euro adhoc: Salzgitter AG / quarterly or semiannual financial statement / Steel, Tubes and Trading post record sales and excellent results in the first quarter of 2006

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Disclosure announcement transmitted by euro adhoc.
The issuer is responsible for the content of this announcement.
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12.05.2006

Boosted by a market for rolled steel, which developed much more
favorably than envisaged a few months ago, and the persistently
robust demand for tubes, the Salzgitter Group raised the operating
results of its divisions in the first three months of 2006 as against
the last quarter of 2005.

Consolidated external sales rose to EUR 1.98 billion (Q1 2005: EUR
1.77 billion). With operating results at EUR 198.9 million, pre-tax
profit after expenditure of EUR 148.7 million in relation to hedging
transactions stood at EUR 50.2 million (Q1 2005: 253,5 Mio. EUR).
After-tax profit came in at EUR 35.7 million. Return on capital
employed amounted to 8.8 % (before the aforementioned special effect:
31.9 %; Q1 2005: 52.0 %).

External sales by Division (EUR million):

Q1 2006 (Q1 2005)
Steel 606 (574)
Tubes 398 (313)
Trading 866 (797)
Services 93 (81)
Others/Consolidation 20 (0)
Group 1,983 (1,765)

Earnings before taxes by Division:(EUR million)

Q1 2006 (Q1 2005)
Steel 104.4 (166.4)
Tubes 62.2 (77.2)
Trading 30.1 (26.3)
Services 5.7 (3.4)
Others/Consolidation -152.2 (-19.8)
Group 50.2 (253.5)

On the basis of the information currently available and estimates
concerning trends in the procurements and sales markets as well as
the general framework conditions, and taking account of the effects
of the profit improvement program, the Salzgitter Group’s operating
pre-tax result is expected to reach at least EUR 600 million in the
current year. This forecast is, of course, net of the special effects
arising from hedging transactions which are, by nature, not
foreseeable as they depend on the development of the share price of
Vallourec S.A. 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
resulting fluctuation in the consolidated pre-tax result may, as
experience has shown, be within a considerable range.

For further details, please see the press release and the Interim
Report for the 1st Quarter of 2006 (www.salzgitter-ag.de) published
today.

end of announcement euro adhoc 12.05.2006 06:38:32
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ots Originaltext: Salzgitter AG
Im Internet recherchierbar: http://www.presseportal.de

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

Branche: Iron & Steel
ISIN: DE0006202005
WKN: 620200
Index: MDAX, CDAX, HDAX
Börsen: Frankfurter Wertpapierbörse / official dealing/prime standard
Börse Berlin-Bremen / free trade
Hamburger Wertpapierbörse / free trade
Baden-Württembergische Wertpapierbörse / free trade
Börse Düsseldorf / free trade
Bayerische Börse / free trade
Niedersächsische Börse zu Hannover / official dealing