euro adhoc: KSB AG / Interim Announcement

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Intermediate report of the management transmitted by euro adhoc. The issuer
is responsible for the content of this announcement.
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11.05.2007

Interim report on the first quarter of 2007

KSB Group remains on course for growth

The positive trend in demand for pumps, valves and related systems
has continued in the current year. In the first three months of 2007
the most im-portant stimulus for the KSB business came from industry
and the energy, mining and waste water sectors.

KSB Group 01-03/2007 01-03/2006 Change
Order intake EUR million 556.5 467.5 + 19.0 %
Sales revenue EUR million 412.0 362.1 + 13.8 %
Employees (31 March) 13,579 12,843 + 5.7 %

Order intake and sales revenue development

Order intake in the Group grew by 19.0 percent during the first
quarter of 2007 compared with the same period last year. KSB Group
companies again posted double-digit growth in all four Regions -
Europe, Middle East / Africa, Asia / Pacific and the Americas. With a
45 percent growth, the order growth achieved by KSB companies in Asia
is especially outstanding. In terms of volume, however, the strongest
increase was reported by KSB companies in Europe; the parent company
KSB AG improved its order intake over the same quarter last year by
17.0 percent.

Over the same period, the Group increased its sales revenue by 13.8
per-cent, the greatest volume growth again being reported in the
European com-panies. KSB AG increased its sales revenue by 14.2
percent.

A point that has to be taken into account is the first-time
consolidation of four small KSB companies in the Group on 1 January
2007, namely in Belgium, Brazil, Dubai and Thailand. Without these
first-time consolidations, the in-crease in the order intake would
have been 17.2 percent and sales revenue growth 11.7 percent. Change
in number of employees

The integration of these four KSB companies in the Group has also had
an impact on the number of employees in the Group. On 31 March, this
number had increased by 736 to 13,579 compared with the same time in
the previous year. Of these employees, 359 belonged to the newly
consolidated compa-nies. In addition, KSB companies in Brazil, the
USA and South Africa have increased their staff levels to cope with
the rising volume of orders. This applies equally to KSB AG, which
appointed all its apprentices and trainees to permanent positions and
has recruited further new people in the current year.

New KSB company in South Africa

To develop the business in South Africa, KSB increased its financial
com-mitment in the country in February of this year and acquired its
former joint venture partner´s fifty percent share in KSB Pumps
(S.A.) (Pty.) Ltd., Ger-miston. KSB has now transferred the operative
business of KSB Pumps (S.A.) (Pty.) Ltd. to a newly established
subsidiary of that company, Ger-miston-based KSB Pumps and Valves
(Pty) Ltd. KSB holds 74.9 percent of the subsidiary´s share capital.
The remaining 25.1 percent have been acquired by a South-African
financial investor.

Earnings and financial position

Earnings showed a further positive trend. Both in the Group and in
KSB AG, the results in the first quarter clearly exceeded the
previous year´s level. The financial position has also further
improved compared with the year-end figure for 2006.

Frankenthal, 11 May 2007

end of announcement euro adhoc 11.05.2007 10:40:42
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ots Originaltext: KSB AG
Im Internet recherchierbar: http://www.presseportal.de

Further inquiry note:

Branche: Machine Manufacturing
ISIN: DE0006292006
WKN: 629200
Index: CDAX
Börsen: Börse Berlin-Bremen / free trade
Hamburger Wertpapierbörse / free trade
Baden-Württembergische Wertpapierbörse / free trade
Frankfurter Wertpapierbörse / official dealing/general
standard
Börse Düsseldorf / official dealing