The Cronos Group Reports First Quarter 2007 Results

Share Name	Share Symbol	Market	Type
Cronos Grp. S A (MM)	NASDAQ:CRNS	NASDAQ	Common Stock

Cronos (NASDAQ:CRNS)
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The Cronos Group (NASDAQ:CRNS) today reported that the Company�s net income for the quarter ended March 31, 2007 was $2.3 million, or $0.28 per diluted share, compared with net income of $2.6 million, or $0.32 per diluted share, for the comparable quarter in 2006. This decline in earnings for the first quarter of 2007 was primarily due to the impact of $600,000 of professional fees, relating to the proposed transaction for the sale of the Company, that had the effect of reducing net income by $0.07 per diluted share. Gross lease revenue for the first quarter of 2007 was $35.7 million, an increase of $0.5 million when compared with the first quarter of 2006. Gross lease revenue for specialized containers for the quarter increased by $3.4 million when compared with the same period in the prior year, reflecting the growth in the size of the Company�s specialized container fleet. This was partially offset by a $2.9 million decline in gross lease revenue for dry cargo containers as Cronos disposed of equipment at the end of its useful economic life for maritime leasing. The Company added $48.7 million of new container equipment to its fleet during the quarter, with specialized equipment accounting for 82% of the new additions. Utilization of the combined container fleet was 92% at March 31, 2007, reflecting continued strong demand for all container types, as all major trade routes reported high volumes of containerized trade during the period. Direct operating expenses declined by $1.2 million, or 23%, when compared with the first quarter of 2006 due to a reduction in activity-related costs that resulted from lower volumes of container redeliveries and reduced inventories. Cronos is one of the world�s leading lessors of intermodal containers, owning and managing a fleet of over 447,000 TEU (twenty-foot equivalent units). The diversified Cronos fleet of dry cargo, refrigerated and other specialized containers is leased to a customer base of approximately 450 ocean carriers and transport operators around the world. Cronos provides container-leasing services through an integrated network of offices through state-of-the-art information technology. This release discusses certain forward-looking matters that involve risks and uncertainties that could cause actual results to vary materially from estimates. Risks and uncertainties include, among other things, changes in international operations, exchange rate risks, changes in market conditions for the Company�s container lease operations and the Company�s ability to provide innovative and cost-effective solutions. For further discussion of the risk factors attendant to an investment in the Company�s common shares, see the Introductory Note in the Company�s Annual Report on Form 10-K that was filed with the SEC on March 16, 2007. This press release and other information concerning Cronos can be viewed on Cronos� website at www.cronos.com. The Cronos Group � Condensed Unaudited Consolidated Statements of Income (US dollar amounts in thousands, except per share amounts) � Three Months Ended March 31, 2007� 2006� Gross lease revenue $ 35,722� $ 35,264� Equipment trading revenue 925� 1,726� Commissions, fees and other income: - Related parties 160� 203� - Unrelated parties 1,266� 987� Total revenues 38,073� 38,180� � Direct operating expenses 3,909� 5,107� Payments to Managed Container Programs: - Related parties 15,314� 12,459� - Unrelated parties 6,947� 7,799� Equipment trading expenses 750� 1,572� Depreciation and amortization 2,964� 2,950� Selling, general and administrative expenses 5,658� 5,134� Interest expense 1,808� 1,644� Total expenses 37,350� 36,665� Income before income taxes and equity in earnings of affiliate 723� 1,515� Income taxes (145) (227) Equity in earnings of unconsolidated affiliate 1,725� 1,271� � � Net income 2,303� 2,559� � � Basic net income per common share $ 0.30� $ 0.34� � � Diluted net income per common share $ 0.28� $ 0.32� The Cronos Group � Condensed Unaudited Consolidated Balance Sheets (US dollar amounts in thousands, except per share amounts) � March 31, Dec. 31, 2007� 2006� Assets Cash and cash equivalents $ 8,789� $ 8,498� Restricted cash -� 250� Amounts due from lessees, net 32,189� 30,913� Amounts receivable from Managed Container Programs 2,224� 3,033� New container equipment for resale 42,041� 35,131� Net investment in direct financing leases 11,482� 12,222� Investments in unconsolidated affiliates 46,900� 43,710� Container equipment, net 111,562� 113,081� Other equipment, net 582� 632� Goodwill 11,038� 11,038� Other intangible assets, net 111� 157� Current and deferred income taxes 447� 282� Other assets 3,913� 4,252� Total assets $ 271,278� $ 263,199� � Liabilities and shareholders� equity Amounts payable to Managed Container Programs 24,792� 24,171� Amounts payable to container manufacturers 43,767� 34,809� Direct operating expense payables and accruals 3,965� 4,821� Other amounts payable and accrued expenses 6,427� 7,381� Debt and capital lease obligations 93,651� 95,875� Deferred income taxes 3,656� 3,650� Deferred income and unamortized acquisition fees 7,449� 7,005� Total liabilities 183,707� 177,712� � Shareholders� equity Common shares issued (7,678,073 shares) 15,356� 15,356� Additional paid-in capital 42,555� 42,489� Common shares held in treasury (112,000 shares) (297) (297) Accumulated other comprehensive income 320� 605� Restricted retained earnings 1,832� 1,832� Retained earnings 27,805� 25,502� � Total shareholders� equity 87,571� 85,487� � � Total liabilities and shareholders� equity $ 271,278� $ 263,199�

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CRNS Cronos Grp. S A (MM)