1&1 AG — Interim / Quarterly Report 2006

Aug 15, 2006

DRILLISCH AG – SEMIANNUAL REPORT 2006

DATA AND FACTS

Key Indicators of the Drillisch Group Semiannual Report 2006

Drillisch Group	I-II/2006	I-II/2005	I-II/2004
Turnover in million €	135.1	161.9	170.1
EBITDA in million €	13.1	14.1	10.0
EBIT in million €	11.5	12.3	6.2
EBT in million €	12.1	12.8	6.5
Consolidated profits in million €	7.2	7.6	3.5
Profit/loss per share in €	0.23	0.23	0.10
EBITDA margin in % of turnover	9.7	8.7	5.9
EBIT margin in % of turnover	8.5	7.6	3.7
EBT margin in % of turnover	8.9	7.9	3.8
Consolidated profit margin in % of turnover	5.3	4.7	2.1
Equity ratio (equity % of balance sheet total)	68.4	65.4	55.5
Return on equity (ROE) (Ratio Group result
to equity)	10.2	11.5	6.5
Cash flow from current business operation
in million €	3.7	3.0	6.6
Depreciation excluding goodwill in million €	1.6	1.8	3.8
Investments, adjusted, in million €	1.1	2.4	0.5
Staff as annual average
(incl. Management Board)	311	350	373
Wireless services customers as per 30.06
(approx. in thousands)	1,647	1,637	1,623
Wireless services customers prepaid (approx. in thousands)	1,102	1,211	1,175
Wireless services customers postpaid
(approx. in thousands)	545	426	448

CONTENTS

Data and Facts	2
To Our Shareholders	4
Letter from the Management Board	4
Investor Relations Report	5
Market Environment	7
The Wireless Services Market	7
The Software Industry	8
Commercial Development of the Drillisch Group as per 30 June 2006	9
Group Companies	9
Earnings Position, Assets, Liabilities and Financial Position	10
Future Corporate Growth Opportunities and Risks	11
Consolidated Interim Accounts as per 30 June 2006	12
Consolidated Balance Sheet	12
Consolidated Income Statement	13
Consolidated Capital Flow Statement	14
Consolidated Statement of Change in Capital	15
Consolidated Notes	16
Service Corner	18
Financial and Event Calendar	18
Publications	18
Your Contacts	18
Information and Order Service	19
Editorial Information	19

TO THE SHAREHOLDERS Letter from the Management Board

Paschalis Choulidis Executive-Board Spokesman, Director of Finances, Financial Communication, Controlling and IT

Vlasios Choulidis Director Sales, Marketing, Customer Care

Dear Shareholders and Friends of Drillisch,

The profitability of the Drillisch Group continued to improve during the second quarter of fiscal year 2006. At 10.3%, the EBITDA margin has already reached the profitability target for the coming year. Turnover in the second quarter rose in comparison with the first quarter, amounting to € 68.0 million. For the first half of the year, total turnover came to € 135.1 million (previous year: € 161.9 million). One factor was the decline of 12.6% in average wireless service prices in Germany as per the middle of the year in comparison with the previous year. Another influential factor was that we have adapted our business model to the changed situation in pre-paid business and deliberately chosen to strive for profitability rather than turnover which did not contribute to the Group's profits.

The business figures are solid evidence that the Management Board was correct in its forecast of an increase in the EBITDA to some € 30 million (previous year: € 27.8 million) for 2006 as a whole and of realising a profit per share of € 0.50 (previous year: € 0.45). All of the divisions of the wireless service business contributed to the good commercial results during the first half of the year; in particular, the discount brand simply has met with outstanding acceptance among consumers.

In May, we opened a new distribution channel for our discount product simply, which had previously been available only via the Internet. More than 2000 Penny markets in Germany now offer the low-price pre-paid rate "Penny Mobil" through simply communication GmbH. As of May, simply is also the only discounter provider in Germany to offer a special programme for corporations, enabling this target group to reduce its telephone costs drastically as well. The discount business has the fastest growth rates on the wireless services market. We are driving the expansion of this sector forward by offering innovative products and services and have targeted a market share of 15% in the long term.

The number of wireless services customers at the Drillisch Group as per the end of June 2006 rose by 10,000 in comparison with the previous year and now totals 1.647 million. While the number of post-paid customers rose by 28% to 545,000, the number of pre-paid customers declined by 9% to 1.1 million as a consequence of our earnings-oriented optimisation. This trend will continue until the end of 2006. We will carry on with this strategy of profitable growth and maintain our sharp focus on the quality of our customers. Moreover, we expect a rise in the total number of customers to about 1.8 million (previous year: 1.7 million) by the end of the year as the result of our intensified activities to attract new customers.

Best regards from Maintal,

Paschalis Choulidis and Vlasios Choulidis

TO THE SHAREHOLDERS

Investor Relations Report

The Capital Market - 1 April 2006 to 30 June 2006.

The positive mood on the stock exchanges darkened significantly in April. The key disturbing factors resulted from macro-economic causes. Rising interest rates, the appreciation of the euro in comparison with the US dollar and political instability were in contrast to the surprisingly positive quarterly reports from the first quarter of 2006 which had just concluded. For the moment, this meant that the profit trend remained intact. In May, a significantly increased aversion to risks became firmly established. The stock markets in Germany and Japan suffered the greatest declines (in terms of percent), and there was a correspondingly substantial rise in volatility. The first half of the year ended with stock prices in June virtually unchanged in comparison with May. The semi-annual close-out was marked by the more restrictive policies of the central banks and the imminent cooling of the economy in the USA. The profit revisions, which remained positive, balanced out these factors.

The TecDAX in the first half of 2006

	Close-out 2005	1st half of 2006	% change
Drillisch	4.55 EUR	4.55 EUR	+/- 0 %
TecDAX	596.47 points	652.15 points	+ 9.3 %
TecAllShare	790.94 points	864.38 points	+ 9.2 %

The Drillisch stock in the first half of 2006

The price of the Drillisch stock at the close of the first half of the year was unchanged in comparison with the price at the end of 2005. On 26 May, the company distributed a dividend (€ 0.20) for the first time since 1999. On the daily average, 84,814 shares (previous year: 81,060) were traded in Xetra trade, while 19,837 shares (previous year: 48,511) were traded on the Frankfurt exchange. On the rating list for TecDAX, the company was 45th for market capitalisation and 46th for stock exchange turnover.

The Drillisch stock is currently rated positively by all of the institutions which follow us. Some of the analyses can be read on the Investor Relations home page.

Current Research Studies

Arete Research Services LLP; "Buy", price target € 8.70 (10 February 2006) Berenberg Bank - "Buy", price target € 6.60 (9 June 2006) Commerzbank - "Buy", price target € 5.40 (1 June 2006) HSBC Trinkaus - "Overweight", price target € 5.11 (24 January 2006) SES Research - "Buy", price target € 6 (17 May 2006)

Agenda for the second quarter

Ad hoc report

15 May 2006; further profit gain: EBITDA +9.0%; quarterly surplus +12.7%

TO THE SHAREHOLDERS

Investor Relations Report

Investor Relations Events

Besides our first-time participation in the Corporate Conference of the Deutsche Bank in Frankfurt, we presented the Drillisch stock as an interesting investment to institutional investors in Germany and the neighbouring European countries.

The ongoing work of our Investor Relations Department can be followed continuously on our home page by private investors as well. In addition to the presentations and a detailed financial calendar, all of the relevant reports can be viewed as PDF documents. Since we want to create a stable shareholder basis for our company, we are always open to contact with all of our shareholders.

Directors' Dealings

Purchase of 25,000 no-par shares: Paschalis Choulidis (Management Board) Purchase of 50,000 no-par shares: Vlasios Choulidis (Management Board) Sale of 10,000 no-par shares: Nico Forster (Supervisory Board)

Directors' Holdings (as of 30 June 2006)

Management Board	No-par shares
Paschalis Choulidis	837,400 ➝ 2.58 %
Vlasios Choulidis	648,984 ➝ 2.00 %
Supervisory Board	No-par shares
Dr Hartmut Schenk (chairman)	0
Johann Weindl (deputy chairman)	0
Nico Forster	1,082,879 ➝ 3.33 %
Dr Horst Lennertz	0
Michael Müller-Berg	0
Dr Bernd H. Schmidt	0

Own Holdings as of 30 June 2006

As of 30 June 2006, Drillisch AG held 458,664 no-par shares (corresponding to 1.41% of the capital) of its own stock.

MARKET ENVIRONMENT The Wireless Services Market

A milestone: more mobile phones than people in Germany

The wireless services market in Germany continues to develop well in a generally positive economic environment. According to a projection by the University of Duisburg-Essen, there are some 82.4 million active wireless service contracts in Germany as of the middle of 2006. This means that every single person in Germany now owns a mobile phone (as a statistical average), an increase in the number of wireless services participants, compared to the end of the second quarter of 2005, of 8.3 million or about 11%. But there is still no end in sight to the growth in the number of customers.

The mobile phone penetration in other countries shows that values of significantly over 100% are nothing unusual because quite a few mobile phone users have more than one SIM card. A study by the Axel Springer Verlag also expects more mobile phones than people in Germany by the end of 2006. The share of wireless services in telephony services as a whole will rise to 20% and more than nine million customers will use the fast UMTS services for data applications.

10% growth in turnover expected in the ITC industry in 2006

The Axel Springer Verlag study projects turnover of € 148 billion for the ITC industry (information technology and communications) in 2006, a growth of about 10%. This increase in mobile services is above all a consequence of substitution for landline services. Since the rates per minute have fallen substantially, mobile phones are being used more and more frequently instead of landline phones. Today two million customers are using their mobile phones exclusively for their calls and ignoring the landline services completely.

At the midpoint of 2006, the prices for calls using mobile phones (according to information from the Federal Statistical Office) were 12.6% below the level of the previous year. Due especially to the success of the new discount offers, wireless service prices began to give way significantly, primarily in the second half of 2005. In the meantime, the level has stabilised. Prices for wireless services in June 2006 remained stable in comparison with May 2006.

Call forwarding charges and roaming fees are causing turmoil in the wireless services industry

Industry experts believe that the call forwarding charges must fall before there will be any further price reductions. These are the charges that network operators receive from other network operators for calls coming in from a different network. Currently E-Plus and O2 charge 12.4 eurocents, the market leaders Vodafone and T-Mobile 11 eurocents. The Federal Network Agency is planning to introduce regulations for this sector in the near future. Service providers such as Drillisch will not be affected from any reduction in the call forwarding charges. They are not involved in the so-called "incoming calls". The service provider participates only in the calls which its own customers make.

MARKET ENVIRONMENT

The Wireless Services Market / The Software Industry

Also the subject of discussion - the roaming fees. These are the fees charged by a foreign network operator when a customer from another country uses the operator's network for phone calls. A decision as to how and in what scope regulatory authorities will intervene here is expected in the next few weeks. Many providers have already reacted ahead of any decisions and substantially reduced their rates for foreign calls. Such measures have little effect on the service providers as their business with roaming fees comprises only an insignificant proportion of their turnover.

Innovations as a growth engine

Television programmes on mobile phones were in high demand during the football World Cup and passed the first test of their capabilities with flying colours. But it will still be some time before mobile phone TV enthrals an audience of millions. According to an answer given by the Federal government to a Parliamentary enquiry, the dense urban areas in Germany will be supplied with mobile television by the summer of 2007. Potential customers are interested above all in information and sport broadcasts.

The prerequisite for good picture quality is fast data transmission. This is also required for mobile surfing on the Internet, or if a person wishes to use a notebook for work when there are neither landline services nor WLAN (wireless local access network) available. The "data turbo" HSDPA (High Speed Downlink Packet Access) quintuples the data speed of UMTS to as high as 1.8 megabits per second.

IT industry turning into an engine to drive the economy

Providers of products and services in information technology and telecommunications are satisfied with the course of business in the first half of 2006 and are looking forward to the second half of the year with growing optimism. According to an estimate by the Federal government, the German IT industry is developing more and more strongly into an engine driving the general economy and is making up ground in worldwide competition. Indeed, 2006 is expected to be the best year ever since the collapse of the New Economy. The information industry has in the meantime become the most important branch of business in Germany, realising turnover of € 134.5 billion in 2005.

COMMERCIAL DEVELOPMENT OF THE DRILLISCH GROUP

Group Companies

Commercial Development of the Drillisch Group as per 30 June 2006

Drillisch is one of the most profitable service providers on the German wireless services market. The Group companies market wireless services from all four of the network operators active in Germany through specialist shops and via the Internet. Within the Group, Drillisch AG handles primarily holding functions and offers the subsidiaries a broad range of services.

VICTORVOX - no limits to phoning and surfing

The subsidiary VICTORVOX concentrates on the classic contract customer business in the sector post-paid. The second quarter of 2006 once again saw the launch of innovative rate schedules which are at the forefront of the German wireless services market and come close to making the use of landlines for phoning superfluous. The Fair Flat Phone from VICTORVOX is a rate which includes in a monthly basic fee of € 19.95 all of the calls to the German landline network as well as all calls and text messages in the E-Plus network at no extra charge. The Fair Flat Phone&Surf at a basic rate of only € 39.95 gives customers unlimited phone calls to the German landline network and mobile surfing on the Internet.

ALPHATEL handles the pre-paid business

ALPHATEL has specialised in pre-paid business and is the only service provider in Germany to use its own platform (processor status) for the marketing of cash cards and cash codes. g~paid, the system used by ALPHATEL, enables the secure sending of PIN codes over electronic channels.

simply – repeatedly the test winner

The Group has concentrated its discount activities in the subsidiary simply. The expansion in this segment is being pushed forward. Since May of this year, more than 2000 Penny discount markets have been offering the pre-paid rate "Penny Mobile" via simply communication GmbH as a service partner of T-Mobile. Comparisons by Computerbild and Teltarif show: even if you need a new mobile phone, the discount rate simply in combination with a mobile telephone you have bought yourself is still the right choice. simply operates its own online shop which includes a wide selection of mobile phones at low prices. If you wish, you can even pay in instalments - without any interest or service charges.

IQ-work secures competitive advantages with its high IT competence

The IT competence at Drillisch is bundled in IQ-work. The company performs all of the IT services for all of the Group firms and markets its own workflow management software for the efficient control of complex processes. The Emschergenossenschaft is the latest new customer, signing up at the end of June. The efficient work steps and the simple handling were above all convincing arguments for the water management association. As part of its efforts to further expand its market position, IQ-work regularly attends all of the important trade

fairs. This is where decisive contacts are established and the potential customers can be impressed by the performance strength as well as the innovation capability of IQ-work. IQ-work was at the Midvision in Karlsruhe on 21-22 June. The company will be will be found at the stand of its partner, windream, at the DMS in Cologne on 19-21 September.

Staff

As an average for the first half of 2006, the Drillisch Group employed a staff of 311, including Management Board (previous year: 350). The decline in numbers is essentially a consequence of the sale of its own shop chain in the first quarter of 2005. In comparison to the same quarter of the previous year, the number of vocational trainees rose from 12 to 15.

Earnings Position

In the second quarter, turnover rose to € 68.0 million, an increase of 1.3% in comparison with the first quarter of 2006. Profitability also continued to grow; the EBITDA margin (earnings before interest, tax and deprecation to turnover) improved during the same period by more than 1% to 10.3%. The Company's clear strategy continues to be the increase in results and profitability. The customer and turnover basis is continuously optimised to achieve this goal.

Changes in the pre-paid bundle market have become apparent since the second half of 2005. The repurchase of call credits by newly acquired customers did not develop as expected in comparison with the previous years. Due to this change on the market, the Management Board decided to pay even more attention to the quality of the pre-paid customers. This decision had the consequence that the Company did not realise the same volume in turnover brought in by initial business as in the past. Ultimately, these customers bring in only turnover, but no earnings. Yet profitability is the main focus at Drillisch.

During the first half of 2006, gross profit of € 28.8 million (previous year: € 30.6 million) was achieved from turnover of € 135.1 million (previous year: € 161.9 million). This translates into an improvement in the gross profit margin from 18.9% in the first half of last year to 21.3%. Due to the smaller size of staff, personnel expenses declined by 8.4% to € 8.4 million. Other operating expenses declined by 5.2% to € 9.8 million. Significantly lower billing costs were contrasted here by a strong rise in marketing expenditures, especially for the discount brand simply.

The EBITDA (earnings before interest, taxes and depreciation) as per the middle of the year came to € 13.1 million (previous year: € 14.1 million), a further improvement in the EBITDA margin of 1% to 9.7%. Depreciation declined by 8.7% to € 1.6 million. The financial result improved by one-third to € 0.6 million, while taxes on income declined by 4.9% to € 4.9 million. On the bottom line, Drillisch realised a net consolidated profit of € 7.2 million (previous year: € 7.6 million). The net return on turnover (net consolidated profit to turnover) rose from 4.7% to 5.3%. Just as in the previous year, the profit per share came to € 0.23.

COMMERCIAL DEVELOPMENT OF THE DRILLISCH GROUP Future Corporate Growth Opportunities and Risks

Assets, Liabilities and Financial Position

While the balance sheet total declined by € 7.0 million to € 103.7, the equity ratio improved to 68.4% (31/12/2005: 63.9%). Equity rose by a mere € 0.2 million to € 70.9 million. The consolidated profit of € 7.2 million was offset by the distribution of the dividends for fiscal year 2005 immediately after the annual general meeting on 26 May 2006 in a volume of € 6.4 million. Moreover, Drillisch repurchased own stock at a price of € 0.6 million in the first half of 2006, which was deducted from equity.

The short-term liabilities declined by € 7.1 million in comparison with the end of 2005. Above all, the trade accounts payable fell by € 6.1 million to € 2.7 million as of the close-out date.

On the assets side of the balance sheet, the distribution of dividends and the repurchase of own stock are shown in the change in the item Cash. At € 25.6 million, the cash inventory is € 4.5 million lower than it was at the end of 2005. There were hardly any changes in the long-term assets in the first half of 2006.

Cash flow from current business activities rose by 23.3% to € 3.7 million.

Outlook

Drillisch aims to participate in the growth of the German wireless services market by offering innovative products and services. Key focus of the corporate strategy is on profitability, which is why Drillisch will continue to refuse to seek growth in turnover or customers at any price. The Drillisch Group has an iron-clad principle: turnover must provide a minimum profit margin.

The Management Board expects a rise in EBITDA to approx. € 30 million from about 1.8 million customers for the year 2006 as a whole. The target for returns in the coming year 2007 remains a two-digit EBITDA margin.

Risk Report

The Drillisch Group maintains a qualified risk management system. The goal of this system is to recognise at an early stage any developments which could endanger the existence of the Company. There was no change in the risk situation during the first half of 2006 in comparison with the previous year. Adequate precautions have been taken to cover any probable risks.

Consolidated Balance Sheet

ASSETS
	30.06.2006	31.12.2005
		TEUR TEUR
Current assets
Liquid assets	25,614	30,065
Trade accounts receivable	18,298	16,742
Accounts due from affiliated companies		86 76
Inventories		7,607 9,092
Tax reimbursement claims		252 1,930
Other current assets		8,424 8,669
Current assets, total	60,281	66,574
Fixed assets
Tangible assets		1,667 1,801
Software		3,980 4,441
Financial assets
Goodwill	34,572	34,572
Deferred taxes		3,173 3,330
Fixed assets Total	43,392	44,144
ASSETS, TOTAL	103,673	110,718

Consolidated Balance Sheet

Consolidated Interim Accounts as per 30 June 2006

SHAREHOLDERS' EQUITY AND LIABILITIES

	30.06.2006	31.12.2005
	TEUR	TEUR
Short-term liabilities
Leasing liabilities	177	247
Trade accounts payable	2,659	8,773
Payments on account	16,879	14,161
Tax liabilities	3,822	2,772
Provisions	5,052	6,784
Deferred income	2,194	1,985
Other liabilities	1,511	4,630
Short-term liabilities, total	32,294	39,352
Long-term liabilities
Leasing liabilities	0	39
Deferred taxes	466	604
Long-term liabilities, total	466	643
Shareholders' equity
Capital subscribed	34,458	34,606
Capital surplus	23,096	23,569
Earnings reserves	9,902	9,902
Unappropriated retained earnings/Accumulated deficit	3,457	2,646
Equity, total	70,913	70,723
SHAREHOLDERS' EQUITY AND LIABILITIES, TOTAL	103,673	110,718

Consolidated Income Statement

	I-II/2006 I-II/2005		II/2006	II-2005	I/2006	I/2005
	TEUR	TEUR	TEUR	TEUR	TEUR	TEUR
Sales		135,140 161,891	67,998	83,322	67,142	78,569
Other own work capitalized	658	964	244	424	414	540
Other operating income	1,793	1,967	793	731	1,000	1,236
Cost of materials/Expenditures
for purchased services		-106,320 -131,255 -51,685 -66,070 -54,635 -65,185
Personnel expenses	-8,352	-9,122	-4,183	-4,510	-4,169	-4,612
Other operating expenses	-9,821	-10,360	-6,192	-5,428	-3,629	-4,932
Amortization and depreciation	-1,647	-1,804	-753	-920	-894	-884
Operating profit/loss	11,451	12,281	6,222	7,549	5,229	4,732
Financial result	632	472	308	223	324	249
Profit before taxes	12,083	12,753	6,530	7,772	5,553	4,981
Taxes on income	-4,864	-5,114	-2,658	-3,104	-2,206	-2,010
Consolidated profit	7,219	7,639	3,872	4,668	3,347	2,971
Unwatered profit
per share (in EUR)	0.23	0.23	0.13	0.14	0.10	0.09
EBIT	11,451	12,281	6,222	7,549	5,229	4,732
EBITDA	13,098	14,085	6,975	8,469	6,123	5,616

Consolidated Statement of Change in Capital

	Number of shares	Capital sub- scribed	Capital surplus	Earnings reserves	Unappro- priated retained earnings/ Accumu lated deficit	Total
	TEUR	TEUR	TEUR	TEUR	TEUR	TEUR
As per 01/01/2005	32,344,255	34,600	25,282	0	-1,892	57,990
Change own shares	350,985	351	176	0	0	527
Consolidated profit		0	0	0	7.639	7.639
As per 30/06/2005	32,695,240	34,951	25,458	0	5,747	66,156
As per 01/01/2006	32,178,332	34,606	23,569	9,902	2,646	70,723
dividend payment		0	0	0	-6,408	-6,408
Change own shares	-136,996	-148	-473	0	0	-621
Consolidated profit		0	0	0	7,219	7,219
As per 30/06/2006	32,041,336	34,458	23,096	9,902	3,457	70,913

Consolidated Capital Flow Statement

	I-II/2006	I-II/2005
	TEUR	TEUR
Earnings before interest and taxes on income	11,451	12,281
Interest paid	-42	-58
Interest received	674	530
(Tax payments) Tax reimbursements	-2,116	-3,435
Depreciation on intangible and tangible assets	1,647	1,804
(Increase) Decrease in inventories	1,485	1,910
(Increase) Decrease in receivables and other assets	-1,321	-7,112
(Increase) Decrease in trade accounts payable and
other liabilities and provisions	-10,757	-3,748
Increase (Decrease) in payments received on account	2,718	785
Inflow / Outflow of funds from current operations	3,739	2,957
Investments in tangible assets and software	-1,052	-2,361
Inflow / Outflow of funds from investment activities	-1,052	-2,361
(Acquisition) Sale of own shares	-621	527
Dividend payment	-6,408	0
Increase (Decrease) in investment liabilities	-109	393
Inflow / Outflow of funds from financing activities	-7,138	920
Change in cash	-4,451	1,516
Cash at end of period	25,614	21,168
Cash at beginning of period	30,065	19,652
Change in cash	-4,451	1,516

Consolidated Notes

Consolidated Interim Accounts as per 30 June 2006

The number of companies included in the consolidated interim accounts has not changed with respect to the consolidated annual accounts for fiscal year 2005.

The consolidated interim accounts were prepared in accordance with the International Financial Reporting Standards (IFRS). The same accounting and valuation methods were applied as in the consolidated annual accounts as per 31 December 2005.

In the first half of 2006, an additional 136,996 shares of own stock were acquired in the course of a stock repurchase program. The average purchase price was € 4.54 per share. A total of 458,664 shares of own stock was held by Drillisch AG as per 30 June 2006.

The contingency claim shown in the consolidated annual accounts as per 31 December 2005 amounted unchanged to € 11,177 as per 30 June 2006.

Turnover and the operating profit break down by segment as shown below:

Revenues
	I-II/2006	I-II/2006	I-II/2005	I-II/2005
	Turnover	Operating profit	Turnover	Operating profit
Telecommunications	135.0 Mio. EUR		11,666 TEUR 161.8 Mio. EUR	12,531 TEUR
Software services	0.1 Mio. EUR	-215 TEUR	0.1 Mio. EUR	-250 TEUR

SERVICE CORNER

Financial and Events Calender · Publications · Your Contacts · Information and Ordering Service

Financial and Events Calendar

DVFA Analysts' Event November 2006

9-month report 2006 Wednesday, November 8, 2006

Publications

The present semiannual report 2006 is also available in an English version.

You can view and download our business and quarterly reports, ad-hoc announcements, press releases and other publications about Drillisch AG at www.drillisch.de.

Your contacts

We will be glad to help with any questions about our publications or about Drillisch AG:

Paschalis Choulidis, Executive-Board Spokesman at Drillisch AG

Oliver Keil, Investor Relations Stefan Otto, Investor Relations

Drillisch AG Wilhelm-Röntgen-Straße 1-5 63477 Maintal, Germany Tel.: + 49 (0) 61 81 / 412 200 Fax: + 49 (0) 61 81 / 412 184

Iris Hauk, Corporate Communications

Drillisch AG Dießemer Bruch 100 47805 Krefeld, Germany Tel.: + 49 (0) 2151 / 5495 216 Fax: + 49 (0) 2151 / 5495 222

E-Mail: presse@drillisch.de www.drillisch.de

Information and ordering service

Please use our online order service under the heading Investor Relations on our website www.drillisch.de. Naturally, we would also be happy to send you the desired information by post or by fax. We will be glad to help you with any personal queries by telephone.

SERVICE CORNER Editorial Information

Editorial information

Corporate headquarters: Wilhelm-Röntgen-Straße 1-5 · 63477 Maintal Telephone: + 49 (0) 61 81 / 412 3 Telefax: + 49 (0) 61 81 / 412 183

Responsible: Drillisch AG

Management Board: Paschalis Choulidis (Executive-Board Spokesman) Vlasios Choulidis

Supervisory Board: Dr. Hartmut Schenk (Chairman) Johann Weindl (Deputy Chairman) Nico Forster Dr. Host Lennertz Michael Müller-Berg Dr. Bernd H. Schmidt

Investor Relations contact: Telephone: + 49 (0) 61 81 / 412 200 Telefax: + 49 (0) 61 81 / 412 184 E-Mail: presse@drillisch.de

Commercial Register entry: HRB 7384 Hanau VAT ID No.: DE 812458592 Tax No.: 03522506037, Offenbach City Tax Office

Exclusion of liability:

The information provided in this publication is checked carefully. However, we cannot guarantee that all specifications are complete, correct and up to date at all times.

Future-oriented statements:

This report contains certain forward-looking statements that are based on current assumptions and expectations of Drillisch Group's corporate management. A variety of known and unknown risks, uncertainties and other factors could lead to the actual results, the financial situation, the growth or the performance of the company differing materially from the projections made here. These factors also include those we described in reports to the Frankfurt Stock Exchange and to the U.S. Securities and Exchange Commission (including Form 20-F). The company undertakes no obligation to update such forward-looking statements or to revise them in line with future events or developments.

Drillisch AG Maintal www.drillisch.de Phone: + 49 (0) 6181/412-3 Fax: + 49 (0) 6181/412-183

100% subsidiaries

Additional equity interests in other smaller companies.