Rieter Guides Lower on Slower Asian Sales

Zurich, Switzerland, May 7, 2008--A slow market for textile machinery has prompted The Rieter Group to revise its expectations downward for the current financial year.

Rieter said it now foresees a significant decline in sales and a decrease in operating margins. Rieter Textile Systems posted record figures for orders received, sales and operating earnings in 2007. However, demand has been weakening since the fourth quarter, and suffered a steep decline in March and April 2008.

Rieter said the main reason for the downturn is the soft business outlook for Asian spinning mills. New orders received by Rieter Textile Systems in the first four months were more than 50 percent lower than in the previous year.

The company doesn't seen much improvement before the end of the year and said sales will be significantly lower than previously forecast.