Earnings situation within the Group

1) In regard of the participation in Hüttenwerke Krupp Mannesmann
2) EBIT = EBT plus interest paid (excluding interest element in allocations to pension provisions); EBITDA = EBIT plus depreciation and amortization
3) EBIT in relation to the total of shareholders' equity (without calculation of accrued and deferred taxes), tax provisions, interest-bearing liabilities (excluding pension provisions) and liabilities from financial leasing, forfaiting and asset-backed securitization
4) Annualized
5) Excluding financial assets
6) Including securities and structured investments

In the first quarter of 2008, the Salzgitter Group benefited from the marked upswing in demand in the European steel market, the expansion of business activities in the precision tubes segment, as well as from the contribution of the new Technology Division.

Consolidated external sales rose 22 % to € 2.90 billion. Klöckner-Werke AG, acquired at the start of the second half-year of 2007 and integrated into the new Technology Division, and other companies in the Tubes Division contributed € 314.2 million to this result.

Pre-tax profit of € 291.9 million remained at an excellent level thanks to very good results delivered especially by the Steel, Tubes and Trading divisions. What makes this outcome even more remarkable is that not only higher current expenses for raw materials and energy, but also € 49.1 million in additional materials expenses were considered in view of the further price increases that largely became effective from January 1, 2008. Due to a reduction in the corporate tax rate, the Group’s after-tax profit, which stood at € 194.9 million, almost attained the previous year’s level. Earnings per share posted € 3.40. Return on capital employed (ROCE) from industrial business reached a remarkable 37.9 % in the first three months of 2008; including income from the investment of funds of more than € 2 billion, ROCE came to 22.4 %.