Updated earnings forecast for 2006

IWKA continues to systematically reorganize on the way to becoming an automation group

August 3, 2006

Additional companies that do not meet the sustainable return on investment expectations of the group were reclassified as discontinued operations. A loss from discontinued operations of over EUR 50 million includes non liquidity-related valuation adjustments, which lead to a substantial shortfall for the first half of 2006.

Nevertheless, it is already clear now that the restructuring is bearing fruit. In the first half-year, IWKA has achieved double-digit growth in orders received and sales revenues from continuing operations. Earnings figures from operating activities of EUR 2.9 million include budgeted startup costs for the Jeep Wrangler pay-on-production contract. IWKA will therefore be reporting substantial positive operating earnings for the current business year.

The Executive Board had forecasted already at the beginning of the 2006 business year that 2006 will still be a transition year since the restructuring of the company has not yet been completed. The current results confirm these projections.

IWKA Aktiengesellschaft will present the results for the first half of the year on August 8, 2006.

There will be a change at the Executive Board level of IWKA. Dieter Schäfer, currently responsible for Packaging, will leave IWKA's Executive Board effective August 31, 2006. Wolfgang-Dietrich Hein, CEO, will assume responsibility for the division in addition to his other duties. The Supervisory Board thanks Mr. Schäfer for his commitment to the IWKA Group. Dieter Schäfer has been a member of the Executive Board since 2004. The Executive Board will henceforth consist of four members: Wolfgang-Dietrich Hein (CEO, Packaging Division), Dr. Jürgen Koch (Finance and Controlling), Gerhard Wiedemann (Automotive Division) and Bernd Liepert (Robotics Division).

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