euro adhoc: Andritz AG / quarterly or semiannual financial statement / Andritz: Results for the First Half of 2006 - Increase in Order Intake, Sales, and Net Income - Order Backlog, at over 2 billion

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

04.08.2006

Graz, August 4, 2006. International Technology Group Andritz reports
a very favorable business development for the First Half of 2006,
with increases in Order Intake as well as in Sales and Net Income
compared to the reference period of last year. Order Backlog as of
30.6.2006 reached a new record level of more than 2 billion Euros.
For the full year 2006, Andritz expects to achieve new record
results, with increases in Sales and Earnings.

Increase in Sales During the First Half of 2006, Sales of the Andritz
Group were 967.5 MEUR, an increase of 24.4% compared to the reference
period of last year (H1 2005: 777.5 MEUR). Each Business Area - in
particular, the Rolling Mills and Strip Processing Lines and
Environment and Process Business Areas - was able to increase its
Sales compared to the First Half of last year.

Order Intake up, Order Backlog at record level Group Order Intake for
the First Half of 2006 increased by 43.4%, to 1,277.1 MEUR (H1 2005:
890.3 MEUR), thus continuing the upward trend. In particular, the
Pulp and Paper (+86.1% vs. H1 2005) and the Feed and Biofuel Business
Areas (+38.0% vs. H1 2005) were able to increase Order Intake
significantly compared to the reference period of last year.

Order Backlog as of 30.6.2006 reached a record level of 2,059.1 MEUR
(31.3.2006: 2,007.1 MEUR), thus providing a solid visibility for the
Group’s Sales development in the coming Quarters.

Earnings increased In step with higher Sales, Earnings before
Interest and Taxes (EBIT) in the First Half of 2006 increased by
27.7%, to 57.7 MEUR (H1 2005: 45.2 MEUR). The EBIT margin for the
period amounted to 6.0%, slightly up compared to the reference period
of last year (H1 2005: 5.8%). Net Income, excluding minority
interests, also increased significantly, to 39.9 MEUR (H1 2005: 32.3
MEUR).

Balance sheet structure As a result of the first-time consolidation
of VA TECH HYDRO and due to the issue of the 200 million Euro
corporate bond, total assets of the Andritz Group as of 30.6.2006
increased significantly, from 1,391 MEUR as of 31.12.2005 to 2,039
MEUR as of 30.6.2006. As a result, the equity ratio as of 30.6.2006
declined to 16.9% (31.12.2005: 23.6%).

Gross liquidity (marketable securities plus cash and cash
equivalents) as of 30.6.2006, i.e. after deduction of the purchase
price for VA TECH HYDRO, amounted to 523.4 MEUR (31.12.2005: 494.0
MEUR). Net liquidity as of 30.6.2006 (gross liquidity minus
financial liabilities, including the corporate bond issued in June
2006) reached a value of 192.4 MEUR (31.12.2005: 383.9 MEUR), which
corresponds to the long-term average.

Outlook For the Second Half of 2006, Andritz expects project activity
to continue to develop favorably in all Business Areas. Wolfgang
Leitner, President and CEO of Andritz: "Based on strong organic
growth as a result of the high Order Backlog and the first-time Sales
and Earnings consolidation of Andritz VA TECH HYDRO as from Q3 2006,
we expect Group Sales in 2006 to increase significantly, to
approximately 2.5 billion Euros. Correspondingly, the Group’s EBIT
in 2006 will also be up compared to last year; however, the
percentage increase of the EBIT will not fully meet the sales growth,
mostly due to the first-time consolidation of Andritz VA TECH HYDRO’s
Sales and Earnings."

Key Figures for the First Half of 2006

(in MEUR) H1 2005 H1 2006 Change Q2 2005 Q2 2006 Change
Sales 777.5 967.5 +24.4% 435.1 515.9 +18.6%
Order Intake 890.3 1,277.1 +43.4% 497.1 529.5 +6.5%
Order Backlog
(as of end
of period) 1,566.5 2,059.1 +31.4% 1,566.5 2,059.1 +31.4%
EBITDA1) 56.7 70.2 +23.8% 31.3 37.9 +21.1%
EBITDA Margin 7.3% 7.3% - 7.2% 7.3% -
EBITA2) 45.2 57.7 +27.7% 25.7 31.1 +21.0%
EBITA Margin 5.8% 6.0% - 5.9% 6.0% -
Earnings before
Interest and
Taxes (EBIT) 45.2 57.7 +27.7% 25.7 31.1 +21.0%
Earnings before Taxes 46.2 59.9 +29.7% 26.1 32.0 +22.6%
Net Income excl.
Minority Interests 32.3 39.9 +23.5% 18.2 21.0 +15.4%
Cash flow from
Operating Activities 38.5 -88.0 -328.6% 14.9 -63.2 -524.2%
Capital Expenditure3) 9.8 13.1 +33.7% 4.9 8.5 +73.5%
Employees
(as of end of period) 5,590 6,766 +21.0% 5,590 6,766 +21.0%

1) EBITDA: Earnings before Interest, Taxes, Depreciation and
Amortization of Goodwill 2) EBITA: Earnings before Interest,
Taxes, and Amortization of Goodwill 3) Additions to tangible and
intangible assets

Disclaimer Certain statements contained in this press release
constitute "forward-looking statements". These statements, which
contain the words "believe", "intend", "expect" and words of similar
meaning, reflect management’s beliefs and expectations and are
subject to risks and uncertainties that may cause actual results to
differ materially. As a result, readers are cautioned not to place
undue reliance on such forward-looking statements. The Company
disclaims any obligation to publicly announce the result of any
revisions to the forward-looking statements made herein, except where
it would be required to do so under applicable law.

The Letter to Shareholders for the First Half of 2006 is available on
the Andritz web site (www.andritz.com) both as an online and a PDF
version. Printed versions can be requested by telephone (+43 316
6902 2722), fax (+43 316 6902 465) or e-mail
(petra.wolf@andritz.com).

The Andritz Group Listed Andritz Group is a global market leader for
advanced production systems for pulp and paper, steel and other
specialized industries. Andritz has a staff of approximately 9,000
employees worldwide. It develops and makes its high-tech systems at
35 production sites in Austria, Germany, Finland, Denmark, France,
Netherlands, USA, Canada and China.

end of announcement euro adhoc 04.08.2006 07:30:00
--------------------------------------------------------------------------------

ots Originaltext: Andritz AG
Im Internet recherchierbar: http://www.presseportal.de

Further inquiry note:
Dr. Michael Buchbauer
Head of Investor Relations
Tel.: +43 316 6902 2979
Fax: +43 316 6902 465
mailto:michael.buchbauer@andritz.com

Branche: Machine Manufacturing
ISIN: AT0000730007
WKN: 632305
Index: WBI, ATX Prime, ATX
Börsen: Wiener Börse AG / official dealing