08/17/2006 - Interim Report 2006

Süd-Chemie Group on course for further expansion

Sales up 15% and operating profit (EBIT) up 14% compared to the first half year 2005, net income more than doubled

Ongoing portfolio optimization, sale of the Pet Products Business Unit

Positive outlook for the full year 2006 confirmed

First six months of 2006

Süd-Chemie has continued its successful performance during the first six months of 2006, achieving significant increases in sales and profits as well as net income.

Süd-Chemie Group sales rose by €60.3 million or 14.8% compared with the first half of 2005 to reach €468.7 million. The increase in sales was due mainly to a sharp rise in the demand for Süd-Chemie´s catalysts for refineries in the Catalysts Division and foundry products recorded by the Adsorbents Division in Europe and Asia.

Operating profit (EBIT) rose by €4.3 million or 14.0% to €35.1 million. The marked rise in profits resulted from enhanced capacity utilization in the wake of higher volume sales coupled with cost-reduction measures and structural improvements. During the period under review, earnings were adversely affected by significant increases of up to 100% in raw material costs, especially in the case of metal compounds, as well as preliminary products dependent on oil.

The Group´s net income (after-tax profit) for the first six months rose by €14.2 million to €23.4 million. This corresponds to an increase of 154.3% compared to the previous first half year. The income following the sale of the sold Pet Products Business Unit contributes €9.5 million to this strong growth.

Optimistic outlook for the full year 2006

In view of the positive business climate in Süd-Chemie´s key markets and ongoing internal measures to enhance efficiency, Group sales from continuing operations are expected to rise to some €950 million. This represents an increase of around 8% compared with 2005. For the full year 2006, a similar percentage rise is anticipated for the operating profit (EBIT). Profit from continuing operations is expected to significantly outperform the rise in sales.

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, 17 August 2006

Enquiries to:
Süd-Chemie AG
Patrick Salchow
Corporate Public Relations

Tel. +49-(0)89-5110-250
Fax +49-(0)89-5110-302

Süd-Chemie (www.sud-chemie.com) 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. 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 for 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.