Datalogic (Star: DAL.MI): board of directors approves quarterly interim report as at 31 March 2007

Sales revenues of € 104.1 million (+9,3% vs. 2006)

Increased profitability: EBITDA of € 14 million (+75.4% vs. the same period of prior year), (EBITNAR)  of € 10.9 million (+117.4% vs. 31st March 2006). Consolidated net profit of € 4.3 million (net loss of € 3.6 million as of 31 March 2006).Net financial position negative by € 54.1 million (improvement on net debt of € 58.4 million at 2006 year-end)

Bologna, 11th May 2007 - The Board of Directors of Datalogic - a company listed in the TechSTAR segment of the Milan Bourse and active in the design, production and distribution of barcode reader systems and RFID (radio frequency identification devices) - approved the quarterly interim report for the quarter ending on 31 March 2007 (1Q07).

1Q07 ended with consolidated sales revenues of € 104.1 million (mn), up by +9.3% vs. € 95.2 mn for the same period in the previous year (1Q06).

Increased profitability: EBITDA of € 14 mn (+75.4% vs. € 7.9 mn at 31 March 2006); EBITANR of € 10.9 mn (+117.4% vs € 5 mn of the same period of previous year).

Consolidated net profit of € 4.3 million, a significant improvement compared to the negative result recorded at the end of 1Q06 (€ 3.6 mn). This result, in terms of quality, is actually even better considering the level of extraordinary and non-recurring costs borne, equal to € 1.2 million, relating to the transformation plan, effective as from 2 April, were completely expensed.

With reference to the company's business activities, the Data Capture division posted sales of € 83.4 mn (+8.6% vs. € 76.8 mn for 2006), while the Business Development division reached € 20.7 mn (+11% vs. € 18.6 mn for 2006).

Segment result (before non-recurring costs/revenues and depreciation and amortization due to acquisitions) amounted to € 9.4 million for the Data Capture division (€ 2.5 mn in the first quarter of previous year), while for the Business Development division the result remained substantially unchanged (€ 3.9 mn vs. € 4 mn of the first quarter 2006). These results do not include € 2.4 mn of unallocable costs in the first quarter of 2007 (€ 1.5 mn in the same period of 2006).

All the geographical areas grew; in particular the Rest of the World (+37%) and Italy (+23%).

At 31 March 2007, the net financial position of Datalogic was negative by € 54.1 mn, an improvement on its position at 31 December 2006 (negative by € 58.3 mn). Moreover, in the first quarter of 2007 treasury shares were sold for approximately € 7.5 mn.

We highlight that the Quarterly Report at 31 March 2007 is unaudited. It should also be pointed out that the attached income statement and balance sheet are reclassified statements and as such are not subject to checking by the auditors.

"Sales revenues achieved in the first quarter were the best in the history of the company - commented Roberto Tunioli -. We would like to highlight the considerable improvement in profitability that is the result of the actions taken during past years".