euro adhoc: Salzgitter AG / quarterly or semiannual financial statement / SALZGITTER AG: Positive trend holds steady in the first half-year 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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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.

end of announcement euro adhoc 09.08.2006 21:58:00
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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