C.A.T. oil AG increases revenues and earnings substantially in first half of 2006

- Revenues up by 29.8 %
- EBIT almost doubled to EUR 19.9 million
- Earnings per share of EUR 0.32

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Austria-based C.A.T. oil AG (O2C, ISIN: AT0000A00Y78), one of the
leading providers of oil- and gasfield services in Russia and
Kazakhstan, today published its interim report for the first half of
2006. Persistently high demand from oil and gas producers for
services to improve output enabled the Company to substantially
increase consolidated revenues and earnings in the first six months
of the year. Following a successful first quarter despite difficult
weather conditions, the second quarter saw C.A.T. oil AG perform the
highest number of service jobs in its history. The Company also
further increased average revenues per service job in the first half
of the year.

On this basis, C.A.T.oil increased consolidated revenues in the first
six months of 2006 by 29.8 % to EUR 89.4 million (half year 2005: EUR
68.9 million). EBITDA rose from EUR 14.6 million in the first half of
2005 to EUR 24.2 million - up 65.8 %. C.A.T.oil also increased EBIT
by 98.4 % to EUR 19.9 million, compared with EUR 10.0 million in the
prior-year period. The Group thus almost doubled its EBIT and
improved the EBIT margin from 14.6 % to 22.3 %.

Growing demand for gas fracturing jobs

Manfred Kastner, Chief Executive Officer of C.A.T. oil AG, is pleased
with the Company's results: "We achieved new records in all regions
and business areas, especially in the second quarter. Despite a
further sharp increase in demand for oil fracturing jobs we also
performed more sophisticated specialized activities, such as coiled
tubing or inclined drilling, than ever before. The increase in gas
fracturing jobs also deserves special mention: In the second quarter
of 2006, we performed three times more services on our customers'
natural gasfields than in the previous year. The strategic
partnership with Burgaz (OOO Drilling Company of OAO Gazprom) that we
agreed in July will help us further expand these services in the
future."

As in the first quarter, C.A.T. oil AG was also able to further
enhance the efficiency of operations. As a result, the cost of sales
rose more slowly than revenues in the first half of 2006 to EUR 59.8
million, compared with EUR 51.7 million in the first half of 2005
(+15.6 %). Gross profit therefore improved by 72.6 % in the first six
months to EUR 29.7 million, as against EUR 17.2 million in the
prior-year period.

Net profit for the period up by 86 %

The Company's successful performance is also reflected in the
substantial growth in its profit after taxes and minority interest.
Net profit for the period increased by 86 % year-on-year to EUR 13.8
million (previous year: EUR 7.4 million). Earnings per share were EUR
0.32.

The sharp increase in net profit for the period and a lower change in
net working capital resulted in net cash provided by operating
activities of EUR 9.2 million in the first half of 2006. In the
prior-year period, the Group recorded net cash used in operating
activities of EUR 3.4 million. Net cash used in investing activities
amounted to EUR 10.2 million in the first six months of 2006,
compared with net cash provided by investing activities of EUR 5.4
million in the previous year. The 2006 figure includes the
acquisition and upgrading of the used fleet commissioned in the
second quarter. C.A.T. oil AG recorded a significant improvement in
cash flows from financing activities as a result of its IPO on May 4,
2006. The Company received proceeds from the IPO amounting to EUR
121.0 million; on this basis, net cash provided by financing
activities improved to EUR 122.2 million (previous year: net cash
used in financing activities of EUR 0.7 million).

The Company's cash and cash equivalents also increased due to the
IPO, from EUR 10.9 million at the end of the 2005 financial year
(December 31, 2005) to EUR 132.1 million at the end of the period
under review. The number of employees was approximately 2,209 in the
first half of the year. Most of these are deployed locally at the
oil- and natural gasfields in Russia and Kazakhstan.

Further revenue and earnings growth expected in the second half year

C.A.T. oil AG's Board of Management is convinced that the continual
increase in demand for oil- and gasfield services, as well as the
Company's strong strategic position, will enable sustainable growth.
It expects significant growth rates in the number of jobs and average
revenue in all business activities. C.A.T.oil intends to put into
operation three new fleets by the end of 2006 that will increase its
existing capacity by 33 %. The equipment required to upgrade these
new fleets to withstand the extreme weather conditions in Siberia and
Kazakhstan has already been delivered to the Company's field
headquarters. In addition, C.A.T.oil's strategic partnership with the
Gazprom subsidiary Burgaz represents a promising basis to achieve
further significant growth in this area. Kastner: "We are expecting
above-average results in the second half of the year as well. Demand
from the Eurasian oil and gas industries for stimulating methods and
other additional services to increase well output is growing
continually, and we are excellently positioned - not least due to the
proceeds from our IPO - to exploit the major growth potential offered
by this market."

www.catoilag.com

Press contact:
A&B Financial Dynamics

Dr. Lutz Golsch
phone.: +49 (0)69 92037-110
e-mail: l.golsch@abfd.de
About C.A.T. oil AG:
Austria-based C.A.T. oil AG (O2C, ISIN: AT0000A00Y78) is one of the leading
providers of oil- and gasfield 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 oil and gas
production. The C.A.T.oil crews use state-of-the-art methods and technologies to
generate high pressure in the oil or gas reservoirs concerned. This pressure
causes cracks to appear in the rock through which oil or gas can be produced in
larger quantities from the production well, and hence efficiently boosts
extraction, particularly in the case of deposits that are difficult to develop
or low-output wells. In addition, hydraulic fracturing can be used to revitalize
wells that have previously been idle.

The Company has its headquarters in Baden near Vienna and employed
2,230 people at the end of 2005, most of whom are based in Russia and
Kazakhstan. Customers include leading oil and gas producers such as
Gazprom, KazMunaiGaz, LUKOIL, Rosneft, and TNK-BP.

end of announcement euro adhoc 29.08.2006 08:56:28
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ots Originaltext: C.A.T. oil AG
Im Internet recherchierbar: http://www.presseportal.de

Further inquiry note:
A&B Financial Dynamics
Dr. Lutz Golsch
phone.: +49 (0)69 92037-110
e-mail: l.golsch@abfd.de

Branche: Oil & Gas - Upstream activities
ISIN: AT0000A00Y78
WKN: A0IKWU
Börsen: Frankfurter Wertpapierbörse / official dealing