Semi-Tech Pfaff announces interim results

Business Wire, August 23, 1996

MARKHAM, Ontario--(BUSINESS WIRE)--Aug. 23, 1996--Semi-Tech Corporation ("Semi-Tech") (ME, TSE, NASDAQ: SEM.A, SEM.I, SEMCF) announced today that G.M. Pfaff AG ("Pfaff") has issued the following press release concerning its six month results ended June 30, 1996.

Pfaff is a subsidiary of Semi-Tech (Global) Company Limited, an approximately 40% owned affiliate of Semi-Tech.

Semi-Tech Corporation is a Canadian-based multinational company engaged in the global marketing and distribution of consumer products for the home, principally through its subsidiaries and affiliates. Companies within the Semi-Tech group have revenues in excess of $5.0 billion. Semi-Tech's shares are listed on the Toronto Stock Exchange (Class A: SEM.A; Class B: SEM.B). Class A shares are also listed on the Montreal Exchange under the symbol SEM.A and in the United States on the NASDAQ Stock Market under the symbol SEMC.F. Shares of Semi-Tech (Global) Company Limited are listed on The Hong Kong Stock Exchange under the symbol 448. The ordinary shares of Semi-Tech (Global) are also traded on the over-the-counter market in the United States through a sponsored ADR program under the symbol SITGY. G.M. Pfaff AG shares are listed on the Frankfurt Stock Exchange under the symbol PFA. Pfaff is a 72% subsidiary of Semi-Tech (global) Company Limited, an approximately 40% owned affiliate of Semi-Tech.

CONTACT: Semi-Tech Corporation

Michael List

Vice President-Corporate Development

SEMI-TECH CORPORATION

905/475-2670, Ext. 227 -0- ( BW)(SEMI-TECH-2) Semi-TECH announces Pfaff interim results; Pfaff continued its consolidation program

HONG KONG--(BUSINESS WIRE)--Aug. 23, 1996--Semi-Tech (global) Company Limited ("Semi-Tech") announces that its 80.5% owned subsidiary, G.M. Pfaff AG ("Pfaff" or "Company") announced its financial results for the six months ended June 30, 1996.

Pfaff became a subsidiary of Semi-Tech in June 1993. *T Quote Condensed Statements of Income of the Pfaff Group (In DM millions) For 6 months ended

30-06-96 30-06-95 Sales

320 365 -Industrial Products

209 260 -Consumer Products

111 105 -Exports Sales

234 257 -Domestic Sales

86 108 Gross Profit

100 118 Operating Income (Loss)

(10.4) 3.1 All other expenses including interest

(2.6) (5.1) Ordinary Income (Loss) before Exchange, Restructuring & other Extraordinary Items (13) (2) Less: Exchange loss

-- (6.7)

Restructuring charge &

other Extraordinary Items (10) (2.3) Net Income (Loss)

(23) (11) *T Business Developments

As business environment remained extremely difficult in the first half of the year Pfaff continued its consolidation program, i.e. restructuring of the marketing organisation, creation of new areas as profit centers and the installation of a new finance and cash flow management. These measures will enable the Company to meet future requirements.

1996 Sales in the Pfaff Group were 12% lower than in prior year. DM 10 million of this reduction is related to the disposal of J. Sandt AG. IP sales increases in Austria, Mexico and Hong Kong could not compensate weak sales in the other areas. CP sales increased significantly in France, North America, the Middle East, South Africa and Australia. Cost Structure

Ordinary business result decreased from DM - 2 million in the first half of 1995 to DM - 13 million for the six months ended June 1996.

To compensate the decrease in sales a staff reduction of 350 persons has been decided in April which will be effective during the second half of the year. Personnel

With a total headcount of 3,944 (incl. trainees), the Pfaff Group employed 452 persons or 10% fewer as of June 30, 1996 than on the same date of the previous year.

G.M. Pfaff AG reduced the headcount by 8% from 3,325 to 3,072 employees in the same period. Investments

The additions to the fixed assets in the Pfaff Group during the first half of the year amounting to DM 8 million related to exercising the option to purchase land and buildings. Other investments were carefully monitored to conserve cash. Outlook

For the second half of the year we expect a positive impact of the cost reduction measures in our IP business as well as a continued positive development for the CP business. Both effects should substantially improve the ordinary business result of Pfaff Group. Unquote

Semi-Tech is a Bermuda corporation whose ordinary shares are listed on The Stock Exchange of Hong Kong Limited under the symbol 448. The ordinary shares of Semi-Tech are also traded in the over-the-counter market in the United States through a sponsored ADR program under the symbol SITGY. Pfaff is a German public company whose shares are listed on the Frankfurt Stock Exchange under the code PFA.

--30--SAM/dx*

CONTACT: Semi-Tech Corporation

Paul Lam

Semi-Tech (Global) Company Limited

Tel No.: (852) 2524 1043 Hong Kong

Fax No.: (852) 2845 3558 Hong Kong