euro adhoc: Andritz AG / other / Andritz to supply CTMP plant to Klabin, Brazil

--------------------------------------------------------------------------------
Disclosure announcement transmitted by euro adhoc.
The issuer is responsible for the content of this announcement.
--------------------------------------------------------------------------------

16.05.2006

Graz, 16 May 2006. International Technology Group Andritz and
Klabin, one of the largest manufacturers of paper, boards, and paper
products in Latin America, signed a Letter of Intent under which
Andritz will supply on an EPC basis the complete CTMP (Chemi-Thermo
Mechanical Pulping) plant for the new board production line to be
installed at the Klabin Monte Alegre mill in Telêmaco Borba, Paraná,
Brazil. The start-up of the plant is scheduled for September 2007;
the value of the contract amounts to approximately 50 MEUR.

The CTMP plant is designed for a capacity of 140,000 tons per year of
unbleached eucalyptus pulp for the production of various board
grades, especially for Liquid Packaging Board (LPB).

Wolfgang Leitner, President and CEO of Andritz: "This order is a big
success for Andritz and underlines Andritz’s dominating position in
hardwood CTMP production technology. The new state-of-the-art CTMP
plant will be among the first worldwide to use eucalyptus wood as raw
material. It is expected that in the near future CTMP from
eucalyptus will become an important fiber source for paper and board
mills in South America due to its favorable pulp properties and high
yield".

Andritz’s scope of supply includes chip washing, impregnation,
refining line, and a pulp washing system. The order also comprises a
wetlap system for part of the production which is intended for use in
other mills of Klabin and an innovative effluent evaporation plant
with mechanical vapor recompression technology (MVR).

- End -

About the Andritz Group Publicly listed Andritz Group is a global
market leader for advanced production systems for pulp and paper,
steel and other specialized industries. Andritz has about 6,000
employees worldwide. It develops and makes its high-tech systems at
30 production sites (Austria, Germany, Finland, Denmark, France,
Netherlands, USA, Canada, and China).

About Klabin S/A Klabin is the largest paper and board manufacturer
and exporter in Brazil. The company is the leader in production of
packaging paper and board, corrugated boxes and industrial sacks.

Klabin was the first company in the pulp and paper sector of the
Americas to have its forests certified by the FSC (Forest Stewardship
Council), proving that it operates its business at the highest levels
of environmental conservation and socio-economic sustainability.

end of announcement euro adhoc 16.05.2006 07:30:00
--------------------------------------------------------------------------------

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