22.03.2006 – 08:00

RHI Magnesita

Preliminary results: RHI profit for 2005 at the high level of the previous year =

  ots-CorporateNews transmitted by euro adhoc.
  The issuer is responsible for the content of this announcement.

With a profit of EUR 99.8 million (2004: EUR 99.7 million), RHI once
again reported a very good result in the financial year 2005. The
profit attributable to stockholders of RHI AG (after minority
interest) amounts to EUR  98.1 million (2004: EUR 95.0 million). On
an undiluted basis, earnings per share came to EUR  4.18 (2004: EUR
4.63) as a result of the newly added RHI shares due to the conversion
of convertible bonds in 2005. Taking into account all possible
conversions by the end of 2009, earnings per share on a fully diluted
basis were EUR  2.61 (2004: EUR 2.58), thus slightly exceeding the
comparable figure of 2004. The price/earnings ratio (p/e ratio) of
the RHI share therefore still amounts to under 6 on an undiluted
basis and, fully diluted, to under 10.

With its good results, RHI once again confirms that the strategic
direction taken following the crisis in 2001 has been successful.
After the contract to sell the Insulating Group was signed in
January, RHI is now fully concentrating on extending the globally
leading technology and market position of RHI Refractories.

Note: As RHI signed a contract to sell the Heraklith Group in January
2006, the insulating division is already shown as "discontinued
operations" in fiscal 2005 in accordance with IFRS regulations.
Although profit of the RHI Group according to IFRS still comprises
the entire business of the Group and thus also the insulating
division, the group figures for revenue, EBIT and other earnings
figures, have been "adjusted" for Insulating. In order to ensure
better comparability, revenue and EBIT 2005 are shown as both figures
comparable to 2004 and in accordance with IFRS.

On a comparable basis, RHI’s consolidated revenue amounted to EUR
1,451.5 million in 2005 (2004: EUR 1,297.3 million), up 11.9%.
Revenue from refractories rose by a pleasing 7.5% to EUR 1,185.1
million (2004: EUR 1,102.6 million), enabling RHI Refractories to
further extend its position as world market leader. With the
successful acquisition in Slovenia, Insulating increased revenue
significantly by 40.7% to EUR 255.4 million in 2005 (2004: EUR 181.5
million).

The RHI Group’s EBIT comparable to 2005 reached EUR 139.5 million
(2004: EUR 135.6 million), up 2.9%. Refractories reported EBIT of EUR
117.8 million (2004: EUR 123.2 million), as a result of energy and
raw material costs, which continued to rise in 2005. The EBIT margin
fell to 9.9%, a good figure compared to the competition. Insulating
more than doubled its EBIT to EUR 21.7 million (2004: EUR 10.1
million) and once again significantly improved its EBIT margin to a
very good 8.5% (2004: 5.5%).

In accordance with IFRS, RHI’s consolidated revenue in 2005 amounted
to EUR 1,199.4 million (2004: EUR 1,119.8 million), up 7.1%. This
consolidated revenue shows the continuing refractories operations and
other revenue in the amount of EUR 14.3 million.

The RHI Group’s EBIT recorded in accordance with IFRS was EUR 117.8
million in 2005 (2004: EUR 125.5 million). In addition to
refractories, this figure also contains contributions by
holding/other in the amount of EUR 0.0 million (2004: EUR 2.3
million).

All of the above mentioned data for 2005 are preliminary. The final
results as well as RHI’s consolidated balance sheet 2005 will be
published on April 25, 2006 following the approval of the balance
sheet.

2005        2004    Change
                                         IFRS        IFRS
                                         preliminary new     in %
Revenue                                  1,199.4     1,119.8 7.1%
   Refractories                          1,185.1     1,102.6 7.5%
   Insulating                            -           -       -
   Other                                 14.3        17.2    -16.9%
   Consolidation                         -           -       -
EBITDA                                   158.8       166.7   -4.7%
   Refractories                          158.7       164.3   -3.4%
   Insulating                            -           -       -
   Overhead/other                        0.1         2.4     -95.8%
Operating result (EBIT)                  117.8       125.5   -6.1%
   Refractories                          117.8       123.2   -4.4%
   Insulating                            -           -       -
   Overhead/other                        0.0         2.3     n.a.
Financial result                         -25.3       -31.8   20.4%
Result from associates                   2.4         3.8     -36.8%
Profit before income taxes               94.9        97.5    -2.7%
Income taxes                             -9.6        -4.9    -95.9%
Profit from continuing operations        85.3        92.6    -7.9%
Profit from discontinued operations      14.5        7.1     104.2%
Profit for the year                      99.8        99.7    0.1%
Profit attributable to minority interest -1.7        -4.7    63.8%
Profit attributable to equity holders
of RHI AG                               98.1        95.0    3.3%
Undiluted earnings per share (in EUR)    4.18        4.63    -9.7%
Diluted earnings per share (in EUR)      2.61        2.58    1.2%

end of announcement                               euro adhoc 22.03.2006 08:00:00

Further inquiry note:

RHI AG
Investor Relations
Dkfm. Markus Richter
Tel: +43-1-50213-6123
Email: markus.richter@rhi-ag.com

Branche: Refractories
ISIN: AT0000676903
WKN: 874182
Index: ATX Prime
Börsen: Wiener Börse AG / official dealing