XING Releases Its 2007 Annual Report

Market Wire, March, 2008

XING AG (ISIN: DE000XNG8888)

--  Meets annual guidance for 2007
--  Shows vigorous profitable growth
--  Further consolidates business networking market
--  Establishes new business models
    

XING AG (ISIN: DE000XNG8888), operator of XING, the leading network for business contacts in Europe, releases its 2007 Annual Report today, and has met its annual guidance.

In its first full financial year, XING AG achieved revenues of EUR 19.61 million and an operating EBITDA of EUR 6.89 million. This corresponds to an EBITDA margin of approximately 35.2 percent. Earnings per share for FY 2007 amounted to EUR 1.10. With these results, XING AG has met its guidance for 2007, nearly doubling revenue for the year and achieving an EBITDA margin of 30-35 percent. The Company's profit ratio for 2007 is at the upper end of the published guidance.

Vigorous organic growth with a high profit ratio

In the 2007 fiscal year, the member base increased by over three million members (including the acquisitions of the Spanish platforms eConozco and Neurona) to approximately 4.83 million. With over 141,000 new Premium Members in FY 2007 (short financial year 2006: nearly 130,000), XING AG has recorded the highest growth in paying members in the history of the Company. At the end of the year, XING had approximately 362,000 paying members, up from 221,000 paying members at the end of 2006. A few weeks ago, XING AG achieved another milestone, registering over 400,000 paying members, demonstrating that the growth in the social networking industry remains constant and unchanged.

Consolidation in the Spanish-language market

Last year, XING AG became the first business network to acquire another social network with focus on business customers, after taking over the Spanish competitor eConozco. At the end of 2007, the acquired platform was successfully integrated into the XING networking platform. Months after the first acquisition in Spain, XING AG acquired the market leader in the Spanish-language market, Neurona. Shortly after the end of the financial year, XING AG continued with its strategy of active consolidation, acquiring the Turkish business network cember.net. The Company further demonstrated that it is employing the capital from the IPO in a strategically relevant manner, effectively promoting international growth.

New business models

The past financial year was marked not only by acquisitions and commercial partnership agreements, but also by an expansion of the Company's business models. In Q4 2007, XING AG introduced two additional business models, realizing initial revenues from these new segments. The new segments "eCommerce" and "Advertising" have already contributed to the revenue and results of XING AG for the first time. The "eCommerce" segment, introduced in October 2007, contributed approximately EUR 0.40 million in revenue, mainly from job listings posted on the platform. The "Advertising" segment, which began operations in December 2007, already resulted in revenue of EUR 0.75, due to one-time fees. Revenue from "Subscriptions," the core business segment of XING AG, amounted to EUR 17.84 in the past financial year.

"The Company and its employees can look back at 2007 as a successful financial year. In one of the fastest growing industries in the world, we've positioned ourselves splendidly, and have continued to expand our position as the European market leader in business networking," said Lars Hinrichs, CEO of XING AG.

Financial & Non financial KPIs on XING AG

XING total
                                      2007*    2006**   Q4/2007*  Q4/2006**
                                    --------  --------- --------  ---------
Revenue in million Euros               19.61       6.11     6.48       3.44

EBITDA in million Euros                 6.89      -0.69     2.76      -1.28
EBITDA Margin                           35.2%       neg     42.6%       neg

EPS (diluted) in million Euros          1.07        neg     0.40        neg
EPS (undiluted) in million Euros        1.10        neg     0.41        neg

                                    --------  --------- --------  ---------

Segment:
Subscription
                                       2007*   2006**   Q4/2007*  Q4/2006**
                                    --------  --------- --------  ---------
Revenue in million Euros               17.84       5.90     5.29       3.26

Paying members in m                    0.362      0.221    0.362      0.221
Basic members in m                     4.470      1.474    4.470      1.474
Total members in m                     4.832      1.694    4.832      1.694

Net adds paying members in m           0.141      0.130    0.037      0.032
Net adds basic members in m            2.997      0.873    0.545      0.216
Net adds total in m                    3.138      1.003    0.582      0.248

                                    --------  --------- --------  ---------

Segment:
Advertising
                                        2007       2006  Q4/2007    Q4/2006
                                    --------  --------- --------  ---------
Revenue in million Euros               0.750          -    0.750          -

Page Impressions in bn                 ~2.37      ~1.67    ~0.65      ~0.47

                                    --------  --------- --------  ---------

Segment:
eCommerce
                                        2007       2006  Q4/2007    Q4/2006
                                    --------  --------- --------  ---------
Revenue in million Euros                 0.4          -      0.4          -

No. of Marketplace Clicks in m          1.05          -     1.05          -

                                    --------  --------- --------  ---------
* Excl. Discontinued operations and one off effects (Q1/07) due to the IPO
** Short financial year (July to December 06); continuing operations