CURRENT NEWS

Vienna, 24 November 2006

PRESS RELEASE NO. 5/2006

CONTINUED GROWTH FOR THE SEMPERIT GROUP
GROUP SALES ROSE BY 11.3% TO €428.0 MILLION IN
THE FIRST THREE QUARTERS OF 2006

The industrial group of Semperit AG Holding surpassed expectations in sales in the third quarter to continue along its successful course of growth. Consolidated sales as of 30 September 2006 totalled €428.0 million, a figure 11.3 % higher than at the start of the year. The consolidated profit rose by 11.5 % to €29.3 million, whereas profit before tax (EGT) declined by 2.3 % to €39.4 million.

SEMPERIT AT A GLANCE

The decline in prices for natural rubber and other raw materials from mid-July onwards has not yet reduced our purchase prices because of the long-term nature of our purchase contracts. At the same time, the easing of tension on raw material markets undercut our efforts to obtain higher selling prices from customers.

The disadvantageous exchange rate between the US dollar and the euro was a further negative factor that continues to distort competition. It hurt our large volume of exports into dollar markets, while benefiting our competitors from dollar regions on the European markets.

To offset this lack of elasticity in external cost factors, we focused special attention on steps to cut costs and improve productivity.

PRODUCTION EXPANDED IN ASIA

In Asia, we again pushed investments in new and existing production facilities to improve our position on global markets. The installation of additional dip lines at what is already our third factory for medical gloves in Hat Yai, Thailand, will be completed in the fourth quarter. Semperflex Shanghai Ltd., our newly established group company in Shanghai, China, began trial production of hydraulic hose and will commence regular mass production towards the end of the year for the Chinese and US markets.

The new handrail production plant of Shanghai Semperit Rubber & Plastic Products Co. Ltd. (SRP) adjacent to the Semperflex factory is already being equipped with machinery and will commence operations by the end of December 2006.

SEMPERMED BENEFITING FROM BUSINESS IN EUROPE

Sempermed made good utilization of capacity at all its production locations in the period under review, but currency factors in the unfavorable raw material and foreign exchange situation dampened earnings somewhat.

Prices were able to be increased for surgical gloves from the parent production factory in Wimpassing, Austria, thanks to brisk demand in the European market.

Robust demand in Europe also boosted mass business in examination gloves from Siam Sempermed, our Thai production facility. By contrast, the pace of exports to the US was slowed by the fierce price competition on that market.

At Shanghai Foremost in China, bottlenecks in the power supply restricted the output of rubber-free medical and industrial gloves.

DEMAND FOR INDUSTRIAL HOSES SHAPED BUSINESS AT SEMPERFLEX

Sales increases at Semperflex in the first three quarters were attributable to increased business in industrial hose and elastomer sheeting. The Wimpassing facility continued to make good use of production capacity. However, the price increases which were obtained did not suffice to offset the higher raw material prices.

Semperflex Optimit, the segment’s factory in the Czech Republic, carried out an impressive expansion of its industrial hose production facility and maintained its sales of hydraulic hose at a high level. The Italian subsidiary Semperflex Roiter benefited particularly from stronger demand for special hose and special sizes in Europe. Semperflex Asia, the group company in Thailand, fared less well, recording stagnating hose output due to operational difficulties, market problems in the Far East, and slumping demand in the US.

SEMPERFORM PROFITS FROM DEFINITE UPSWING IN BUSINESS

Semperform reported encouraging year-on-year sales growth in the period under review, putting it in a much better position than in 2005. At the factory in Wimpassing, Austria, the special segments “Handrails” and “Sheave liners for cable cars” were largely to thank for the upturn in sales and earnings. Additional project business improved the results in railroad superstructure.

Gummiwerk Deggendorf in Germany recorded another high level of new orders and dramatic growth in business, allowing it to far surpass the target figures for sales and earnings over the past year. Semperform Sopron in Hungary maintained the positive trend that has been in place since restructuring began there in 2005.

Handrail production at Semperform Shanghai enjoyed a strong third quarter thanks to lively business in the initial equipping of escalators and moving sidewalks.

CONTINUED EXPANSION AT SEMPERTRANS

Sempertrans fulfilled expectations in the period under review, with full order books and steady growth in earnings. The Polish conveyor belt factory Sempertrans Belchatow made nearly full use of the capacity of its newly installed 3.2m-wide press. S.F.B.T., the group’s French conveyor belt factory, also reported a good level of orders, but its results were undercut by the costs of a three-week go-slow by workers in September. The Indian group company Sempertrans Nirlon reported above-target earnings on dramatic growth in the volume and value of sales.

GROWTH TREND CERTAIN TO CONTINUE IN 2006

The management expects Semperit to sustain its current course of sales growth for 2006 as a whole. The group should also be able to improve earnings through a combination of price increases for most product groups and energetic steps to cut costs and increase productivity. The unpredictable price trend for latex and other raw materials continues to be a source of major uncertainty, as is the ongoing volatility of key currencies like the US dollar and the Thai baht. The relaxation on raw material markets should gradually have a positive effect on purchase prices.