euro adhoc: Andritz AG / Annual Reports / Financial year 2007: Continuation of profitable growth - Sales, Order Intake, Order Backlog, and Net Income reach new record highs - Increase of dividen

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annual report

29.02.2008

Graz, February 29, 2008. International Technology Group Andritz
continued its profitable growth during the 2007 financial year, thus
reaching the fifth record year in a row. Sales increased to almost
3.3 bn EUR (+21% compared to 2006). Both Order Intake, at more than
3.7 bn EUR (+30% compared to 2006), and Order Backlog, at over 3.8 bn
EUR as of December 31, 2007 (13% up from 2006), reached new record
highs. The Group´s Net Income increased to 132.7 MEUR (+12% compared
to 2006). In view of the positive results, the Executive Board will
propose a dividend payment of 1.00 EUR per share (2006: 0.75 EUR per
share) at the Annual General Meeting of Shareholders.

Strong Sales growth Sales of the Andritz Group amounted to 3,282.5
MEUR, increasing 21.1% compared to 2006 (2,709.7 MEUR). In
particular, Sales of the Pulp and Paper, the Hydro Power, and the
Feed and Biofuel Business Areas increased significantly compared to
last year. Organic Sales growth of the Group was 9.4% in 2007.

Significant increase of the Order Intake; high Order Backlog ensures
good Sales visibility The Order Intake of the Andritz Group amounted
to 3,749.5 MEUR in 2007, increasing 29.7% compared to the very high
level of 2006 (2,891.0 MEUR). The Rolling Mills and Strip Processing
Lines, the Hydro Power, and the Feed and Biofuel Business Areas
achieved particularly strong growth rates of the Order Intake.
Organic growth of the Order Intake was approximately 14.7% in 2007.

The Group´s Order Backlog as of December 31, 2007 surged to the new
record value of 3,843.3 MEUR (+13.1%; 31.12.2006: 3,397.1 MEUR),
giving Andritz good Sales visibility for the coming months.

Favorable Earnings development EBITA amounted to 201.3 MEUR (+23.7%;
2006: 162.7 MEUR) rising slightly more than Sales. Thus, the EBITA
margin increased to 6.1% (2006: 6.0%). The Earnings before Interest
and Taxes (EBIT) increased to 192.6 MEUR in 2007 (+20.5%; 2006: 159.8
MEUR). All Business Areas showed a solid and satisfactory
development of Earnings, thus offsetting the dilutive effect of VA
TECH HYDRO on the Group´s profitability, expected at the time of
acquisition. At 5.9%, EBIT margin was unchanged compared to 2006. The
tax rate increased to 31.3% for 2007 (2006: tax rate of 26.9%). The
Group´s Net Income (excluding Minority Interests) amounted to 132.7
MEUR, increasing 12.0% compared to 2006 (118.5 MEUR).

Unchanged solid net worth position and capital structure The balance
sheet of the Andritz Group as of 31.12.2007 showed a solid capital
structure with total assets of 2,507.5 MEUR (2,386.1 MEUR as of
31.12.2006). As of 31.12.2007, the Andritz Group had a gross cash
position (cash and cash equivalents plus marketable securities) of
598.8 MEUR; after deduction of financial liabilities, net liquidity
as of 31.12.2007 amounted to 246.5 MEUR (31.12.2006: 365.7 MEUR). The
equity ratio as of 31.12.2007 was 19.2% (31.12.2006: 17.4%).

Dividend increase In view of the positive business development, the
Executive Board will propose a dividend payment of 1.00 EUR per share
at the Annual General Meeting of Shareholders on March 27, 2008
(2006: 0.75 EUR per share); this corresponds to a dividend payout
ratio of 38.9% (2006: 32.5%).

Outlook for 2008 The weakening of the US economy and the turmoil on
the international financial markets have so far not had any impact on
Andritz´s relevant markets. As matters are today, Andritz expects
good project activity in all its Business Areas. Based on the high
Order Backlog of over 3.8 bn EUR, Andritz has good Sales visibility
and expects Group Sales to increase to approximately 3.5 bn EUR in
2008. Earnings are expected to increase at least at the same rate as
Sales.

"Our major goals for 2008 are processing our very high Order Backlog
according to plan and increasing the Group´s profitability. We will
continue to use our good market position for further organic growth,
as well as continuing the strategy of acquiring complementary
companies. We see interesting opportunities for each of the Business
Areas," says Wolfgang Leitner, President and CEO of Andritz, about
the targets for 2008.

Key figures 2007 of the Andritz Group

Andritz Group in MEUR (IFRS) 2006* 2007 +/-

Order Intake 2,891.0 3,749.5 +29.7%
Order Backlog as of 31.12. 3,397.1 3,843.3 +13.1%

Sales 2,709.7 3,282.5 +21.1%
EBITDA 194.2 242.3 +24.8%
EBITDA Margin 7.2% 7.4% -
EBITA** 162.7 201.3 +23.7%
EBITA Margin 6.0% 6.1% -
Operating profit (EBIT) 159.8 192.6 +20.5%
Earnings before Taxes (EBT) 165.9 198.0 +19.3%

Net Income 121.4 136.1 +12.1%
Cash flow from Operating Activities 143.1 33.1 -76.9%
Capex in tangible and intangible assets 45.7 57.0 +24.7%

Employees as of 31.12. 10,215 12,016 +17.6%

* Including consolidation of VA TECH HYDRO from Q3 2006; for 2006, no
pro-forma figures are available.

** Earnings before Interest, Taxes, Amortization of identifiable
assets acquired in a business combination and recognized separately
from goodwill as well as impairment of goodwill.

The Andritz Group The Andritz Group is a global market leader for
customized plant, systems and services for the pulp and paper,
hydropower, steel and other specialized industries (solid/liquid
separation, feed and biofuel). The Group is headquartered in Graz,
Austria and has a staff of approx. 12,000 employees worldwide. It
develops and makes its high-tech systems at production, service and
sales sites all around the world.

DISCLAIMER Certain statements contained in this press release
constitute "forward-looking statements." These statements, which
contain the words "believe", "intend", "expect", and words of a
similar meaning, reflect the Executive Board´s beliefs and
expectations and are subject to risks and uncertainties that may
cause actual results to differ materially. As a result, readers are
cautioned not to place undue reliance on such forward-looking
statements. The Company disclaims any obligation to publicly announce
the result of any revisions to the forward-looking statements made
herein, except where it would be required to do so under applicable
law.

end of announcement euro adhoc
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ots Originaltext: Andritz AG
Im Internet recherchierbar: http://www.presseportal.de

Further inquiry note:

Dr. Michael Buchbauer

Head of Investor Relations

Tel.: +43 316 6902 2979

Fax: +43 316 6902 465

mailto:michael.buchbauer@andritz.com

Branche: Machine Manufacturing
ISIN: AT0000730007
WKN: 632305
Index: WBI, ATX Prime, ATX
Börsen: Wiener Börse AG / official dealing