of new market opportunities, ZMD now intends to expand its technological expertise even further in order to benefit its customers. This is to take place in parallel with the company’s ongoing process of internationalization. Mr von Selchow has furthermore stated that the high level of investment in research and development will be maintained, meaning that yet another 20 percent of turnover will be assigned to product development in 2008.

Positive outlook for 2008 - medium-term objectives reaffirmed Looking forward, ZMD intends to get closer to its international clients and grow in parallel with its customers. The Company will focus on its growing market in Japan, and has recently opened its own branch in Tokyo. Three months earlier, ZMD opened a design center in Varna, Bulgaria, as an important step in its efforts to develop further its technological expertise.

The Company forecasts continued overall growth for the 2008 financial year, with turnover set to increase during the current year to around EUR60 million. Turnover attributable to marginal activities, which are to be abandoned in 2008, may still influence the final balance sheet for 2007, but these will be more than compensated for by the expected positive development of the company’s core business fields. The quality of the results for 2008 is likewise set to show further improvement. The company furthermore reaffirms its medium-term objective of average annual double-digit growth of 10 percent to 15 percent over and above that of the market in which it operates. Same as last year, the company intends to create additional 30 new jobs in the course of 2008.

About ZMD

Founded in 1961, ZMD AG is a leading supplier of analog and mixed-signal integrated circuits for applications in automotive, mobile medical diagnostics, industrial automation and consumer based products. ZMD specializes in design and marketing of high temperature, high voltage and ultra low power application-specific integrated circuits (ASICs) and application-specific standard products (ASSPs). ZMDs ASSP portfolio includes a broad portfolio of sensor signal conditioners and interfaces, analog-to-digital converters, IrDA transceivers, BUS interface ICs and integrated temperature sensing solutions.

Headquartered in Dresden, Germany, ZMD has 270 employees worldwide and serves customers from the company’s offices in Dresden, Germany; Melville, NY; Stuttgart, Germany; Newcastle, England; Paris, France; Tokyo, Japan; Hsinchu City, Taiwan and Bangalore, India. ZMD has design centers in Dresden, Stuttgart, Varna (Bulgaria) and Madison (US).

More information is available at www.zmd.biz.