OIAG PRESS RELEASE

Adjusted net result increases to EUR 137.9 million due to exceptional development of investment earnings

Dividend of EUR 225 million paid to Republic of Austria

Vienna, 3 April 2006

Österreichische Industrieholding AG (OIAG) is once again pleased to report an increase in its results for the financial year 2005. A result of EUR 137.9 million adjusted for debt repayment was some 37 per cent above the previous year’s result (2004: EUR 101.0 million). This increase was attributable mainly to the excellent development of the Group’s investments – and the subsequent positive dividend performance. Investment earnings in the year under review of EUR 169.29 million were 37.6 per cent above the comparable figure for the previous year.

For the first time during the financial year under review, OIAG resolved to use not only profits from privatisation revenues, but also cash relating to accounting revenues in the amount of EUR 250 for the repayment of refund liabilities that are backed up by counterclaims to the Republic of Austria. This procedure is reflected in the almost complete termination of OIAG’s debt repayment schedule. The counterclaim to the Republic of Austria was reduced by EUR 250 million in the accounts, as a result of which the company reported a shortfall for the year of EUR 112.1 million. At the same time, this expense was offset by release of committed capital reserves in the same amount.

Due to the satisfactory development of results coupled with the release of further capital reserves, including the profit carried forward from 2004, OIAG was able to report a net profit for the year of EUR 225 million. The entire amount will be paid to the company’s owner, the Republic of Austria, in the form of a dividend for the financial year 2005. The regular dividend paid to the Republic ever since the year 2003 has made a significant contribution towards balancing the Austrian budget. The dividends paid to the Republic of Austria over the past three years amounted to EUR 555 million.

The average number of employees in 2005 was 35 people, and was therefore 19 per cent below the comparable figure for the previous year (2004: 43 employees).

OIAG sold its remaining shares in VA Technologie and voestalpine during the year under review. This means that the company has finally divested all its industrial investments, entirely fulfilling its privatisation mandate with respect to the companies earmarked for complete privatisation.

OIAG also reported a significant reduction in net debt in the year under review. Debts of EUR 709 million the previous year were reduced to EUR 457 million. OIAG’s liquid assets will exceed its debts by the third quarter of 2006, meaning that OIAG will then be debt-free.

At the same time, OIAG has reported a steady rise in the value of its portfolio. At year-end 2005, the portfolio of all OIAG’s investments had a total value of EUR 8.3 billion, a new record level some EUR 2.8 billion above the previous year’s figure. Hence the total market value of the investment portfolio was 66 per cent above its value in the year 2000.

This represented a significant increase in net assets – the balance of portfolio value and net debt – impressive evidence of the successful performance of the company. Over a period of four years, net assets have risen more than fourfold, from EUR 1.8 billion to their present level of EUR 7.8 billion. The value of the OIAG portfolio today is therefore about 18 times more than the company’s remaining net debt (beginning of 2000: 1.4 times).

Further Information:
Anita Bauer
OIAG Corporate Communications
Tel.: 01/711 14-602
Mobile: 0664/13 40 333
Österreichische Industrieholding AG