Results for 2003

The Motor-Columbus Group’s consolidated sales for fiscal 2003 rose 43% to CHF 5,285 million while net income before minority interest climbed 71% to CHF 272 million. Net income after minority interest was up 70% at CHF 143 million compared to CHF 84 million a year earlier.

Successful Fiscal Year 2003

The results reflect the year’s performance of Aare-Tessin Ltd. for Electricity (Atel), Olten, the only operating subsidiary of Motor-Columbus Ltd. The Atel Group, specialized in electricity trading, marketing, generation, transmission and energy services, again recorded successful results for 2003. Atel’s fiscal year was marked by three factors: growth in pan-European electricity trading business, good operating performance in the Hungarian and Czech companies acquired the year before and further expansion of Atel’s own generating capacities, especially in Italy. In the Energy Segment, all regions performed successfully during 2003, with consolidated sales reaching CHF 3.8 billion, up from CHF 2.3 billion in 2002. Segment income grew 55% to CHF 327 million. Once again, electricity sales displayed strong growth, rising 73% to 69 TWh. Last year, Atel also traded 67 TWh of electricity valued at CHF 2.7 billion in the form of standard products. As in the past, just the net gain on these trading contracts is recognized in net sales. Despite continued weakness in the German and Swiss economies, the Energy Services Segment generated 3% growth in sales to CHF 1.5 billion. Consolidated segment income slipped to CHF 12 million from CHF 26 million in 2002.

Motor-Columbus Ltd. posted net income of CHF 26.3 million for the year, compared to CHF 24.1 million in 2002. The Board of Directors will recommend the Annual Meeting of Shareholders on June 3, 2004 to raise the dividend from CHF 40.-- to CHF 45.-- per share.

For 2004, Atel expects the Energy Segment to post another increase in sales volume and revenue, with segment operating income about level with last year. Atel believes the Energy Services Segment will benefit from the positive effects of the economic recovery and restructuring program, leading to an improvement in sales and income. On balance, the Motor-Columbus Group expects sales to increase again in fiscal 2004, with income on a par with last year.

The Annual Meeting of Shareholders will be held on June 3, 2004 at the Stadtsaal (Trafo) in Baden.

The full Annual Report is scheduled for publication on May 10, 2004 and will be available on the company’s website.

Motor-Columbus Ltd