Overall Statement on the Risk Position

As an independent authority, the Salzgitter AG audit department examines the systems used throughout the Group in terms of adequacy, security, safety and efficiency and provides impetus for their further development as required.

In the financial year 2005 there were no risks which posed a threat to the continued existence of Salzgitter AG. Nor are there currently any concrete developments discernible which might be capable in future of having a lasting and substantially negative impact on the earnings situation, financial position and net worth of Salzgitter AG.

The auditor has checked the risk early warning system installed at Salzgitter AG in accordance with the German Stock Corporation Act. This examination verified the fact that the early warning system installed throughout the Group fulfills its tasks and fully satisfies all company law requirements.