Degussa AG: Full interim Report Q1/2006

Dusseldorf (ots) -

Ladies and Gentlemen:

Please find attached the full interim report for the period
January 1 to March 31, 2006.

Kind regards,
Hannelore Gantzer

- cross reference: Interim report for the period January 1 to
March 31, 2006 is available at
http://www.presseportal.de/dokumente.html

Interim report January 1 - March 31, 2006

- Perceptible volume and price rises
- Strong growth in sales and EBIT
- Group net income up considerably year-on-year
- Outlook for 2006: year-on-year rise in sales and EBIT

“Degussa has made a good start to 2006. Thanks to a further rise
in demand, high capacity utilization and successful efforts to raise
prices, earnings have risen considerably,” commented Prof.
Utz-Hellmuth Felcht, Chairman of the Board of Management of the
specialty chemicals company Degussa AG, Dusseldorf, when it published
its first quarter results on Tuesday.

Sales up 21 percent

Degussa lifted sales 21 percent to ¤2,741 million in the first
three months of 2006 (Q1 2005: ¤2,268 million). 8 percentage points
of this came from higher selling prices and 7 percentage points were
due to volume growth. Consolidation of the US company CYRO, which
became a wholly owned subsidiary on June 1, 2005, contributed growth
of three percentage points. A further three percentage points were
due to favorable exchange rate movements.

EBIT 26 percent higher

EBIT (earnings before interest and taxes) rose 26 percent to ¤219
million in the first three months of this year (Q1 2005: ¤174
million). However, earnings were held back by further rises in raw
material and energy costs. In the first quarter of 2006 Degussa's
internal raw material cost index was 19 percent higher than in the
first quarter of 2005, while energy costs were about 30 percent
higher.

Group net income up considerably year-on-year

Group net income after minorities increased by ¤57 million from
¤72 million in Q1 2005 to ¤129 million in Q1 2006. As a result,
earnings per share improved to ¤0.63 (Q1 2005: ¤0.35).

Outlook for 2006: year-on-year rise in sales and EBIT

Degussa expects the good operating performance to continue in the
coming months. However, a further rise in raw material and energy
costs could trim margins. The company intends to respond to this by
adjusting prices and stepping up cost-savings. Felcht: “In all, we
still expect to report a year-on-year improvement in sales and EBIT
in fiscal 2006. However, the high growth rates seen in the first
quarter will drop back over the year.”

Note to editors: The full version of the interim report for
January 1 - March 31, 2006 is attached.

Degussa is the global market leader in specialty chemicals. Our
business is creating essentials-innovative products and system
solutions that make indispensable contributions to our customers'
success. In fiscal 2005 around 44,000 employees worldwide generated
sales of 11.8 billion euros and operating profits (EBIT) of 940
million euros.

Originaltext: Degussa AG
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ISIN: DE0005421903

Contact:
Hannelore Gantzer
Spokeswoman
Corporate Communications
T +49-211-65041-368
F +49-211-65041-527
hannelore.gantzer@degussa.com