Polytec Holding AG

Interim / Quarterly Report • Aug 27, 2007

POLYTEC HOLDING AG HALF YEAR FINANCIAL REPORT 2007

INCOME FIGURES

in EUR million	Q2 2007	Q2 2006	%	H1 2007 1	H1 2006	%
Sales	152.7	148.7	2.7%	286.7	282.9	1.3%
EBITDA	15.3	14.4	6.1%	28.7	27.7	3.7%
EBIT	10.1	10.2	-0.1%	19.2	19.0	1.2%
Net income	8.5	6.0	42.7%	14.1	11.1	26.5%
EBITDA margin	10.0%	9.7%		10.0%	9.8%
EBIT margin	6.6%	6.8%		6.7%	6.7%
Earnings per Share (in EUR)				0.63	0.54	16.7%

1) The consolidated financial statement of POLYTEC HOLDING AG for the first six months of 2007 include the result of POLYTEC COMPOSITES GERMANY for the period of May 1, 2007 through June 30, 2007

FINANCIAL FIGURES

in EUR million	H1 2007	H1 2006	%
Cash-Flow
Cash Flow from operating activities	-3.9	9.9
Cash Flow from investing activities	7.8	-7.5
Cash Flow from financing activities	-6.1	9.8
Capital expenses	-8.0	-8.5	6.2%

BALANCE SHEET RATIOS

in EUR million	JUNE 30, 2007	DEC. 31, 2006
Balance sheet total	394.1	278.9
Equity	136.1	127.4
Net debt	12.7	4.2
Net working capital	51.6	41.7
Gearing	9.3%	3.3%
Equity ratio	34.5%	45.7%
Employees (average period)	3,846	3,624

MANAGEMENT REPORT FOR THE FIRST HALF 2007

ECONOMIC ENVIRONMENT

In the first half of 2007, the number of passenger car registrations in Europe developed at a roughly stable rate, with a drop of 0.3% to a total of 8.5 million vehicles. From looking at the key markets it can be concluded that the number of new registrations in the new mem ber states of the EU increased by 14.8% compared with the develop ment across Europe, while the number in Western Europe (EU 15)fell by 1.3%. This development is being carried forward by the dynamic economic development in the new EU countries. High wage growth falls in unemployment and the high replacement requirement for vehicles are the most important factors behind this sustained devel opment.

In the for the POLYTEC GROUP important market of Germany, car sales recorded a fallof 9.2% to a total of 1.7 million vehicles in the first half of 2007. The German manufacturers were able to continue their success story, however, increasing their market share outside Germany by half a percent.

The commercial vehicles sector developed very positively. In the first half of 2007, the number of heavy goods vehicles registered in Europe increased by 4.0% to a total of 161 thousand vehicles. Currently, there is no end in sight to this positive development.

GROUP RESULTS

GENERAL INFORMATION

The mid-year financial report at hand was compiled in accordance with ß 87 ofthe Austrian Stock Exchange Act and the International Financial Reporting Standards (IFRS). In concordancewith IAS 34,the abridged interim financialstatement does not contain all of the information or details which are compulsory in full-year financial statement and should be read in connection with the group financial statement of POLYTEC HOLDING AG as of December 31, 2006.

The consolidation of the acquisition of the moulding business of MENZOLIT FIBRON in the second quarter of 2007 had a positive influence on the results of the POLYTEC GROUP. The consolidated result of POLYTEC HOLDING AG for the first six months of 2007

includes the result of the acquired business for the period May 1, 2007 to June 30, 2007, and which is now being managed as POLYTEC COMPOSITES GERMANY.

Due to the inclusion of the aforementioned new acquisition and the acquisition of ISE Intex, incorporated in the group results starting with Q3 2007, the POLYTEC HOLDING AG decided to incorporate the previously separately reported segment ëIndustrialí in its coverage in the ëother/consolidationí segment. As subsequent to the newacquisitions, in terms of the annual viewpoint, both sales- and the operating income contribution of the division fall within the limits of IFRS 8, the division can no longer be presented separately.

RESULTS ANALYSIS

in EUR million	Q2 2007	Q2 2006	%	H1 2007	H1 2006	%
Sales	152.7	148.7	2.7%	286.7	282.9	1.3%
EBITDA	15.3	14.4	6.1%	28.7	27.7	3.7%
EBIT	10.1	10.2	-0.1%	19.2	19.0	1.2%
Net income	8.5	6.0	42.7%	14.1	11.1	26.5%
Earnings per Share (in EUR)				0.63	0.54	16.7%
EBITDA margin	10.0%	9.7%		10.0%	9.8%
EBIT margin	6.6%	6.8%		6.7%	6.7%

Sales of the POLYTEC GROUP increased in the first six months of the current financial year 2007 by 1.3% to EUR 286.7 million compared with the same period 2006. On the one hand, this increase can be explained due to the consolidation of POLYTEC COMPOSITES GER- MANY and its subsidiary companies for the first time, which contrib utes to group sales withEUR 32.0 million in the second quarter of the current financial year. And on the other hand, it can also be ex plained through a positive business development in the CAR STYLING DIVISION which was able to increase its sales by 16.4% in the first six months of 2007.

The EBITDA increased in the first six months of the current financial year by 3.7% to EUR 28.7 million. This development is heavily influ enced through the release of negative goodwill according to IFRS 3,

resulting from acquired assets and debts in the context of the acquisition of POLYTEC COMPOSITES GERMANY totalling EUR 6.6 million. This effect was able to more than balance the decline of EBITDA in the AUTOMOTIVE SYSTEMS DIVISION.

The development of EBIT of the POLYTEC GROUP, which increased by 1.2% to EUR 19.2 million occurred analogous to that of the EBITDA. In the first six months of 2007, the consolidated net income of the POLYTEC GROUP increased by 26.5% to EUR 14.1 million. Along with a high operating result, this can be traced back to low financing costs and tax expenses.

In the first six months, the result per share increased from EUR 0.54 to EUR 0.63.

Manuel Taverne POLYTEC GROUP Investor Relations 4063 Hˆrsching, Linzer Strasse 50 Tel: +49-7221-701-292 Investor.relations@polytec-group.com www.polytec-group.com/investor

RESULT OF THE DIVISIONS

AUTOMOTIVE SYSTEMS DIVISION

in EUR million	Q2 2007	Q2 2006	%	H1 2007	H1 2006	%
Sales	80.3	112.5	-28.6%	172.8	210.2	-17.8%
EBITDA	4.7	11.8	-60.1%	13.9	22.1	-37.0%
EBIT	1.6	8.9	-81.4%	7.6	15.9	-52.0%
EBITDA margin	5.9%	10.5%		8.1%	10.5%
EBIT margin	2.1%	7.9%		4.4%	7.5%

The contribution of AUTOMOTIVE SYSTEMS DIVISION to group sales fell in the first half of 2007 to 60.0% (2006: 74.3%).

In the first six months of 2007, sales in the AUTOMOTIVE SYSTEMS DIVISON fell by 17.8% to EUR 172.8 million, which includes EUR 15.9 million of tooling sales and EUR 21.5 million part sales. The fall in part sales corresponds with the trend in the first quarter of 2007 and revolves around the run-outs in the autumn of the previous year reported several times.

The fall in tooling sales can be traced back to the sales that were substantially above normal business in the comparison period of the

previous year in the scope of the acounting for the door panel project for the BWM 3 series.

Due to an in relation to the operating results increased material and personnel quota and due to the effects described above, the EBITDA fell by 37.0% to EUR 13.9 million.

This development corresponds with the expectations of management. Due to the new development stage of new projects which will have a positive influence on the development of sales of the division from 2008, particularly from 2009 onwards, costsfor capacity adjustments to the currently reduced level of sales would not be justified.

in EUR million	Q2 2007	Q2 2006	%	H1 2007	H1 2006	%
Sales	18.2	16.0	13.6%	38.3	32.9	16.4%
EBITDA	2.0	1.2	60.7%	4.3	3.1	40.0%
EBIT	1.5	0.7	116.1%	3.4	2.0	68.4%
EBITDA margin	10.8%	7.7%		11.2%	9.3%
EBIT margin	8.4%	4.4%		9.0%	6.2%

CAR STYLING DIVISION

In the first quarter of 2007, the CAR STYLING DIVISION was able to make a considerable increase to its share in group sales. This in creased from 11.6% to 13.4%. The basis for this development is the clear growth in sales of 16.4% to EUR 38.3 million in the first six months of the current financial year of 2007.

Caused by a higher operating result and an in relation reduced material and personnel quota, the EBITDA increased by 40.0% to EUR 4.3 million. This corresponds to an EBITDA margin of 11.2%.

The division is generally able to continue the positive development of the first quarter of 2007.

AUTOMOTIVE COMPOSITES DIVISION

in EUR million	Q2 2007	Q2 2006	%	H1 2007 1	H1 2006	%
Sales	49.4	15.8	211.9%	65.8	31.7	107.5%
EBITDA	7.9	0.6	-	8.7	1.0	800.0%
EBIT	6.6	0.0	-	6.7	-0.2	-

1) The consolidated financial statement of POLYTEC HOLDING AG for the first six months of 2007 include the result of POLYTEC COMPOSITES GERMANY for the period of May 1, 2007 through June 30, 2007

On a comparable basis without the aquisition

in EUR million	Q2 2007	Q2 2006	%	H1 2007	H1 2006	%
Sales	17.4	15.8	10.0%	33.8	31.7	6.7%
EBITDA	2.1	0.6	261.8%	2.8	1.0	191.2%
EBIT	0.8	0.0	-	0.9	-0.2	-

Due to the results of POLYTEC COMPOSITES GERMANY being included in the group financial statement for the first time, the AUTOMOTIVE COMPOSITES DIVISION was able to increase itsshare of group sales to 22.9%. This means that sales in the reporting period increased by 107.5% to EUR 65.8 million. Due to the acquisition based one-off effect from the release of negative goodwill in the context of the purchase of POLYTEC COMPOSITES GERMANY, the EBITDA increased by a total of EUR 6.6 million to EUR 8.7 million (2006: EUR 1.0 million)..

A clear increase in sales can also be reported on a comparable basis, excluding the acquisition of POLYTEC COMPOSITES GERMANY. As a result of the sustained positive development in the European com mercial vehicles industry, sales increased in the first six months of the current financial year by 6.7% to EUR 33.8 million.

It was possible to realise an increase in EBITDA of 191.2% to EUR 2.8 million. This can be on the one hand explained by the good market situation, but also by the efficiency gains. A result of measures that were implemented in the previous year.

EMPLOYEES

In the first six months of 2007 headcount increased by 1,196 to a total of 4,736 employees on group level. The increase in the AUTO- MOTIVE COMPOSITES DIVISION can be explained with the integration

of the POLYTEC COMPOSITES GERMANY. The number of personnel in the other divisions of the POLYTEC GROUP remained basically un changed.

	End ofperiod			Average period
	JUNE 30, 2007	DEC. 31, 2006		H1 2007	H1 2006
AUTOMOTIVE SYSTEMS DIVISION	2,298	2,394	-96	2,302	2,417	-116
CAR STYLING DIVISION	595	577	18	577	580	-3
AUTOMOTIVE COMPOSTITES DIVISION	1,705	441	1264	837	427	410
OTHERS/CONSOLIDATION	138	128	10	131	125	6
POLYTEC GROUP	4,736	3,540	1196	3,846	3,548	297

CAPITAL EXPENDITURES

In the first six months of 2007, capital expenditures fell by 6.0%. The decrease in the AUTOMOTIVE SYSTEMS DIVISION can be traced back to the investments that were made for SOPs in the previous year. The

increase in the AUTOMOTIVE COMPOSITES DIVISION of 275.0% to 1.9 million EUR is to be traced back to the consideration of POLYTEC COMPOSITES GERMANY occurring for the first time.

in EUR million	Q2 2007	Q2 2006	%	H1 2007	H1 2006	%
AUTOMOTIVE SYSTEMS DIVISION	1.6	3.3	-51.1%	4.4	6.8	-36.1%
CAR STYLING DIVISION	0.4	0.4	2.5%	0.8	0.9	-19.1%
AUTOMOTIVE COMPOSTITES DIVISION	1.5	0.3	365.5%	1.9	0.5	275.0%
OTHERS/CONSOLIDATION	0.6	0.1	553.0%	1.0	0.3	277.0%
POLYTEC GROUP	4.2	4.2	0.6%	8.0	8.5	-6.0%

BUSINESS WITH AFFILIATED PEOPLE AND COMPANIES

In the first half of 2007, the business described in the supplement to the group financial statement of December 31; 2006 under section E6 was continued to an almost unchanged extent. In the correspond-

ing time period, rents totalling EUR 3.1 million and payments for services totalling EUR 0.4 million were settled by the POLYTEC Immo bilien (Properties) Group GmbH to the POLYTEC Group.

INVESTMENT AND FINANCES

	JUNE 30, 2007	DEC. 31, 2006
Asset ratio	39.5%	38.9%
Equity ratio	34.5%	45.7%
Net working capital	51.6	41.7
Net working capital in % of group sales	9.8%	7.9%
in EUR million	June 30, 2007	Dec. 31, 2006
Net debt	12.7	4.2
Gearing	9.0%	3.0%
Capital employed	171.2	140.3

Due to the newly consolidated company, the equity ratio of POLYTEC fell to 34.5% compared with 45.7% on the balance sheet dated December 31,2006. This value clarifies the continued solid capitalisation of the POLYTEC GROUP and also provides further scope for new

acquisitions. Along with the seasonal variations, the change to the working capital is also to be traced back to the acquisitions activities of the POLYTEC GROUP.

INVESTOR RELATIONS

The share price development of the Polytec Group shares ran an extremely positive development in the first six months of the current financial year of 2007. On June 30, 2007, the share price closed at EUR 12.00, which is an all time high until this time. This closing price corresponds with an excellent rise since the start of the year 2007 of 69.3%. The solid company development as well as the increased demand, expressed by the average turnover on the stock exchange,

made a strong contribution to this development. In the reporting period, the liquidity of the shares, in other words the value of the shares being dealt each day, totalled EUR 1.7 million or 188,941 shares.

On June 30, 2007, the market capitalisation achieved a value of EUR 268.0 million. On July 5, 2007, shares of Polytec reached their all time high of EUR 14.00.

KEY FIGURES - POLYTEC SHARE

Share price as of June 30, 2007	in EUR	12.00
Highest price	in EUR	12.00
Lowest price	in EUR	7.34
Earnings per share	in EUR	0.63
Average volume per day	Shares	188,941
Stock market turnover	in EUR million	1.7
Market capitalisation as of June 30, 2007	in EUR million	268.0

OUTLOOK

As a result of the closed acquisitions, POLYTEC HOLDING AG is ex pecting a clear increase in sales as well as an increase of the net results and as a result of this, an increase in the earnings per share.

As a result of the integration and reorganisation ofthe aquired businesses, contracts with customers have to be reviewed on their

operational justification. In certain casesthiswill lead to negotiations with customers and further to adjustments. The negotiations are not finished and also not concret enough at reporting date.In this respect the new acquisitions display ^a considerable uncer-

tainty regarding the further development of the running financial year 2007.

INCOME STATEMENT

Compared with the figures from the previous year (in thousand EUR)

	Q2		H1
	2007	2006	2007	2006
Net Sales	152,702.7	148,656.1	286,699.8	282,891.9
Other operating income	9,444.6	137.5	11,152.1	4,539.6
Changes in inventory of finished and unfinished goods	5,750.4	-16,790.1	2,183.5	-16,037.7
Own work capitalised	78.2	-11.5	289.1	97.5
Expenses for materials and services received	-87,517.2	-68,782.4	-157,456.1	-146,801.7
Personnel expenses	-42,840.2	-32,803.6	-75,544.2	-65,336.4
Other operating expenses	-22,353.4	-16,018.9	-38,587.1	-31,630.4
Earnings before interest, taxes, depreciation and amortisation (EBITDA)	15,265.1	14,387.1	28,737.1	27,722.8
Depreciation	-5,116.3	-4,226.5	-9,515.8	-8,730.8
Earnings before interest, taxes, depreciation and amortisation of goodwill (EBITA)	10,148.8	10,160.6	19,221.3	18,992.0
Amortisation of goodwill	0.0	0.0	0.0	0.0
Earnings before interest and taxes	10,148.8	10,160.6	19,221.3	18,992.0
Income from associated companies	0.0	12.6	0.0	12.6
Financial expenses	-424.7	-632.6	-816.2	-1,441.1
Other financial results	-19.8	-363.7	-40.9	-339.9
Financial result	-444.5	-983.7	-857.1	-1,768.4
Earnings before tax	9,704.3	9,176.9	18,364.2	17,223.6
Taxes on income	-1,120.0	-3,182.8	-4,074.8	-6,051.7
Profit of the year after tax	8,584.3	5,994.1	14,289.4	11,171.9
Minority interest	-73.7	-158.9	-222.5	-180.6
Net profit (Result after minority interest)	8,510.6	5,835.2	14,066.9	10,991.3
Earnings per share	0.38	0.27	0.63	0.54

BALANCE SHEET AS OF JUNE 30, 2007

ASSETS	JUNE 30, 2007	DEC. 31, 2006
A. FIXED ASSETS
I. Intangible assets	5,635.0	4,656.8
II. Goodwill	25,611.5	25,611.5
III. Tangible assets	112,513.6	71,001.0
IV. Investments in affiliated companies	120.7	155.0
V. Investments in associated companies	1,045.2	45.2
VI. Other financial assets	2,856.1	3,378.3
VII. Deferred tax assets	7,733.2	3,585.8
B. CURRENT ASSETS	155,515.3	108,433.6
I. Inventories	77,436.0	47,402.6
II. Trade accounts	120,435.8	80,212.8
III. Cash and cash equivalents	40,667.7	42,870.1
	238,539.5	170,485.5
	394,054.8	278,919.1

LIABILITIES	JUNE 30, 2007	DEC. 31, 2006
A. SHAREHOLDERS EQUITY
I. Share capital	22,329.6	22,329.6
II. Capital reserves	57,783.5	57,783.5
III. Treasury stock	-215.5	-215.5
IV. Minority interests	618.4	591.4
V. Retained earnings	55,581.5	46,912.6
	136,097.5	127,401.6
B. LONG-TERM LIABILITIES
1. Interest bearing liabilities	33,268.9	31,582.7
2. Provision for deferred taxes	3,250.0	2,374.7
3. Long term provisions for personnel	25,866.5	10,653.9
4. Other long term liabilities	27,119.4	2,872.2
	89,504.8	47,483.5
C. SHORT-TERM LIABILITIES
1. Trade accounts payable	66,397.1	51,227.2
2. Short-term interest-bearing liabilities	12,976.5	10,142.5
3. Short-term portion of long-term loans	9,205.6	7,999.3
4. Liabilities on income taxes	3,256.8	1,688.4
5. Other short-term liabilities	76,616.5	32,976.6
	168,452.5	104,034.0
	394,054.8	278,919.1

CASH FLOW STATEMENT

(in thousand EUR)

		1H
		2007	2006
	Earnings before tax	18,364.2	17,223.6
-	Income taxes	-1,357.7	-4,349.5
+(-)	Depreciation (appreciation) of fixed assets	9,515.8	8,730.8
-	Release of negativ goodwill	-6,576.3	0.0
+(-)	Other non-cash expenses/income	1,373.2	419.0
=	Consolidated financial Cash flow	21,319.2	22,023.9
+(-)	Changes in net working capital	-25,205.6	-12,114.5
=	Cash flow from operating activities	-3,886.4	9,909.4
+(-)	Cash flow from investing activities	7,799.1	-7,465.6
+(-)	Cash flow from financing activities	-6,115.1	9,779.5
=	Changes in cash and cash equivalents	-2,202.4	12,223.3
+	Opening balance of cash and cash equivalents	42,870.1	11,235.4
=	Closing balance of cash and cash equivalents	40,667.7	23,458.7

STATEMENT OF CHANGES IN SHAREHOLDERSë EQUITY

(in thousand EUR)

	Share capital	Capital reserves	Treasury stock	Minority interests	Retained earnings	Total
Balance as of January 1, 2007	22,329.6	57,783.5	-215.5	591.4	46,912.6	127,401.6
Consolidated profit for the year				222.5	14,066.9	14,289.4
Dividend				-200.0	-5,574.9	-5,774.9
Currency translation				15.4	166.0	181.4
Other changes				-10.9	10.9
Balance as of June 30, 2007	22,329.6	57,783.5	-215.5	618.4	55,581.5	136,097.5

	Share capital	Capital reserves	Treasury stock	Minority interests	Retained earnings	Total
Balance as of January 1, 2006	19,329.6	38,530.4		307.0	29,207.9	87,374.9
Consolidated profit for the year				180.6	10,991.3	11,171.9
Capital increase	3,000.0	20,250.0				23,250.0
Cost of capital increase		-847.5				-847.5
Treasury stock			-215.5			-215.5
Currency translation			0.0	16.8	-939.5	-922.7
Balance as of June 30, 2006	22,329.6	57,932.9	-215.5	504.4	39,259.7	119,811.1

SEGMENT REPORTING

(in thousand EUR)

AUTOMOTIVE SYSTEMS	Q2 2007	Q2 2006	%	H1 2007	H1 2006	%
Sales	80,298.3	112,534.0	-28.6%	172,819.6	210,180.1	-17.8%
EBITDA	4,728.9	11,849.2	-60.1%	13,917.7	22,095.1	-37.0%
EBIT	1,647.4	8,866.2	-81.4%	7,617.0	15,852.5	-52.0%
Net income	957.9	5,786.4	-83.4%	4,522.7	9,955.7	-54.6%
Capital expenditures	1,630.7	3,335.4	-51.1%	4,353.7	6,818.4	-36.1%
CAR STYLING	Q2 2007	Q2 2006	%	H1 2007	H1 2006	%
Sales	18,152.8	15,977.9	13.6%	38,326.2	32,913.8	16.4%
EBITDA	1,968.4	1,225.1	60.7%	4,304.5	3,074.8	40.0%
EBIT	1,532.3	709.1	116.1%	3,435.9	2,040.7	68.4%
Net income	956.1	407.5	134.6%	2,257.7	1,265.1	78.5%
Capital expenditures	430.0	419.4	2.5%	759.0	937.7	-19.1%
AUTOMOTIVE COMPOSITES	Q2 2007	Q2 2006	%	H1 2007	H1 2006	%
Sales	49,384.7	15,834.5	211.9%	65,803.0	31,706.3	107.5%
EBITDA	7,947.0	576.9	1277.5%	8,662.7	962.5	800.0%
EBIT	6,573.5	13.0		6,736.0	-160.9
Net income	5,981.6	-529.2		5,759.3	-969.9
Capital expenditures	1,539.0	330.6		1,870.0	498.7
HOLDING / CONSOLIDATION	Q2 2007	Q2 2006	%	H1 2007	H1 2006	%
Sales	4,866.9	4,309.7		9,751.0	8,091.7
EBITDA	620.8	735.9		1,852.2	1,590.4
EBIT	395.6	572.3		1,432.4	1,259.7
Net income	688.7	329.4		1,749.7	921.0
Capital expenditures	604.0	92.5		1,035.0	274.5
GROUP	Q2 2007	Q2 2006	%	H1 2007	H1 2006	%
Sales	152,702.7	148,656.1	2.7%	286,699.8	282,891.9	1.3%
EBITDA	15,265.1	14,387.1	6.1%	28,737.1	27,722.8	3.7%
EBIT	10,148.8	10,160.6	-0.1%	19,221.3	18,992.0	1.2%
Net income	8,584.3	5,994.1	43.2%	14,289.4	11,171.9	27.9%
Capital expenditures	4,203.7	4,177.9	0.6%	8,017.7	8,529.3	-6.0%

NOTES

ACCOUNTING AND VALUATION METHODS

The interim financial statement on June 30, 2007 was created in accordance with the provisions of the International Financial Reporting Stan dards (IFRS), particularly the IAS 34 (interim report). The balancing and valuation methods from December 31, 2006 were applied in an un changed form.

With regard to further information about the balancing and valuation bases of the POLYTEC GROUP, we refer you to the group financial statement of December 31, 2006.

CHANGES TO THE SEGMENTREPORTING

Due to the inclusion of the aforementioned new acquisition and the acquisition of ISE Intex, incorporated in the group resultsstarting with Q3 2007, the POLYTEC HOLDING AG decided to incorporate the previously separately reported segment ëIndustrialí in its coverage in the ëother/consolidationí segment. As subsequent to the new acquisitions, in terms of the annual viewpoint, both sales- and the operating income contribution of the division fall within the limits of IFRS 8, the division can no longer be presented separately.

The previous yearís results of the segment report were adjusted appropriately.

SEASONALITY OF BUSINESS

The division of sales of one financial year of the POLYTEC GROUP to the four quarters correlates to a high extent with the car manufacturing by the customers of the group. For this reason, quarters in which customers normally carry out works holidays have generally lower rates of turnover than quarters without such effects. In addition to this, turnover from one quarter can also be influenced through the settlement of large tool or development projects.

BASIS OF CONSOLIDATION

The number of companies included in the interim report has increased by 3 compared with the last balance sheet date.

After the ceasing ofits business operations in the second half of 2006, on 1.1.2007, Polytec Interior UK Ltd., Birmingham, exited the basis of consolidation of the POLYTEC group. Please refer to the comments in the report about the first quarter of 2007.

On 1 st May 2007, the 4 companies which comprised the acquired moulded parts business of the erstwhile Monzolit Fibron groupwere included in the group financial statement as a part of the Automotive Composites Division forthe first time. In detail, this concerns the following com panies:

Company		COUNTRY	SHARE	SHAREHOLDER
PT Beteiligungs GmbH	Hˆrsching	AUT	100%	POLYTEC Holding AG
POLYTEC Composites Germany GmbH	Kraichtal-Gochsheim	DE	100%	PT Beteiligungs GmbH
POLYTEC Composites Slovakia s.r.o.	Sladkovicovo	SK	100%	PT Beteiligungs GmbH
POLYTEC Composites Plastik A.S.	Aksaray	TK	100%	PT Beteiligungs GmbH

ASSET
Purchase price less cash and cash equivalents	15,840.3
Goodwill	-6,576.3
Assets	45,051.2
Deffered tax	4,625.1
Umlaufvermˆgen	55,061.1
LIABILITIES
debt	83,643.5
Contingent liabilities	30,357.9

The negative company value which was acquired was compiled in the interim report in accordance with IFRS 3 as other operational earnings affecting net income.

From May 1, 2007, the newly acquired companies contributed to turnover with EUR 31,996.4 thousand and with EUR 5,793.8 thousand (including the liquidation described in the previous section) to the EBIT of the Composites Division.

The POLYTEC Group took over the business operations of the insolvent ISE Intex GmbH with effect from 1 st July 2007, and will continue these in POLYTEC Intex GmbH, Morsbach-Lichtenberg. The newly acquired business division will be incorporated into the Automotive Systems Division and included in the groupís financial statement from the start of the third quarter.

Also with effect from the May 1, 2007, 40% of theshares in Polytec Interior South Africa (Proprietary) Ltd., Rosslyn, were bought up. The company is now in the 100% ownership ofthe POLYTEC Group.

DECLARATION BY THE EXECUTIVE BOARD

The board declares that the mid-year financial report compiled in accordance with the International Financial Reporting Standards (IFRS) provides a picture of the assets, finance and earnings situation of the POLYTEC Group that is as accurate as possible.

The mid-year financial report at hand has not been subject to an examination or an audit based review.

Hˆrsching, August 1, 2007

Executive Board

Friedrich Huemer Karl Heinz Solly Reinhard Urmann Alfred Kollros

Chairman Deputy Chairman Member Member

POLYTEC HOLDING AG Headquarters Linzer Strasse 50 4063 Hˆrsching AUSTRIA Phone: +43-7221-701-292 Fax: +43-7221-701-40 investor.relations@polytec-group.com

www.polytec-group.com/investor/en

Medium Ownership: POLYTEC HOLDING AG, Austria Responsible for content: Manuel Taverne ñ Investor Relations Conception: POLYTEC HOLDING AG, Austria Photography: Archiv POLYTEC HOLDING AG, Austria