Group sales exceeded 70 million euros, with a smaller line of business.
The Vending business figures grew by 44%, following the purchase of Coffetek Ltd.

During the first quarter of this year, the Azkoyen Group has earned a net profit of 3 million euros and its sales have exceeded 70 million euros. These results form part of the continuous efficiency improvement process for the Navarran group, manufacturers of vending machines and payment systems, within which diversification and the positive evolution of its strategic business lines play an important role.

(Figures in thousands of euros)

It is important to stress that the 2008 first quarter profits cannot be directly compared with those for the same period last year, since:

• Changes have occurred in the interests of consolidation, with the sales of divisions (hotel and restaurant service machines and complete installations).
• During the first quarter of 2007, certain one-time sales ocurred that are not expected to reoccur, which generated an extraordinary EBITDA during this period. (These included massive installations of access control devices that prevent minors from using tobacco vending machines.)
• During the first quarter of 2008, the new vacation accrual provision regulation was implemented, which has had an impact of more than one million euros. This effect will be compensated over the rest of the fiscal year.

All this leads us to conclude that, on a comparable basis, Azkoyen Group sales have remained stable with regards to the previous year, while the EBITDA grew by 1.4%, which demonstrates, beyond the isolated comparative effects outlined above, that the chosen strategic direction has been well-aimed, having been based on:

• Focusing activities on segments and business lines with significant sales figures, profitability and growth potential,
• Complementing increased profits with a firm expense control policy and concentrating resources on improving efficiency and production management.

In the semester report from the Azkoyen Group to the Spanish National Securities Market Commission (the CNMV), the group declares its “committment and insistence upon maintaining the rate of growth in sales and EBITDA recurrent in 2008, with special emphasis on the international markets.” The Group is immersed in an ambitious international expansion plan, where the Spanish market already represents barely 50% of their sales.

Of particular interest in Azkoyen's overall business evolution is the growth of sales in the Vending machine line. These sales have increased by 43.5% over last year, reaching 15.94 million euros, following the acquisition last March of the British company Coffetek Ltd., specialized in the manufacture and distribution of a wide range of hot beverage vending machines. Their incorporation will be reflected over the short term by improved income, as well as profitability and margins.

Payment Systems was consolidated as the Azkoyen Group’s leading business line in terms of billing, 26.94 million euros during the first half of the year, and the profitability generated by its products. Its sales increase has been 2.9%, with a growth in EBITDA above that of sales, thanks to significant improvements made in productivity and efficiency, while continuing to invest in new products to strengthen its leadership position.

The financial solidity of the Azkoyen Group allow it to maintain its growth strategy by means of acquisitions in its strategic business lines, independently of the global finance restrictions imposed by the international financial crisis. In this sense, the Navarran Group is analyzing several opportunities at the present time.

THE AZKOYEN GROUP (AZK)
Based in Peralta (Navarre), the Azkoyen Group (AZK) designs, manufactures and markets vending machines and electronic payment systems in over 50 countries, distributing coffee on the domestic hotel, restaurant and catering services market, while holding leadership positions in all of the above. In 2007, its sales reached 137 million euros, and they employed more than 700 people. Their shares are listed on both the Madrid and Barcelona security exchanges. www.azkoyen.com