Rectification of press release: Bauer’s half-year earnings increase faster than revenues

Please replace the press release published this morning by this one. At the
bottom of page 1 an error has been corrected: “The operating result (EBIT) was
slightly negative at minus €0.9 million, compared with an operating profit of
€0.5 million in the prior-year pe-riod.”
• Improvements in all key figures
• Very good order backlog
• Significant increase in earnings anticipated for full-year 2006

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ots-CorporateNews transmitted by euro adhoc.
The issuer is responsible for the content of this announcement.
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Schrobenhausen, 22 August 2006. Construction and engineering company
BAUER Aktienge-sellschaft, which has been listed in official trading
(Prime Standard) on the Frankfurt Stock Ex-change since 4 July 2006,
performed well in the first half of 2006, continuing its very
successful trend of 2005. The company improved nearly all of its key
performance indicators compared with the first half of last year.
Bauer profited from a buoyant global construction industry and
above-average growth in both engineering and construction. Bauer
increased its first-half output volume compared with the prior-year
period by roughly 25% to approximately EUR454 million (H1 2005:
approx. 364 million). "We are very satisfied with the ex-tremely
positive business developments in the first half of 2006. We have
thus delivered repeated evidence of our profitable growth," stated
Executive Board Chairman Prof. Thomas Bauer. For reasons of weather,
output volume in the construction industry during the first few
months of the year is generally lower than in the summer months.
Therefore, earnings are usually negative in the first half of the
year. Bauer’s first-half operating profit (EBIT) for the Construction
business segment was slightly negative this year - as a result of the
domestic construction business - but the Engineering business segment
posted excellent earnings. In total, Bauer improved its operat-ing
profit (EBIT) by 89% - a far higher rate than for output volume - to
nearly EUR19 million (H1 2005: nearly EUR10 million). Bauer posted a
strong second-quarter EBIT of EUR15 million (H1 2005: approx. EUR12
million), compared with approx. EUR3.5 million in the first quarter
(Q1 2005: operating loss of approx. EUR2 million). Bauer also
achieved a strong increase in its net profit for the period, from
EUR0.5 million in the first half of last year to EUR5.9 million in
the period under review. Bauer increased the proportion of total
output volume generated outside Germany to more than 73%, compared
with approx. 66% in the prior-year period. Bauer’s ongoing
internationalisation helped to compensate for the negative earnings
in the Construction business segment caused by the still weak
construction industry in Germany. Bauer is thus largely independent
of developments in individual geographical markets. The BAUER group
significantly increased its order backlog. At the end of June 2006,
it had risen to EUR427 million, 24% higher than the prior-year level
of EUR346 million. The order backlog in the Engineering business
segment nearly doubled. Before consolidation, the Construction
business segment increased its first-half output volume by approx.
13% to approx. EUR256 million (H1 2005: approx. EUR228 million). The
operating result (EBIT) was slightly negative at minus EUR0.9
million, compared with an operating profit of EUR0.5 mil-lion in the
prior-year period. Construction posted a significant loss in Germany
due to the con-tinuation of weak market prices. The special
foundations business in Germany posted a result similar to that for
H1 2005, despite the bad weather in the first quarter of this year.
Business out-side Germany grew significantly, however, particularly
for the subsidiaries in North America. Bauer’s Engineering business
segment performed extremely well in the first half of 2006. Output
volume increased sharply to approx. EUR212 million (H1 2005: approx.
EUR146 million), while EBIT more than doubled to nearly EUR20 million
(H1 2005: approx. EUR9 million). As a result of the strong demand for
Bauer’s machinery, the order backlog increased in nearly all areas of
the business segment. The company’s numerous innovations such as the
new anchor-drilling rig or the Quat-troCutter attracted great
interest among customers. The increased demand for machinery and
equipment is to be satisfied by further expanding production
capacities in Germany and abroad - in Russia for example.

Outlook Worldwide market growth is expected to continue this year.
Above-average increases in demand for services and machinery are
anticipated in the field of special foundation engineering. This is
partially due to the steady growth in infrastructure projects and
construction projects in increas-ingly cramped inner-city situations,
which require increasingly complex foundation work. As a result, all
areas of the BAUER group have very good order books. Against this
backdrop and the positive course of business so far this year, Bauer
expects an increase in total output volume of well over 10% in
full-year 2006 and a corresponding increase in earnings.

Key figures for the first half of 2006 (IFRS)

H1 2005 H1 2006 Change
EUR million EUR million
Total output volume*, thereof: 363.5 453.9 +25%
- Germany 124.2 121.6 - 2 %
- International 239.3 332.3 + 39 %
- Construction 227.7 256.4 + 13 %
- Engineering 146.1 212.1 + 45 %
- Consolidation / other - 10.3 - 14.6 + 42 %
Consolidated output volume 352.0 430.2 +22%
Order backlog 345.7 426.8 +24%
EBITDA 31.6 42.2 +34%
Operating profit (EBIT), thereof: 9.8 18.5 +89%
- Construction 0.5 -0.9 -
- Engineering 9.3 19.8 + 113 %
- Consolidation / other 0 - 0.4 -
Net profit for the period** 0.5 5.9 -
Earnings per share in EUR*** 0 0.38 -
Number of employees 5,116 5,494 +7%

Key figures for the second quarter of 2006 (IFRS)

Q2 2005 Q2 2006 Change
EUR million EUR million
Sales revenues 186.8 208.9 +12%
Operating profit(EBIT) 12.1 15.0 +24%
Net profit for the period** 5.1 6.2 +22%
Earnings per share (diluted
and basic) in EUR*** 0.33 0.41 +24%

~ * The total output volume shown here includes not only the
output volume shown in the consolidated income state-ment, but also
output volume contributions from associated companies and output
volume from non-consolidated subsidiaries and consortiums.

** Before minority interest. *** Calculated on the basis of
the profits to which the shareholders are entitled with 14,784,000
shares (less minority interest of 449,160 shares until 30 June 2006),
taking into consideration the 1:6 share split decided upon by the
company’s shareholders’ meeting on 28 April 2006 and rounded up/down
to full cents.

About Bauer
Bauer is a global provider of construction services for special foundation
engineering and associated work, and is an internationally leading supplier of
machinery, equipment and tools for special foundation engineering and related
ser-vices.
The company’s activities are divided into the two business segments of
Construction and Engineering. The Construc-tion segment includes special
foundation engineering and related activities in the fields of environmental
technology, building restoration, bridge construction and project development.
Bauer’s Engineering segment offers a comprehen-sive range of machinery,
equipment and tools for special foundation engineering. The BAUER group has a
global presence, supplying its services and products through sales companies and
networks. The BAUER group benefits from cooperation and synergy between its two
business segments, enabling it to offer innovative and highly specialised
complete solutions for demanding special foundation work including all of the
required services and special machinery.
Founded over 200 years ago, The BAUER group today generates two thirds of its
total output volume outside Ger-many. In 2005, the group posted a total output
volume of EUR824 million (2004: EUR664 million) with a workforce of 5,000
persons.

end of announcement euro adhoc 22.08.2006 12:32:21
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ots Originaltext: Bauer AG
Im Internet recherchierbar: http://www.presseportal.de

Further inquiry note:
Contact:
Bettina Mestenhauser
Head of Corporate Communications
BAUER Aktiengesellschaft
Wittelsbacherstraße 5
86529 Schrobenhausen
Tel.: +49 8252 97 1918
Fax: +49 8252 97 2900
Mobile: +49 171 755 9210
E-mail: Bettina.Mestenhauser@bauer.de

Branche: Construction & Property
ISIN: DE0005168108
WKN: 516810
Börsen: Frankfurter Wertpapierbörse / admission applied: official
dealing