Interim report for the third quarter of 2006

• Orders received climb 5.4 percent to € 1,176.3 million 
• Order backlog grows 13.7 percent to € 692.7 million 
• Sales revenues up by 7.2 percent to € 1,042.6 million 
• EBIT rises substantially to € 14.7 million 

CEO Hein: "We have significantly improved our ability to compete in our core business fields"

IWKA Aktiengesellschaft continued on its growth track in the third quarter of 2006. The company was able to improve its EBIT, orders received, order backlog and sales revenues from continuing operations.

At the same time, the Executive Board is examining the possibility of further sharpening its focus to the Plant and Systems Technology (Automotive) and Robotics businesses. Options for selling the Packaging division are being explored. The portfolio streamlining programs introduced in 2005 continued. The restructuring of the Group will help strengthen IWKA's core business fields.

The details: The IWKA Group's orders received from continuing operations increased 5.4 percent to € 1,176.3 million, which compares to the € 1,115.8 million posted at the same time a year earlier. During the same period, order backlog rose from € 609.1 million on December 31, 2005 to € 692.7 million, an increase of 13.7 percent.

Sales revenues were up 7.2 percent on last year's € 972.9 million, ending at € 1,042.6 million, and EBIT showed a strong increase, jumping from € 1.1 million last year to € 14.7 million at the end of the third quarter 2006.

The result from continuing operations during the first nine months came in at -€ 4.9 million; at the same time last year they were -€ 7.9 million. The difference in the result from discontinued operations as of September 30, 2006 compared to June 30, 2006 was mainly caused by -€ 2.2 million in operating losses, which brought the total to -€ 54.7 million. This includes € 46.8 million of non-liquidityrelated write-downs. Overall, the IWKA Group's net after-tax result was -€ 59.6 million compared to -.. 24.5 million a year prior. On September 30, 2006 IWKA had 7,541 employees in continuing operations. On December 31, 2005, the number was 7,883.

Wolfgang-Dietrich Hein, Chairman of IWKA AG's Executive Board, said:

"The remarkable operating results at the end of the third quarter show that our restructuring is starting to have an impact. We have significantly improved our ability to compete in our core business fields. Sales revenues are at a new high. We see these facts as confirmation of the successful strategic repositioning of our company."