WACKER had its best year ever in 2006

- Net income more than doubled to €311 million (2005: €144m) -
Dividend of €2.00 per share proposed, plus a special bonus of €0.50 -
Sales grew 21 percent to €3.34 billion (2005: €2.76bn) - In 2007
focus on capacity expansion and continued growth in sales and
earnings

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Munich (euro adhoc) - March 22, 2007 - Wacker Chemie AG has posted
its best annual sales and earnings figures since its foundation over
90 years ago. Despite substantially higher raw-material and energy
costs in 2006, the Munich-based chemical Group generated an EBITDA of
EUR786 million (2005: EUR614m). Adjusted for special items in fiscal
2005 totaling EUR47 million, the increase was 39 percent. Net income
was EUR311 million (2005: EUR144m), with earnings per share amounting
to EUR6.46 (2005: EUR2.90). The Group’s robust financial performance
is also reflected in its Return on Capital Employed of 18 percent
(2005: 10%). Benefiting from strong volume gains, high capacity
utilization and a sustained upturn in global economic activity,
consolidated sales rose 21 percent to EUR3.34 billion (2005:
EUR2.76bn). Thereof, EUR2.68 billion (2005: EUR2.18bn) was generated
outside Germany. International business accounted for about 80
percent of total sales. Although capital expenditures were up 76
percent year on year, WACKER’s 2006 net cash flow increased 16
percent to EUR185 million (2005: EUR159m). WACKER expects the market
upswing to carry forward in 2007. The company’s sales and earnings
are estimated to show further growth in the current fiscal year
thanks to substantial capacity expansions, which will start
contributing to results during 2007.

"The above-average success of last year stems from our strategic
focus on activities with healthy margins and high growth potential,"
said Group CEO Peter-Alexander Wacker in Munich on Thursday. "2006
saw our investment projects making huge progress. With an equity
ratio of about 50 percent and financial debt down by almost two
thirds, our ambitious growth strategy is set on a sound financial
basis. In all our major business fields, we expect customer demand to
remain high. As a result, we are focusing intensely on further
expanding our production capacity during the remainder of the year."

2006’s success was the result of several factors. The Group generated
strong volume gains in many business sectors, fueled by a substantial
increase in capacity coupled with high utilization levels. At
Siltronic, the robust price situation and strong customer demand
boosted semiconductor sales and earnings. Additionally, the usual
seasonal Q4 downturn in chemical business was less marked in 2006
than in previous years. Thanks to the mild winter,
construction-industry demand for WACKER products remained high. In Q4
2006, the Group generated total sales of EUR851 million (2005:
EUR731m), with EBITDA at EUR189 million (2005: EUR157m).

Total capital expenditures for 2006 grew to EUR525 million (2005:
EUR299m). WACKER’s investment activities focused on several major
projects: At Burghausen, WACKER POLYSILICON continued to expand its
capacities for polycrystalline hyperpure silicon. The division
currently has two new production plants under construction there.
With a combined capacity of 8,000 metric tons, they are aimed to meet
soaring demand both from chipmakers and the booming photovoltaics
industry.

At Freiberg (Saxony) and Burghausen (Bavaria) in Germany, Siltronic
is expanding its capacity for 300 mm silicon wafers. More and more
chipmakers are switching their production lines to these wafers,
since the larger diameter enables them to achieve a cost advantage of
about 30 percent. Moreover, in a joint venture with Samsung
Electronics Siltronic is building a new 300 mm production plant in
Singapore. Siltronic and Samsung are jointly investing a total of
US$1 billion in this project. Production is scheduled to start in
mid-2008.

WACKER SILICONES has further expanded its locations at Nünchritz
(Saxony) and Zhangjiagang (China). The division is thus responding to
huge demand for silicone, a truly general-purpose material. A new
monomer plant at Nünchritz came on stream in early November. Its main
product is siloxane, a key raw material for silicones. The new
facility has increased WACKER’s global siloxane capacity to 200,000
metric tons per year. At Zhangjiagang, 2006 saw starting up
production facilities for silicone elastomers and sealants.
Additionally, WACKER and Dow Corning started building a joint
siloxane facility there. Work to construct a pyrogenic silica
production plant - again in partnership with Dow Corning - is on
track. It is scheduled for completion in the second half of 2007.

At WACKER POLYMERS, capacity expansion continues for dispersible
polymer powders, with plants being built at Burghausen and in China.
The new facilities, each with an annual capacity of 30,000 metric
tons, will be the largest in the world. Completion of Burghausen’s
powder dryer is scheduled for mid-2007. Construction work on the
Chinese plant - at a new site in Nanjing - should also begin this
year.

WACKER’s R&D expenditures in 2006 amounted to EUR152 million (2005:
EUR147m), or 4.6 percent of sales. The focus of divisional research
activities included development of novel hybrid polymers at WACKER
SILICONES and surface treatment technologies for silicon wafers at
Siltronic. WACKER’s basic research activities investigated new
biotech processes, for example, and functional materials to generate
energy from renewable sources.

At year end, WACKER had some 14,700 employees, 1.6 percent more than
the prior-year number.

Business Divisions In 2006, WACKER SILICONES posted sales of EUR1.29
billion (2005: EUR1.12bn), a year-on-year increase of 15 percent.
This growth mainly stems from substantially higher sales volumes
following capacity expansions. The division’s EBITDA reached EUR232
million (2005: EUR211m), 10 percent more than a year earlier.

WACKER POLYMERS’ 2006 sales totaled EUR560 million, 18 percent up on
2005 (EUR474m). The main driver here was strong volume gains for
dispersible polymer powders. At EUR107 million, EBITDA grew almost 8
percent against 2005 (EUR99m).

In 2006, WACKER FINE CHEMICALS posted total sales of EUR113 million,
up 2 percent (2005: EUR111m). The division's EBITDA of EUR11 million,
however, did not reach the prior-year’s EUR18 million. Earnings were
impacted by price pressures in custom synthesis. In contrast, the
division’s biotech products business performed well.

In 2006, WACKER POLYSILICON increased its sales by 13 percent to
EUR326 million (2005: EUR288m). The higher sales volumes were driven
by successful measures to boost production yields and enhanced
capacities. Sales also benefited from higher price levels. At the end
of 2006, the division finished expanding nominal capacity for
hyperpure polycrystalline silicon from 5,500 to 6,500 metric tons. As
a result, production output rose to 6,200 metric tons last year.
Earnings growth was even more pronounced than sales, with EBITDA
amounting to EUR118 million (2005: EUR90m) - up 31 percent.

Siltronic generated total sales of EUR1.26 billion in 2006 (2005:
EUR0.93bn). This was a year-on-year increase of 37 percent - fueled
by soaring sales volumes, a favorable product-mix shift toward 300 mm
silicon wafers, and higher average wafer prices. Earnings went up
much more sharply than sales. Siltronic’s EBITDA reached EUR356
million (2005: EUR167m), thus more than doubling this figure compared
to 2005.

Proposal on Appropriation of Profits Following 2006’s healthy
results, the Executive Board and Supervisory Board will propose a
dividend of EUR2.00 at the annual shareholder meeting. In relation to
WACKER’s share price at the end of 2006, the dividend yield is 2.0
percent. Additionally, the Executive and Supervisory Boards propose
paying a non-recurring special bonus of EUR0.50 cents per
dividend-bearing share. The special bonus is intended to reward
investors’ trust with respect to the IPO after WACKER’s first year as
a publicly listed company.

Outlook In their full-year outlook for 2007, economic analysts
anticipate continued growth in all key regions. In view of this
forecast and the Group’s rising production capacities, WACKER
currently expects further increases in both sales and earnings during
2007.

Key Group Figures

|EUR million |2006 |2005 |change | |
| | | |in % | |
|Sales |3,336.9 |2,755.7 |21.1 | |
|EBITDA |786.3 |613.7 |28.1 | |
|EBIT |456.3 |262.5 |73.8 | |
|Net income |311.3 |143.7 |116.6 | |
|Earnings per share |6.46 |2.90 |122.8 | |
|EUR | | | | |
|Return on Capital |17.9% |10.3% |- | |
|Employed | | | | |
| | | | | |
|Balance Sheet/Cash | | | | |
|Flow | | | | |
| | | | | |
|Total assets |3,258.2 |2,922.9 |11.5 | |
|Equity |1,585.8 |934.4 |69.7 | |
|Equity ratio |48.7% |32.0% |- | |
|Capital | | | | |
|expenditures (incl.|525.3 |299.0 |75.7 | |
|financial assets) | | | | |
|Depreciation (incl.| | | | |
|financial assets) |330.0 |351.2 |-6.0 | |
|Net cash flow |184.7 |158.7 |16.4 | |
|Net financial |367.0 |911.5 |-59.7 | |
|liabilities | | | | |
| | | | | |
|Research | | | | |
| | | | | |
|Research |152.3 |146.9 |3.7 | |
|expenditures | | | | |
| | | | | |
|Employees | | | | |
| | | | | |
|Personnel expenses |962.4 |867.8 |10.9 | |
|Employees (December|14,668 |14,434 |1.6 | |
|31) | | | | |
| | | | | |

This press release contains forward-looking statements based on assumptions and
estimates of WACKER’s Executive Board. Although we assume the expectations in
these forward-looking statements are realistic, we cannot guarantee they will
prove to be correct. The assumptions may harbor risks and uncertainties that may
cause the actual figures to differ considerably from the forward-looking
statements. Factors that may cause such discrepancies include, among other
things, changes in the economic and business environment, variations in exchange
and interest rates, the introduction of competing products, lack of acceptance
for new products or services, and changes in corporate strategy. WACKER does not
plan to update the forward-looking statements, nor does it assume the obligation
to do so.

end of announcement euro adhoc 22.03.2007 07:51:08
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ots Originaltext: Wacker Chemie AG
Im Internet recherchierbar: http://www.presseportal.de

Further inquiry note:
Christof Bachmair
Media Relations & Information
Tel.: +49 (0)89 6279 1830
E-Mail: christof.bachmair@wacker.com

Branche: Chemicals
ISIN: DE000WCH8881
WKN: WCH888
Index: CDAX
Börsen: Frankfurter Wertpapierbörse / official dealing/prime standard


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