Airspray: Net income EUR 4.2 million.

ALKMAAR, Netherlands -- In line with earlier indications and despite a solid volume growth of 18% - especially in the US-market, Airspray's 2004-results turned out to be 32% lower than in 2003, largely attributable to a significantly weaker US-dollar as well as major one-off costs. With earnings per share of EUR 0.80 (2003: EUR 1.18), Airspray's intention is to maintain the cash dividend at a level of EUR 0.63 per issued share of EUR 0.16 nominal value.

Towards the end of the year, strategically important new product launches could be made with both the new Dual Foamer and the "Symplicity" lotion pump. In addition, major new projects with key global customers provided a solid platform for continuing strong growth.

Airspray expects to grow volume and net income at least 15% for 2005.

Financial Results

Despite a volume growth of 18% - almost exclusively realised in the US-market, Airspray has been unable to escape the full effect of the ongoing and sharp decline of the US-dollar, especially in the course of the 4th quarter 2004 with a year-end closing at a level of US$1.36/EUR . Mainly as a consequence of this, the consolidated revenues declined to EUR 34.5 million with an average gross margin of 37% (2003 44%). Given the fact that the largest share of costs have still to be borne in euros whilst a major portion of actual sales was related to dollars, the operating margin declined to a level of 20% (2003: 27%).In addition, Airspray's results were also affected negatively by unbudgeted one-off consulting costs.

As a consequence of these factors, profit before taxes declined by 32 % to EUR 6.5 million (2003: EUR 9.5 million) resulting into a net profit of EUR 4.2 million (2003: EUR 6.2 million).

In 2004, Airspray continued to make investments of some EUR 3.5 million for the production of new dispensers as well as to expand its existing production capacity. In addition, measures are being considered to mould and assemble a higher share of its products in the USA so as to cope with a significantly growing share of products in terms of local production and so to provide for a kind of natural hedge against major currency fluctuations.

With equity of EUR 27.5 million and a solvability of 78%, Airspray's balance sheet remains strong, with a return on capital employed of 24%.

Review of 2004

Airspray continued to show strong volume growth primarily in North America with Europe staying relatively flat. North America remained Airspray's most important market with 61% of sales (in euros). The number of active customers increased to 560 during 2004 up from 525 in 2003. In 2004 the Mini Foamer and Table top (standard and water resistant) were the fastest growing products.

Airspray's top five customers constitute 26% of sales (up from 21% last year).

In line with its growth strategy, Airspray is committed to introduce at least one new product per year. In the last quarter of 2004 the first shipment of both the new Dual Foamer and the new Symplicity lotion pump took place. During 2004, Airspray saw the retail launches of P&G like Pantene and Noxzema. Other major launches in the course of 2004 were J&J's Clean & Clear makeup removing cleanser, Dial's Tone Handsoap, GSK's Lactacyd (feminine hygiene) and Colgate's Softsoap.

During the third quarter a substantial inflow of new orders from new and existing customers were obtained most of which became visible in early 2005 with numerous retail introductions like P&G Pampers Kandoo, Dial Foaming hand soap and J&J Buddies foaming Shampoo and Hand wash.

Turnover per segment

In product segments, skin care remained the largest growing category accounting for 36% of Airspray's total sales. The growth in this segment was primarily caused by increased sales of feminine hygiene products and facial cleansers. The Hand soap category was 30% of turnover, strongly driven by positive developments in the US hand soap market and growth in wall dispensers. Haircare accounted for 20% of the segment mix and Suncare was steady at 9%. All other including food was 5%.

Dividend and share purchase

Because of the company's strong balance sheet, Airspray will propose to increase the payout ratio in order to maintain the same dividend payout in euros as last year. It will be proposed to pay EUR 0.63 in dividend, equal to previous year representing a payout ratio of 79%.

In view of the low cash position and the proposed dividend pay out for 2004, management will reconsider the possible share purchase, for which the AGM gave its approval.

Other information

While the previously reported legal case of SBS/DEB vs. Gojo in the United States continues and while Airspray has filed a formal opposition to the patent application of DEB in Europe, DEB has filed papers to start a lawsuit against Airspray in The Netherlands. Airspray continues to believe it does not infringe DEB's patent. The above is related and limited to pumps used in wall dispensers.

2005 Expectations

Airspray is confident to sustain its growth path at a double-digit percentage for the coming years and is positive regarding its growth potential for 2005 and beyond. In 2005, Airspray expects to further commercialise the Dual Foamer and the Symplicity Lotion pump. Airspray plans to invest approximately EUR 3 million for further expansion of production capacity.

The company will remain focused on autonomous growth and the development and introduction of new and improved products.

For the current year, adequate measures have been taken to contain the possible effect of a further decline of the US-$ against the EUR beyond a level of US-$ 1.34/ EUR . With an expected volume growth of at least 15% - net profit is also expected to grow at least 15%.

Airspray profile

Airspray is an important producer of high value-added, innovative dispensers. Airspray is market leader in mechanical instant foam dispensers. Airspray sells its products to producers of consumer products who include multinationals like Procter & Gamble, Unilever, Colgate, L'Oreal, Henkel-Schwarzkopf and Johnson & Johnson. Currently Airspray employs over 121 people. Airspray is a 'technology-driven' enterprise. During its 20+ year existence, Airspray has developed expertise in R&D, in bringing innovative dispensing solutions to mass production and in their worldwide marketing. Airspray now has four dispenser types that all operate without gas propellants. Airspray has been listed on the Euronext Amsterdam since 28 May 1998. In the U.S., the company is traded over-the-counter ("AYAKY").

CONSOLIDATED PROFIT AND LOSS ACCOUNT at December 31
In EUR x 1,000

                                    2004                2003   growth%

Net sales                          34,467              36,027     -4%
Cost of sales                    - 21,760            - 20,058      8%

Gross sales result                 12,707              15,969    -20%

Selling costs            -  637               -   689
General operating costs  -5,312               - 5,636
                                  - 5,949             - 6,325     -4%

Operating result                    6,758               9,644    -30%

Financial income/charges            - 301               - 154


Profit before tax                   6,457               9,490    -32%

Taxes                             - 2,238             - 3,281    -32%

Net profit                          4,219               6,209    -32%
                                ==========          ==========


RATIOS

In EUR.
Earnings per share (ave.)            0.80                1.18    -32%
Cash flow per share (ave.)           1.07                1.61    -34%
Equity per share (ult.)              4.57                4.58      -
Dividend per share                   0.63                0.63      -

In %
Return on capital employed            24%                 37%
Gross margin                          37%                 44%
Operating margin                      20%                 27%

Number of shares (average)      5,287,842           5,281,098
Number of shares (ultimo)       5,287,842           5,287,842
CONSOLIDATED BALANCE SHEET
In EUR x 1,000


ASSETS                             31-12-2004         31-12-2003

FIXED ASSETS
Intangible fixed assets          2,192               1,610
Buildings                        3,740               3,896
Operating assets and other
tangible fixed assets           13,529              11,556
Financial fixed assets a)        1,823               2,571
                                ------               -----
                                      21,284                19,633

CURRENT ASSETS
Stocks a)                              4,052                 3,210
Receivables
Debtors                          7,353               6,340
Other receivables a)             1,188               1,022
                                 -----               -----
                                       8,541                 7,362

Cash                                   1,449                 3,517
                                      ------                ------

Total assets                          35,326                33,722
                                     =======               =======

____________________________________________________________________


LIABILITIES                       31-12-2004            31-12-2003

Group equity                          27,514                27,553

Long-term debts                        2,308                 2,366

Short-term debts
Trade creditors a)                3,488             2,185
Other debts                       2,016             1,618
                                  -----             -----
                                       5,504                 3,803
                                     -------                -------

Total liabilities                     35,326                33,722
                                     =======                =======


a) 2003 restated for equal comparison
CONSOLIDATED CASH FLOW STATEMENT
In EUR x 1,000


Cash flow from operational activities
                                                   2004          2003

Operating results                                 6,758         9,644
Interest paid                                       (36)         (155)
Tax paid                                         (2,674)       (2,898)
Net result                                        4,048         6,591
Depreciation                                      1,620         1,888
Results sales other assets                            -            12
Cash flow generated                               5,668         8,491

Increase of working capital                        -151          -462

Cash flow from investment activities

Investment in intangible assets                    -713          -659
Investment in fixed assets                       -3,472        -2,909
Disinvestment                                         3             5
Investment in financial assets                      748          -255
Cash flow from investment activities             -3,434        -3,818

Cash flow from financing activities

Proceeds from issuance of shares                      -            90
Dividend paid                                    -3,331        -2,640
Change in long term debts                           -58           -78
Cash flow from financing activities              -3,389        -2,628

Net cash flow                                    -1,306         1,583


Exchange rate and conversion difference            -762          -913


Change in financial resources                    -2,068           670
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