The Cronos Group Reports Fourth Quarter and Full Year Results for 2006

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 year ended December 31, 2006 was $9.2 million, or $1.14 per diluted share, compared with net income of $7.8 million, or $0.98 per diluted share, for 2005. Net income for 2006 included the impact of expense items that, in aggregate, reduced net income by $1.6 million, or $0.20 per diluted share. These items included professional fees relating to certain litigation against the Company and the recently announced proposed transaction for the sale of the Company, as well as charges recorded in connection with the implementation of restructuring plans. Net income for the year ended December 31, 2005, included the effect of non-operational items that reduced net income by $4.9 million, or $0.63 per diluted share. Total revenues for 2006 were $151.8 million compared with $148.3 million for 2005. Gross lease revenue for 2006 of $141.9 million was 2% higher than for 2005. Net income for the fourth quarter of 2006 was $1.4 million or $0.17 per diluted share. Non-operational expenses had the impact of reducing net income by $0.6 million, or $0.07 per diluted share. The Company recorded a net loss of $1.5 million, or $0.19 per diluted share, for the fourth quarter of 2005. This included the impact of a $4.6�million, or $0.57 per diluted share, of non-operational charges including a $4.1 million charge relating to the estimated cost of resolving certain litigation against the Company. Dennis J. Tietz, Chairman and CEO of Cronos, stated, �We are pleased with our performance in 2006. These results reflect the continued strong demand for all product types in 2006, as well as the growth and profitability of the Joint Venture Program. The lease market for new equipment recovered from the slowdown experienced during the summer months, and we saw strong demand for all product types throughout the fourth quarter. �We added $155.1 million of new container equipment to our fleet during 2006. Our focus on diversified equipment has allowed us to continue the expansion of our product and customer bases. Utilization of the Company�s combined container fleet was 92.1% at the end of 2006, compared with 90.8% at the beginning of the year.� Cronos is one of the world�s leading lessors of intermodal containers, owning and managing a fleet of over 440,000 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 Consolidated statements of income For the years ended December 31, 2006, 2005 and 2004 (US dollar amounts in thousands, except per share amounts) � 2006� 2005� 2004� � Gross lease revenue $141,883� $139,024� $132,096� Equipment trading revenue 4,669� 2,210� 4,698� Commissions, fees and other operating income: - Related parties 721� 802� 953� - Unrelated parties 4,024� 4,577� 2,641� Gain on settlement of litigation -� 1,333� -� Interest income 545� 344� 120� Total revenues and other income 151,842� 148,290� 140,508� Direct operating expenses 16,643� 18,091� 20,563� Payments to Managed Container Programs: - Related parties 56,551� 40,826� 31,638� - Unrelated parties 30,374� 36,177� 36,323� Equipment trading expenses 4,085� 1,978� 4,018� Amortization of intangible assets 188� 188� 188� Depreciation 11,648� 15,141� 17,993� Selling, general and administrative expenses 20,791� 21,909� 18,834� Interest expense 7,358� 6,186� 5,178� Recovery of amount payable to Managed Container Program -� (703) -� Recovery of related party loan note -� -� (1,280) Provision against legal claims -� 4,100� -� Total expenses 147,638� 143,893� 133,455� Income before income taxes and equity in earnings of affiliate 4,204� 4,397� 7,053� Income taxes provision (954) (864) (1,071) Equity in earnings of unconsolidated affiliate 5,977� 4,269� 2,883� Net income 9,227� 7,802� 8,865� Basic net income per common share $1.22� $1.06� $1.22� Diluted net income per common share $1.14� $0.98� $1.14� The Cronos Group Consolidated balance sheets December 31, 2006 and 2005 (US dollar amounts in thousands, except per share amounts) � 2006� 2005� � Assets Cash and cash equivalents $8,498� $15,829� Restricted cash 250� 4,200� Amounts due from lessees, net 30,913� 28,540� Amounts receivable from Managed Container Programs 3,033� 3,391� New container equipment for resale 35,131� 38,142� Net investment in direct financing leases 12,222� 12,678� Investment in unconsolidated affiliates 43,710� 31,358� Container equipment, net 113,081� 121,988� Other equipment, net 632� 1,130� Goodwill 11,038� 11,038� Other intangible assets, net 157� 345� Income taxes 282� -� Other assets 4,252� 3,093� Total assets $263,199� $271,732� � Liabilities and shareholders' equity Amounts payable to Managed Container Programs $24,171� $25,462� Amounts payable to container manufacturers 34,809� 52,790� Direct operating expense payables and accruals 4,821� 5,432� Other amounts payable and accrued expenses 7,381� 11,873� Debt and capital lease obligations 95,875� 87,780� Income taxes -� 209� Deferred income taxes 3,650� 2,965� Deferred income and deferred acquisition fees 7,005� 7,684� Total liabilities 177,712� 194,195� � Shareholders� equity Common shares 15,356� 15,040� Additional paid-in capital 42,489� 43,807� Common shares held in treasury (297) (297) Accumulated other comprehensive income 605� 880� Restricted retained earnings 1,832� 1,832� Unrestricted retained earnings 25,502� 16,275� Total shareholders� equity 85,487� 77,537� Total liabilities and shareholders' equity $263,199� $271,732�

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CRNS Cronos Grp. S A (MM)