Our Vision:

Global Market Leader

in High-Tech Production Systems for Pulp & Paper, Steel and other Specialized Industries
The Andritz Group

Andritz milestones
2005/2006
2003/2004 2002 2000/2001

Acquisition of Lenser Filtration, Universal Dynamics, Lynson AB, and Ksters, VA TECH Hydro

Acquisition of IDEAS Simulation Inc., Acutest Oy, Fiedler, Bird Machine, NETZSCH Filtration, Fluidized Bed Drying Systems of VA Tech WABAG, Otto Kaiser GmbH
Acquisition of SELAS SAS and ABB Drying

Initial Public Offering (IPO) of Andritz Acquisition of Ahlstrom Machinery Group Acquisition of UMT
Carlyle, Custos Private Foundation, and UIAG acquire Andritz Steady growth, both internal and external through acquisitions: Sprout-Bauer, Kone Wood, Jesma-Matador and Sundwig Established by Josef Krsi as a foundry and machine works

1999 1990-1998 1852

The Andritz Group
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Andritz Group overview

Company :

Andritz AG in Graz, Austria (Group Headquarters) 30 production sites worldwide More than 100 subsidiaries and offices world-wide

Financials 2005:

Order Intake: 1,975 MEUR

Sales: 1,744 MEUR Net Income: 80 MEUR Equity Ratio: 23.6% 6,000 worldwide 3,000 in Pulp & Paper High-Tech Systems, Machinery and Service for selected industries (pulp and paper, steel, environmental technologies, animal feed production, wood pelleting, water turbines, pumps)

Employees: Products:

The Andritz Group

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Five strategic Business Areas

Systems, Equipment and Services for:
Rolling Mills and Strip Processing Lines A market leader in stainless steel strip

Pulp & Paper A market leader in pulp including recovery

Environment and Process A market leader in solid/liquid separation

Feed and Biofuel A market leader in animal feed

Hydraulic Machines

One of the market leaders for stock pumps and turbines

Sales 2005: 1,033 MEUR (59%)

Sales 2005: 276 MEUR (16%)

Sales 2005: 289 MEUR (17%)

Sales 2005: 93 MEUR (5%)

Sales 2005: 53 MEUR (3%)

Andritz Total Group Sales 2005 = 1,744 MEUR

The Andritz Group
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Successful complementary acquisitions

Pulp & Paper
1990 1992 1994 1998 1999 2000 2000 2000 2002 2003 2003 2003 2004 2005 2005 Sprout-Bauer Durametal Kone Wood Kvaerner Hymac Winberg Ahlstrom Machinery Lamb Baling Line Voith Andritz Tissue LLC (JV) ABB Drying IDEAS Simulation Acutest Oy Fiedler EMS (JV) Universal Dynamics Ksters

Rolling Mills and Strip Processing Lines

1997 1998 2000 2002 Sundwig Thermtec Kohler SELAS SAS Furnace Div. 2004 Kaiser 2005 Lynson AB

Environment and Process Technologies

1992 TCW Engineering 1996 Guinard 2002 3SYS 2004 Bird Machine 2004 NETZSCH Filtration 2004 Fluid Bed Systems of VA TECH WABAG 2005 Lenser Filtration

Feed and Biofuel

1995 Jesma-Matador 2000 UMT

Hydraulic Machines

2006 VA TECH Hydro

Relates to Core Business, Complementary to Andritz Product Lines,

The Andritz Group
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Built on existing Local Management

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Pulp & Paper Technology

Wood Yard Systems for Pulp and Paper Industry

The Andritz Group
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Pulp Technology

Worlds Largest Belt Filter Press - 9.0m working width!

The Andritz Group
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Pulp Technology

Sheet Pulp Drying Line, 4.2M Working Width Indonesia

The Andritz Group
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Refiner Systems

30MW Thermo-Mechanical Pulp (TMP) Refiner Australia

The Andritz Group
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Galvanizing Technologies

Electro-Galvanizing Line Carlisle, Indiana, USA

The Andritz Group
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Feed Technology

Complete Feed Mill Systems China

The Andritz Group
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Hydraulic Machines

Turbine-Operating Under 750 meter Head Austrian Alps

The Andritz Group
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Environment & Process Technologies

ES (Environment & Process Technologies + Separation) - North America

o Andritz-Ruthner, Inc., Arlington-Texas John Madden, President Bob Hill, Vice President Sales ES

Wet Separation

Thickening & Dewatering

PPC1

PPC2

The Andritz Group

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Environment & Process Technologies

ES (Environment & Process Technologies + Separation) - North America

o Andritz-Ruthner, Inc., Arlington-Texas Orders by August 2006: US$ 29,473,900 (North America ONLY and w/o Andritz Bird)

Screens: 9.7% BFP: 15.4% CFG: 44.7% FP: 30.2%

The Andritz Group

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Environment & Process Technologies

Screen Bowl and Decanter Centrifuges

Joint Andritz in 2003

The Andritz Group

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Environment & Process Technologies

Filter Presses

Joint Andritz in 2004

The Andritz Group

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Environment & Process Technologies

ET (Environment & Process Technologies + Thermal) - North America

o Andritz-Ruthner, Inc., Arlington-Texas John Madden, President Peter Commerford, Vice President Sales ET

Sludge Drying

PPC3

The Andritz Group

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Environment & Process Technologies

The Andritz Group

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Environment & Process Technologies

Andritz-Ruthner, Inc. Municipal Sludge Market

o Regional Sales Territories o Local Representatives September 2006
Northeast Region:
(including the States of Chihuahua, Durango, Zacatecas, San Luis Potosi, Tamaulipas, and Nuevo Leon )

Cloracin E Instrumentacin, S.A. de C.V. (CLORINSA) Northwest Region:

(including the States of Baja California, Baja California Sur, Sonora, Sinaloa, Nayarit, Jalisco, Colima, Michoacn de Ocampo, Guanajuato, and Aguascalientes)

Anguiano Y Wong Asesores S.A. de CV. (AWA) South Region:

(including the States of Guerrero, Mexico, Morelos, D.F, Puebla, Tlaxcala, Hidalgo, Queretaro, Veracruz, Tabasco, Oaxaca, Chiapas, Campeche, Yucatan, and Quintana Roo)

OEM Buyers / Authorized Dealers: INTEMA S.A. de C.V.

Grupo Ingeniera Ambiental Mexicana, S.A. de C.V. (INGAMEX) The Andritz Group
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Environment & Process Technologies

Andritz-Ruthner, Inc. Pulp & Paper Sludge Market

o Regional Sales Territories o Local Representative September 2006
P&P REP: (All Mexico; Zones A-F) Marin International S.A. de C. V.

The Andritz Group

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Environment & Process Technologies

Frost & Sullivan Honours Andritz with Market Leadership Award
Date Published: 12 Jan 2005 London, 12 January, 2005In recognition of its long-standing domination of the drying segment paralleled by its strong expansion in other treatment equipment processes the Andritz Group is presented the 2004 Frost & Sullivan Market Leadership Award for the European sludge treatment equipment market. "Andritz's success and market leadership in the sludge treatment equipment market is a triumph of its continued development of expertise in the sludge drying technology segment as well as its recent attempts at product diversification, lengthy succession of strategic partnerships and further scope enhancement in the sludge treatment equipment market," remarks Frost & Sullivan Research Analyst Suchitra Padmanabhan. Using its established competencies in sludge drying equipment technology and pursuing alliances to branch out, Andritz has leveraged the rising demand for sludge drying as well as de-watering. Continued innovation in terms of size, character and application of technology has placed the company in a position to consolidate its lead over its competitors. Today it holds the number one slot in the drying segment and is one of the leading suppliers in sludge thickening and dewatering equipment. Functioning at multiple supply levels, Andritz has, moreover, expanded its market presence - the company both manufactures and supplies equipment for treatment plants as well as delivers equipment for turnkey solutions offered by other leading participants. In a maturing sludge treatment equipment market, the Austrian-based company has vigorously pursued mergers, acquisitions and alliances. Boosted by such competitive strategies, Andritz currently ranks among the top five leading suppliers and accounts for four per cent of market revenues. Forging key alliances with leading participants in a range of technology segments, Andritz has significantly expanded its scope in the Environment and Process Business Area over the past five years. The acquisition of the centrifuge manufacturer Guinard Centrifugation in 1996 (now part of Andritz S.A.S. France), the acquisition of Bird Machine (comprising Bird, Bird Humboldt Centrifuges and R&B Filtration) and the NETZSCH Filtration Business Unit in 2004 have all been part of Andritzs successful product diversification and growth strategy. This strategy has been further enhanced by the acquisition of the Swiss 3 Sys AG with its belt drying technology and the fluid bed systems business area of VA TECH WABAG in November 2004. "These mergers and alliances have allowed the company to expand both in terms of geographical reach and product diversification," notes Ms. Padmanabhan. "Besides, these acquisitions have further complemented the group's product and technology portfolio." Even as the sludge treatment equipment markets especially in the advanced markets of the Alpine region, Germany and Scandinavia experience increasing consolidation, Andritz has shown an impressive flexibility and endurance in addressing the requirements of this complex market. The companys firm hold of the drying segment and its steadily expanding presence in additional technology sectors has underlined its selection as recipient of the 2004 Frost & Sullivan Market Leadership Award for the European sludge treatment equipment market. For further information, please contact: Magdalena Oberland Corporate Communications Frost & Sullivan P: +44 (0) 20 7915 7876 E: magdalena.oberland@frost.com

The Andritz Group

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