euro adhoc: SW Umwelttechnik Stoiser & Wolschner AG / quarterly or semiannual financial statement / SW Umwelttechnik announces first-half interim results for 2006

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09.08.2006

. Revenue up by 5%, order backlog by 11%
. Austrian operations to be concentrated at fewer sites
. Profits impacted by weak forint
. South Budapest works close to completion
. Positive outlook for operating results

Vienna listed SW Umwelttechnik Stoiser & Wolschner AG posted a
modest gain in second-quarter revenue from E26.6 million (m) to
E27.0m, more than making up ground lost through unusually poor
trading in April due to bad weather. Record revenue of E10.0m in
June points to an improvement in the second half.

Over the first half of 2006 the group recorded a 4.5% year-on-year
cumulative increase in revenue to E36.2m (H1 2005: E34.6m).
Revenue from Hungarian operations rose by 8.3% to E24.5m (H1 2005:
E22.7m), representing 68% of total sales (H1 2005: 65%). Revenue
generated in Austria slipped from 27% to 24% of the total. Other
EU member states accounted for 3% of revenue (H1 2005: 6%), and
Romania for 5% (up from 2%).

The group's Infrastructure sector put in an outstanding performance
in Austria and Hungary, whereas the Engineering sector suffered a
fall in revenue which should be cancelled out in the second
half. The Infrastructure sector was responsible for 51% (H1 2005:
48%), and the Engineering sector for only 17% of revenue (H1 2005:
23%) while the Water Conservation sector's contribution
increased from 29% to 32%.

Earnings before interest and tax (EBIT) remained negative, in line
with the normal seasonal pattern. The effects of late starts to
construction projects due to bad weather are still being felt. EBIT
for the first half was negative by E1.2m compared to a positive
figure of E0.8m in the like period of 2005. With EBIT positive
to the tune of E1m in both May and June, SW Umwelttechnik looks
set for a strong third quarter.

The weak performance in April is also the main reason for the drop
in EBITDA from E1.3m to E0.8m.

Finance cost was driven by the weakness of the Hungarian forint,
climbing to E3.1m from E0.5m in the like period of the previous
year. In consequence the loss on ordinary activities widened to
E4.3m (H1 2005. 1.3m). It should be noted that the interim
result is based on an exchange rate of HUF 283/E on 30 June 2006,
compared with 253 on 31 December 2005. Following the expected 0.5%
increase in the Hungarian base rate the exchange rate recovered to
HUF 272/E by 31 July 2006.

Operations in Austria are being concentrated at three of the
five existing sites in response to disappointing capacity
utilisation, especially in the sewerage segment. The outlook for
the biogas plant business has now improved due to the
determination of new power injection tariffs.

Following a long winter and the closure of a small factory,
capacity utilisation in the Infrastructure sector was excellent in
Hungary in the second quarter. Capital expenditure is again largely
being channelled to this sector, which is launching new
agricultural, industrial building and road drainage products. In
the Water Conservation sector, flooding continued to obstruct
deliveries, but strong order backlog, and improving quality and
productivity at the new reinforced concrete plant offered reasons
for optimism. The Engineering sector was the only business to trade
below expectations.

In geographical terms, investment is now strongly focused on
Romania where three factories are planned. Production at the
Timisoara works is due to commence in September, while the land
for the Bucharest factory has been rezoned and work has begun on
the construction of a large central cement mixing plant at the site.

The group's head count rose to 811 (H1 2005: 749). Most of the
growth in the workforce was due to the initiation of recruitment in
Romania, which added 50 employees.

Order backlog as at 30 June was up by 11% year on year, from E36m to
E40m.

Capital expenditure ran at E5.7m in the first half, E2.5m going to
the two new Romanian factories and E1.7m to expansion of the
South Budapest works. Construction of this greenfield factory - the
group's largest - began in 2001, and it has since between steadily
expanded. A further E1.5m will be spent this year, largely
concluding a E15m investment programme. On completion Hungary's
most modern concrete factory will have 21,500 square metres (sqm)
of factory buildings, 140,000sqm of paved surfaces, three
large mixing plants with capacities of 1,000 cubic metres per day,
20 indoor cranes (capable of lifting up to 31 tonnes), and 200
employees.

Outlook for 2006 as a whole

Due to the good operating results in May and June management is
standing by the optimistic guidance for the year as a whole given
after the first quarter.

Management anticipates further single-figure revenue growth and a
disproportionate improvement in EBIT. However the volatile forint exchange rate
makes it difficult to predict finance cost.
. In Austria, operations at the five existing production facilities are
being concentrated at three sites. These relocation programmes, which are
expected to result in one-time costs of E600,000, should bring marked
improvements in Austrian operating profits from 2007 on.
. in Hungary, the ambitious investment programme has now almost been
completed. Excellent capacity utilisation is anticipated across all
business sectors in the second half. The July increase in the base rate
has stabilised the forint exchange rate, and the currency is seen
strengthening further after the local elections in October due to planned
budget stabilisation measures.
. In Romania, completion of the Water Conservation sector works in Timisoara
in August will be followed by production start-up in September.
Construction of the Infrastructure sector factory in the Bucharest area
will begin on schedule in the autumn, and the first stage of the project
should be ready for start-up in the second half of 2007. A site for the
third Romanian works, in Targu Mures, central Transylvania, is to be
acquired this year.
Financial highlights

2nd quarter

|in Em |2006 |2005 |
|Revenue |27.0 |26.6 |
|EBIT |2.1 |2.6 |
|EBITDA |3.1 |3.7 |
|POA |0.6 |2.4 |
1st half
|in Em |2006 |2005 |
|Revenue |36.2 |34.6 |
|EBIT |-1.2 |-0.8 |
|EBITDA |0.8 |1.3 |
|POA |-4.3 |-1.3 |

end of announcement euro adhoc 09.08.2006 07:55:00
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ots Originaltext: SW Umwelttechnik
Im Internet recherchierbar: http://www.presseportal.de

Further inquiry note:
Dr. Bernd Wolschner, member of the Management Board
Tel: +43 (0)463 32109; fax: +43 (0)463/37667
Michaela Wolschner, Investor Relations
Tel: +43 (0)664 8117662; fax: +43 (0)1 3688686;
e-mail: michaela.wolschner@sw-umwelttechnik.com
Web: www.sw-umwelttechnik.com

Branche: Technology
ISIN: AT0000808209
WKN: 910497
Index: WBI
Börsen: Börse Berlin-Bremen / Regulated free trade
Frankfurter Wertpapierbörse / Regulated free trade
Wiener Börse AG / Regulated free trade