Preliminary Report on the Fiscal Year 2000

01/24/2001

New strategy expands Dürr's outlook

• Double digit growth rate for EBT and EBITDA
• High increase rates in sales and incoming orders
• Further growth expected in 2001

Against the backdrop of a good worldwide economic trend in the automotive industry, the Dürr Technological Group has - based on preliminary figures in US-GAAP format - achieved its planned goals for the fiscal year 2000, and has achieved a new high, both in sales and incoming orders, as well as in earnings. Thanks to the successful extension of its systems portfolio and generally stable demand in the automotive industry, Dürr is expecting a double digit growth rate in sales and earnings for the fiscal year 2001.

EBIT (earnings before interest and taxes) and EBITDA (earnings before interest, taxes, depreciation and amortization) have been significantly increased in the fiscal year 2000 as compared to 1999. Dürr also registers a double-digit growth rate in EBT (earnings before taxes).

Dürr has increased Group Sales by 54 % to euro 1,890 m (previous year euro 1,224 m). Incoming orders totaling euro 1,950 m exceed the previous year's level of euro 1,120 m by 74 %. With orders on hand totaling euro 1,110 m (previous year euro 744 m, + 49 %) capacity will be well utilized in the fiscal year 2001.

Dürr spent euro 229 m on investments in other companies (previous year euro 86.1 m). This mainly includes the acquisition of Carl Schenck AG (consolidated since April 1, 2000) and the 50 percent stake in Alstom Automation S.A., which today operates under the name Dürr-AIS, and has been included in the Group's financial statement at equity. Capital expenditures totaled euro 39 m (previous year euro 29.2 m). The main focus was on the construction of engineering centers in Germany and the US, and the extension of the IT infrastructure.

At the end of the year 2000, 11,920 people were working in the Dürr Group (previous year 7,255).

With sales totaling euro 904 m, the biggest business unit --Paint Systems__ reports an increase in sales of 24 % compared to the previous year (euro 731 m). Paint Application Systems was the most successful product line of the leading supplier of vehicle paint shops, thanks mainly to dynamic demand for innovative Dürr paint robots. Capital expenditures were focused on contracts for streamlining and extending paint shops, mainly in Germany, Eastern Europe, the US and Brazil, and on two major contracts from French car manufacturers won by the Dürr-AIS Group acquired in early 2000. Dürr-AIS was also successful in a new area of business, painting facilities for plastic components for car manufacturers and automotive component suppliers in the US and Europe. Effective January 1, 2001, Dürr acquired the license for the RoDip coating process for vehicle bodies from ABB and also the German operation ABB Paint Automation, which is expecting sales to total some euro 50 m for the current fiscal year. The extension of activities in Japan will further strengthen Dürr's core business in the area of paint systems.

The Automotion business unit increased total sales by 7 % to euro 215 m (previous year 201 m). The business unit's contribution to consolidated Group sales totaled euro 106 m due to the high proportion of Group-internal supplies for systems contracts. Together with the corporate division Test and Automation Systems of Carl Schenck AG, Dürr Automation has developed into a leading systems supplier in final vehicle assembly, the final stage of the value chain, where capital investments are high.

In light of fierce competition in some instances and a good project outlook, the Environmental business unit's sales increased by 25 % to euro 95 m (previous year euro 76 m). Dürr Environmental had high outlays for the development of a new air purification technology. The strategic focus on key industries such as the chemical, pharmaceutical and semiconductor industries, and the "Total Solution Concept" developed in the US, under which Dürr will not only deliver the equipment, but also assume responsibility for meeting emission limits when the equipment is in operation, offers good prospects.

The Protecs business unit, which was renamed Ecoclean with effect on January 1 of this year to avoid tradename contestations, reports an increase in total sales by 7 % to euro 237 m (previous year euro 221 m). Consolidated sales totaled euro 193 m due to Group-internal supplies to other business units effected by Dürr Ecoclean for systems contracts.

Due to the introduction of new engine and transmission generations, the specialist for cleaning, filtration and automation systems is expecting capital investments in the automotive industry to remain at a constantly high level. This business unit is reacting to growing demand for complete production lines on a single source accountability basis by extending its systems capabilities.

The Services business unit, which is represented by the Premier Group (consolidated since May 1999) achieved sales of euro 119 m in the fiscal year 2000. This is equivalent to an increase of 12 % compared to Premier sales for the whole year 1999. Compared to Premier sales that were included in the consolidated sales of the Dürr Group in 1999 for eight months in the amount of euro 71 m, this results in an increase of 68 % in 2000.

The business unit has benefited from the increasing trend to outsource manufacturing support services, and reports a good figure for incoming orders from the automotive industry. Apart from cleaning machinery and equipment, there has been a growing demand for technically sophisticated services such as maintenance and repair. Dürr and Premier have reacted to growing demand for BOT (build, operate, transfer) contracts by setting up a special competence center.

Carl Schenck AG - whose financial statement was based on US-GAAP in the fiscal year 2000 for the first time - was able to increase sales by 24 % to euro 578 m (previous year euro 468 m).

The major growth regions for Schenck's corporate division Test and Automation Systems were Germany and the US with the two new companies Motorama and Interautomation. Apart from projects in final vehicle assembly, demand for planning and engineering services for material flow and logistics systems and for products and services for vehicle development and testing also accounted for the positive development of the fiscal year.

The development in Schenck's corporate divisions, Measuring and Process Systems and Balancing and Diagnostic Systems, has also been positive, thanks to solid demand in key industries.

The new INTX business unit founded in the year 2000 will push ahead the introduction of Dürr technologies to new markets, and the corporate venture capital company INTX AG will invest capital and management know-how in start-up companies whose products and services are interesting for Dürr's core business. After having examined numerous projects, INTX is planning to make its first investments in other companies in the first six months of 2001.

Outlook for the fiscal year 2001

For 2001 Dürr is expecting the global economy to grow moderately. Dürr is also expecting vehicle production rates to remain at the same high level as in the year 2000, in the years to come - with regional differences.

In case vehicle production rates decline, contrary to current forecasts, Dürr still expects investment levels to remain relatively stable. Motives for capital investment are, for instance, the offensive model policy of car manufacturers, and the increase of productivity, quality and environmental safety of production processes through new systems. In addition, the proportion of services business is steadily growing, and this helps to ease the effects of cyclical fluctuations.

Opportunities for growth and earnings have also sprung from the acquired companies. After strong external growth in the past years, Dürr will be concentrating on the improvement of earnings, e.g. by taking advantage of synergies within the restructured Dürr Group. For the fiscal year 2001 Dürr is again expecting a double digit growth rate in sales and earnings.