RHI with favourable revenue and earnings increase in Q3

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The RHI Group reported revenue in the amount of EUR 998.6 million in
the first three quarters of 2006 (previous year: EUR 893.9 million),
an increase by 11.7%. In the third quarter revenue amounted to EUR
331.8 million (previous year: EUR 292.0 million) as a result of the
good development of the refractories business worldwide and exceeded
the figure of the previous year by 13.6%. Accumulated EBITDA in the
RHI Group rose 20.7% to EUR 130.5 million (previous year: EUR 108.1
million); EBIT, at EUR 97.5 million (previous year: EUR 78,3
million), was up 24.5%. The EBIT margin in the group improved to 9.8%
(previous year: 8.8%). Profit before income taxes from continuing
operations (Refractories, other) increased by 32.4% to EUR 79.3
million (previous year: EUR 59.9 million), and profit after taxes
rose 29.9% to EUR 71.3 million. Profit from discontinued operations
(Insulating), which was realised with the closing of the Heraklith
transaction in June 2006, amounted to EUR 60.8 million (previous
year: EUR 9.8 million). The RHI Group’s profit thus increased by
104.2 % auf EUR 132.1 million (previous year: EUR 64.7 million) in
the first three quarters of 2006.

With the focus on refractories, RHI shows a new reporting structure.
Since two new members will be added to RHI’s Board of Management in
2007 to strengthen customer care and market penetration in the
segments "Steel" and "Industrial", reporting already now follows this
new management structure. In addition, RHI reports on "Raw Materials,
Production, Other" in a third segment. This segment shows the
strategic value added by the mining, raw materials and production
plants, which predominantly supply the Steel and Industrial segments
(for details see Q3 report).

The refractories business continued to develop well in the third
quarter of 2006, accumulated sales volume 2006 rose 8.4% to 1,357,000
tonnes. Consolidated revenue improved by 13.6% in the third quarter,
accumulated 2006 by 11.7%. Revenue in the Steel segment in Q3
exceeded the previous year by 15.8%, in the Industrial segment by
8.9%; accumulated revenue in the Steel segment was up 11.3%, and
11.8% in the Industrial segment. The overall positive development in
the Steel and Industrial segments reflects the favourable economic
situation and the worldwide increase in output in RHI’s client
industries. Incoming orders and the good economic situation of RHI’s
customer industries indicate a positive business development for the
fourth quarter 2006. Forecasts for results in 2007 are also positive,
provided there are no unexpected cost, cyclical or exchange rate
pressures. In addition to industrial cycles, especially in the steel
industry, raw material and energy costs as well as monetary parity,
business success is significantly influenced by the consolidation and
modernisation of RHI’s client industries worldwide.

Q1 - Q3 Change
in EUR million 2006 2005 in %
Revenue 998.6 893.9 11.7
EBITDA 130.5 108.1 20.7
EBITDA margin 13.1% 12.1% 8.1
EBIT 97.5 78.3 24.5
EBIT margin 9.8% 8.8% 11.5
Profit before income taxes 79.3 59.9 32.4
Profit from continuing operations 71.3 54.9 29.9
Profit from discontinued operations 60.8 9.8 520.4
Profit 132.1 64.7 104.2

The complete Quarterly Report III/2006 is available on RHI’s website
under www.rhi-ag.com.

end of announcement euro adhoc 25.10.2006 08:00:00
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ots Originaltext: RHI AG
Im Internet recherchierbar: http://www.presseportal.de

Further inquiry note:
RHI AG
Investor Relations
Dkfm. Markus Richter
Tel: +43-1-50213-6123
Email: markus.richter@rhi-ag.com

Branche: Refractories
ISIN: AT0000676903
WKN: 874182
Index: ATX Prime
Börsen: Wiener Börse AG / official dealing