Notes

Principles of accounting and consolidation, balance sheet reporting and valuation methods

1. The consolidated financial report of Salzgitter AG, Salzgitter, for the reporting period from January 1 to June 30, 2007, has been prepared as a condensed report with selected notes. The report has been drawn up as before in accordance with the International Reporting Standards (IFRS) published by the International Accounting Standards Board (IASB) in consideration of requirements contained in IAS 34 for condensed interim reports.
2. In comparison with the annual financial statements as at December 31, 2006, no changes have been made in the accounting, valuation, calculation and consolidated methods in the interim financial statements for the period ended June 30, 2007

Selected explanatory notes on the income statement

1. Sales by division are shown in the respective section.
2. Earnings per share are calculated pursuant to IAS 33. The undiluted earnings per share based on the weighted number of shares of Salzgitter AG came to € 6.94 in the period under review.
   
   Dilution of the earnings per share occurs if the average number of shares is increased by the addition of the potential shares to be issued on the basis of the options and conversion rights. There were no such options and conversion rights outstanding as of June 30, 2007. Therefore, diluted earnings per share equaled undiluted earnings per share and amounted to € 6.94.

Related Party Disclosures

In addition to business relationships with companies that are consolidated fully and proportionately in the consolidated financial statements, relationships also exist with associated companies and shareholdings that must be designated as related companies in accordance with IAS 24.

All business transactions with related companies are conducted on terms that also customarily apply among third parties. Deliveries and services rendered for related companies primarily concern deliveries of sheet piling to ThyssenKrupp GfT Bautechnik GmbH for resale and crude steel products supplied for processing.

The deliveries and services received essentially comprise deliveries of input material for the manufacture of largediameter pipes and precision tubes.

For further information please see the disclosures in the Annual Report 2006 (pg. 244).

Declaration according to § 37w Abs. 5 WpHG

The interim financial statements and interim management report at hand have not been subjected to an auditor’s scrutiny.

Responsibility statement by management

“To the best of our knowledge, and in accordance with the applicable reporting principles for interim financial reporting, the interim consolidated financial statements give a true and fair view of the assets, liabilities, financial position and profit or loss of the group, and the interim management report of the group includes a fair review of the development and performance of the business and the position of the group, together with a description of the principal opportunities and risks associated with the expected development of the group for the remaining months of the financial year.”

Salzgitter, August 2007
The Executive Board of Salzgitter AG

Financial calendar 2007

March 08, 2007	Key data for financial year 2006
March 28, 2007	Annual press conference
March 29, 2007	Analyst conference in Frankfurt/Main
March 30, 2007	Analyst conference in London
May 15, 2007	Interim report for the first quarter 2007
May 23, 2007	Ordinary Shareholders’ Meeting
August 09, 2007	Interim report for the first half 2007
August 09, 2007	Analyst conference in Frankfurt/Main
August 10, 2007	Analyst conference in London
November 14, 2007	Interim report for the first nine months 2007
December 31, 2007	End of financial year 2007

Legal disclaimer

Some of the statements made in this report possess the character of forecasts or may be interpreted as such. They are made upon the best of information and belief and by their nature are subject to the proviso that no unforeseeable deterioration occurs in the economy or in the specific market situation pertaining to the Division companies, but rather that the underlying bases of plans and outlooks prove to be accurate as expected in terms of their scope and timing. The company undertakes no obligation to update any forward-looking statements. The official financial report for the period under review in this document is the German-language hardcopy version of the Salzgitter AG Interim Report. In case of ambiguity between this document and any other version of the interim report, information provided in the German-language hardcopy version shall supersede information provided in any other form.