euro adhoc: ElringKlinger AG / Earnings Forecast / ElringKlinger Anticipates Additional Income in Q4 from Corporation Tax Credit and also Raises Profit Forecast for 2006

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18.12.2006

Dettingen/Erms, December 18, 2006 - - - As a result of the latest
amendment to Germany's Corporation Tax Act, ElringKlinger expects
additional income of around EUR 5 million in the fourth quarter for
fiscal 2006 as a whole.

In accordance with the revised version of Section 37 (5) of the
Corporation Tax Act, for the first time corporation tax credits
attributable to preceding years will be capitalized as an entitlement
to payout, i.e. a tax asset.

The tax asset has a tax-reducing effect for the period from 2008 to
2017 and will thus lead to a corresponding reduction in cash outflow
distributed over this 10-year period. The full claim for refund
becomes effective from as early as the end of December 31, 2006. In
view of this, ElringKlinger will capitalize the existing entitlement
on a discounted basis. The present value to be recognized as a tax
asset corresponds to approximately EUR 5 million. The reported net
income for the Group as a whole will increase in fiscal 2006
correspondingly. The amendment to the Tax Corporation Act will merely
result in a change in the statement of the existing tax credits.

The Company anticipates that it will exceed its original annual
revenue and earnings targets for fiscal 2006. Group sales revenue had
been forecast to rise by 5 to 7%, while the growth target for
consolidated net income after minorities had been set at 10 to 12%.
ElringKlinger is now targeting an increase in Group sales revenue to
approximately EUR 520 (474.6) million. Adjusted for the additional
effect of the revised accounting policy for corporation tax credits
amounting to approximately EUR 5 million, the Company anticipates
that consolidated net income after minorities, which was EUR 42.4
million in 2005, will rise by approximately 20% compared with fiscal
2005.

end of announcement euro adhoc 18.12.2006 19:05:51
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ots Originaltext: ElringKlinger AG
Im Internet recherchierbar: http://www.presseportal.de

Further inquiry note:
Stephan Haas
Investor Relations Manager
Telefon: +49(0)7123 724-137
E-Mail: stephan.haas@elringklinger.de

Branche: Automotive Equipment
ISIN: DE0007856023
WKN: 785602
Index: SDAX, CDAX, Classic All Share, Prime All Share
Börsen: Frankfurter Wertpapierbörse / official dealing/prime standard
Börse Berlin-Bremen / free trade
Börse Düsseldorf / free trade
Bayerische Börse / free trade
Baden-Württembergische Wertpapierbörse / official dealing