SALZGITTER AG: Raising of the profit forecast following on the exceptional results in the first half of 2008

Short version of press release published on August 14, 2008

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

finances/1st Half 2008

Salzgitter (euro adhoc) - Against the backdrop of the huge cost
increases for raw materials and energy as well as slowing global
economic growth, the Salzgitter Group achieved excellent results in
the first half of the financial year 2008 owing to the persistently
high, stable demand for rolled steel and tube products. Consolidated
external sales soared EUR 1.51 billion to EUR 6.23 billion (+32 %;
first half of 2007: EUR 4.72 billion). Companies which were not part
of the group of consolidated companies in the year-earlier period
contributed to the sales growth with EUR 687.7 million. Consolidated
pre-tax profit of EUR 646.4 million fell only marginally short of the
previous year´s record result (first half of 2007: EUR 663.6
million). While the producing steel and tubes companies came under
pressure from surging costs, steel trading benefited from the rising
spot market prices in particular which reflected a steady, pleasing
demand for steel. In addition to the higher costs of raw materials
and energy, a total of EUR 59.2 million in additional material costs
was taken account of in the Interim Financial Statements for price
hikes effective as from the start of the year that will only exert
their full influence on the expenses structure of the producing
companies in the second half of the year. The Group´s after-tax
profit of EUR 436.9 million substantially exceeded the previous
year´s figure (first half of 2007: EUR 398.7 million). Earnings per
share came to EUR 7.64. Return on capital employed (ROCE) from
industrial business reached a remarkable 36.8 % in the first six
months of 2008; including income from the investment of funds of more
than EUR 2 billion, ROCE amounted to 25.9 % (ROCE in the first half
of 2007: 31.4 %).

External sales by Division(EUR million):

H1 2008 (H1 2007)
Steel 1,611.0 (1,464.3)
Trading 2,656.4 (2,046.2)
Tubes 1,077.0 (884.2)
Services 284.9 (262.8)
Technology 523.4 (-)
Others 80.7 (65.6)
Group 6,233.4 (4,723.1)

Earnings before tax by Division (EUR million):

H1 2008 (H1 2007)
Steel 345.1 (377.3)
Trading 140.7 (121.4)
Tubes 152.1 (138.9)
Services 16.8 (14.3)
Technology 12.2 (-)
Others -20.5 (11.8)
Group 646.4 (663.6)

In the financial year 2008, we shall strive to attain notable growth
within the Group, 50 % of which will be due to the first-time
full-year inclusion of the companies of the Klöckner Group in our new
Technology Division. Given our pleasing performance in the first
half-year, we consider it justifiable to raise our pre-tax profit
forecast for the Group to over one billion euros. Express reference
is made to the fact that opportunities and risks arising from
currently unforeseeable trends in sales prices, input materials and
capacity level developments, as well as changes in the currency
parity, may considerably affect performance in the course of the
remaining financial year 2008.

More information can be found in the full press release and interim
report published today (see www.salzgitter-ag.de).

end of announcement euro adhoc
--------------------------------------------------------------------------------

ots Originaltext: Salzgitter AG
Im Internet recherchierbar: http://www.presseportal.de

Further inquiry note:

Bernhard Kleinermann

Tel.: +49 (0) 5341-21-3783

E-Mail: ir@salzgitter-ag.de

Branche: Iron & Steel
ISIN: DE0006202005
WKN: 620200
Index: Midcap Market Index, MDAX, CDAX, Classic All Share, HDAX,
Prime All Share
Börsen: Börse Frankfurt / regulated dealing/prime standard
Börse Berlin / free trade
Börse Hamburg / free trade
Börse Stuttgart / free trade
Börse Düsseldorf / free trade
Börse München / free trade
Börse Hannover / regulated dealing