Decline in turnover and performance in the first half of the 2006/2007 trading year Reduced turnover and performance expectations

Kässbohrer Geländefahrzeug AG has recorded a decline in turnover of about 5 % to 147.9 million Euro in the group for the first six months of the trading year 2006/2007 (Oct. 2006 to March 2007) when compared to the six months of the previous year. Operative performance after tax is 18.9 million Euro, approximately 18 % lower than the previous year.

However, due to extraordinary earnings from the sale of securities, the annual group surplus of 20.9 million Euro will only be 2.3 million Euro below the figure for the previous year (the previous year’s figure is 23.2 million Euro).

Due to this trend, the board has lowered its prognoses for the entire trading year 2006/2007. The turnover target has been corrected to approx. 180 million Euro, target results to approx. 11 million Euro and the anticipated annual surplus (including capital gains from securities) adjusted to potentially about 13 million Euro.

In comparison with figures from the previous year, group turnover is forecast to be down at the end of this trading year by about 5 % on the extremely high turnover of 190.6 million Euro from the previous year. Operative performance will be down about 4 million Euro, with group performance around 2 million Euro below the figures for the previous year.

We anticipate a turnover of around 160 million Euro for the coming trading year 2007/2008.