euro adhoc: Andritz AG / quarterly or semiannual financial statement / Andritz: Results for the First Half of 2007 - Increase in Order Intake, Sales, and Net Income - Order Backlog, at over 3.8 bn Eur

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6-month report

03.08.2007

Graz, August 3, 2007. International Technology Group Andritz reports
a very favorable business development for the First Half of 2007,
with increases in Order Intake as well as in Sales and Net Income
compared to the reference period of last year. Order Backlog as of
30.06.2007 reached a record level of more than 3.8 billion Euros.
For the full year 2007, Andritz expects to achieve new record
results, with Group Sales to increase to approximately 3.2 bn Euros
and Net Income to increase in line with Sales growth.

Increase in Sales During the First Half of 2007, Sales of the Andritz
Group were 1,537.0 MEUR, an increase of 58.9% compared to the
reference period of last year (H1 2006: 967.5 MEUR). In particular,
the Pulp and Paper, the Hydro Power, and the Rolling Mills and Strip
Processing Lines Business Areas were able to increase their Sales
compared to the First Half of last year.

Newly acquired companies, which were not included in the consolidated
financial statements of the First Half of 2006, added 334.7 MEUR to
Group Sales in the First Half of 2007 (of which 331.8 MEUR came from
VA TECH HYDRO). Organic growth of the Andritz Group, therefore,
amounted to 24.3% during the First Half of 2007.

Order Intake up, Order Backlog at record level Group Order Intake for
the First Half of 2007 amounted to 2,037.5 MEUR. This was an
increase of 59.5% compared to the First Half of 2006 (1,277.1 MEUR),
and mainly due to the first-time consolidation of VA TECH HYDRO,
whose Order Intake developed substantially above expectations, and
the favorable development of the Pulp and Paper, and the Rolling
Mills and Strip Processing Lines Business Areas.

During the First Half of 2007, the combined Order Intake of newly
consolidated companies amounted to 516.6 MEUR, of which 512.6 MEUR
came from VA TECH HYDRO.

The Group´s Order Backlog as of 30.06.2007 reached a record level of
3,867.9 MEUR, thus significantly increasing compared to the reference
date of last year (30.06.2006: 2,059.1 MEUR). This was mainly due to
the consolidation of VA TECH HYDRO, which added 1,738.5 MEUR to the
Group´s Order Backlog as of 30.06.2007.

Earnings increased In step with higher Sales, Earnings before
Interest, Taxes, and Amortization of intangibles related to
acquisitions (EBITA) in the First Half of 2007 increased by 51.5%, to
87.4 MEUR (H1 2006: 57.7 MEUR). The EBITA margin for this period
amounted to 5.7%, down compared to the reference period of last year
(H1 2006: 6.0%). This is mainly due to the consolidation of VA TECH
HYDRO and a slight profitability decline of the Pulp and Paper
Business Area.

Net Income excluding minority interests amounted to 61.6 MEUR,
exceeding last year´s reference value by 54.4% (H1 2006: 39.9 MEUR).

Balance sheet structure The net worth position and capital structure
of the Andritz Group as of 30.06.2007 showed no major changes
compared to 31.12.2006.

Net liquidity (cash and cash equivalents minus interest-bearing
financial liabilities), at 332.9 MEUR as of 30.06.2007, was still at
a very high level (31.12.2006: 365.7 MEUR). The equity ratio as of
30.06.2007 was 18.1% (31.12.2006: 17.4%).

Outlook for the full year 2007 For the Second Half of 2007, Andritz
expects project activity to continue to develop favorably in all
Business Areas. Wolfgang Leitner, President and CEO of Andritz: "In
all of our Business Areas, we see a continued good market environment
and thus expect a favorable business development for the remaining
months of 2007. Based on the favorable results for the First Half of
2007, Andritz expects Group Sales to increase to approximately 3.2 bn
EUR in 2007. Net Income should increase in line with Sales growth."

Key Figures for the First Half of 2007

(in MEUR) H1 2006 H1 2007 Change Q2 2006 Q2 2007 Change
Sales 967.5 1,537.0 +58.9% 515.9 806.1 +56.3%
Order Intake 1,277.1 2,037.5 +59.5% 529.5 1,006.5 +90.1%
Order Backlog
(as of end
of period) 2,059.1 3,867.9 +87.8% 2,059.1 3,867.9 +87.8%
EBITDA 1) 70.2 107.9 +53.7% 37.9 58.4 +54.1%
EBITDA Margin 7.3% 7.0% - 7.3% 7.2% -
EBITA 2) 57.7 87.4 +51.5% 31.1 47.6 +53.1%
EBITA Margin 6.0% 5.7% - 6.0% 5.9% -
Earnings before
Interest and
Taxes (EBIT) 57.7 84.4 +46.3% 31.1 46.0 +47.9%
Earnings before
Taxes 59.9 87.7 +46.4% 32.0 47.1 +47.2%
Net Income excl.
Minority Interests 39.9 61.6 +54.4% 21.0 33.1 +57.6%
Cash flow from
Operating
Activities -88.0 34.6 +139.3% -63.2 -5.1 +91.9%
Capital
Expenditure 3) 13.1 23.1 +76.3% 8.5 12.3 +44.7%
Employees (as of
(end of period) 6,766 10,946 +61.8% 6,766 10,946 +61.8%

1) EBITDA: Earnings before Interest, Taxes, Depreciation and
Amortization 2) EBITA: Earnings before Interest, Taxes, and
Amortization of intangibles related to acquisitions 3) Additions to
property, plant, and equipment and intangible assets

Disclaimer Certain statements contained in this press release
constitute "forward-looking statements". These statements, which
contain the words "believe", "intend", "expect" and words of similar
meaning, reflect management´s beliefs and expectations and are
subject to risks and uncertainties that may cause actual results to
differ materially. As a result, readers are cautioned not to place
undue reliance on such forward-looking statements. The Company
disclaims any obligation to publicly announce the result of any
revisions to the forward-looking statements made herein, except where
it would be required to do so under applicable law.

The Andritz Group Listed Andritz Group is a global market leader for
advanced production systems for pulp and paper, steel and other
specialized industries. Andritz has a staff of approximately 11,000
employees worldwide. It develops and makes its high-tech systems at
35 production sites in Austria, Germany, Finland, Denmark, France,
Netherlands, USA, Canada and China.

end of announcement euro adhoc 03.08.2007 06:30:00
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ots Originaltext: Andritz AG
Im Internet recherchierbar: http://www.presseportal.de

Further inquiry note:
Dr. Michael Buchbauer
Head of Investor Relations
Tel.: +43 316 6902 2979
Fax: +43 316 6902 465
mailto:michael.buchbauer@andritz.com

Branche: Machine Manufacturing
ISIN: AT0000730007
WKN: 632305
Index: WBI, ATX Prime, ATX
Börsen: Wiener Börse AG / official dealing