Krones releases the final business figures for 2006

With a turnover of 1.911 bn euros,
profits increased by 22.3 % to 77.5 m euros
Stock split at a ratio of one-for-three is planned

In the trading year 2006, the world's market leader in the field of beverage filling lines and packaging machinery, Krones AG, Germany, upped its sales by 12.7 % over the previous year to reach 1.911 bn euros. Due to continuous improvement in productivity and business processes, the profits before tax increased by 20.3 % to 109.6 m euros.

The net income for the year grew by 22.3 %, hitting 77.5 m euros. The profits after tax for 2006 have been influenced by exceptional factors. The resulting marginal tax rate reflects unique events resulting from a change in German Corporation Tax Law and the tax burden of the previous years.
By the end of the year 2006, the Krones group was employing 9,165 people, 1.5 % more than in the previous year.
Besides the higher sales, the leading market position of Krones AG is reflected in the orders received, which increased by 13.3 %, totalling 1.967 bn euros.
Due to the increased profit quality of this strong order inflow in the business year 2006, which continued in the first two months of 2007, sales of approximately one billion euros and a 7 % return on sales before tax for the first half of 2007 are forecast.

Executive Board and Supervisory Board propose a stock split
With a most recent price of more than 139 euros, the Krones share has hit a record high.
To further stimulate trading with our stock and to make the shares even more attractive to a wide circle of investors, the Executive Board and the Supervisory Board of Krones AG will propose a stock split at a ratio of one-to-three to the Annual General Meeting of Shareholders taking place on 20. June 2007. (The stockholders will receive two additional shares for each Krones share held.) The necessary increase of share capital is to coincide along with a capital increase from the company's own resources.

03.21.2007