05.08.2005 – 08:01

Andritz AG

euro adhoc: Andritz AG
Quarterly or Semiannual Financial Statements
Andritz: Results for the First Half of 2005 - Increase in Order Intake, Sales, and Net Income - Order Backlog, at over 1.5 billion Euros, reaches record level - Financial guidance f

  Disclosure announcement transmitted by euro adhoc.
  The issuer is responsible for the content of this announcement.

05.08.2005

Graz, August 5, 2005.  International Technology Group Andritz reports
a very favorable business development for the First Half of 2005.
Order Intake as well as Sales and Net Income increased significantly
compared to the reference period of last year.  Order Backlog as of
30.6.2005 reached a new record level of more than 1.5 billion Euros.
For the full year 2005, Andritz raises its financial guidance and
expects to achieve record results.

Increase in Sales In the First Half of 2005, Sales of the Andritz
Group increased to 777.5 MEUR (+13.4%; H1 2004: 685.8 MEUR).  In
particular, Sales in the Second Quarter of 2005, at 435.1 MEUR,
surged by 22.9% compared to the reference period of last year (Q2
2004: 354.0 MEUR).

Order Intake up, Order Backlog at record level Order Intake also
developed favorably.  At 890.3 MEUR, it surged by 14.8% compared to
the reference period of last year (H1 2004: 775.6 MEUR).  In
particular, the Rolling Mills and Strip Processing Lines (+64.3%) and
the Environment and Process Business Areas (+105.2%) were able to
increase the Order Intake significantly compared to the First Half of
2004.

Order Backlog as of 30.6.2005 amounted to 1,566.5 MEUR, a marked
increase of 35.1% compared to reference date in 2004 (30.6.2004:
1,159.8 MEUR).

Earnings increased Earnings Before Interest, Taxes, Depreciation, and
Amortization of Goodwill (EBITDA) increased to 56.7 MEUR, 9.0% above
the previous year’s reference period (H1 2004: 52.0 MEUR).

EBIT surged to 45.2 MEUR (H1 2004: 33.0 MEUR).  Non-amortization of
goodwill due to the obligatory application of IFRS 3 was one of the
factors contributing to this increase.  IFRS 3 prohibits the
amortization of goodwill from 2005 on and obliges instead to test the
goodwill for impairment at least annually.

Net Income excluding minority interests amounted to 32.7 MEUR,
exceeding last year’s reference period by 28.2% (H1 2004: 25.5 MEUR).

Outlook For the Second Half of 2005, project activity in the
industries/markets relevant to Andritz (pulp, paper, steel,
environmental technologies) is expected to remain at a solid level.
Based on both the favorable economic environment and the high Order
Backlog of over 1.5 billion Euros as of 30.6.2005, Andritz expects
financial figures of 2005 to surpass the record levels achieved in
the previous year and raises its financial guidance.  Wolfgang
Leitner, President and CEO of Andritz: "For the full year of 2005, we
are very confident and expect Group Sales to increase by
approximately 20%, and Net Income by approximately 35%".

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.

Key Figures for the First Half of 2005

(in MEUR)           H1 2004    H1 2005    Change    Q2 2004    Q2 2005  Change
Sales                685.8      777.5     +13.4%     354.0      435.1   +22.9%
Order Intake         775.6      890.3     +14.8%     406.0      497.1   +22.4%
Order Backlog
(as of end
of period)         1,159.8    1,566.5     +35.1%   1,159.8    1,566.5   +35.1%
EBITDA1)              52.0       56.7      +9.0%      29.5       31.3    +6.1%
EBITDA Margin         7.6%       7.3%        -        8.3%       7.2%      -
EBITA2)               41.3       45.2      +9.4%      24.2       25.6    +5.8%
EBITA Margin          6.0%       5.8%        -        6.8%       5.9%      -
Earnings before
Interest and
Taxes (EBIT)          33.0       45.2      +37.0%     19.4       25.7   +32.5%
Earnings before
Taxes                 32.7       46.8      +43.1%     19.2       26.5   +38.0%
Net Income excl.
Minority Interests    25.5       32.7      +28.2%     17.5       18.6     6.3%
Cash flow from
Operating Activities  90.5       38.5      -57.5%     38.9       14.9   -61.7%
Capital Expenditure3)  5.7        9.8      +71.9%      3.2        4.9   +53.1%
Employees (as of
end of period)       4,885      5,590      +14.4%    4,885      5,590   +14.4%

1) EBITDA: Earnings before Interest, Taxes, Depreciation and Amortization of
           Goodwill
2) EBITA:  Earnings before Interest, Taxes, and Amortization of Goodwill

3) Additions to tangible and intangible assets

The Letter to Shareholders for the First Half of 2005 is available on
the Andritz web site (www.andritz.com) both as an online and a PDF
version.  Printed versions can be requested by telephone (+43 316
6902 2722), fax (+43 316 6902 465) or e-mail
(petra.wolf@andritz.com).

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 5,600
employees worldwide.  It develops and makes its high-tech systems at
15 production sites in Austria, Germany, Finland, Denmark, France,
Netherlands, USA, Canada and China.

end of announcement                               euro adhoc 05.08.2005 07:30:00

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:
Index: WBI, ATX Prime, ATX
Börsen: Wiener Börse AG / official dealing