CECONOMY AG

Earnings Release • Aug 1, 2006

- -

METRO Group with notable growth acceleration

• Group sales increased by 7.9% to €14.0 billion
• International sales growing dynamically further by 13.1% to €7.9 billion
• German sales increased by 2.0%
• EBIT amounts to €322 million after €260 million in Q2 2005
• EPS from continuing operations achieved €0.36 after €0.27 in Q2 2005
• Successful placement of remaining stake in Praktiker
• Outlook 2006 confirmed

Growth drivers with high sales momentum: Metro Cash & Carry: +7.4% and seven openings Media Markt and Saturn: +16.0% and 15 openings Real Germany with stabilization of business development

Galeria Kaufhof with 4.8% sales growth

• Overview
• Management Report
• Outlook 2006 / Financial Calendar
• Segment Report
• Metro Cash & Carry
• Real and Extra
• Media Markt and Saturn
• Galeria Kaufhof
• Income Statement
• Balance Sheet
• Cash Flow Statement
• Statement of Changes in Equity
• Additional Information

Sales growth (in %)

Q1 05 Q1 06 Q2 05 Q2 06 Q3 05 Q3 06 Q4 05 Q4 06

Including currency effect At constant exchange rates

EPS from continuing operations (€)

METRO Group Overview *

	H1	H1	Change	Q2	Q2	Change
€ million	2006	2005	in %	2006	2005	in %
Sales	27,341	25,698	6.4%	14,033	13,002	7.9%
Germany	12,158	12,277	-1.0%	6,140	6,021	2.0%
Abroad	15,184	13,421	13.1%	7,894	6,980	13.1%
International share of sales	55.5%	52.2%	-	56.2%	53.7%	--
EBITDA	1,052	973	8.1%	629	549	14.6%
EBIT	459	404	13.7%	322	260	23.8%
EBT	235	208	12.9%	201	172	16.6%
EPS (€)	0.82	0.46	78.4%	0.80	0.43	88.5%
from continuing operations	0.38	0.30	29.1%	0.36	0.27	36.9%
from discontinued operations	0.44	0.16	-	0.44	0.16	-
CAPEX	681	737	-7.6%	346	462	-25.0%
Stores	2,203	2,108	4.5%	2,203	2,108	4.5%
Selling space (1,000 sqm)	10,687	10,128	5.5%	10,687	10,128	5.5%

* Comparables adjusted; please refer to page 15

** Before non-cash write-downs on deferred tax assets

In the second quarter of 2006 (1 April – 30 June 2006) METRO Group achieved Group sales of €14.0 billion (Q2 2005: €13.0 billion). This reflects an increase of 7.9% (excluding currency effects: +7.8%). Foreign sales increased by 13.1%. The international share of sales went up significantly from 53.7% to 56.2%.

Sales in Germany amounted to €6.1 billion and were therewith 2.0% above prior year level. Due to the FIFA World Cup certain product groups were influenced positively. Also the department stores located at the venues of the World Cup noted an upturn.

The international sales grew with only marginal currency effects by 13.1% to €7.9 billion. Excluding currency effects sales increased by +12.9% and showed therewith an acceleration compared to the previous year's quarter.

In a still competitive environment sales in Western Europe increased by 8.9% to €4.6 billion. The good development of Metro Cash & Carry and Media Markt and Saturn contributed in particular. The growth drivers gained most notably in France and Spain.

In Eastern Europe the dynamic development remained unchanged. Sales improved with minor currency effect by 19.5% to €3.0 billion. Russia, Poland and Romania developed above average.

Also the region Asia/Africa showed a significant sales increase of 20.9% to €0.3 billion. The development in China contributed in particular to this.

In Q2 2006, EBITDA* was €629 million after €549 million in Q2 2005. EBIT* increased from €260 million to €322 million. EBIT includes an one-off amount of €29 million resulting from the active real estate portfolio management. In contrast to this the Other financial result shows a decline in equal dimension mainly due to the currency development in Turkey. EBT* was €201 million after €172 million in Q2 2005. EPS from continuing operations was €0.36 after €0.27 in Q2 2005.

In line with the strategic portfolio optimization the remaining 40.52% stake in Praktiker Bau- und Heimwerkermärkte Holding AG was sold as of April 11, 2006. METRO AG realized €484 million. The book gain of €143 million resulting from the Praktiker disposal is accounted as income from discontinued operations. This resulted in EPS from discontinued operations of €0.44.

Group CAPEX in Q2 2006 amounted to €346 million after €462 million in Q2 2005. The store network was further extended with a total of 22 new store openings, thereof seven Metro Cash & Carry as well as 15 Media Markt and Saturn stores (Q2 2005: four Metro Cash & Carry and ten Media Markt and Saturn stores). By the end of the quarter, the Group's total store network comprised 2,203 stores in 30 countries.

METRO Group will further pursue its path of profitable growth. With estimated CAPEX of c.€2.1 billion, the Group will continue to invest in its existing divisional concepts as well as international organic expansion.

Expansion focuses mainly on the divisions Metro Cash & Carry and Media Markt and Saturn. Real is pursuing a selective internationalization strategy in Eastern Europe.

Against the background of the recent business development METRO Group continues to expect a sales growth of 4 to 6%.

For the year in total METRO Group assumes a tax rate of c.33%.

In the ongoing fiscal year EPS growth of 5 to 8% is expected. This is based on the comparable prior year earnings of €2.47 before non-cash write-downs on deferred tax assets from loss carry-forwards for Real Germany.

The outlook does not include the takeover of the Géant Hypermarkets in Poland and Wal-Mart's operations in Germany. Both deals are still subject to approval by the anti-trust authorities.

31 October 2006

Quarterly Report Q3 2006

11 January 2007

Trading Statement

21 March 2007

Analysts' Meeting / Conference Call

Divisions

	Continuing Group Operations*
	Metro		Real		Media Markt		Other/
	Cash & Carry		(incl. Extra)		and Saturn		Galeria Kaufhof		Consolidation		METRO Group
€ million										H1 2006 H1 2005 H1 2006 H1 2005 H1 2006 H1 2005 H1 2006 H1 2005 H1 2006 H1 2005**	H1 2006	H1 2005
External sales (net)		14,034.1 13,033.6	4,737.0	4,837.6	6,553.9	5,849.2	1,616.0	1,586.8	400.2	390.9	27,341.2	25,698.1
Internal sales (net)	45.4	71.5	0.5	0.4	3.6	0.1	6.0	3.3	-55.4	-75.3	-	-
Net sales		14,079.5 13,105.0	4,737.6	4,838.1	6,557.4	5,849.3	1,622.0	1,590.1	344.8	315.6	27,341.2	25,698.1
EBITDA	535.8	479.6	33.5	71.0	206.9	177.7	-10.1	-18.3	285.6	262.6	1,051.8	972.7
Depreciation/amortization	196.1	174.3	67.9	74.2	91.6	81.4	54.9	58.5	181.9	180.6	592.4	568.9
EBIT	339.7	305.4	-34.4	-3.2	115.3	96.3	-65.0	-76.8	103.8	82.1	459.4	403.8
Investments	256.4	274.6	64.2	84.4	133.0	92.3	84.3	33.4	143.3	252.2	681.2	737.0
Segment assets		10,765.5 10,443.1	3,238.8	3,153.5	4,216.4	3,499.7	1,224.2	1,214.0	4,845.0	4,346.5	24,290.0	22,656.8
Segment liabilities	4,845.8	4,554.2	1,181.5	1,238.7	3,180.1	2,727.2	848.1	883.1	1,601.5	1,350.9	11,656.9	10,754.2
Employees at closing date
(full-time basis)	96,027	88,203	43,501	42,877	40,638	35,988	18,957	19,083	15,008	14,846	214,131	200,996
Selling space
(in 1,000 sqm)	4,289	3,994	2,693	2,681	1,784	1,566	1,485	1,457	436	432	10,687	10,128
Locations (number)	554	510	591	604	583	516	142	143	333	335	2,203	2,108

* Comparables adjusted; please refer to page 15

** Including € 15.2 m expenses for the takeover of the exposure to dispose off former food retail stores.

Regions

	Continuing Group Operations* W. Europe
	Germany			excl. Germany		Eastern Europe		Asia / Africa	Consolidation		METRO Group
€ million		H1 2006 H1 2005 H1 2006 H1 2005 H1 2006 H1 2005 H1 2006 H1 2005 H1 2006								H1 2005	H1 2006	H1 2005
External sales (net)		12,157.6 12,277.0	8,870.5	8,178.6	5,607.2	4,678.9	705.9	563.6	-	-	27,341.2	25,698.1
Internal sales (net)	6.3	8.0	0.3	0.3	-	-	333.9	416.9	-340.5	-425.1	-	-
Net sales		12,163.9 12,285.0	8,870.8	8,178.9	5,607.2	4,678.9	1,039.8	980.5	-340.5	-425.1	27,341.2	25,698.1
EBITDA	390.5	400.5	348.9	342.2	321.2	229.0	-6.1	1.0	-2.7	0.0	1,051.8	972.7
Depreciation/amortization	326.2	325.7	147.2	136.1	101.9	92.8	16.8	14.4	0.2	-0.1	592.4	568.9
EBIT	64.3	74.8	201.7	206.1	219.3	136.3	-22.9	-13.4	-3.0	0.1	459.4	403.8
Investments	316.8	312.5	165.5	176.6	175.9	220.0	23.0	27.9	-	-	681.2	737.0
Segment assets		12,454.3 12,411.9	8,062.0	7,930.3	4,800.2	4,271.7	696.9		636.2 -1,723.5	-2,593.2	24,290.0	22,656.8
Segment liabilities	5,696.5	5,677.6	3,955.7	3,546.7	1,945.7	1,580.2	331.9	299.7	-272.8	-349.9	11,656.9	10,754.2
Employees at closing date
(full-time basis)	100,319	101,244	48,375	45,204	53,965	44,893	11,472	9,655	-	-	214,131	200,996
Selling space
(in 1,000 sqm)	6,150	6,045	2,576	2,413	1,615	1,381	347	290	-	-	10,687	10,128
Locations (number)	1,436	1,432	490	444	230	194	47	38	-	-	2,203	2,108

* Comparables adjusted; please refer to page 15

Information on discontinued operations

	Discontinued Group Operations*
€ million		H1 2006 H1 2005
External sales (net)	-	1,545.7
Internal sales (net)	-	-
Net sales	-	1,545.7
EBITDA	-	80.4
Depreciation/amortization	-	24.9
EBIT	-	55.5
Investments	-	26.8
Segment assets	-	1,780.2
Segment liabilities	-	672.8
Employees at closing date
(full-time basis)	-	16,068
Selling space
(in 1,000 sqm)	-	1,985
Locations (number)	-	337

	Q2 2006	Q2 2005		Change (in %)				Change
	€ million	€ million	total	lfl		Q2 2006	Q2 2005	(in %)
Sales	7,395.7	6,889.3	7.4	3.1	EBITDA (€ million)	347.7	319.0	9.0
					EBIT (€ million)	249.6	230.7	8.2
Germany	1,441.3	1,454.7	-0.9	-1.3	CAPEX (€ million)	127.7	195.7	-34.7
Western Europe	3,183.9	3,077.5	3.5	2.2	Locations (number)	554	510	8.6
Eastern Europe	2,466.5	2,109.0	16.9	6.5	Selling space (1,000 sqm)	4,289	3,994	7.4
Asia/Africa	304.0	248.1	22.5	10.0	Employees at closing date (full-time basis)	96,027	88,203	8.9

Metro Cash & Carry, the Group's most international division, increased sales in Q2 2006 by 7.4% to €7.4 billion (excluding currency effects: +7.2%). On a like-for-like basis sales growth was 3.1%.

The sales development in Germany declined slightly. The €1.4 billion sales were 0.9% below the good previous year's quarter (like-for-like: -1.3%).

Sales in Western Europe increased by 3.5% to €3.2 billion (excluding currency effects: +3.6%). Like-for-like sales increased by 2.2%. In particular sales in France and Spain developed very well; also like-for-like sales increased noticeably.

In Eastern Europe sales went up 16.9% to €2.5 billion (excluding currency effects: +16.0%). Russia, Romania, and the Ukraine showed the highest growth rates. Turkey achieved a slight increase despite currency turbulence.

Sales in Asia/Africa grew significantly by 22.5% up to €0.3 billion (excluding currency effect: +22.7%). Besides expansion, sales growth is due to the double-digit like-for-like growth rate. Hereby the business in China achieved again a high growth rate.

The international share of sales went up from 78.9% to 80.5%.

EBITDA in Q2 2006 was €348 million after €319 million in previous year's quarter. With the unchanged good like-for-like sales development EBIT improved significantly from €231 million to €250 million.

In Q2 2006 CAPEX for the international expansion as well as for the modernization of the store network amounted to €128 million after €196 million in Q2 2005. The store network was expanded by seven stores: the Russian store network was enlarged by two stores to 24, as well as one opening in Italy, Poland, Ukraine, China and Japan. Metro Cash & Carry operates in 28 countries with a total of 554 stores, thereof 117 in Germany, 249 in Western Europe, 141 in Eastern Europe and 47 in Asia/Africa.

	H1 2006	H1 2005		Change (in %)				Change
	€ million	€ million	total	lfl		H1 2006	H1 2005	(in %)
Sales	14,034.1	13,033.6	7.7	3.4	EBITDA (€ million)	535.8	479.6	11.7
					EBIT (€ million)	339.7	305.4	11.3
Germany	2,740.3	2,777.5	-1.3	-1.7	CAPEX (€ million)	256.4	274.6	-6.6
Western Europe	5,958.0	5,771.9	3.2	2.0	Stores	554	510	8.6
Eastern Europe	4,633.5	3,929.3	17.9	7.6	Selling space (1,000 sqm)	4,289	3,994	7.4
Asia / Africa	702.3	554.9	26.6	14.5	Headcount (FTE)	96,027	88,203	8.9

	Q2 2006	Q2 2005		Change (in %)				Change
	€ million	€ million	total	lfl		Q2 2006	Q2 2005	(in %)
Sales	2,418.7	2,372.0	2.0	1.0	EBITDA (€ million)*	39.4	37.7	4.4
					EBIT (€ million)*	5.1	1.5	-
Germany	2,138.0	2,154.8	-0.8	0.3	CAPEX (€ million)	34.7	46.3	-25.1
					Locations (number)	591	604	-2.2
Eastern Europe	280.7	217.2	29.3	7.2	Selling space (1,000 sqm)	2,693	2,681	0.5
					Employees at closing date (full-time basis)	43,501	42,877	1.5

* Comparables adjusted; please refer to page 15

In Q2 2006 sales at Real increased by 2.0% to €2.4 billion (excluding currency effects: 2.0%). Like-for-like sales came in 1.0% above prior year's level.

In Germany the first signs of stabilization became visible due to measures undertaken to secure sales and earnings. Like-for-like sales increased 0.3%. In total sales reached €2.1 billion. The slight decrease results from the disposal of Extra stores.

Sales in Eastern Europe increased significantly by 29.3% to €0.3 billion (excluding currency effects: +30.4%). Besides new store openings a high like-forlike growth rate in Poland contributed to this. The new markets in Russia and Romania showed a good development.

The international share of sales increased from 9.2% to 11.6%.

EBITDA in Q2 2006 was €39 million after €38 million in Q2 2005. EBIT improved and amounted to €5 million after €1 million in Q2 2005. The earnings improvement in Germany was partially compensated by higher start-up costs for the selective expansion into Eastern Europe.

In Q2 2006 CAPEX in existing stores and into the selective international expansion amounted to €35 million (Q2 2005: €46 million). In Germany one store was closed. At the end of the second quarter the store network comprised 550 stores in Germany and 41 stores in Eastern Europe.

	H1 2006	H1 2005		Change (in %)				Change
	€ million	€ million	total	lfl		H1 2006	H1 2005	(in %)
Sales	4,737.0	4,837.6	-2.1	-2.8	EBITDA (€ million)*	33.5	71.0	-52.9
					EBIT (€ million)*	-34.4	-3.2	-
Germany	4,195.3	4,408.7	-4.8	-3.6	CAPEX (€ million)	64.2	84.4	-23.9
					Stores	591	604	-2.2
Eastern Europe	541.8	429.0	26.3	4.9	Selling space (1,000 sqm)	2,693	2,681	0.5
					Headcount (FTE)	43,501	42,877	1.5

	Q2 2006	Q2 2005	Change (in %)					Change
	€ million	€ million	total	lfl		Q2 2006	Q2 2005	(in %)
Sales	3,201.8	2,759.2	16.0	4.2	EBITDA (€ million)	98.0	82.3	19.0
					EBIT (€ million)	51.4	41.6	23.7
Germany	1,639.6	1,523.4	7.6	1.6	CAPEX (€ million)	75.2	54.6	37.9
Western Europe	1,346.8	1,082.6	24.4	6.0	Locations (number)	583	516	13.0
Eastern Europe	215.5	153.3	40.6	18.8	Selling space (1,000 sqm)	1,784	1,566	14.0
					Employees at closing date (full-time basis)	40,638	35,988	12.9

Media Markt and Saturn increased sales in Q2 2006 by 16.0% to €3.2 billion (excluding currency effects: +16.0%). On a like-for-like basis sales growth was 4.2%. In connection with the World Cup the demand for TVs showed a significant upturn.

In Germany sales increased by 7.6% to €1.6 billion. On a like-for-like basis growth was 1.6%. Thereby Media Markt and Saturn gained further market share.

In Europe Media Markt and Saturn continued expansion at a fast pace and was able to further improve sales.

Sales in Western Europe increased significantly by 24.4% to €1.3 billion (excluding currency effects: +24.6%). France, Spain and the Netherlands were able to increase sales - also on a like-for-like basis.

In Eastern Europe sales increased by 40.6% to €0.2 billion (excluding currency effects: +38.3%). Even on a like-for-like basis double-digit growth was once again achieved. Especially Poland showed a good development.

The international share of sales increased further from 44.8% to 48.8%.

In Q2 2006 EBITDA improved from €82 million to €98 million. EBIT improved with the good like-for-like development from €42 million to €51 million.

In Q2 2006 CAPEX into the pan-European expansion amounted to €75 million after €55 million in Q2 2005. The store network was expanded by 15 additional stores, of which six stores opened in Germany, four in Spain, two in Italy and one opening in Belgium, Austria and the Netherlands respectively. The opening in the Netherlands was the first store under the retail brand of Saturn. In total the store network of Media Markt and Saturn comprised 583 stores as at the end of the quarter – 331 in Germany, 204 in Western Europe and 48 in Eastern Europe.

	H1 2006	H1 2005		Change (in %)				Change
	€ million	€ million	total	lfl		H1 2006	H1 2005	(in %)
Sales	6,553.9	5,849.2	12.0	1.3	EBITDA (€ million)	206.9	177.7	16.5
					EBIT (€ million)	115.3	96.3	19.7
Germany	3,397.5	3,301.1	2.9	-2.2	CAPEX (€ million)	133.0	92.3	44.0
Western Europe	2,724.3	2,228.6	22.2	4.5	Stores	583	516	13.0
Eastern Europe	432.0	319.6	35.2	14.2	Selling space (1,000 sqm)	1,784	1,566	14.0
					Headcount (FTE)	40,638	35,988	12.9

! "#

	Q2 2006	Q2 2005		Change (in %)				Change
	€ million	€ million	total	lfl		Q2 2006	Q2 2005	(in %)
Sales	801.6	764.9	4.8	2.8	EBITDA (€ million)*	-11.2	-17.8	37.2
					EBIT (€ million)*	-39.0	-47.6	18.0
Germany	734.9	706.0	4.1	2.1	CAPEX (€ million)	33.2	18.9	75.7
Western Europe	66.7	58.9	13.2	11.6	Locations (number)	142	143	-0.7
					Selling space (1,000 sqm)	1,485	1,457	1.9
					Employees at closing date (full-time basis)	18,957	19,083	-0.7

* Comparables adjusted; please refer to page 15

In Q2 2006 sales at Galeria Kaufhof increased significantly by 4.8% to €802 million.

In Germany sales increased 4.1% to €735 million (like-for-like: 2.1%). During the World Cup Galeria Kaufhof benefited from the extended opening hours.

In Belgium sales increased significantly by 13.2% to €67 million (like-for-like: +11.6%) and underlines the continuing success of the Galeria concept.

The international share of sales increased from 7.7% in Q2 2005 to 8.3%.

The EBITDA at Galeria Kaufhof was €-11 million in Q2 2006 after €-18 million in previous year's quarter. EBIT improved in connection with the sales increase to €-39 million (Q2 2005: €-48 million).

In Q2 2006 CAPEX into the department stores amounted to €33 million (Q2 2005: €19 million). By the end of the quarter the department store network comprised a total of 142 stores, thereof 127 in Germany and 15 in Belgium. The department store at the Alexanderplatz in Berlin was inaugurated on 24 May 2006 after a two year renovation period. With 35,000sqm on 6 floors the new flagship store offers a highly attractive buying environment. It is the prototype of a new cosmopolitan city format where Galeria Kaufhof is presenting itself as a strong and unique lifestyle brand. The high quality and international assortment comprises 600 top brands.

	H1 2006	H1 2005		Change (in %)				Change
	€ million	€ million	total	lfl		H1 2006	H1 2005	(in %)
Sales	1,616.0	1,586.8	1.8	1.2	EBITDA (€ million)*	-10.1	-18.3	44.8
					EBIT (€ million)*	-65.0	-76.8	15.3
Germany	1,478.5	1,460.9	1.2	0.6	CAPEX (€ million)	84.3	33.4	-
Western Europe	137.5	125.8	9.3	7.9	Stores	142	143	-0.7
					Selling space (1,000 sqm)	1,485	1,457	1.9
					Headcount (FTE)	18,957	19,083	-0.7

\$

€ million	H1 2006	H1 2005*	Q2 2006	Q2 2005*
Net sales	27,341.2	25,698.1	14,033.2	13,001.8
Cost of sales	-21,838.3	-20,459.0	-11,175.3	-10,302.4
Gross profit on sales	5,502.9	5,239.1	2,857.9	2,699.4
Other operating income	741.9	474.4	418.7	228.8
Selling expenses	-5,186.0	-4,772.6	-2,644.4	-2,393.4
General administrative expenses	-564.8	-504.8	-292.9	-259.0
Other operating expenses	-34.6	-32.3	-17.7	-16.0
EBIT	459.4	403.8	321.6	259.8
Result from associated companies	0.4	0.3	0.0	1.1
Other investment result	0.8	7.3	0.6	5.4
Interest income	70.3	70.2	35.0	35.6
Interest expenses	-293.1	-298.4	-149.7	-151.9
Other financial result	-2.8	25.0	-6.4	22.5
Net financial income	-224.4	-195.6	-120.5	-87.3
EBT	235.0	208.2	201.1	172.5
Income taxes	-76.8	-81.7	-65.6	-69.3
Income from continuing operations	158.2	126.5	135.5	103.2
Income from discontinued operations after taxes	143.1	53.3	143.1	52.1
Net profit for the period	301.3	179.8	278.6	155.3
allocable to minorities	32.5	29.1	16.2	16.0
from continuing operations	32.5	28.5	16.2	15.5
from discontinued operations	-	0.6	-	0.5
allocable to stockholders of METRO AG	268.8	150.7	262.4	139.3
from continuing operations	125.7	98.0	119.3	87.7
from discontinued operations	143.1	52.7	143.1	51.6
Earnings per share (EPS) (€)	0.82	0.46	0.80	0.43
from continuing operations	0.38	0.30	0.36	0.27
from discontinued operations	0.44	0.16	0.44	0.16

%

Assets	6/30/2006	6/30/2005*	12/31/2005*
€ million
Non-current assets	17,338.3	18,222.1	17,579.7
Goodwill	4,158.6	4,455.1	4,154.3
Other intangible assets	432.1	393.1	432.4
Tangible assets	10,793.6	10,935.1	11,037.2
Investment properties	210.8	243.3	228.0
Financial assets	131.1	146.3	135.6
Other receivables and assets	485.6	483.0	481.7
Deferred tax assets	1,126.5	1,566.2	1,110.5
Current assets	9,778.8	9,321.5	11,187.0
Inventories	6,089.4	6,166.9	6,245.7
Trade receivables	405.2	315.9	366.6
Financial assets	4.9	37.2	13.0
Other receivables and assets	2,090.4	1,829.5	2,200.7
Entitlements to income tax refunds	264.2	288.8	252.9
Cash & cash equivalents	916.0	683.2	1,767.4
Non-current assets held for sale	8.7	0.0	340.7
	27,117.1	27,543.6	28,766.7

Equity and Liabilities	6/30/2006	6/30/2005*	12/31/2005*
€ million
Equity	5,168.4	4,823.8	5,313.4
Capital Stock	835.4	835.4	835.4
Additonal paid-in capital	2,550.6	2,550.6	2,550.6
Reserves retained from earnings	1,593.9	1,275.7	1,720.8
Minority interests	188.5	162.1	206.6
Non-current liabilities	8,434.9	9,278.8	8,408.0
Provisions for pensions and similar commitments	991.3	1,002.3	994.5
Other provisions	435.5	491.0	447.9
Financial debt	6,105.1	6,825.5	6,045.6
Other liabilities	421.2	443.4	433.2
Deferred tax liabilities	481.8	516.6	486.8
Current liabilities	13,513.8	13,441.0	15,045.3
Trade payables	8,262.7	8,060.9	10,952.4
Provisions	276.7	288.1	288.5
Financial liabilities	3,008.2	3,199.2	1,590.2
Other liabilities	1,807.1	1,744.7	1,965.4
Income tax liabilities	159.1	148.1	248.8
	27,117.1	27,543.6	28,766.7

&

€ million	H1 2006	H1 2005*
EBIT	459,4	403,8
Depreciation and amortization on tangible and intangible assets	592,4	567,2
Change in provisions for pensions and similar commitments	-8,0	-34,0
Change in net working capital	-2.517,2	-2.541,0
Income taxes paid	-220,4	-266,3
Other	-177,2	-177,6
Cash flow from operating activities of continuing operations	-1.871,0	-2.047,9
Cash flow from operating activities of discontinued operations	0,0	44,3
Total cash flow from operating activities	-1.871,0	-2.003,6
First-time consolidation Adler	0,0	19,0
Investments in tangible assets (excl. finance leases)	-548,0	-586,4
Other investments	-73,9	-68,0
Divestment of Praktiker	483,9	0,0
Disposals of fixed assets	279,6	44,2
Cash flow from investing activities of continuing operations	141,6	-591,2
Cash flow from investing activities of discontinued operations	0,0	-11,3
Total cash flow from investing activities	141,6	-602,5
Profit distribution
METRO AG stockholders	-333,6	-333,6
other stockholders	-50,6	-35,5
Change of financial debts	1.406,7	1.757,6
Interest paid	-285,9	-268,3
Interest received	101,2	90,8
Profit and loss transfers and other financing activities	48,7	8,0
Cash flow from financing activities of continuing operations	886,5	1.219,0
Cash flow from financing activities of discontinued operations	0,0	-36,3
Cash flow from financing activities (total)	886,5	1.182,7
Total cash flows	-842,9	-1.423,4
Exchange rate effects on cash and cash equivalents	-8,5	-0,1
Overall change in cash and cash equivalents	-851,4	-1.423,5
Cash and cash equivalents on 1 January	1.767,4	2.106,7
Cash and cash equivalents on 30 June	916,0	683,2
Less cash and cash equivalents from discontinued operations as per 30 June	0,0	-41,8
Cash and cash equivalents from continuing operations as per 30 June	916,0	641,4

# '

	Capital Stock	Capital reserve	Reserves retained from	Total	Minorities	Total equity
€ million 1/1/2005	835.4	2,550.6	earnings 1,301.5	4,687.5	161.3	4,848.8
Net profit for the period	--	--	150.7	150.7	29.1	179.8
Profit distribution	--	--	-333.6	-333.6	-35.4	-369.0
Remeasurement IAS 39	--	--	19.3	19.3	--	19.3
Currency translation	--	--	117.4	117.4	4.0	121.4
Other	--	--	20.4	20.4	3.1	23.5
6/30/2005	835.4	2,550.6	1,275.7	4,661.7	162.1	4,823.8
1/1/2006	835.4	2,550.6	1,720.8	5,106.8	206.6	5,313.4
Net profit for the period	--	--	268.8	268.8	32.5	301.3
Profit distribution	--	--	-333.6	-333.6	-50.6	-384.2
Remeasurement IAS 39	--	--	-9.5	-9.5	--	-9.5
Currency translation	--	--	-52.6	-52.6	-0.3	-52.9
Other	--	--	--	--	0.3	0.3
6/30/2006	835.4	2,550.6	1,593.9	4,979.9	188.5	5,168.4

(\$

This quarterly report was prepared in accordance with International Accounting Standard (IAS) 34 (1998). This quarterly report has not been audited.

In preparation of this quarterly report, the same recognition and valuation methods were applied as in the last preceding annual financial statements.

During the year, sales-dependent and cyclical positions are accounted for pro-rata based on corporate planning, if material.

This quarterly report applied new disclosed IASB accounting standards and interpretations (pls. see Annual Report 2005, p. 91- 92). The application of these accounting standards had no noteworthy impact on METRO Group's asset and financial state and profitability.

The previous year's numbers presented in this quarterly report had to be adjusted due to discontinued operations (disposal of Praktiker) and application of new accounting methods (pls. see Annual Report 2005, pp. 88).

After the second quarter-end closing, METRO Group announced the acquisition of Géant Hypermarkets in Poland. Hereby, the division Real is strengthening its market presence in Poland in line with the selective expansion strategy in Eastern Europe. The price for the acquisition of 19 existing Géant stores and another seven locations under construction or in the planning phase is €224 million.

As of 28 July 2006 METRO AG announced the takeover of Wal-Mart's German operations. The transaction comprises 85 hypermarket stores, of which 19 locations are held by freehold and the remaining ones by leasehold. In 2005 the operation generated sales of around € 2 billion. The transaction enables an ideal extension of the current store network operated by METRO Group's hypermarket business Real. In 2006 the company will derive a one-off positive earnings effect.

Both deals are still subject to approval by the anti-trust authorities.

) !

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Disclaimer

To the extent that this Report contains forward-looking statements, such statements are based on assumptions, planning and forecasts at the time of publication of this Report. Forward-looking statements always involve uncertainties. Business and economic risks and developments, the conduct of competitors, political decisions and other factors may cause the actual results to be materially different from the assumptions, planning and forecasts at the time of publication of this Report. Therefore, METRO AG does not assume any responsibility relating to forward-looking statements contained in this Report. Furthermore, METRO AG does not assume any obligation to update the forward-looking statements contained in this Report.