euro adhoc: Salzgitter AG / quarterly or semiannual financial statement / SALZGITTER AG: Positive trend holds steady in the first half-year of 2006 (E)

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Disclosure announcement transmitted by euro adhoc.
The issuer is responsible for the content of this announcement.
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09.08.2006

Against the backdrop of a very firm market for rolled steel and tubes, the
divisions of Salzgitter AG which operate in production and trading generated
exceptionally high results in the first half of 2006.

Consolidated external sales rose to EUR 4.03 billion (H1 2005: EUR 3.63
billion). With operating results at EUR 437.9 million, pre-tax profit after
expenditure of EUR 239.1 million for the part hedging of an increase in the
value of the 17.2 % participation in Vallourec S.A., which came to more than EUR
1.3 billion on the reporting date and cannot be disclosed under consolidated
assets, stood at EUR 198.8 million (H1 2005: EUR 463.4 million). After-tax
profit came in at EUR 130.0 million (H1 2005: EUR 332.7 million). Return on
capital employed amounted to 16.6 % (before the aforementioned special effect:
35.3 %; H1 2005: 41.6 %).

External sales by Division:

EUR million         H1 2006       (H1 2005)
Steel                  1,199        (1,134)
Tubes                    828          (705)
Trading                1,758        (1,631)
Services                 206          (161)
Other/Consolidation       43            (0)
Group                  4,034        (3,631)

Earnings before taxes by Division:

EUR million          H1 2006      (H1 2005)
Steel                  203.6        (282.3)
Tubes                  138.0        (157.7)
Trading                 78.4         (44.1)
Services                12.1          (3.7)
Other/Consolidation   -233.3        (-24.4)
Group                  198.8        (463.4)

On the basis of the information currently available and expectations concerning
trends in the procurement and sales markets, as well as the general framework
conditions, and taking account of the effects of the profit improvement program,
the Salzgitter Group expects to post for the current year an operating pre-tax
result of at least EUR 650 million plus an additional profit of around EUR 900
million from the sale of its Vallourec participation. Express reference is made
to the fact that opportunities and risks arising from currently unforeseeable
trends in sales prices, input materials and capacity level developments, as well
as changes in the currency parity, may considerably affect performance in the
course of the remaining financial year 2006. The fluctuation in the consolidated
pre-tax result accruing from conceivable influences in their entirety may, as
experience has shown, be within a considerable range.

For further details, please see the press release and the Interim Report for the
first half of 2006 (www.salzgitter-ag.de) published tomorrow.

Further inquiry note:
Bernhard Kleinermann
Tel.: +49 (0) 5341-21-3783
E-Mail: kleinermann.b@salzgitter-ag.de
Tel.:49 (0) 5341-21-01
FAX: +49 (0) 5341-21-2727
Email: gersdorff.b@salzgitter-ag.de

end of announcement euro adhoc 09.08.2006 21:58:00
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emitter: Salzgitter AG
Eisenhüttenstrasse 99
D-38239 Salzgitter
phone: +49 (0) 5341-21-01
FAX: +49 (0) 5341-21-2727
mail: gersdorff.b@salzgitter-ag.de
WWW: http://www.salzgitter-ag.de
ISIN: DE0006202005
indexes: MDAX, CDAX, HDAX
stockmarkets: official dealing/prime standard: Frankfurter Wertpapierbörse, free
trade: Börse Berlin-Bremen, Hamburger Wertpapierbörse,
Baden-Württembergische Wertpapierbörse, Börse Düsseldorf,
Bayerische Börse, official dealing: Niedersächsische Börse zu
Hannover
sector: Iron & Steel
language: English

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