Q2 report: results for first half of 2007 in line with budgetary plans (Munich, August 16, 2007) Wacker Construction Equipment AG reported that results for the first half of fiscal 2007 align with budgetary targets, with Group sales up 8.1 percent on the previous year. The company is aiming for further sales and profit growth over the current fiscal year. The merger with Neuson Kramer Baumaschinen AG (Austria) is scheduled to go ahead in summer 2007. Dynamic sales trend in Europe Thanks to the continued high demand for Wacker products and services, sales for the first half of 2007 jumped 8.1 percent, to EUR 341.7 million. Organic growth accounted for 7.4 percent of this increase. Discounting exchange rate fluctuations, sales would have been up 11.5 percent. "These results align with our projections and sales are showing an upward trend across all business segments. We are seeing especially strong growth in Europe, in particular in Germany," explains Dr. Georg Sick, CEO and Chairman of the Executive Board of Wacker Construction Equipment AG. Sales in the Europe region rose 16.5 percent in the first half-year, to EUR 223.2 million, with Germany (excluding Weidemann GmbH) reporting 28.8-percent growth to reach EUR 69.9 million. Following a weaker first quarter in the Americas region, the second quarter saw sales almost regain the previous year's level at EUR 55.9 million (2006: EUR 56.0 million) despite the uncertainty surrounding the US property market. In the Asia region, sales in the second quarter grew 7.3 percent to EUR 6.0 million. Profit reflects planned and anticipated one-off expenses While profit before interest, tax, depreciation and amortization (EBITDA) in the first six months increased by 0.8 percent to EUR 55.3 million, profit before interest and tax (EBIT) dropped 4.4 percent to EUR 41.9 million. However, discounting planned and anticipated one-off expenses amounting to EUR 9.7 million, EBIT actually rose 17.7 percent in the first half-year. These one-off expenses include in particular costs for the bauma construction equipment trade fair, held every three years, and a reduction in interim profits as a result of the inventory build-up recorded as of June 30, 2007. Positive outlook for fiscal 2007 In the first half of 2007, revenue from the rental business in Germany, Austria, Switzerland and the Netherlands in combination with Poland and the Czech Republic rose 40.7 percent to EUR 21.6 million. "We are now aiming to grow sales and earnings even further for fiscal 2007 as a whole," states Sick. Provided business development is stable in the Europe region and the USA, the company expects sales of EUR 655 to 670 million (previous year: EUR 619.3 million) and EBITDA of EUR 110 to 115 million (previous year: EUR 100.2 million). Wacker plans to expand its rental business in Central and Eastern Europe, its compact equipment business segment and its global sales and service network. Merger with Neuson Kramer planned for summer 2007 As previously announced, Wacker Construction Equipment AG and Neuson Kramer Baumaschinen AG aim to conclude an agreement to merge in summer 2007. Strong demand for Neuson Kramer Baumaschinen AG products in Europe pushed preliminary group-wide sales for the first half of fiscal year 2007/2008 (February 1 - July 31) up 30.3 percent to EUR 181.0 million, preliminary figures for profit before interest and tax (EBIT) rose by 45.2 percent to EUR 36.0 million. Key figures for the first half-year, fiscal 2007 2007 2006 Difference ¤ million ¤ million Sales 341.7 316.0 + 8.1% by region - Europe 223.2 191.5 + 16.5% - Americas 107.7 113.4 - 4.9% - Asia 10.7 11.1 - 3.5% by business segment[1] - Light equipment 223.1 209.8 + 6.3 % - Compact equipment 46.3 45.5 + 1.8 % - Services 72.3 60.7 + 19.1 % EBITDA 55.3 54.8 + 0.8 % EBIT 41.9 43.8 - 4.4 % EBT 40.8 43.3 - 5.8% Profit for the period 24.8 27.6 - 10.2% Employees 2,932 2,775 + 5.6% [1]Consolidated sales after discounts About Wacker Construction Equipment AG: Founded in 1848 as a blacksmith's shop, today Wacker is a major global manufacturer of high-quality light and compact equipment designed to help customers increase operational efficiency. With over 250 product categories and complementary rental, spare parts and repair services, Wacker is the partner of choice among professional users in construction, gardening, landscaping and agriculture. The company has over 160 sales and service stations in more than 30 countries, ensuring it has the consulting and support depth and reach necessary to give its customers the best possible service. In fiscal 2006, Wacker increased sales by 23.1 percent to EUR 619.3 million and profit before interest and tax by 51.3 percent to EUR 76.7 million. Maintaining its traditional roots, the company is almost exclusively in the hands of its founder family. The half year report is available from the Investor Relations section at www.company.wackergroup.com Contact: Wacker Construction Equipment AG Imre Szerdahelyi Head of Corporate Communication Preußenstr. 41, 80809 Munich, Germany Tel. + 49 - 89 - 354 02 - 251 E-Mail: [email protected] Internet: www.wackergroup.com Disclaimer: This publication constitutes neither an offer to sell nor an invitation to buy securities. This document does not constitute an offer of securities for sale or a solicitation of an offer to purchase securities in the United States. The shares in Wacker Construction Equipment AG (the "Shares") may not be offered or sold in the United States absent registration or an exemption from registration under the U.S. Securities Act of 1933, as amended. Neither Wacker Construction Equipment AG nor any selling shareholder intends to register any portion of the offering in the United States or to conduct a public offering of the Shares in the United States. 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