Preliminary figures for fiscal 2006

• Orders received and sales revenues outstrip previous year 
• EBIT very positive (continuing operations) 
• Debt lowered considerably 

Orders received, sales revenues and EBIT developed very positively.

In 2006, the Group achieved EBIT of EUR 33.7 million after losses of EUR -42.9 million in 2005. Orders received and sales revenues from continuing operations were 10 percent, in the case of orders received, and 9 percent, for sales revenues, above the levels of the year before. All three divisions played a part in this positive business development.

Cashflow also developed particularly well in the 4th quarter of 2006. Net debt as of December 31, 2006 was therefore, at EUR 89.7 million, significantly below the value in December 2005 (EUR 175,9 million). With the addition of a syndicated loan of EUR 475 million, the Group's operating development is thus placed on a solid financial footing for the next few years.

As of December 31, 2006, the IWKA Group had 8,123 employees. The buildup of staff was the result of the integration of new companies into the scope of consolidation and the start of the KTPO pay-on-production project for the production of the Jeep Wranger. On the other hand, employee figures were reduced by the implementation of structural measures.

The divestment process in 2006 was totally completed. Extraordinary expenditure will be around the level of the figures already communicated, and a net loss for the year will therefore be recorded.
Gerhard Wiedemann, CEO of IWKA, commented on the published figures as follows: "The improvement in operating results shows that IWKA is on the right course in the continuing operations. Our activities are now on a solid footing and offer excellent opportunities for further development. I will be building on this in my own work." IWKA will be publishing the final figures for the 2006 financial year at its press conference presenting the annual financial statements on March 29, 2007 in Munich.

Details of the preliminary figures:

The orders received from continuing operations, at EUR 1,617.3 million as of December 31, 2006, outstripped the previous year by 10.2 percent (2005: EUR 1,467.6 million). The three IWKA divisions were able to increase their orders received by between 8 and 13 percent, with a small proportion of this increase resulting from the consolidation of new companies.

At EUR 429.8 million, orders received in the 4th quarter 2006 were above the level of the 4th quarter 2005, which means that IWKA has moved into a good starting position for the current year.

Sales revenues from continuing operations, at EUR 1,562.4 million, exceeded revenues for the previous year (EUR 1,435.9 million) by 8.8 percent. The growth in sales was carried by the improvements in business developments in all three divisions, with growth rates between 8 and 15 percent. Once again, a small part of the rise comes from the consolidation of new companies.

Sales revenues for the 4th quarter 2006, at EUR 507.4 million, were also far higher than in the previous year (2005: EUR 462.2 million).

In 2006, IWKA achieved significantly improved EBIT in continuing operations than in the previous year. For the financial year just ended, the company (continuing operations) achieved EBIT of EUR 33.7 million, compared with considerable losses of EUR -42.9 million in the previous year. These losses in 2005 included extraordinary restructuring expenditure and depreciation in the sum of EUR 44.6 million. For continuing operations, the EBIT margin was 2.2 percent. This is not yet quite in line with the target corridor, but was characterized in 2006 by the difficult business situation that the Group had gone through and by overcapacities in the market.

All of the business divisions contributed to the positive results. Systems division improved its EBIT from EUR -14.5 million to EUR 9.6 million, Robotics rose from EUR -22.8 million to EUR 22.4 million and Packaging showed an increase from EUR 7.3 million to EUR 17.3 million.

IWKA was able to reduce its net debt as of December 31, 2006 by EUR 86 million compared with December 31, 2005. At present, it stands at around EUR 89.7 million. The newly created ABS program (sales of receivables) also contributed to this.

As of December 31, 2006, the IWKA Group had a workforce of 8,123, compared with 7,939 the year before. The reduction in the size of the workforce achieved through staff restructuring was offset by the incorporation of new companies into the consolidation group and the start of the KTPO pay-on-production project.

Development in the divisions

The Systems division expanded its business activity. The division remains a competent partner to the automobile industry, but is also increasing its expertise in other application areas. The pay-on-production project KTPO made a successful start in 2006.

Orders received had risen by 7.7 percent in the previous twelve months; as of December 31, 2006, they had reached EUR 847.8 million (2005: EUR 786.9 million). Sales revenues, which reached EUR 832.8 million, were also 7.8 percent above those of the previous year (EUR 772.5 million).

EBIT of EUR 9.6 million left the previous year's result (2005: EUR -14.5 million) well behind. This figure includes planned costs for the production start-up of the pay-on-production model for manufacture of the Jeep Wrangler. The division's results were also adversely affected by individual structural measures.

The division developed positively in the 4th quarter 2006. Orders received in the sum of EUR 211.0 million were above the level of the previous year, as were the sales revenues totaling EUR 307.5 million. EBIT, at EUR 8.3 million, was the best quarterly result in the financial year just ended.

As of December 31, 2006, the division had 3,677 employees, compared with 3,422 the previous year.

The restructuring measures introduced in 2005 and completed at the beginning of 2006 in the Robotics division contributed as much in 2006 to the further improvement in results as the satisfactory development in the order situation did.

At the end of 2006, the division recorded an increase in orders received of 13.0 percent over the previous year, reaching EUR 382.3 million (previous year: EUR 338.4 million). Sales revenues outstripped the previous year's level by 15.4 percent (2005: EUR 323.6 million; 2006: EUR 373.4 million). After a negative previous year, EBIT also showed a considerable improvement; as of December 31, 2006, it reached EUR 22.4 million (December 31, 2005: EUR -22.8 million).

The number of employees fell compared with the end of 2005, partly as a result of the restructuring, from 1,936 to its present level of 1,838.

The growth in business is mainly due to an increase in orders from General Industry and to new orders from automobile manufacturers. Through its consistent development of available technologies, KUKA has been able to expand the possible applications of robots in General Industry and to open up new markets. The increased implementation of innovative solutions for the automobile industry has also enabled the division to acquire new customers in this market.

A look at the orders received in the 4th quarter 2006 shows that, at EUR 111.0 million, these are above the level of the previous year (EUR 101.6 million). At EUR 100.3 million, sales exceeded the 4th quarter of the previous year (EUR 95.2 million). EBIT in the 4th quarter (EUR 8.2 million) are way ahead of the figures for the three previous quarters and for the previous year.

IWKA Packaging developed positively in 2006. Compared with 2005, orders received improved by 12.0 percent to EUR 436.0 million (2005: EUR 387.6 million). Sales revenues as of December 31, 2006 reached EUR 405.1 million, which is 4.4 percent above those of the previous year (EUR 387.9 million). Operating results followed the positive business trend: in 2005, the division had earned EUR 7.3 million, whilst EBIT reached EUR 17.3 million in 2006. This development was supported by all three groups in the division ? Pharmaceuticals / Cosmetics, Food and Dairy.

At the end of 2006, companies in Packaging employed 2,543 people, which is 3 percent more than at the end of the previous year (2,476 people). The rise is largely due to newly consolidated companies. Staff adjustment measures in Pharmaceuticals / Cosmetics had the opposite effect.

Within the financial year just ended, the 4th quarter was particularly significant for the companies. Orders received totaling EUR 124.0 million represented the best quarterly level in 2006, whilst sales revenues, at EUR 124.4 million, were considerably up on the previous quarter. EBIT showed a similarly positive development; at EUR 10.2 million, this was well above the level of the previous quarters.

Following the continued concentration of the IWKA Group, the possibility of disposing of Packaging is currently being examined. These considerations are in the overall context of the strategy of strengthening the Group's commitment to the Systems and Robotics divisions. In this way, IWKA hopes to focus even more strongly on its core competences and business areas in which the Group is currently a global leader or is set to become one in the foreseeable future.

Non-core Businesses / Discontinued Operations. The process of streamlining the portfolio was completed in 2006. Over the year, the ARO Group, the Boehringer Group, GSN Maschinen-Anlagen-Service GmbH, Hassia-Redatron GmbH, Bopp- und Reuther Sicherheits- und Regelarmaturen-Gruppe and the J.W. Froehlich Group were sold.