IN Q2 2006, WACKER AGAIN BOOSTS EARNINGS

- EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION AND AMORTIZATION (EBITDA) TOTAL
€195.7 MILLION
- EBITDA MARGIN OF 24 PERCENT
- AT €830.4 MILLION, GROUP SALES RISE 18 PERCENT YEAR ON YEAR
- EARNINGS PER SHARE MORE THAN DOUBLED TO €1.35
- STRONG DEMAND AND HIGHER PRICES FOR SILICON WAFERS RAISE WACKER’S EARNINGS
ESTIMATES

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Wacker Chemie AG reported year-on-year sales growth and even stronger
earnings for Q2 2006. The Munich-based chemical company posted an
EBITDA of EUR195.7 million (Q2 2005: EUR182.7m), with an EBITDA
margin of 24 percent. Earnings grew 42 percent after adjustment for
the special items that boosted 2005’s Q2 EBITDA by EUR44.8 million.
The main growth driver was semiconductor business. At Siltronic,
EBITDA rose by EUR40 million against the prior-year second quarter.
WACKER SILICONES and WACKER POLYSILICON also posted earnings gains
compared to second quarter 2005. The Group’s Q2 EBIT rose to EUR111.8
million (Q2 2005: EUR87.0m). The Group net profit reached EUR66.5
million, representing a year-on-year increase of EUR35.6 million.
Earnings per share thus amounted to EUR1.35 (Q2 2005: EUR0.59). The
ongoing upturn in the chemical and semiconductor sectors and strong
volume gains boosted Q2 consolidated sales to EUR830.4 (Q2 2005:
EUR701.5m), an increase of 18 percent. All business divisions
surpassed prior-year’s Q2 sales figures. For the full year, WACKER
expects to exceed 2005’s sales and earnings, driven by sales volume
gains for semiconductor silicon wafers, where average revenues are
poised to grow in the second half year. According to current
estimates, consolidated sales will reach about EUR3.3 billion. EBITDA
is forecast at between EUR730 million and EUR750 million.

"Our continued earnings strength during Q2 and the upbeat outlook for
the full year are further evidence for the success of our strategy
focusing on long-term profitable growth," said CEO Peter-Alexander
Wacker.

In terms of regional growth, most of the Group’s sales gains were
made on international markets. WACKER generated 80 percent of Q2
sales outside Germany. The strategically important regions China, the
Americas as well as central and eastern European countries showed
particularly strong growth. From April through June 2006, Asian sales
rose 42 percent to EUR225.5 million (Q2 2005: EUR158.7m). In China,
sales growth remained above average, rising 47 percent. At EUR165.7
million, sales in the Americas grew 12 percent from April through
June 2006 (Q2 2005: EUR147.6m). In European markets, excluding
Germany, sales rose 11 percent to EUR248.5 million (Q2 2005:
EUR223.9m). In Germany, sales in Q2 2006 rose 8 percent to EUR163.8
million (Q2 2005: EUR151.5m).

Net cash flow was again positive in the second quarter. However, at
EUR15.0 million, it did not meet the prior-year level (Q2 2005:
EUR23.7m). One of the reasons for this was a substantial rise in
capital expenditures. At EUR96.1 million, investments in intangibles
and property, plant and equipment were up 31 percent (Q2 2005:
EUR73.3m). The increase was largely due to capital expenditures for
projects geared toward strategic growth, particularly at WACKER
POLYSILICON. Here, spending more than doubled year-on-year due to
expansion of production capacity for hyperpure polycrystalline
silicon at Burghausen (Germany). In the period under review, WACKER
also pressed ahead with the expansion of its Nünchritz (Germany)
silicone site and the construction of production plants for silicone
downstream products at Zhangjiagang (China).

On June 30, 2006, WACKER had 14,555 employees worldwide (March 31,
2006: 14,520). So, the number of Group employees rose slightly
compared to the end of Q1 2006. The main factors here were
strategic-growth projects, especially site expansion at Zhangjiagang
(China).

Business Divisions WACKER SILICONES generated total sales of EUR327.3
million in Q2 2006, a year-on-year rise of 11 percent (Q2 2005:
EUR295.2m), largely stemming from substantial sales-volume growth.
The division also posted double-digit growth on the earnings front.
Capacity expansion and improved utilization rates, as well as
product-mix effects were the key factors, which more than offset
energy and raw-material price increases. In particular, silicone
elastomers, silanes and resins delivered substantial growth. EBITDA
grew 14 percent to EUR67.0 million (Q2 2005: EUR58.7m).

WACKER POLYMERS achieved second-quarter total sales of EUR147.4
million, a year-on-year increase of 13 percent (Q2 2005: EUR130.2m).
Growth was primarily driven by higher sales volumes, especially for
dispersible polymer powders. As for earnings, WACKER POLYMERS posted
an EBITDA of EUR29.4 million. Eight percent below Q2 2005 (EUR31.9m),
EBITDA was weighed down by much higher energy and raw-material
prices. To offset their impact, the division announced in early May
that it would raise its dispersion and dispersible-polymer-powder
prices. The rise applies to quantities not yet contracted and will
take effect in the second half of 2006.

WACKER FINE CHEMICALS generated total sales of EUR28.0 million from
April to June 2006 (Q2 2005: EUR27.0m). Organic intermediates
performed particularly well. In contrast, base silanes saw a sales
decline. The division’s second-quarter EBITDA was EUR3.1 million (Q2
2005: EUR4.1m). Although bioengineered products posted profitability
gains, the upturn did not fully offset increasing price pressure in
the field of customer syntheses. With consolidation accelerating
across customer syntheses markets, the division has decided to
combine the Exclusive Synthesis business team with its organic fine
chemicals business at year end.

In Q2 2006, WACKER POLYSILICON posted total sales of EUR77.9 million
(Q2 2005: EUR68.5m). Sales grew 14 percent while capacity-related
constraints continued. The upturn benefited from price increases and
process-yield enhancements. Earnings at WACKER POLYSILICON grew, too,
though not quite as strongly as sales. This was partly due to the
scheduled expense for ramping up new silane production capacities.
Another factor was the initial planning cost for the new polysilicon
capacity expansion "Stage 7". Second-quarter EBITDA reached EUR23.0
million, up eight percent (Q2 2005: EUR21.2m).

The division continues to press ahead expanding capacity for
hyperpure polycrystalline silicon at Burghausen (Germany). An
additional 1,000 metric tons are scheduled to become available by the
end of 2006. Nominal capacity is expected to reach 6,500 metric tons
annually as a result. The new solar-grade silicon plant currently
under construction is expected to provide an additional 3,500 metric
tons of polysilicon annually from the start of 2008. Burghausen has
also just been named as the site for a further polysilicon project -
Expansion Stage 7. The decision, which was taken in late June, is
scheduled to add another 4,500 metric tons to Burghausen’s capacity,
pushing the annual total up to 14,500 metric tons by the end of 2009.

The upturn at Siltronic during 2005 and Q1 2006 continued unabated in
the quarter under review. Total Q2 2006 sales increased to EUR300.3
million (Q2 2005: EUR215.8m), a rise of 39 percent. Sales of 300-mm
wafers grew substantially, almost three times more than sales of
smaller-diameter wafers. Key growth drivers were sales-volume gains
and product-mix enhancements. As for earnings, Siltronic posted
further gains in the quarter under review. Year-on-year, EBITDA
climbed to EUR73.0 million (Q2 2005: EUR33.2m). These figures
underscore the sustained success of measures aimed at productivity
increase and cost reduction. Substantial volume gains translated into
higher production-capacity utilization. Another crucial factor
enabling Siltronic’s earnings gains was the successful expansion of
300-mm production at Freiberg to the design capacity of 150,000
wafers per month. As announced earlier, Siltronic’s Freiberg and
Burghausen sites (both in Germany) are scheduled to further expand
300-mm wafer capacity - by a total of 110,000 wafers a month. The
necessary construction measures are already under way.

Outlook WACKER’s Q2 2006 figures are pretty much in line with the
Group’s estimates, as disclosed after the first quarter. With better
visibility for Siltronic’s second-half performance, WACKER now is
confident to actually exceed its previous financial targets during
the remainder of the year. The Group’s forecast is based on
stronger-than-expected sales volumes for semiconductor silicon
wafers, where average revenues are poised to grow in the second half
year. According to current estimates, consolidated sales for 2006
will reach about EUR3.3 billion (2005: EUR2.76bn). This would be a
rise of some 20 percent. EBITDA is forecast at between EUR730 million
and EUR750 million. This would be roughly 30 percent above the
adjusted prior-year EBITDA of EUR567 million. Previously, WACKER had
forecast full-year 2006 sales growth of slightly more than 10 percent
and EBIDTA between EUR640 million and EUR680 million.

Note to editors: The report on 2nd Quarter 2006 is available for
download from Wacker Chemie AG’s website (www.wacker.com) under the
caption Investor Relations.

This press release contains forward looking statements based on
assumptions and estimates of WACKER's Executive Board. Although we
assume the expectations in these forward looking statements are
realistic, we cannot guarantee they will prove to be correct. The
assumptions may harbor risks and uncertainties that may cause the
actual figures to differ considerably from the forward looking
statements. Factors that may cause such discrepancies include, among
other things, changes in the economic and business environment,
variations in exchange and interest rates, the introduction of
competing products, lack of acceptance for new products or services,
and changes in corporate strategy. WACKER does not plan to update the
forward looking statements, nor does it assume the obligation to do
so.

Key Group Figures

EUR million Q2 2006 Q2 2005 % change 6M 2006 6M 2005 % change
Sales 830.4 701.5 18 1,628.9 1,309.7 24
EBITDA1 195.7 182.7 7 379.3 274.7 38
EBITDA margin2 23.6% 26.0% -10 23.3% 21.0% 11
EBIT3 111.8 87.0 29 217.5 96.2 >100%
EBIT margin2 13.5% 12.4% 9 13.4% 7.3% 82
Financial result-17.9 -16.2 10 -28.9 -30.4 -5
Pre-tax result 93.9 70.8 33 188.6 65.8 >100%
Net profit/loss 66.5 30.9 >100% 132.7 10.6 >100%
Net profit/loss per
share in EUR 1.35 0.59 >100% 2.84 0.20 >100%
Investment in
intangibles and
property, plant,
equipment 96.1 73.3 31 171.1 132.9 29
Net cash flow 15.0 23.7 -37 37.7 -70.1 >100%
EUR million June 30,2006 June 30,2005 Dec. 31,2005
Equity 1,409.3 936.6 934.4
Financial liabilities 546.9 999.3 946.2
Provisions for pensions 358.6 349.4 352.1
Net financial debt 514.3 975.4 911.5
Total assets 3,078.8 2,934.3 2,922.9
Employees
(number at
end of period) 14,555 14,449 14,434
1 EBITDA is EBIT before depreciation and amortization.
2 Margins are calculated based on sales.
3 EBIT is the result of continuing operations for the period before interest and
other financial results, limited partnership interests and income tax.

end of announcement euro adhoc 21.08.2006 08:36:29
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ots Originaltext: Wacker Chemie AG
Im Internet recherchierbar: http://www.presseportal.de

Further inquiry note:
Christof Bachmair
+49 (0)89 6279 1830
christof.bachmair@wacker.com

Branche: Chemicals
ISIN: DE000WCH8881
WKN: WCH888
Index: CDAX, MDAX
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