IFCO Systems Reports Fiscal First Quarter Results In Line With Budget Expectations.

Business Editors

AMSTERDAM, Netherlands--(BUSINESS WIRE)--July 17, 2001

IFCO Systems N.V. (Nasdaq:IFCO)(Frankfurt:IFE)("IFCO Systems", "IFCO" or the "Company), a global leader in round-trip logistic systems and services announced the filing of its first quarter 2001 results and financial statements on NASDAQ (SEC) and on SMAX.

Sales for continuing operations totaled to $126.6 million which is 2.0% ahead of prior year. EBITDA from continuing operations in Q1 2001 totaled to $33.8 million, which includes a currency gain of $18.8 million. The gain reflects the change in the value of the EURO denominated debt when translated into USD. This is a non-cash item.

IFCO Systems reports a net profit of $11.5 million in the first quarter 2001.

RTC revenues grew by 11.5% to $42.6 million. RTC trips increased by 10.4% to 58.7 million trips. RTC pool utilization improved as expected. EBITDA for the RTC business totaled $8.5 million, compared to $11.6 million in the prior year. EBITDA margin of Q1 2001 is higher than the average margin 2000 and Q4 2000.

Despite the economic downturn in the U.S. economy, Pallet Services revenue were nearly stable at $54.1 million compared to prior year. EBITDA declined by $0.3 million to $4.0 million in 2001.

Pallet Pooling Services revenue grew 13.2% to $4.3 million. EBITDA grew to $0.1 million from breakeven in the prior year.

Drum Reconditioning revenue were $25.6 million. Due to a decline in citrus and strawberry volumes, sales declined by 5.9% compared to prior year. EBITDA declined by $0.6 million to $2.4 million. The cost of reconditioning the drums was inflated by very high natural gas prices ($1.0 million increase) during the quarter, being the main reason for this decline.

As a result of the cost reduction measures initiated in Q4 2000, overhead expenses declined to an annual run rate of $10.3 million, which equals to a reduction of more than $10 million.

Debt as of March 31, 2001 totaled $374.4 million, which is below budget expectations. Liquidity, defined as cash plus availability under the senior credit facility minus borrowings, was $27.8 million. IFCO Systems was in compliance with its bank covenants as of March 31, 2001.

CEO Karl Pohler said: "We are happy to see the first benefits of the initiated restructuring and cost reduction measurements in Q4 2000 and are confident we will continue improving the efficiency and profitability of our business."

The first quarter report 2001 is available on our homepage www.ifcosystems.de or www.ifcosystems.com.

The statements in this press release regarding management's expectations, estimates and projections constitute "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such statements are subject to risks and uncertainties that could cause IFCO Systems' results to differ materially from those expectations. Such risks and uncertainties include, but are not limited to: (1) the results of internal and independent reviews of projected financial results and condition; (2) the competitive nature of the container businesses, including RTCs, pallets, and industrial containers; (3) customer demand and economic cycles; (4) the ability to finance operations, capital expenditures and growth and comply with covenants contained in credit agreements to which IFCO Systems is a party; (5) conditions in lumber markets; (6) seasonality; (7) weather conditions; (8) changes in national or international politics and economics; (9) currency exchange rate fluctuations; and (10) change in capital and financial markets, including the performance of companies listed on the Frankfurt Stock Exchange and the Nasdaq National Market.

This announcement should be read in conjunction with the filings made by the Company with the Securities and Exchange Commission and the Frankfurt Stock Exchange. These filings disclose risk factors and other information that could cause actual results to materially differ from management's expectations.