08/08/2005 - Süd-Chemie Group set for expansion

Interim Report 2005

Dynamic business performance and marked rise in earnings compared with the first six months of 2004

Portfolio to be streamlined further, measures underway to reduce working capital

Strong rise in profitability forecast for the full year 2005 compared with 2004

First half of 2005
Süd-Chemie Group has continued its positive development during the first half of 2005 and significantly increased sales, operating result (EBIT) and net income. Sales within the Süd-Chemie Group increased, compared to the previous half-year, by €40.7 million to €464.1 million (+10%), the operating result (EBIT) rose by €5.4 million to €29.5 million (+22%) and net income increased by €3.1 million to €10.1 million (+44%).

The increase in sales is especially due to a positive development in the Catalysts Division in North America and Asia as well as a strong increase in demand for foundry products in the Absorbents Division, compared to the previous year.

The positive increase in profits results from an improved utilization of capacity mainly due to a higher global demand for Süd-Chemie catalysts as well as the optimization of production and the consequent execution of efficiency-enhancing measures within the Group program Free for Customers.

In order to concentrate the resources of Süd-Chemie closer to those core business activities with strong profit and growth potential, the Managing Board will initiate further steps towards portfolio optimization. Süd-Chemie will divest from business activities that, in the near future, cannot achieve a globally leading position.

Optimistic outlook for 2005
It is expected that 2005 will see an increase in Group sales to more than €900 million and a clearly over-proportional increase in the operating result (EBIT) of approximately 20%. The target is a sales volume without a change in the portfolio of €1 billion until 2007 and €1.2 billion until 2010 with a clearly higher profitability and higher return on invested capital, which is based on our leading market position, consequent customer orientation and a strengthening in innovation.

The detailed interim report is available in German and English whereby both versions maybe downloaded from the internet at http://www.sud-chemie.com.

Munich, 8 August 2005

Enquiries to:
Süd-Chemie AG
Patrick Salchow
Corporate Public Relations
Tel. +49-(0)89-5110-250
Fax +49-(0)89-5110-302

Süd-Chemie is an independent specialty chemical company headquartered in Munich and operating on a worldwide scale. Key markets served by its Adsorbents Division include the consumer-goods, packaging and foundry industries, as well as the paper and plastics industries. Products manufactured by the Catalysts Division offer solutions for water treatment, petrochemicals processing, energy storage and hydrogen production, as well as off-gas purification. The common denominator of all its products and innovations is the efficient and sparing use of natural resources to enhance the quality of life for humans and the environment. Sales of €862 million were generated in 2004, almost 80% of these outside Germany. Süd-Chemie employs more than 5,100 people at its 62 sales and production sites around the world.