Report Fourth Quarter 2002 Consolidated Closing (US-GAAP) for the Fiscal Year 2002, as of (audited)

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1 Report Fourth Quarter 2002 Consolidated Closing (US-GAAP) for the Fiscal Year 2002, as of (audited) 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Dear Ladies and Gentlemen: In 2002 revenues totaled million Euro (2001: million Euro); consolidated net income rose to 36.6 million Euro (prior year 27.9 million Euro).Order intake for the entire year generated million Euro. At 51.1 million Euro, orders booked in the 4 th Quarter 2002 fell just short of comparable-period figures a year ago (51.5 million Euro). The order backlog on 12/31/02 totaled 58.5 million Euro, up slightly from 12/31/01 (+ 2.8 million Euro). Momentum in the DVD sector was the primary driver of growth in The successful advance of DVD video in the USA has now taken hold in Europe as well. On 12/12/02 SINGULUS TECHNOLOGIES received written notification of its admission to the Prime Standard. Since then, inclusion in the TecDAX has also been approved. The Corporate Governance Declaration was signed by the Managing and Supervisory Boards in accordance with Par. 161 of German corporate law. Exceptions to the recommendations have been posted on the internet. Dr. Christian Holtman, CFO, tendered his resignation effective 12/31/02. Stefan A. Baustert was appointed CFO and Member of the Managing Board on 1/15/ Gross Revenues Earnings before Tax Net Income Cash flow REVENUES Net sales for the 4 th Quarter 2002 with 81,1 Mio. Euro clearly surpassed those of the same quarter the year before (49.7 million Euro). Projections made last spring for 20 % growth for the entire fiscal year were significantly exceeded. Consolidated revenues rose from million Euro to million Euro (+28.8 %).

2 Quarterly Report DVD and DVD R capture the market Revenues earned by product category for fiscal 2002 are as follows: CD machines, 49.8 million Euro (85.2 million Euro a year ago); DVD machines million Euro (prior year 84.1 million Euro); CD/DVD-R machines, 14.7 million Euro (21.4 million Euro last year); DVD±RW machines, 4.1 million Euro; Metallizers, 3.7 million Euro (previous year, 5.9 million Euro); customer service, 28.9 million Euro (22.6 million Euro last year); EMOULD 2.5 million Euro (OEM business only). Effective 1/1/02, consolidated revenues generated by SINGULUS OMP were included in consolidated corporate revenues for the first time, totaling 15.7 million Euro. During the past year, the shift in business continued to favor DVD products. With 182 lines sold, SINGULUS achieved 65 % of world market share. DVD lines account for 58.9 % of total 2002 revenues (37.3 % a year ago). 2 Revenues reflect a well-balanced regional distribution: North and South America, 34 % (prior year 23 %); Asia, 29 % (previous year 44 %); Europe, 37 % (33 % last year), 6 % of that in Germany (7 % a year ago). BOOKINGS AND ORDER BACKLOG In the 4 th quarter 2002, order intake of 51.1 million Euro fell just short of the previous year s figures (51.5 million Euro). Orders booked for all of 2002 generated million Euro (2001: million Euro). The order backlog totaled 58.5 million Euro on 12/31/02, slightly higher than on 12/31/01 (+2.8 million Euro). EARNINGS SINGULUS TECHNOLOGIES gross margin rose to 35.9 % in 2002 (previous year 34.8 %). This growth was achieved through more favorable manufacturing costs and a continued shift in our product mix toward higher-margin DVD lines. Earnings Before Income Tax (EBIT) totaled 52.7 million Euro (previous year 40.2 million Euro) and the net profit for the year 36,6 million Euro (2001: 27,9 million Euro) corresponding to a 31.2 % increase. After-tax earnings totaled 13.1 %, unchanged from the year before. The return on equity totaled 25.2 %.

3 from left to right: Roland Lacher, Stefan A. Baustert, Klaus Hammen, Management Board of SINGULUS TECHNOLOGIES AG STAFF On December 31, 2002, SINGULUS TECHNOLOGIES employed 502 people worldwide, a 36.8 % increase over last year. The 39 employees staffing the recently-acquired OMP, along with a capacity expansion that boosted the EMOULD staff from 24 to 65, were contributing factors to this increase in the workforce. By year-end closing, 203 people (40.4 % of the overall workforce) were employed at the corporation s subsidiaries. At Euro, the company still leads Germany in terms of its exceptionally strong per capital revenues. The company s sick time rate of 2.81 % remains far behind Germany s overall average of 4.01 %. RESEARCH & DEVELOPMENT SINGULUS TECHNOLOGIES stepped up its R&D activities in fiscal Overall, 16.2 million Euro, or 5.8 % of revenues, were invested in R&D (prior year: 8.3 million Euro). During the course of the year, a number of important advances were made in new business sectors and in the improvement of our standard lines. As a result, our DVD line cycle times were further reduced. 3 In 2002, the recordable business sector witnessed the development and market launch of the STREAMLINE DVDR/SP for the new DVD-R format. The SKYLINE II completes development of the next generation of systems in the CD sector. Its official unveiling will take place during the MEDIA-TECH tradeshow in May A new milestone in the new field of Super Audio CD (SACD) was reached last September. The new disc format developed by SONY and PHILIPS offers superior sound quality. The so-called hybrid SACD can be played on both CD and DVD players. An advanced SPACELINE is employed as the cornerstone for SACD manufacturing. A dual-use system, it can be employed for the production of both SACD and video DVD. The company s entry into a new field of operation was announced a year ago: TMR thin film deposition systems for MRAM semiconductors, i.e., read-write heads for magnetic hard drives. The summarization of this ambitious undertaking is gratifying: during the year in report, the 20-person TMR development team completed, on schedule, the TIMARIS thin film deposition system prototype. All milestones set at the beginning of the year were attained. As of the 1 st quarter of 2003, the system has been able to apply sample coatings onto silicon wafers.

4 Quarterly Report New DMS EVOLUTION Metallizer SINGULUS OMP developed a new mastering system in 2002, naming it the DMS EVOLUTION and introducing it to the market in January Within a short period of time, the new system was sold to three customers in Europe and Asia. Using the DMS EVOLUTION, masters for the various CD and DVD formats can now be produced on a single mastering system. The DMS EVOLUTION is particularly well-suited for use in the prerecorded, recordable (DVD±R), and rewritable (DVD±RW) growth markets. FORECAST SINGULUS core competence is two-tiered: one technical, the other strategic. Technologically the company is not merely an optical data storage systems manufacturer but also a specialist in the design and manufacture of innovative machines and systems encompassing all aspects of vacuum deposition technology. 4 The first new business sector, in which a TMR thin film deposition system has been developed for the production of MRAM chips and the next generation of read-write heads for hard drives, was announced by SINGULUS in March Long-term plans include the addition of other business sectors no less profitable than optical disc manufacturing systems. SINGULUS is confident of the company s continued in-house expansion of its programs. Even at the start of the new year, the core optical disc sector of our business demonstrates continued vitality. Project activities progressed from last year into the 1 st quarter of this year without interruption, and with a concentration on systems for all DVD formats. Taiwan and China will be at the forefront of Asian countries investing more this year than last. This is true not only for the long-anticipated developments in the prerecorded and recordable DVD business sectors; it is gratifying to note that production capacity for CD and CD-R are being expanded as well. These sectors are apparently experiencing a new growth cycle. By building upon the value-added chain that enables us to produce all optical disc formats and which is unique in our industry, we will be able to access additional markets in the burgeoning sectors for recordable and rewritable applications. This will help our company achieve renewed growth in fiscal 2003, particularly with initial bookings and revenues expected for the new TMR thin film deposition systems. Best regards SINGULUS TECHNOLOGIES AKTIENGESELLSCHAFT The Managing Board

5 CONSOLIDATED BALANCE SHEETS IN YEARS ENDED DECEMBER 31, 2002 AND KEUR KEUR Cash and cash equivalents 53,915 47,431 Trade accounts receivable, short-term 52,995 57,203 Inventories 88,849 56,701 Other current assets 12,169 4,264 Total Current Assets 207, ,599 Trade accounts receivable, long-term 18,248 4,011 Property, plant & equipment 10,416 6,340 Intangible assets Goodwill 16,539 3,217 Other long-term assets 4,161 2,981 Deferred tax assets 5,562 5,030 Total Assets 263, ,662 Trade accounts payable 25,521 14,495 Advance payments received 11,984 8,427 Other provisions, accrued expences 11,645 10,731 Tax accruals 10,291 5,284 Other current liabilities 18,367 9,957 Total Current Liabilities 77,808 48,849 Convertible bonds 1,147 1,179 Pension acccruals 2,763 2,183 Total Long-Term Liabilities 3,910 3,362 Total Liabilities 81,718 52,256 Share capital 36,947 36,436 Additional paid-in capital 26,950 15,197 Retained earnings ,257 82,668 Currency translation adjustment 1,523 1,105 Total Shareholders Equity 181, ,406 Total Liabilities & Equity 263, ,662 5

6 Quarterly Report Roland Lacher and Kees van Nimwegen at the presentation of the new Mastering System DMS EVOLUTION 6 CONSOLIDATED STATEMENTS OF INCOME IN YEARS ENDED DECEMBER 31, 2002 AND 2001 Fourth Quarter Total Year KEUR KEUR KEUR KEUR Gross Revenues 81,077 49, , ,525 Sales Deductions & Direct Distribution Costs 2,162 1,180 11,748 12,254 Net Revenues 78,915 48, , ,271 Cost of Goods Sold 50,974 31, , ,007 Gross Profit 27,942 17, ,149 74,264 Research and Development 6,810 3,902 16,155 8,307 Sales and Customer Service 4,860 2,488 16,673 11,268 General Management and Administration 3,432 2,128 9,760 6,993 Other Operating Expenses 1,120 4,394 4,820 7,469 Total Operating Expences 16,222 12,912 47,408 34,037 Operating Income (EBIT) 11,720 4,520 52,741 40,227 Interest Income and expenditure ,780 2,221 Profit Before Tax 12,207 5,485 54,521 42,448 Income Taxes 2, ,932 14,513 Minority Interest Net Income 9,429 5,195 36,589 27,935 Net Income per share (basic); EUR Net Income per share (diluted); EUR Weighted average shares outstanding (basic) 36,897,806 36,417,246 36,792,112 36,361,342 Weighted average shares outstanding (diluted) 38,217,576 38,195,556 38,589,372 37,941,709 CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY IN YEARS ENDED DECEMBER 31, 2002 AND 2001 Share Additional Retained Currency Total capital paid-in- earnings & translation shareholders capital current adjustment equity profit KEUR KEUR KEUR KEUR KEUR Balance at December 31, ,321 14,684 54, ,484 Capital increase Currancy translation adjustments Profit current year 27,935 27,935 Balance at December 31, ,436 15,197 82,668 1, ,406 Capital increase ,753 12,264 Currancy translation adjustments and others 2,628 2,628 Profit current year 36,589 36,589 Balance at ,947 26, ,257 1, ,631

7 The new Mastering System DMS EVOLUTION CONSOLIDATED STATEMENTS OF CASH FLOWS IN YEARS ENDED DECEMBER 31, 2002 AND KEUR KEUR Cash flows from operating activities Net income 36,589 27,935 Adjustments to reconcile net income to net cash provided by operating activities Depreciation 2,878 2,084 Additions to pension accrual Other non-cash expenses/income 1, Deferred taxes 217 1, ,670 38,268 29,605 Changes in operating assets and liabilities Trade accounts receivable, net Other receivables 6, Inventories, net 29,309 31,452 Trade accounts payable 8,196 11,723 Other current liabilities 4,888 3,373 Progress payments 3,096 6,805 Tax accruals 4,381 24,571 Other accruals ,319 1,592 13,325 Net cash provided by operating activities 20,949 16,280 Cash flows from investing activities Purchase of fixed assets 5,265 4,504 Disposal of fixed assets 1,175 2,547 Cash paid for the acquisition of consolidated companies less cash acquired 11,253 15,343 9,828 11,785 Net cash used in investing activities 15,343 11,785 Cash flow from financing activities Decrease in bank overdrafts and borrowings 0 41 Increase in convertible bonds Capital increase 864 1, ,506 Net cash provided by financing activities 1,212 1,506 Net increase in cash and cash equivalents 6,818 6,001 Currency translation adjustment Cash and cash equivalents, beginning balance 47,431 41,430 Cash and cash equivalents, ending balance 53,915 47,431 Supplemental cash flow disclosures Cash paid for interest Cash paid for income taxes 22,498 40,260 7

8 Quarterly Report Company Calendar Quarterly Report 04/2002 and Annual Closing 2002 Annual Press Conference in Frankfurt/Main Quarterly Report 01/ Analyst and Investor Meeting, Las Vegas, USA Annual shareholders Meeting in Frankfurt/Main Quarterly Report 02/ Quarterly Report 03/2003 Shares of Managing Board and subscription rights, : Shares à 1 Euro VVG Roland Lacher GbR 93,150 pieces William Slee 29,520 pieces Thomas Geitner 1,500 pieces Stock subscription rights provided in form of convertible bonds á 1 Euro: VVG Roland Lacher GbR 48,600 pieces Dr. Christian Holtmann 243,000 pieces Personal 1,147,137 pieces Additional Annotations in Accordance with Neuer Markt Regulations There were no changes made to accounting and valuation methods Development of Costs and Prices Prices and costs developed according to plan Capital Expenditures Fixed assets purchased in 2002 totaled 8.8 million Euro (2001: 4.5 million Euro). This figure is made up of the customary expansion and replacement expenditures for EDP, software, office materials and testing equipment as well as the building expansion in Kahl. The initial consolidation of OMP accounted for 2.7 million Euro. Division of Earnings SINGULUS business operations were augmented by the manufacture and sale of mastering systems. Approximately 90 % of the company s total revenues were attained through the manufacture and sale of systems for the production of optical discs and mastering systems. The revenue share for spare parts, upgrades and service totaled 10 %. Changes to Administrative and Supervisory Bodies Dr. Christian Holtmann, CFO, resigned from the company on 12/31/02. He was succeeded by Stefan A. Bausert, CFO, on January 15, Reiner Seiler, long-standing member of the Managing Board, began the transition of his duties to Klaus Hammen in September. Mr. Seiler s departure on 10/31/02 was age-related. Events of Exceptional Significance with the Potential to Affect the Outcome of Business Operations No exceptional events. Interim Dividends No interim dividends were disbursed. Disbursement or Recommended Disbursement Amount No dividends were disbursed or recommended for disbursement Equity Capital Variance Computation Changes occurred due to excercised conversion rights and partial payment of the OMP purchase price with Singulus Technologies stock as well as from current-year profits. SINGULUS TECHNOLOGIES AG Hanauer Landstrasse 103 D Kahl Tel.: Fax: investor-relations@singulus.de Twelve months cumulative, as of 12/31/1999 / 2000 / 2001 / KEUR KEUR KEUR KEUR Gross Revenues 177, , , ,548 Earnings Before Taxes 45,493 94,724 42,448 54,521 Net Income 23,781 48,655 27,935 36,589 Total Shareholders Equity 56, , , ,621 Balance Sheet Total 129, , , ,349 Operating Cash flow 11,622 14,775 16,280 20,949 R & D Expenditures 4,359 9,013 8,307 16,155 Staff* Earning per Share in EURO (DVFA/SG) ** All figures in KEUR, except: * (actual number) ** based on 36,947,226 issue shares à 1 EURO MetaCom