Declaration of compliance

of LPKF Laser & Electronics AG for the 2007 financial year with the Corporate Governance Code in accordance with Section 161 German Stock Corporation Act (Aktiengesetz)

The Supervisory Board of LPKF Laser & Electronics AG passed the following declaration of compliance in accordance with Section 161 German Stock Corporation Act at its meeting on 19.11.2007.

The Board of Managing Directors and the Supervisory Board of LPKF Laser & Electronics AG acknowledge and accept the recommendations of the Government Commission on the German Corporate Governance Code (DCGK) dated 14 June 2007, and declare that these recommendations have been observed with the following exceptions:

• The Supervisory Board  of LPKF Laser & Electronics AG consists of three persons and sensibly reflects the size of the company. The size of the Supervisory Board ensures the efficient functioning of the board. This is why no Supervisory Board  committees are formed. The same also applies to the formation of an auditing committee. (Subsection 5.3.2 DCGK).
• The interim reports are published 60 days after the reporting period at the latest due to the extensive Group interdependence. This period will be subject to an annual review with the aim of shortening it if possible. (Subsection 7.1.2 Prov. 2 2. Subprov. DCGK).

Specific details on the share option scheme and similar securities-oriented motivation schemes practised by the company are described in the Notes to the Consolidated Financial Statements or in the Remuneration Report (Subsection 7.1.3 DCGK).

Specific details on the directors’ dealings in accordance with Section 15 a German Securities Trading Act (WpHG) and the direct or indirect ownership of shares are also described in the Notes to the Consolidated Financial Statements (Subsection 6.6 Para. 2 DCGK).

Garbsen, 19.11.2007