WACKER BOOSTS SALES AND EARNINGS BY 20 PERCENT IN Q3 2006

- EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION AND AMORTIZATION (EBITDA) REACH
€217.9 MILLION
- EBITDA MARGIN AT 25.4 PERCENT
- GROUP SALES CLIMB TO €857.3 MILLION
- EARNINGS PER SHARE RISE TO €1.91
- FULL-YEAR 2006 SALES AND EARNINGS FORECAST CONFIRMED

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München (euro adhoc) - In Q3 2006, Wacker Chemie AG boosted
year-on-year sales and earnings by 20 percent respectively, thanks
particularly to continued strength of the company’s semiconductor
business. The Munich-based chemical company achieved a EUR217.9
million EBITDA (Q3 2005: EUR181.7m). Q3’s EBITDA margin was 25.4
percent. Playing a key role in the Group’s earnings rise was its
semiconductor division, Siltronic - whose EBITDA increased by EUR42.6
million against the prior-year third quarter. WACKER POLYSILICON,
too, enhanced its EBITDA by almost 50 percent year-on-year. The
Group’s Q3 earnings before interest and taxes (EBIT) climbed to
EUR139.5 million (Q3 2005: EUR96.9m). Q3 Group net profit rose by
EUR40.3 million year-on-year to EUR95.1 million, resulting in
earnings per share of EUR1.91 (2005: EUR1.12). Driven by the ongoing
economic upturn and particularly strong volume gains, Group sales
climbed to EUR857.3 million in Q3 2006 (Q3 2005: EUR714.8m). The
Munich-based chemical company confirmed its full-year sales and
earnings expectations, which project consolidated sales of about
EUR3.3 billion in 2006. EBITDA is forecast at slightly above the
previously announced EUR730-750 million target range.

"Our third-quarter figures yet again underscore the Group’s
operational strength and growth potential," said CEO Peter-Alexander
Wacker. "In fact, we are well on the way to somewhat exceed our
earnings target for 2006."

Regionally, growth was especially strong in Asia. In the "Asia /
Other Countries" region, sales rose 43 percent to EUR279.8 million
(Q3 2005: EUR195.8m). China again played a key role, with
above-average growth of 53 percent. At EUR163.5 million, sales in the
Americas reached the level of the prior-year period (Q3 2005:
EUR162.7m), reflecting the U.S. dollar’s weakness compared to a year
ago. In European markets (excluding Germany), WACKER posted sales of
EUR240.7 million for Q3 2006 (Q3 2005: EUR215.3m), a year-on-year
increase of over 12 percent. In Germany, the Group reported sales of
EUR173.3 million for July to September, up 23 percent (Q3 2005:
EUR141.0m).

In Q3 2006, net cash flow rose 28 percent to EUR134.8 million (Q3
2005: EUR105.4m), despite much higher capital expenditures in the
period under review. From July to September 2006, investments in
intangible assets and property, plant, and equipment amounted to
EUR103.2 million, 60 percent higher than the prior-year period (Q3
2005: EUR64.3m). The rise was largely due to investments in strategic
growth projects, which proceeded on track during the period under
review. The main focus was WACKER’s ongoing expansion of
polycrystalline silicon capacity at its production site in Burghausen
(Germany). WACKER also continued to increase 300-mm silicon wafer
capacity at Freiberg (Germany) and Burghausen (Germany), and to
expand its silicone facilities in Nünchritz (Germany) and
Zhangjiagang (China).

On September 30, 2006, WACKER had 14,654 employees worldwide (June
30, 2006: 14,555), a slight increase due mainly to strategic projects
to expand polysilicon production capacity and operations in China.

Business Divisions Sales at WACKER SILICONES rose 13 percent to
EUR321.2 million in Q3 2006 (Q3 2005: EUR284.6m). This growth was
primarily driven by significantly higher sales volumes. EBITDA
totaled EUR63.2 million from July to September 2006 (Q3 2005:
EUR68.4m) - around 8 percent below the prior-year period. Firstly,
this was due to much higher energy and raw-material costs. Further
expenditures related to the ramp-up of additional siloxane capacities
at Nünchritz (Germany). Secondly, the effects of the weaker U.S.
dollar (compared to the prior-year period) also had an impact.

WACKER POLYMERS generated sales of EUR152.8 million from July to
September 2006 (Q3 2005: EUR130.7m), a 17 percent rise compared to
the prior-year period. Key contributing factors were significant
volume gains and product-mix effects, particularly for dispersible
polymer powders. As for earnings, WACKER POLYMERS generated EBITDA of
EUR31.0 million in Q3 2006 (Q3 2005: EUR35.8m). This 13-percent
decline was primarily due to strong rises in energy and raw-material
costs, especially for ethylene. Product price increases have been set
to balance this development, though the increases did not yet impact
earnings in the quarter under review.

WACKER FINE CHEMICALS achieved Q3 2006 sales of EUR26.3 million (Q3
2005: EUR26.4m). The division’s biotech pharmaceutical proteins
business performed well. Strong demand for cyclodextrins and cysteine
continued in the period under review. However, custom synthesis
posted a sales decline. WACKER FINE CHEMICALS’ Q3 EBITDA fell to
EUR-0.2 million (Q3 2005: EUR4.0m), due to increasing price pressure
for custom synthesis and a related adjustment in inventory value.
Also impacting results were higher raw-material costs, which could
not be fully offset by the good profitability of biotech products. A
restructuring of the "Exclusive Synthesis" business unit is currently
under way to cope with these effects.

In light of continued strong demand, WACKER POLYSILICON increased Q3
sales by 19 percent to EUR80.4 million (Q3 2005: EUR67.3m). Higher
average revenues and measures to enhance process yields greatly
contributed to this rise. Earnings grew much faster than sales.
WACKER POLYSILICON’s EBITDA from July to September reached EUR32.2
million (Q3 2005: EUR21.7m) - a year-on-year rise of 48 percent. In
addition to volume gains, the division successfully increased prices
which had a particularly positive effect.

Polysilicon capacity expansion is progressing on schedule. Total
nominal capacity is expected to virtually triple in several stages to
14,500 tons per year by the end of 2009. In the period under review,
more than 50 percent of the polysilicon scheduled to come from the
4.500 tons expansion stage announced end of June was already assigned
to customers under multi-year contracts involving related
prepayments.

In Q3 2006, Siltronic yet again generated year-on-year sales growth
and even stronger earnings. Siltronic’s July-September sales jumped
30 percent to EUR330.7 million (Q3 2005: EUR254.7m) - a rise fueled
especially by higher sales volumes as well as product mix shifts and
increased average revenues. These more than compensated negative
exchange-rate effects from the weaker U.S. dollar. All wafer
diameters contributed to sales growth - with the 300-mm segment
posting the largest gains. Siltronic’s Q3 EBITDA reached EUR98.2
million (Q3 2005: EUR55.6m) - up 77 percent. The EBITDA margin of 30
percent is a significant profitability increase - compared to both
the preceding quarter and the prior-year period. Higher average
revenues and volume gains, alongside continued high capacity
utilization and effective cost control, were among the contributors
to this positive development. Activities continued on track for
expanding existing 300-mm wafer production facilities at Burghausen
and Freiberg. On July 19, Siltronic and Samsung signed a joint
venture agreement for constructing a new 300-mm fab at Singapore.
Construction of the new facility has already started.

Outlook WACKER is expecting good business conditions to continue
through the remainder of 2006. In Q4, the Group’s chemical divisions
will probably experience the normal seasonal slowdown, with start-up
costs for new facilities and higher methanol prices also affecting
results. For all of fiscal 2006, the Group expects to generate sales
of some EUR3.3 billion and to slightly beat its EBITDA target of
EUR730-750 million.

Information for editorial offices: The full Q3 2006 report can be
downloaded from WACKER’s website (www.wacker.com) under Investor
Relations.

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.

Key Group Figures

|EUR million |Q3 2006 |Q3 2005 |% | |9M 2006 |9M 2005 |% |
| | | |change | | | |change |
|Sales |857.3 |714.8 |20 | |2,486.2 |2,024.5 |23 |
|EBITDA(1) |217.9 |181.7 |20 | |597.2 |456.4 |31 |
|EBITDA |25.4% |25.4% |0 | |24.0% |22.5% |7 |
|margin(2) | | | | | | | |
|EBIT(3) |139.5 |96.9 |44 | |357.0 |193.1 |85 |
|EBIT margin(2) |16.3% |13.6% |20 | |14.4% |9.5% |51 |
| | | | | | | | |
|Financial |-7.4 |-15.4 |-52 | |-36.3 |-45.8 |-21 |
|result | | | | | | | |
|Pre-tax result |132.1 |81.5 |62 | |320.7 |147.3 |>100 |
|Net profit/loss|95.1 |54.8 |74 | |227.8 |65.4 |>100 |
| | | | | | | | |
|Net profit/loss|1.91 |1.12 |72 | |4.77 |1.28 |>100 |
|per share inEUR| | | | | | | |
| | | | | | | | |
|Investment in |103.2 |64.3 |60 | |274.3 |197.2 |39 |
|intagibles and | | | | | | | |
|property, plant| | | | | | | |
|and equipment | | | | | | | |
|Net cash flow |134.8 |105.4 |28 | |172.5 |35.3 |>100 |
| | | | | | | | |
|EUR million |Sep. 30,|Sep. 30, |Dec. 31,| | | | |
| |2006 |2005 | | | | | |
| | | |2005 | | | | |
|Equity |1,503.0 |850.2 |934.4 | | | | |
|Financial |437.0 |1,047.7 |946.2 | | | | |
|liabilities | | | | | | | |
|Provisions |362.6 |350.0 |352.1 | | | | |
|for pensions | | | | | | | |
|Net financial |382.4 |1,021.7 |911.5 | | | | |
|debt | | | | | | | |
|Total assets |3,110.4 |2,916.1 |2,922.9 | | | | |
| | | | | | | | |
|Employees |14,654 |14,433 |14,434 | | | | |
|(number at end | | | | | | | |
|of period) | | | | | | | |
| | | | | | | | |
|(1) EBITDA is EBIT before depreciation and amortization. |
|(2) Margins are calculated based on sales. |
|(3) EBIT is the result of continuing operations for the period before |
|interest and other financial results, limited partnership interests and |
|income tax. |

end of announcement euro adhoc 10.11.2006 08:25:34
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ots Originaltext: Wacker Chemie AG
Im Internet recherchierbar: http://www.presseportal.de

Further inquiry note:
Christof Bachmair
+49 (0)89 6279 1830
christof.bachmair@wacker.com

Branche: Chemicals
ISIN: DE000WCH8881
WKN: WCH888
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