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Good results for Hapimag in 2002

Press Release: Hapimag
May 13, 2003
BAAR, Switzerland -- Hapimag, Europe's leading provider of holiday resorts, has achieved pleasing result in a difficult commercial environment. Although turnover fell by 8.7%, after-tax profits rose to 1.1m SFR. Free cash flow reached 30.1m SFR, thereby underlining Hapimag's considerable self-financing power. To improve customer satisfaction, 2003 will see the introduction of a comprehensive four-point strategy.

Despite a difficult commercial environment, Hapimag has achieved a good overall result. While sales fell from 234m SFR to 214m SFR (-8.7%), corporate results improved from -4.1m SFR to 1.1m SFR. Hapimag's own financial resources rose from 976m SFR to 986m SFR (+1%), while liabilities fell from 175m SFR to 150m SFR (-13%). With a balance sheet total of 1.136 billion SFR, the Swiss company's self-financing level rose to an outstanding 87% (+2%).

Varying results emerged in the company's three sectors: resorts, product sales and travel service. Hapimag's core business, running resorts, saw an increase in sales of +2.3% and the opening of four new resorts in Orlando, Prague, Interlaken and Flims. Product sales reflected the insecurity of consumers and saw a -43% drop. Happily, thanks to a professional aproach to travel management and a consistent cost focus, the travel service was able to stabilise last year's earnings situation.

When it comes to maximising customer satisfaction, the 2003 financial year at Hapimag will see the consistent application of a new four-part corporate strategy: Easing the bottleneck during the high season that occurs in the supply of apartments to partners and clients, improving the booking system, extending the product range and revamping the organisation. Dr. Marisabel Spitz Kaspar, President of the Board of Directors said: "If we have a more flexible way of offering apartments to our partners, we can effectively reduce bottlenecks during high season. In addition, the introduction of a more efficient IT system and the re-introduction of the rotation principle will lead to an improvement in our booking system".

CEO Kurt Scholl added: "With regard to our highest aim, giving the satisfaction to our customers, we have orientated our products to their needs more effectively. At the Annual General Meeting on June 21, 2003, we will be presenting some attractive alternatives to the share buy-back scheme. Now that 2002, a year of consolidation and planning, is over, in the year ahead, I am looking, together with my staff, to push ahead with the revitalisation of our organisation and to further simplifying long-standing procedures and their efficiency."

Hapimag is a leading international provider of holiday rights of residence. The Swiss company was founded in Baar in the canton of Zug in 1963 as a Swiss joint-stock company. Currently, well over 135,000 Hapimag partners have the right to enjoy their own Holiday World. With the purchase of Hapimag shares, Feridence Certificates, and Holiday-World Visas, joint financial owners receive the right to enjoy holiday resorts rent free in accordance with a points system. The only additional costs are those related to travel, the all in extras package, and an annual subscription charge which covers the yearly running costs. Place and time of the holiday may be freely chosen. Currently partners may choose from 5,500 apartments and hotel rooms in 60 resorts all located in the most beautiful areas and spread over 18 countries in Europe and overseas. Hapimag only invests in first-class locations thereby keeping its long-term vision in mind. The company employs over 1,500 personnel worldwide. Hapimag can be reached through the Internet under www.hapimag.com.

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Further information:
Markus Peter, Corporate Communications Department, 
Hapimag/Havag AG, Neuhofstrasse 8/12, CH-6349 Baar
Telephone:	++41 41 / 767 87 35
Fax:	++41 41 / 767 87 46
E-Mail:	peter.markus@hapimag.com