C.A.T. oil AG reports significant increase in first quarter revenues and earnings

Revenues grow 19.4% despite partly difficult weather conditions / EBIT rises
67.5% to EUR 8.0 million / Earnings per share amount to EUR 0.13

--------------------------------------------------------------------------------
ots-CorporateNews übermittelt durch euro adhoc.
Für den Inhalt der Mitteilung ist das Unternehmen verantwortlich.
--------------------------------------------------------------------------------

May 29, 2006 - C.A.T. oil AG (O2C, ISIN: AT0000A00Y78), one of the
leading providers of oilfield services in Russia and Kazakhstan which
has been listed on the Frankfurt Stock Exchange since May 4, 2006,
today released its results for the first quarter of 2006. As a result
of the continued high demand for its services C.A.T. oil again
achieved successful revenue growth and improved its earnings. Despite
the loss of an above-average number of workdays due to the very cold
winter, the company saw group sales grow 19.4% to EUR 37.6 million
(previous year: 31.5 million). The company’s EBITDA rose 45.2% to EUR
10.0 million (previous year: EUR 6.9 million). The EBIT increased
67.5% during the reporting period to EUR 8.0 million (previous year:
EUR 4.8 million), and the EBIT margin grew from 15.1% for the
previous year’s first quarter to 21.2%.

Significant sales increase despite days lost to cold weather

Manfred Kastner, CEO of C.A.T. oil AG, said: "We are very satisfied
with our business during the first quarter of 2006. We enjoyed a
significant increase in sales and earnings despite the fact that more
days were lost to bad weather than during the previous year’s period.
Among other things, we succeeded in raising average income per job.
We were also able to further boost the efficiency of our fleet during
the first three months. Against this backdrop, and in view of the
additional fleets that we will put in operation during the course of
the year, we see the first quarter as a confirmation of our positive
expectations for the entire year."

Group sales for the first quarter of each year are usually below the
quarterly average for the entire year as the result of seasonal
weather conditions in Russia and Kazakhstan. This year the
temperatures in regions where C.A.T.oil operates were sometimes under
minus 50 degrees Celsius; fracturing and workover cannot be performed
at temperatures of less than minus 35 degrees. As a result 20
workdays were lost on some wells in January, or 15 workdays more than
during the first quarter of the previous year. The number of
fracturing jobs in February and in particular a new record for
performed fracturing jobs in March went a long way in compensating
for these lost workdays.

The efficiency of fracturing operations also improved during the
first quarter thanks to consequent cost and process management
throughout the group. The employment of new hydration units and
improved measurement data resulting from software adjustments made it
possible to carry out more extensive fracturing jobs in less time at
lower cost. This led to a reduction in the costs per job and thereby
to an under-proportional rise in cost of sales in comparison with
sales growth. As a result the gross profit from sales rose 57.6% from
EUR 7.9 million to EUR 12.4 million. The improved sales/cost ratio
also led to an increase in the gross margin to 33.1% compared with
25% for the first quarter of the previous year.

Quarterly net profit rises to EUR 5.3 million

The positive development of business is also reflected in the
company’s earnings after taxes. C.A.T.oil saw its quarterly net
profit adjusted for minority stakes rise from EUR 3.5 million for the
first quarter of 2005 to EUR 5.3 million for the reporting period.
This corresponds to an increase of more than 50%. Earnings per share
were EUR 0.13.

Cash flow from operations rose to EUR 1.0 million during the
reporting period (previous year: EUR -7.2 million); capital
expenditure for tangible assets during this period were EUR 3.4
million (previous year: EUR 2.0 million). Acquisitions included a
used fracturing fleet purchased during the first quarter. This fleet
is currently being overhauled and is expected to begin generating
additional sales during the third quarter of 2006. As a result of
this capital expenditure the cash flow from investment declined to
EUR -3.3 million compared to EUR 5.8 million for the first quarter of
the previous year. As of March 31, 2006, the company had liquid
assets totaling EUR 6.7 million compared to EUR 10.9 million on the
2005 balance sheet date. This decline is due primarily to the
aforementioned investments in tangible assets. Funds generated by the
IPO of C.A.T.oil were not acquired during the reporting period and
are therefore not included in the first quarter figures.

During the first quarter of 2006 the company employed an average of
2,225 workers (previous year: 2,246), most of whom are employed in
Russia and Kazakhstan.

Capacities to increase during the current year

In addition to the used fracturing fleet acquired during the first
quarter, C.A.T. oil AG has already ordered three additional fleets,
which will be delivered during the course of the current year. This
will raise the total number of fracturing fleets from 9 to 12,
thereby putting the company in a good position to meet the growing
demand for oilfield services. During the first quarter C.A.T. oil AG
also received numerous inquires from companies, with which it has no
current business ties and which are located in regions where the
company has not yet operated.

Press contact:
A&B Financial Dynamics

Dr. Lutz Golsch
Tel.: +49 (0)69 92037-110
E-mail: ir@catoilag.com
About C.A.T. oil AG:

Austria-based C.A.T.oil AG(O2C, ISIN: AT0000A00Y78) is one of the
leading providers of oilfield services in Russia and Kazakhstan
C.A.T.oil's core business is hydraulic fracturing, a process which
helps to open up oil and gas bearing rock formations in order to
increase or even enable the output of the raw materials. For this
purpose, the C.A.T.oil teams are capable, with the help of
state-of-the-art methods and technologies, of generating high
pressure in the respective oil or gas reservoirs. This pressure
causes cracks to appear in the rock, through which oil and gas can be
produced in larger quantities from the production well, enabling the
extraction to be stimulated, particularly in the case of deposits
that are difficult to develop or wells with low output. In addition,
hydraulic fracturing can be used to re¬vitalise wells that had
previously been closed.

The company is headquartered in Baden near Vienna and had 2,230
employees at the end of 2005, most of them in Russia and Kazakhstan.
Customers include leading oil and gas producers such as Gazprom,
KazMunaiGaz, LUKOIL, Rosneft and TNK-BP.

www.catoilag.com

Ende der Mitteilung euro adhoc 29.05.2006 14:00:00
--------------------------------------------------------------------------------

ots Originaltext: C.A.T. oil AG
Im Internet recherchierbar: http://www.presseportal.de

Rückfragehinweis:
A&B Financial Dynamics
Dr. Lutz Golsch
Tel.: +49 (0)69 92037-110
E-mail: ir@catoilag.com

Branche: Öl und Gas Exploration
ISIN: AT0000A00Y78
WKN: A0IKWU
Börsen: Frankfurter Wertpapierbörse / Amtlicher Markt