Technologies Systems Solutions



Contents

3 Key figures

5 Management report

15 Consolidated income statement 16 Consolidated balance sheet

17 Consolidated statement of changes in equity Statement of recognized income and expense in 18 the consolidated financial statements

19 Consolidated cash flow statement

0 Notes to the consolidated financial statements 4 Financial calendar 006 and 007

4 Contact Cover photo:

3

Key figures for the Dürr Group (IFRS)

(Continuing operations)

Jan. 1

-June 30, 006 June 30, 005Jan. 1

-Incoming orders in € m 845.3 78.4

Orders on hand (June 30) in € m 99.9 955.

Sales revenue in € m 66.3 656.9

EBITDA in € m 16.4 14.7

EBIT in € m 6.0 3.0

Net loss for the period in € m -3.3 -1.5

Cash flow from operating activities in € m -51.8 -105.0 Cash flow from investing activities in € m 16. 75.0 Cash flow from financing activities in € m -8.1 6.3 Balance sheet total (June 30) in € m 1,046.9 1,358.8 Equity (excluding minority interests)

(June 30) in € m 39.1 43.1

Net financial debt (June 30) in € m 1. 334.0 Net working capital (June 30) in € m 18.6 14.8

Employees (June 30) 5,755 6,0991) Dürr stock ISIN: DE000556504 High) _{€ 6.90 17.49} Low) _{€ 17.14 13.50} Close) _{€ 0.65 13.95}

Number of shares (June 30) k 15,78 14,98

Earnings per share (continuing operations) € -0. -0.87

Immaterial variances may occur in this report due to rounding in the computation of sums and percentages. The balance sheet for the first half of 2006 no longer includes values for the Measuring and Process Technologies business unit, which was sold, but the balance sheet for the first half of 2005 does. We are thus complying with a provision of IFRS 5. Accordingly, the values on the balance sheet are comparable only to a limited extent. 1) Continuing operations (excluding Measuring and Process Technologies)

4

Highlights

Incoming orders up considerably on previous year Gross margin improved steadily over several quarters

After-tax earnings positive in the second quarter and noticeably better than the previous year despite expected sales decline

Group-wide FOCUS program on track – implementation stage begins •

• •

5

Management report

Economic environment

The global economy continued to grow in the first half of 006. This is par-ticularly true of the United States and China, but also of Japan, most of the emerging economies, and some Western European economies. Germany, too, has seen signs of an upturn. The increase in domestic economic forces ex-pected there for 006 is based more or less equally on the continued positive trend in spending on plant and equipment and the slight increase in consumer spending following a long period of weak demand. However, the outlook for 007 is dimmed by rising interest rates and raw material prices worldwide and considerable increases in taxes and social security contributions in Germany. Development of global demand for automobiles in the industrialized countries of the West held steady despite high oil prices. The United States, on the other hand, registered a marked decline in demand for light trucks, including SUVs, while demand for fuel-efficient vehicles increased. Asia and Eastern Europe recorded considerable growth.

Experts believe automobile production is likely to pick up speed over the year-earlier period, increasing by a solid 3% in 006.

We have received a growing number of project inquiries since winter 005/006, which can also be attributed to customers picking up projects that had been postponed in previous quarters. The increase in project inquiries has already resulted in stronger incoming orders in the first half of 006. Project inquiries continue to come in from the automotive industry at a steady pace.

FOCUS program

In mid-August 005, we launched FOCUS as a Group-wide program aimed at improving our profitability and financial structure for the long term. Through it, we are concentrating on our core business as a manufacturer of machinery and industrial equipment for the automotive industry, which will account for some 90% of Group sales revenues in 006.

6

All told, some 800 of the company’s 6000 and more jobs are to be cut, with most of those cuts being in the Americas and Europe. By contrast, we are cre-ating new jobs in Eastern Europe and Asia, particularly India and China. The number of employees at June 30, 006, was down 305 from the end of 005 as part of FOCUS; 33 jobs were cut in 005. Thus, the lion’s share of the planned reductions is complete.

Another structural change is automotive customers’ growing needs in terms of modernizing existing plants and making them more flexible. Many of these plants are outdated and no longer sufficiently productive. Because more than 50% of all existing plants contain Dürr technology and because of our techno-logical expertise, Dürr is predestined to benefit from this trend. But Dürr must also adapt its business processes and resources to these market conditions. New service product lines have been defined and launched and our service organization has been completely revamped. We now have a service manager responsible for each country in which we operate. And we are keeping our an-tennae tuned to the biggest automotive factories by stationing Dürr employees directly in those factories or nearby to better address those customers’ needs and make suggestions for plant improvements. As a result, we expect service revenue to increase by around 15% each year. Dürr management will track this progress closely and make adjustments as needed.

Projects progressing according to plan

All FOCUS projects have already started up on schedule. As part of these projects, we have examined our internal processes for any problems that may arise, pinpointed barriers and identified potential for needed improvements. Now it is time to implement the concepts we have developed.

7

Business developments*

Incoming orders for the Dürr Group in the first six months of 006 were up 16.0% year-on-year to € 845.3 million (previous year: € 78.4 million). This improvement was driven largely by growth in Paint and Assembly Systems. The incoming order figure for the second quarter was 3% above the year-earlier period, which was by far the strongest quarter in 005. Measuring and Process Systems was able to offset the first-quarter decline in incoming orders, posting a gain of 4.0% for the first six months. In the geographic breakdown of incoming orders, it is clear that Asia is becoming increasingly important. Orders intake from the region grew 76.5% on the previous year. Incoming orders from Germany remained well below the year-earlier figure. We received strategically important orders from Europe in the second quarter. Business in the Americas held steady at an unsatisfactory level.

Sales and orders on hand

Consolidated sales for the first six months of 006 (€ 66.3 million) were down 4.7% from the previous year (€ 656.9 million), as expected. The main reason for this decline was the relatively weak orders intake in the second half of 005, whose time-delayed effect on sales is reflected now. The book-to-bill ratio improved in the first six months to 1.3 (previous year: 1.1). At June 30, 006, orders on hand amounted to € 99.9 million (previous year: € 955. million). Nevertheless, this amounts to an increase of € 06.4 million compared with orders on hand at the end of 005.

Gross margin improved again

Although sales revenue was down 4.7% in the first half of 006, the cost of sales was down even further, by 5.4%. This resulted in a corresponding improvement of 0.6 percentage points in our gross margin on average for the year to date, to 17.0%. The primary forces driving this improvement were increased efficiency and growth in our services business.

At € 49.4 million, selling costs in the first half were virtually unchanged from the year-earlier period. However, the figure for the second quarter was down € 1.4 million from the same period of 005. In particular, we strengthened our sales organization in Asia.

In the first half of 006, administrative expenses were down € 1.7 million from the year-earlier period, to € 4.7 million. Second-quarter developments are especially noteworthy, as administrative expenses declined € 3.1 million from the first quarter of 006 to € 19.8 million due to successful implementation of FOCUS. Administrative expenses were also 1.8% lower in the second quarter of 006 than they had been in the second quarter of 005.

*Unless indicated otherwise, all values and statements in this interim report refer to continuing operations of the Dürr Group, that is, the Paint and Assembly Systems and Measuring and Process Systems divisions and the Corporate Center (Dürr AG). Only the balance sheet for H1 2005 includes the figures from Measuring and Process

Technolo-gies, as required by IFRS 5. This interim report was prepared in accordance with the International Financial Reporting

8

Direct research and development costs declined € 1.0 million to € 9.3 million. We plan to maintain an appropriate relation between these expenditures and sales revenue.

Other operating income and expenses show a balance of € +4.7 million (pre-vious year: € +0.8 million). Income from provisions for projects and processes and liabilities that were no longer needed influenced the other operating in-come in the second quarter. The other operating inin-come and expenses figure also includes an insurance benefit payment received for a fire in a building in Brazil.

The costs of implementing FOCUS, for which we were unable to create provi-sions last year due to accounting rules, are stated separately. These expenses include consulting costs. Overall, other operating income and the costs of implementing FOCUS are more or less balanced.

Earnings after taxes positive in the second quarter

EBITDA for the first six months of 006 was € 16.4 million (previous year: € 14.7 million), and EBIT was € 6.0 million following € 3.0 million in the year-earlier period. The Group generated a net loss of € -3.3 million (previous year: € -1.5 million), due in large part to a € 6.7 million year-on-year improvement in our financial expense figure to € -10.8 million as the Group’s financial posi-tion improved.

Despite a marked decline in sales revenue (€ 46.6 million to € 317. million), we achieved earnings after taxes of € 1.3 million in the second quarter of 006, following a loss of € -5.9 million in the year-earlier period. The FOCUS measures are yielding results.

Financial position

Cash flow*

Cash flow from operating activities in the first six months of 006 amounted

to € -51.8 million, a marked improvement over the outflow of € -105.0 million in the year-earlier period.

Key factors causing the negative cash flow from operating activities in the first half of 006 included outflows for taxes (taxable income from the sale of Measuring and Process Systems), personnel adjustments, and other struc-tural measures undertaken as part of FOCUS as well as the use of provisions. Advances received, which are recognized under equity and liabilities, were down € 11. million to € 107.5 million, which roughly corresponds to the increase in net working capital. A sharp decline in advances received (and in the development of net working capital) was also responsible for the negative cash flow from operating activities last year.

9

Cash flow from investing activities amounted to € 16. million (previous year: € 75 million) in the first six months of the year. The fact that this value is positive is largely due to a € 0 million inflow from the out-of-court settlement of arbitration proceedings relating to an acquisition made in an earlier fiscal year. This cash inflow hat no impact on the consolidated income statement. In 005, this figure was influenced by proceeds from disposals of non-current assets. Cash flow from financing activities amounted to € -8.1 million (previous year: € 6.3 million), due primarily to interest payments of € -1.1 million.

Balance sheet ratios improved considerably

The balance sheets for the first half of 2006 and the first half of 2005 are only comparable to a limited extent. The balance sheet for the first half of 2006 no longer includes values for Measuring and Process Technologies, but the balance sheet for the first half of 2005 does. We are thus complying with a provision of IFRS 5.

Net financial debt at June 30, 006, totaled € 1. million, following € 84.9 million at the end of fiscal 005. In the first half of 006 the still negative cash flow was the primary force driving this increase. Thus, cash and cash equivalents decreased € 38.7 million from December 31, 005, to € 86.0 million. At June 30, 005, net financial debt was still € 334.0 million. Total assets in continuing operations were down to € 1,046.9 million at June 30, 006, compared with € 1,185.3 million at December 31, 005. The biggest change on the assets side was a decrease in current assets and trade receivables, to € 396.1 million (December 31, 005: € 479.7 million). On the liabilities side, trade payables dropped to € 63.4 million (December 31, 005: € 347.8 million) and other liabilities decreased to € 11.0 million (December 31, 005: € 138.9 million). The equity ratio rose to 3.0% at June 30, 006 (June 30, 005: 18.0%). At June 30, 006, equity and non-current liabilities equaled 1% of non-current assets.

Current and non-current liabilities

June 30, 006 June 30, 005 December 31, 005

Amounts in € m

Financial liabilities 31.0 17.6 30.0

Corporate bond 189.0 187.1 187.9

Trade payables 63.4 349. 347.8

of which prepayments received 107.5 13.3 118.7

Tax liabilities .0 7.1 7.8

Other liabilities 11.0 17.0 138.9

10

R&D and capital expenditures

Direct expenses for research and development (R&D) shown in the income statement for the first half of 006 are € 9.3 million (previous year: € 10.3 mil-lion). Including expenses for project-related development done under customer orders, the R&D ratio was considerably higher. The recently launched FOCUS project entitled “Innovation Management” is aimed at better coordinating R&D processes among the individual business units.

Capital expenditures for property, plant and equipment and intangible assets amounted to € 6.0 million (previous year: € 9.3 million). This decline is due in part to the fact that a large portion of our IT investments will come in the second half. Capital expenditures went primarily to painting technology, in particular robotics and conveyor systems. In addition, we continued to invest in coating processes and software development.

Capital expenditures*

Jan. 1 -

June 30, 006 June 30, 005Jan. 1 -

Amounts in € m

Paint and Assembly Systems 5.0 5.4 Measuring and Process Systems 1.0 3.7

Corporate Center 0.0 0.

Total 6.0 9.3

* in property, plant, and equipment and intangible assets

Employees

At June 30, 006, Dürr employed 5,755 persons worldwide. That is 344 em-ployees, or 5.6%, fewer than a year ago. The primary reason for the decrease was a capacity reduction in Paint and Assembly Systems (-303 employees). It should also be noted that personnel at corporate headquarters was reduced by 30% year-on-year.

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June 30, 006 June 30, 005 December 31, 005

Employees

Paint and Assembly Systems 3,840 4,143 3,979 Measuring and Process Systems 1,877 1,90 1,966

Corporate Center 38 54 47

Total 5,755 6,099* 5,992*

* continuing operations (excluding Measuring and Process Technologies)

Personnel changes

At its meeting on August 10, 005, the Supervisory Board appointed Ralf Dieter Chief Executive Officer of Dürr AG effective January 1, 006. Mr. Dieter has been a regular member of the Board of Management of Dürr AG since January 1, 005, and is also Chief Executive Officer of Carl Schenck AG.

Treasury stock and subscription rights

1

Overview of the divisions

Jan. 1 -

June 30, 006 June 30, 005Jan. 1 -

Amounts in € m Incoming orders 680. 569.7 Sales revenues 498. 508.8 EBITDA 16.8 14.1 EBIT 10.9 7.6 Employees (June 30) 3,840 4,143

Incoming orders in Paint and Assembly Systems increased considerably, to € 680. million, in the first six months of 006. Large systems orders for painting technology came from India, China, and Italy. By contrast, the North American automotive industry practiced spending restraint, although we did win a large-scale modernization order. The systems orders ensure good ca-pacity utilization in painting technology, application technology, and environ-mental systems, particularly in Germany and Asia. Second-quarter EBIT was far improved over the year-earlier period despite lower sales revenue. Plant Engineering achieved a positive result despite lower sales.

Measuring and Process Systems

Jan. 1 -

June 30, 006 June 30, 005Jan. 1 -

Amounts in € m Incoming orders 165.1 158.7 Sales revenues 18.1 148. EBITDA -1.9 3.4 EBIT -4.4 -0.4 Employees (June 30) 1,877 1,90*

* continuing operations (excluding Measuring and Process Technologies)

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Corporate Center

Corporate Center (Dürr AG) EBIT for the first half of 006 totaled € -0.5 milli-on following € -.5 million for the year-earlier period. Major adjustments have been made in the Corporate Center.

Outlook

Project demand from the automotive industry remains brisk. Due to the posi-tive demand trend in our modernization and services business and orders for new plant and equipment from Asia and Eastern Europe, we expect incoming order volume to increase in 006. Sales revenue is unlikely to change signifi-cantly due to the smaller order backlog at the end of 005 both in the Group and in the two divisions. We expect second-half sales revenue to be noticeably higher than both the first half and the year-earlier period. For fiscal 007, we anticipate a slight increase in incoming orders and sales in the Group and in the divisions.

14

Development of Dürr stock

Dürr stock developed more or less in line with overall market trends in Germa-ny during the reporting period. In April and May, the stock made considerable gains after the company’s targets were presented to investors in various inter-views and road shows following the financial press conference on March 30, 006. General uncertainty on the market in June brought the share price back down to the level at which it started the year.

Price trend of Dürr stock in XETRA trading from January – June 2006

Compared with development of the DAX, MDAX and SDAX (indexed values), in %

Dürr share in XETRA DAX MDAX SDAX

Events subsequent to the reporting

date

There were no events subsequent to the reporting date to report.

15

Consolidated income statement

of Dürr Aktiengesellschaft, Stuttgart, for the period from January 1 to June 30, 006

Jan. 1

-June 30, 006 June 30, 005Jan. 1 - June 30, 006April 1 - June 30, 005April 1

-Amounts in € k Continuing operations

Sales revenues 66,34 656,937 317,057 363,588

Cost of sales -519,879 -549,384 -61,851 -303,405

Gross profit on sales 106,463 107,553 55,206 60,183

Selling expenses -49,405 -49,6 -4,86 -6,53

General and administrative expenses -4,7 -44,417 -19,843 -,757

Research and development costs -9,337 -10,306 -4,75 -5,540

Other operating income and expenses 4,690 798 4,31 790

9,689 4,402 10,583 6,423

Restructuring expense / onerous contracts -3,676 -1,386 -3,075 -1,386

Impairment losses less insurance benefit received - - -

-Earnings before investment income, other interest and similar

income, interest and similar expenses and income taxes 6,013 3,016 7,508 5,037

Results of associates -447 569 -353 398

Other interest and similar income ,750 89 1,899 16

Interest and similar expenses -13,080 -18,331 -6,665 -9,573

Earnings before taxes of continuing operations -4,764 -14,457 2,389 -4,012

Income taxes 1,446 ,001 -1,107 -1,895

Earnings of continuing operations -3,318 -12,456 1,282 -5,907

Earnings of discontinued operations 30 18,773 -132 15,127

Consolidated profit or loss for the period -3,288 6,317 1,150 9,220

Profit/loss share of minority interests

Continuing operations 64 -45 75 -14

Discontinued operations 3 -148 - -87

Dürr Group 67 -193 75 -101

Profit/loss share of shareholders of Dürr Aktiengesellschaft

Continuing operations -3,38 -1,411 1,07 -6,09

Discontinued operations 7 18,91 -13 15,350

Dürr Group -3,355 6,510 1,075 9,31

Earnings per share in € (basic and diluted)

Continuing operations -0. -0.87 0.08 -0.4

Discontinued operations 0.00 1.3 -0.01 1.07

16

Consolidated balance sheet

of Dürr Aktiengesellschaft, Stuttgart, as of June 30, 006

June 30, 006 June 30, 005 Dec. 31, 005

Amounts in € k Assets

Goodwill 63,991 315,398 67,377

Other intangible assets 19,067 37,3 0,777

Property, plant and equipment 116,146 18,047 11,671

Investment property 1,147 18,470 13,068

Investment in associates 11,883 16,939 1,89

Other financial assets 5,478 5,846 4,950

Income tax receivables - 151

-Deferred taxes 46,818 48,45 43,170

Prepaid expenses 783 959 960

Non-current assets 476,313 571,377 484,865

Inventories and prepayments 5,619 69,41 43,716

Trade receivables 396,110 53,199 479,705

Income tax receivables 5,747 ,441 6,158

Other receivables and other assets 4,36 66,098 43,171

Cash and cash equivalents 85,970 5,311 14,658

Prepaid expenses 5,833 6,438 3,010

Current assets 570,605 719,899 700,418

For informational purposes: Total assets of continuing operations 1,046,918 1,291,276 1,185,283

Assets of a disposal group classified as held for sale (discontinued operations) - 67,505 3,83

570,605 787,404 704,250

Total assets Dürr Group 1,046,918 1,358,781 1,189,115

Equity and liabilities

Subscribed capital 40,64 36,603 40,64

Capital reserve 160,459 159,000 160,459

Revenue reserves 6,61 51,447 65,967

Other comprehensive income -4,45 -3,993 -0,140

Equity without minority interests 239,090 243,057 246,550

Minority interests 1,358 1,61 1,517

Equity with minority interests 240,448 244,669 248,067

Provisions for pension obligations 67,961 54,315 67,818

Other provisions 9,951 19,313 9,753

Bonds 188,953 187,146 187,901

Other financial liabilities 11,500 5,405 1,60

Income tax liabilities 1,701 15 443

Deferred taxes 46,5 54,094 44,408 Deferred income 1,631 1,763 1,63 Non-current liabilities 339,219 342,051 324,557 Other provisions 6,30 91,697 81,979 Trade payables 63,398 349,166 347,833 Financial liabilities 19,487 147,154 17,410

Income tax liabilities 9,70 7,104 7,33

Other liabilities 11,015 17,035 138,896

Deferred income 779 5,330 1,41

Current liabilities 467,251 727,486 614,691

For informational purposes: Total liabilities of continuing operations 1,046,918 1,314,206 1,187,315

Liabilities in direct connection with assets classified as held for sale

(discontinued operations) - 44,575 1,800

467,251 772,061 616,491

17

Consolidated statement of changes in equity

of Dürr Aktiengesellschaft, Stuttgart, for the period from January 1 to June 30, 006

Subscribed

capital reserveCapital Revenue reserves

Other com-prehensive income Equity without minority

interests interestsMinority

Equity with minority interests Amounts in € k January 1, 2005 36,603 159,000 44,937 -19,670 220,870 1,875 222,745 Profit/loss from continuing operations - - -1,411 - -1,411 -45 -1,456 Profit/loss from discontinued operations - - 18,91 - 18,91 -148 18,773

Other comprehensive income - - - 15,677 15,677 -70 15,607

June 30, 2005 36,603 159,000 51,447 -3,993 243,057 1,612 244,669 January 1, 2006 40,264 160,459 65,967 -20,140 246,550 1,517 248,067 Profit/loss from continuing operations - - -3,38 - -3,38 64 -3,318 Profit/loss from discontinued operations - - 7 - 7 3 30

Other comprehensive income - - - -4,105 -4,105 - -4,107

Other changes - - - -4 -4

18

Statement of recognized income

and expense in the consolidated

financial statements

of Dürr Aktiengesellschaft, Stuttgart, as of June 30, 006

Jan. 1

-June 30, 2006 June 30, 2005Jan. 1

-Amounts in € k

Change in the fair value recorded in equity of financial

instru-ments used for hedging purposes 1,635 -988

Adjustment item for currency translation of

foreign subsidiaries -5,575 16,3

Actuarial gains/losses from defined benefit obligations and

similar obligations 477

-Deferred taxes on revaluations recognized directly in equity -644 37

Revaluations recognized directly in equity -4,107 15,607

Profit after tax -3,288 6,317

Total profit for the period and revaluations recognized directly

19

Consolidated cash flow statement

of Dürr Aktiengesellschaft, Stuttgart, for the period from January 1 to June 30, 006

Jan. 1

-June 30, 006 June 30, 005Jan. 1

-Amounts in € k

Earnings before interest and taxes (EBIT) 5,566 3,585

Income tax paid -5,96 -900

Results of associates 447 -771

Dividends from associates 155 0

Amortization and depreciation of non-current assets 10,386 11,661 Net gain on the disposal of property, plant and equipment -50 -3,03

Non-cash expenses and income -635 4,13

Changes in operating assets and liabilities

Inventories -10,75 -9,485

Trade receivables 71,857 63,188

Other receivables and assets -1,498 68

Provisions -17,514 -,746

Trade payables -78,407 -158,151

Other liabilities (other than bank) -3,875 7,169

Other assets and liabilitities -,199 -643

Cash flow from operating activities of continuing operations -51,790 -105,019

Cash flow from operating activities of discontinued operations 1,365 -5,3 Cash flow from operating activities -50,45 -110,341

Purchase of intangible assets -,3 -3,085

Purchase of property, plant and equipment -3,794 -6,59

Purchase of other financial assets -608 -109

Proceeds from the disposal of non-current assets 937 7,10

Purchase price refund 0,000

-Disposal of discontinued operations, net of cash disposed of 1,873 77,356

Cash flow from investing activities of continuing operations 16,185 75,005

Cash flow from investing activities of discontinued operations -3 -,86

Cash flow from investing activities 16,18 7,719

Change in current bank liabilities 1,76 53,84

Payment of finance lease liabilities -467 -449

Change in financial liabilities to associates -49 -1,083

Internal financing 1,1 -9,160

Interest received 1,631 167

Interest paid -1,131 -16,41

Cash flow from financing activities of continuing operations -8,078 26,338

Cash flow from financing activities of discontinued operations -1,9 10,606

Cash flow from financing activities -9,307 36,944

Effects of exchange rate changes 4,663 1,649

Change in cash and cash equivalents -38,887 971

Cash and cash equivalents

At the beginning of the period 14,857 51,471

At the end of the period 85,970 5,44

From continuing operations 85,970 44,73

From discontinued operations - 8,169

0

Notes to the consolidated financial statements

January 1 to June 30, 006

1. Summary of significant accounting policies

The Company

Dürr Aktiengesellschaft („Dürr AG“ or the „Company“) is headquartered at Otto-Dürr-Strasse 8 in 70435 Stuttgart. Dürr AG and its subsidiaries („Dürr“ or the „Group“) are a worldwide leading supplier of plants, systems and services for automobile production. The offering covers all the main production and as-sembly stages of a vehicle. As a system supplier, Dürr designs and constructs paint shops and final assembly plants. Dürr also supplies cleaning systems, filtration systems and balancing machines for the manufacture of engines, transmission and vehicle components. Dürr´s main customers are the major companies in the automobile industry worldwide.

The consolidated financial statements are prepared in accordance with IFRSs as adopted by the EU, and the additional requirements of German commercial law pursuant to Sec. 315a (1) HGB („Handelsgesetzbuch“: German Commer-cial Code). The consolidated finanCommer-cial statements are in line with all IFRSs that have to be adopted by the balance sheet date.

The accounting policies used generally correspond to the methods applied in the consolidated financial statements of December 31, 005; we refer the reader to our 005 annual report.

In 005, Dürr decided to apply IAS 19 (revised) to measure pension commit-ments. According to this standard, actuarial gains and losses are recorded without effect on income directly in equity. Comparability with the prior-year figures is ensured by adjusting the balance sheet positions concerned. The effects in terms of amount can be seen from the statement of changes in Group equity as of January 1, 004 and December 31, 004 (adjusted); we refer the reader to the 005 annual report.

Income that is recorded during the reporting period for seasonal reasons, due to cyclical developments, or only occasionally is not cut off in the consolidated interim financial statements. Expenses that are incurred irregularly during the reporting period have been cut off in those cases where they would also be cut off at year-end.

The income taxes were determined on the basis of an estimated average annual effective income tax rate.

1

. Consolidated group

Besides Dürr AG, the consolidated financial statements as of June 30, 006, contain all domestic and foreign entities which Dürr AG can control, directly or indirectly (control relationship). The entities are included in the consolida-ted financial statements from the date when the possibility of control was obtained.

Besides Dürr AG as parent company, the consolidated group contains the fol-lowing entities:

June 30, 006 June 30, 005

Number of fully consolidated entities

Germany 17 

Other countries 44 70

61 92

June 30, 006 June 30, 005

Number of entities accounted for at equity

Germany 1 1

Other countries 5 6

6 7

The consolidated financial statements contain one entity (June 30, 005: nine) in which minority shareholders hold interests.

In the reporting period, two companies were deconsolidated.

3. Discontinued operations

Effective March 10, 006, SRH Systems Ltd., Worcester, Great Britain - which was part of the Development Test Systems (DTS) business unit - was sold to Horiba, Japan.



4. Earnings per share

Earnings per share are determined pursuant to IAS 33 (Earnings per Share). If there are dilutive effects present, two different ratios for earnings per share must be disclosed. The ratio “earnings per share” does not take account of dilutive effects; the earnings share of the shareholders of Dürr Aktiengesell-schaft is divided by the weighted average number of shares outstanding. The ratio “earnings per share (diluted)” accounts not only for the shares outstan-ding, but also for shares potentially available on the basis of options.

The calculation is presented below (all amounts in thousands of euros or thousands of shares, except earnings per share). Basic and diluted earnings per share are the same in the periods to June 30, 006 and in 005, as no new option rights were issued and all existing option rights have expired.

Jan. 1 -

June 30, 006 June 30, 005Jan. 1

-Profit/loss allocable to shareholders of

Dürr Aktiengesellschaft in € k -3,355 6,510

of which continuing operations in € k -3,38 -1,411 of which discontinued operations in € k 7 18,91 Number of shares outstanding

(weighted average) 15,78.0 14,98.

Earnings per share

(basic and diluted) in € -0. 0.45

of which continuing operations in € -0. -0.87 of which discontinued operations in € 0.00 1.3

5. Liabilities from restructuring measures

Liabilities from restructuring measures have decreased in comparison with December 31, 005 by € 6,71 thousand to € 8,945 thousand. The decrease is mainly due to utilization with effect on income of liabilities formed in prior periods.

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6. Segment reporting

The primary reporting is based on the divisions of the Group. The Dürr Group is comprised of a management holding and two divisions differentiated by product and performance spectrum that each have global responsibility for their products and results.

The Corporate Center mainly consists of Dürr AG.

1st half 2006 Paint and Assembly Systems Measu-ring and Process

Systems Corporate Center Consoli-dation Continuing operations

Discon-tinued

operations divisionsTotal Amounts in € k

Sales revenues with external customers 498,19 18,13 - - 626,342 143 66,485

Sales revenues with other divisions 17 1,080 - -1,5 - -

-Total sales revenues 498,391 129,203 - -1,252 626,342 143 626,485

EBIT 10,867 -4,389 -495 30 6,013 -605 5,408

Employees (as of June 30, 006) 3,840 1,877 38 - 5,755 - 5,755

1st half 2005 Paint and Assembly Systems Measu-ring and Process

Systems Corporate Center Consoli-dation Continuing operations

Discon-tinued

operations divisionsTotal Amounts in € k

Sales revenues with external customers 508,758 148,179 - - 656,937 1,768 878,705

Sales revenues with other divisions 861 3,805 - -4,666 - -

-Total sales revenues 509,619 151,984 - -4,666 656,937 221,768 878,705

EBIT 7,608 -37 -,536 -1,684 3,016 4,836 7,85

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Financial calendar 006

November 14, 006 Interim report on first nine months of 006

Financial calendar 007

March 9, 007 Financial press conference March 9, 007 Analysts´ conference

May 10, 007 Interim report first quarter 007

May 18, 007 Annual shareholders´ meeting, Stuttgart August 09, 007 Interim report first half 007

November 15, 007 Interim report on first nine months of 007

Contact

Please contact us for Dürr AG

further information: Günter Dielmann

Corporate Communications & Investor Relations Otto-Dürr-Straße 8 70435 Stuttgart Phone: +49-711-136-1785 Fax: +49-711-136-1034 [email protected] [email protected] www.durr.com

This interim report is the English translation of the German original.