Klöckner & Co - strong performance continues

• Appreciable rise in earnings again in Q3 2006
• Favorable price trend
• Debt further reduced
• Expansion strategy sustained as planned
• Confirmation of positive outlook for full year

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Duisburg (euro adhoc) - Duisburg, November 28, 2006 - In Q3 2006 the
multi-metal distribution company, Klöckner & Co, maintained the
strong performance achieved in the first half-year. Measured against
the same period in 2005, the company significantly improved on all of
its key metrics. The Klöckner & Co Group profited from the very
favorable development of the multi-metal distribution market and the
successes achieved in the context of the STAR performance program.

The Klöckner & Co share price has progressed very well since the
shares were first listed on June 28, 2006. It has risen from an issue
price of EUR16 to EUR27.10 (Xetra closing price on November 24,
2006), representing an increase of 69%. The Klöckner & Co IPO
therefore ranks among the year's most successful to date. "The share
price reflects the company's successful development," comments Dr.
Thomas Ludwig, chairman of the board of management of Klöckner & Co
AG.

On September 18, 2006 the share was admitted to the SDax® index of
the Deutsche Börse Group. At the end of October our shareholder
Lindsay Goldberg & Bessemer (LGB) sold about 20 % of its 65 %
shareholding. The free float increased from 35 % to 55 %.

The Klöckner & Co Group increased its turnover in tonnes by 5.8% in
the first nine months of 2006, compared with the same period last
year. Consolidated sales in the first nine months grew to EUR 4.1
billion. The measures taken to enhance efficiency, the higher tonnage
and improved margins significantly improved the pattern of earnings
during the period. "This extremely favorable earnings development
vindicates the systematic pursuit of our corporate strategy and
highlights the commitment and hard work of our employees," remarks
Dr. Ludwig.

The EBITDA (earnings before interest, taxes, depreciation and
amortization) of the Klöckner & Co Group for the nine months ended
September 30, 2006 was EUR325 million, which was approximately EUR176
million higher than the previous year's comparable figure (excluding
the reversal of negative goodwill). The operating businesses in
Europe and North America substantially improved on the previous
year's EBITDA, generating EUR299 million in Europe and EUR64 million
in North America before holding and consolidation costs.

The EBIT (earnings before interest and taxes) of the Group in the
first three quarters totaled EUR282 million, which marks an increase
of approximately EUR178 million compared with the first nine months
of 2005, disregarding the reversal of negative goodwill. The earnings
before taxes climbed sharply against the previous year's adjusted
figure, by EUR166 million to EUR230 million. The equity ratio as of
September 30, 2006 stood at 28 %.

The funds generated by the disposal of non-core businesses and
non-operating assets were used, together with the funds that accrued
from the IPO, to reduce the outstanding debt. The net indebtedness
was thus reduced to EUR435 million at the end of Q3 2006, which was
significantly lower than the comparable figure of EUR719 million as
of December 31, 2005. In August the high yield bond, which bears
10.5% interest, was reduced by EUR90 million with funds resulting
from the capital increase in connection with the IPO. This reduction
gave rise to a one-time charge in the amount of about EUR13 million
in Q3 2006.

In the third quarter Klöckner & Co continued successfully to pursue
its expansion strategy by acquiring small and mid-size distribution
enterprises. The Spanish special steel distribution group, Aesga, was
acquired in July 2006. In October the US organization was acquired
the distribution company, Action Steel, in the Midwest of the USA,
with facilities in Indianapolis, Indiana and Louisville, Illinois.
Also in October, in Switzerland the Klöckner & Co Group acquired
Gauss, a company specializing in building engineering and tools.

Outlook

Against the background of the prevailing stable and strong
environment for metal distribution, our consumer industries'
forecasts and the successes achieved in the context of the STAR
performance program, Klöckner & Co expects its favorable development
to be sustained in Q4 2006. Compared with the previous year, the
company anticipates an appreciable sales increase to a total of more
than EUR5.4 billion for 2006. Even after allowing for the one-off
effects of about EUR40 million, the forecast EBITDA of approximately
EUR380 million to EUR390 million clearly exceeds the comparable 2005
figure of EUR197 million.

About Klöckner & Co:

Klöckner & Co is the largest producer-independent steel and metal
distributor in the European and North American markets combined. The
core business of the Klöckner & Co group is the storage and
distribution of steel and non-ferrous metals. About 200,000 active
customers are supplied through approximately 240 distribution
locations in 14 countries in Europe and North America. Klöckner & Co
was founded 100 years ago by Peter Klöckner. During the financial
year 2005, the company achieved sales of approximately EUR5 billion
with around 10,000 employees. The shares of Klöckner & Co
Aktiengesellschaft are admitted to trading on the official market
segment (Amtlicher Markt) of the Frankfurt Stock Exchange
(Frankfurter Wertpapierbörse) with simultaneous admission to the
sub-segment (Prime Standard) to the official market with further
post-admission obligations. ISIN: DE000KC01000; WKN: KC0100; Common
Code: 025808576.

Contacts:
Peter Ringsleben, Claudia Uhlendorf - Corporate Communications

Klöckner & Co AG
Am Silberpalais 1
D - 47057 Duisburg

Peter Ringsleben
Phone: +49 203 307 2800
Fax: +49 203 307 5060
e-mail: peter.ringsleben@kloeckner.de

Claudia Uhlendorf
Phone: +49 203 307 2289
Fax: +49 203 307 5103
e-mail: claudia.uhlendorf@kloeckner.de

end of announcement euro adhoc 28.11.2006 08:13:58
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ots Originaltext: Klöckner & Co AG
Im Internet recherchierbar: http://www.presseportal.de

Further inquiry note:
Claudia Uhlendorf
Public Relations
Telefon: +49(0)203-307-2289
E-Mail: claudia.uhlendorf@kloeckner.de

Branche: Metal Goods & Engineering
ISIN: DE000KC01000
WKN: KC0100
Index: CDAX, Classic All Share, Prime All Share, SDAX
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


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