Wacker Neuson SE — Interim / Quarterly Report 2008

May 27, 2008

Quarterly Report Q1 2008

Moving forward

• | 01
• 2008Q1 News Foreword by Executive Board | 02
• Figures at a Glance | 04
  • Interim Review | 06
• Interim Financial Statements | 15

Income Statement Balance Sheet Statement of Changes in Equity Cash Flow Statement Segmentation

Selected Explanatory Notes to the

• Consolidated Interim Financial Statements | 20
• Additional Tables | 23

Financial Calendar, IR/Press Contact

Left: Compact Equipment in the US, Ground Heaters production facility, Norton Shores Right: Compact Equipment demo, Milwaukee, US

Q1 News

• Sales up 42.3 percent to EUR 228.2 million, primarily as a result of the merger
• Thus EBITDA rose 20 percent to EUR 29.4 million
• Discounting consolidation-related expenses resulting from high investments in the rental business and stocking up demo fleets, EBITDA rose to EUR 41.3 million
• Equity ratio remains high at 73.1 percent
• Compact Equipment performs well, fueled by high demand from construction and agricultural industries
• Successful market launch of Compact Equipment from our merger partner through our existing sales and service network
• Light Equipment sales adversely affected by negative market trends in the US and certain European countries, a harsh winter and several public holidays in March
• US: American affiliate's sales in local currency almost on previous year's level
• High level of investment reflected in earnings
• Investments up 57.8 percent to EUR 36.6 million
• Over 35 percent of total investment budget already channeled into expansion measures
• Integration of Neuson Kramer progressing as planned

Strategic expansion of the rental business in Central and Eastern Europe

The expansion of our rental business in Central and Eastern Europe, where we would not be operating in competition with our customers, is a key factor of our growth strategy. It represents our response to increased customer demand, while enabling us to gain new customers and subsequently harness new sources of profit.

We have already earmarked substantial funds for expanding this profitable area. In the current fiscal year alone, we intend to invest more than EUR 30 million to boost our rental pool. We have already channeled EUR 15 million into the rental business during the first quarter.

Following the merger, however, for the first time, we are almost exclusively using Light and Compact Equipment from our own production facilities to stock our rental pool. In other words, we are gradually replacing third-party products in our rental pool. This will enable us to increase profits from our rental business in the medium and long term.

With immediate effect, third-party machines will be successively sold off. The attractive rewards presented by the rental business will be generated over the next four to six years. During the present build-up phase, however, expansion of the rental pool results in the non-realization of proceeds that would normally result from equipment sales.

Dear Ladies and Gentlemen

The construction industry in some of our target markets is relatively unsteady, however. In the US, for example, investments in residential projects dropped by around 19 percent over the course of one year.

Nonetheless, the Wacker Group remained on a positive, dynamic path. Fueled by the merger, sales were up 42.3 percent to EUR 228.2 million – compared with EUR 160.4 million the previous year. Adjusted to discount currency fluctuations, sales thus rose 49 percent.

During the first quarter of the current fiscal year, our main focus lay on expansion of the compact equipment business segment and of our rental business in Central and Eastern Europe. Although our heavy investments in these areas have – as planned – had a negative impact on profit, they have also enabled us to lay a solid foundation for future growth.

During the period under review, we also started marketing the premium compact equipment portfolio manufactured by our merger partner through our existing sales and service network. Our efforts in this area are already showing first signs of success. We are concentrating primarily on the US market, but also on countries such as Great Britain and Spain – in other words, countries where the market is sluggish as a result of dwindling residential investments. We are sticking to our tried-and-tested success formula – reinforce our presence during difficult times and build on existing customer relationships by offering new, high-end products.

The launch of new products resulting from the merger calls for dynamic sales teams, high levels of investment in demo fleets, effective staff training and expansion of production capacity in all markets. We are convinced that we are on the right path and this is confirmed by the positive feedback we are receiving from customers, in particular from dealers in the US.

We ramped up Central and Eastern European rental investments. During the period under review, we channeled around EUR 15 million into expansion measures – a significant slice of our annual budget in the amount of more than EUR 30 million. By comparison, we earmarked EUR 25 million for this area last year. Here, it should be noted that the increased need to stock our own rental pool following the merger was met for the first time almost exclusively through our own production facilities. Naturally, this impacted negatively on earnings as the proceeds from the sale of these machines to our high-margin rental division is distributed over the subsequent four to six years.

Our medium to long-term horizon remains optimistic – despite growing uncertainty surrounding global economic trends and the drop in the sale of light equipment in the US and other isolated countries.

Provided you – our shareholders – agree, we hope to take the last formal step to seal the merger at our AGM on June 3, 2008 – namely, change the name and form of the company to Wacker Neuson SE.

Yours sincerely,

Dr. Ing. Georg Sick Chairman of the Executive Board

Figures at a Glance

For the period from January 1 through March 31

in € million	Jan. 1–Mar. 31, 2008	Jan. 1–Mar. 31, 2007
	Wacker Neuson
	with PPA1 (without PPA)
Key figures
Sales	228.2	160.4
by region
Europe	178.4	103.8
Americas	44.1	51.8
Asia	5.7	4.8
by business segment2
Light Equipment	90.9	105.6
Compact Equipment	98.3	21.3
Services	39.0	33.5
EBITDA (without PPA)	29.4 (30.0)	24.5
Depreciation and amortization	10.3	6.5
EBIT (without PPA)	19.1 (21.9)	18.1
EBT	18.5	17.4
Profit for the period (without PPA)	12.3 (14.2)	10.6
Number of employees	3,724	2,878
Share
Earnings per share in €	0.18	0.27
Key profit figures
Gross profit in %	34.4	40.9
EBITDA margin as a % (without PPA)	12.9 (13.1)	15.3
EBIT margin as a % (without PPA)	8.4 (9.6)	11.3
Key figures from the balance sheet	Mar. 31, 2008	Dec. 31, 2007
Property, plant and equipment	721.1	697.0
Current assets	531.4	517.5
Equity	915.5	912.7
Net borrowings	6.4	- 43.1
Liabilities	336.9	301.8
Equity ratio as a %	73.1	75.2
Working capital	303.1	271.5
Cash flow	Jan. 1–Mar. 31, 2008	Jan. 1–Mar. 31, 2007
Cash flow from operating activities	- 12.7	- 6.9
Cash flow from investing activities	- 5.4	- 22.4
Cash flow from financing activities	25.2	10.5
Free cash flow	- 18.2	- 29.3

PPA = Purchase price allocation. Purchase price allocation describes the process where purchase costs resulting from acquisitions are allocated to individually acquired assets, liabilities and contingent liabilities, which are measured at fair value.

² Consolidated sales after discounts

Q1 2008 trends

Q1 2008 results reflect the high level of Group investments. A significant volume of compact equipment from our own production facilities was delivered to the rental and demo fleets of other Group-owned companies. This resulted in high levels of internal sales. Consequently, the proceeds that would normally have been generated had this equipment been sold to external companies was not realized.

Effects from consolidation1

in € million	Jan. 1–Mar. 31, 2008	Factors affecting earnings3	PPA	Jan. 1–Mar. 31, 2007
	Wacker Neuson with PPA2			Wacker Neuson adjusted
EBITDA	29.4	11.3	0.6	41.3
Neuson Kramer consolidation expenses	–	5.8	0,6	–
EBITDA margin as a %	12.9	–	–	–
EBIT	19.1	11.1	2.8	33.0
EBIT margin as a %	8.4	–	–	–
Profit for the period	12.3	7.7	1.9	21.9

¹ You will find more information in the tables on pages 23 – 24.

PPA = Purchase price allocation. Purchase price allocation describes the process where purchase costs resulting from acquisitions are allocated to individually acquired assets, liabilities and contingent liabilities, which are measured at fair value.

Mainly proceeds from the sale of equipment that would normally have accrued to the company had the products been sold to third parties, but which were not realized. The reason was that these products were channeled into rental and demo fleets as part of our investment policy to stock our fleets with compact machines from our own production facilities.

Sales distribution

in % (previous year)

by region by business segment

Multi-year comparison sales

in € million

Q1/2008	228.2
Q1/2007	160.4
Q1/2006	149.4

Interim Review

Economic and business trends

Improvement in global economy

According to a joint survey by leading economic research institutes, global economic development was positive during the first months of fiscal 2008. However, the big picture was overshadowed by increasing raw materials prices, further weakening of the US dollar, and – in particular – the crisis on the US property and mortgage market, resultant impact on the international financial markets and threat of US economic recession. While some Asian countries reported significant growth rates, the upturn in the euro zone took a moderate pace. The expert consensus was that the German economy remained favorable in the first quarter of 2008.

Construction industry trends

Construction industry as key economic driver

Thanks to stable global economic conditions, mainstream construction remained a key economic driver in many countries. Infrastructure projects boosted national economies in China, Russia, India, Europe and the Middle East in particular.

In the US, economic development was shaped by a decline in private residential investments. The US Census Bureau reports an 18.6 percent downturn over the course of the year here. However, over the same period, investment in non-residential and industrial construction rose a substantial 11.0 percent. As of February 2008, residential construction accounted for around 41 percent of total construction investment volume, and the non-residential and industrial segment for around 59 percent.

The European construction industry was boosted by the economic upturn. In Germany, the construction climate was positive. According to the Federation of the German Construction Industry, production increased in the construction industry in the first two months of 2008. The German

Engineering Federation (VDMA) reports that order intake for the German machine and plant construction industry in the first quarter of 2008 was significantly higher than the previous year.

Group business development

Corporate strategy continued

The reporting period was particularly characterized by the implementation of measures to roll out compact construction equipment via our established sales and service network as well the expansion of our rental business in Central and Eastern Europe. We also continued to implement measures aimed at integrating our merger partner Neuson Kramer Baumaschinen AG, while at the same time focusing on expanding capacity and further pursuing our regional expansion program.

We further consolidated our leading market position in the period under review. Demand for both compact equipment and services was high, particularly in the Europe region. A downturn in residential construction due to the US subprime crisis coupled with a sluggish construction market in Great Britain and Spain had a dampening effect on orders placed by specific customers, and therefore on new sales in the light equipment segment in particular. This was further compounded by a harsher winter than the previous year, further depreciation of the US dollar and greater number of public holidays in March. On the upside, however, the volume of open orders for compact construction equipment at the end of March was over 15 percent above the equivalent figure for the previous year.

Increased sales as a result of the merger

Our 2008 figures fully incorporate our merger partner Neuson Kramer Baumaschinen AG for the first time, following initial consolidation on October 1, 2007. In the first quarter, sales increased as a result of the merger by 42.3 percent to EUR 228.2 million (previous year: EUR 160.4 million). Discounting results from the Neuson Kramer subgroup, sales amounted to EUR 144 million, which represents a drop of 10.2 percent.

Affiliate opened in India

During the first quarter, our new affiliate, Wacker Neuson Equipment Private Ltd. opened according to plan. Headquartered in Bangalore, India, this affiliate will now cooperate with several branches across the country to distribute the company's extensive product and service offering.

Further capacity expansion

Our European training center at the Reichertshofen production site and new manufacturing plant in Manila commenced operations at the start of 2008, close behind completion of the new Weidemann GmbH plant in Korbach in November 2007.

After a construction period of just one year, the first wheel loaders (with all-wheel steering) and telescopic handlers rolled off the production line at our affiliate company Kramer-Werke GmbH's new plant in Pfullendorf (Germany) ahead of schedule this April. The new facility more than doubles the production capacity of the previous plant in Überlingen to meet rising demand for these products. The total investment in this new, 30,000 m2 facility exceeds EUR 30 million – around EUR 20 million of which falls in fiscal 2008. Management and administration teams plan to move into the new buildings over the next few months. Construction of our new production plant for Ground Heaters, Inc. in Norton Shores (USA) is proceeding according to plan and the new buildings should be occupied in Q2, 2008.

Name change to Wacker Neuson SE and increase in dividend payouts

At the Annual General Meeting on June 3, 2008 in Munich, Germany, we will propose changing the Group's name and legal form to Wacker Neuson SE. The Executive and Supervisory Boards will also propose paying out a dividend of EUR 0.27 per share along with a bonus of EUR 0.23, which brings the total to EUR 0.50 per eligible share. This applies to 70.14 million eligible shares altogether, compared with EUR 0.62 for 39.15 million eligible shares the previous year. In total, therefore, we will be paying out EUR 35.07 million (previous year: EUR 24.27 million). Excluding the bonus, the distribution ratio pans out at 35 percent based on Group profit for fiscal 2007 after purchase price allocation, which amounts to 54.1 million euros. Based on the pro-forma 2007 profit figures of the Wacker Neuson Group before purchase

price allocation, totaling EUR 87.3 million, the total dividend including the bonus – EUR 0.50 per share – corresponds to a distribution ratio of 40 percent.

Capital market communication and share trends

Over the course of the first quarter, the Executive Board kept capital market players regularly updated on current company developments. They did this through a variety of channels including an investor conference in Frankfurt and various international roadshows. Share price trends in the first quarter reflected general international financial market developments. At the end of the period under review, the share was listed at EUR 12.71.

Share price trends

WACKER SDAX DAX

Profit, assets and finances

Following initial consolidation of our merger partner Neuson Kramer Baumaschinen AG on October 1, 2007, the results of Neuson Kramer were consolidated in full for the first time as of the first quarter of 2008. This explanation of profit, finances and assets/liabilities compares the accumulated Wacker Group financial data for the first quarter of fiscal 2008, including Q1 figures from the Neuson Kramer subgroup taking purchase price allocation into account, with Wacker Group financial data reported for the first quarter of fiscal 2007. When making these comparisons, however, it should be noted that the results from the same period of the previous year do not include figures from the Neuson Kramer subgroup.

Q1 results are influenced by high Group investments. A high volume of compact equipment from our own production facilities was delivered to the rental and demo fleets of other Group-owned companies. As a result, this equipment did not generate the proceeds that would normally be achieved through sales to external companies.

Profit

Increased sales as a result of the merger

The development of sales and earnings in Q1 2008 reflected the effects of the merger and the high levels of planned Group investment and sales activities. Sales increased 42.3 percent to EUR 228.2 million as a result of the merger (previous year: EUR 160.4 million), corresponding to 49.0 percent growth discounting exchange rate fluctuations. Not including figures from the Neuson Kramer subgroup, sales amounted to EUR 144 million.

Sales

Q1 2007 and 2008

in € million

Q1/2008		228.2
Q1/2007		160.4

Manufacturing costs rose to EUR 149.8 million (previous year: EUR 94.8 million). Reasons for this include, besides merger-related expenses, additional expenditure on materials to meet greater production levels (particularly in the compact equipment segment), higher production and freight costs, and expansion of the rental pool. Discounting figures from the Neuson Kramer subgroup, manufacturing costs totaled EUR 85.9 million.

Gross profit on revenue totaled EUR 78.4 million in Q1 2008 as a result of the merger (previous year: EUR 65.6 million). The gross profit margin amounted to 34.4 percent, down from 40.9 percent the previous year. This reduction is attributable to the increased role played by the compact equipment business segment, which typically realizes a lower gross profit margin but also reports lower selling expenses. Discounting figures from the Neuson Kramer subgroup, gross profit amounted to EUR 58.1 million, which represents a drop of 11.4 percent.

Slight reduction in selling expenses, research and development, and administration as a percentage of revenue

Taking the merger into account, the income statement shows a slight increase in expenditure across all cost units. Expressed as a percentage of sales, selling expenses and R&D and administrative costs were down to 26.4 percent as a result of the merger (previous year: 30.0 percent).

In the period under review, selling expenses rose by 13.6 percent to EUR 37.4 million (previous year: EUR 32.9 million). This increase is attributable to the merger and new hires to support our expanding sales and rental activities in Central Europe in particular. Here it should be noted that the selling expenses as a percentage of revenue have dropped for the new merged company relative to the Wacker Group for the same period last year as a result of the dealer network operated by Neuson Kramer. Discounting figures for the Neuson Kramer subgroup, selling expenses amounted to EUR 33.6 million. Research and development costs were up 48.4 percent to EUR 6.6 million (previous year: EUR 4.5 million) due to the merger and intensive development work on new and enhanced products. It is worth mentioning in this context that former Group affiliates have also now fulfilled the prerequisites required for capitalizing development costs. Not including Neuson Kramer subgroup figures, research and development costs totaled EUR 4.1 million. General administrative costs increased 51.2 percent to EUR 16.2 million (previous year: EUR 10.7 million) as a result of additional HR costs due to payroll expansion and new hires following the merger. Expressed as percentage of sales, administrative costs were at 7.1 percent (previous year: 6.7 percent). Discounting figures for the Neuson Kramer subgroup, administrative costs amounted to EUR 11.0 million.

Purchase price allocation influences profit

Profit before interest, tax, depreciation and amortization (EBITDA) rose 20.0 percent from EUR 24.5 million to EUR 29.4 million as a result of the merger, taking purchase price allocation into account. The EBITDA margin amounted to 12.9 percent (previous year: 15.3 percent). Purchase price allocation amounted to EUR 0.6 million. Without figures from the Neuson Kramer subgroup, EBITDA totaled EUR 17.1 million.

EBITDA

Q1 2007 and 2008

in € million

Q1/2008	29.4	EUR 1.9 million. Discounting figures for the Neuson Kramer Q1/2008
Q1/2007	24.5	Q1/2007 subgroup, profit for the period amounted to EUR 6.5 million,

In the first quarter, depreciation and amortization rose 60.0 percent, from EUR 6.5 million to EUR 10.3 million. This was primarily due to the merger, increased investment in the Central and Eastern European rental business, capacity expansion and purchase price allocation. Depreciation and amortization amounted to EUR 7.2 million, not taking into consideration figures for the Neuson Kramer subgroup.

Profit before interest and tax (EBIT) rose 5.7 percent to EUR 19.1 million as a result of the merger (previous year: EUR 18.1 million), taking purchase price allocation into account. The EBIT margin amounted to 8.4 percent (previous year: 11.3 percent). Purchase price allocation amounted to EUR 2.8 million. Without Neuson Kramer subgroup figures, EBIT totaled EUR 9.9 million.

EBIT

Q1 2007 and 2008

in € million

Profit before tax (EBT) increased 6.7 percent to EUR 18.5 million as a result of the merger (previous year: EUR 17.4 million). Without taking Neuson Kramer subgroup figures into consideration, EBT amounted to EUR 10.6 million, which represents a drop of 39.1 percent. Tax expenditure fell to EUR 6.0 million (previous year: EUR 6.8 million). The tax ratio decreased to 32.2 percent, from 39.1 percent the previous year, as a result of the German tax reform of January 1, 2008.

Q1/2008 Q1/2007 Q1/2006 Profit for the period as a result of the merger and in spite of purchase price allocation climbed substantially to EUR 12.3 million, 16.5 percent above the previous year's result of EUR 10.6 million. Purchase price allocation totaled EUR 1.9 million. Discounting figures for the Neuson Kramer subgroup, profit for the period amounted to EUR 6.5 million, which represents a drop of 38.7 percent.

Based on a weighted average number of ordinary shares in circulation during the period of 70.14 million, earnings per share totaled EUR 0.18 (previous year: EUR 0.27 at 39.15 million shares).

Earnings were influenced by the euro's advance against the dollar relative to the same period last year with an average exchange rate of 1 euro to 1.53 US dollars, compared with 1 euro to 1.31 US dollars last year.

Finances

Investments considerably higher than in previous year

Cash flow from operating activities amounted to EUR - 12.7 million at the end of Q1 2008 (previous year: EUR - 7.0 million).

Q1/2008 Q1/2007 Q1/2006 Once again, cash flow in the first quarter was characterized by continued high levels of investment. In the first three months of fiscal 2008, we invested a total of EUR 36.6 million in property, plant and equipment (previous year: EUR 23.2 million). This includes expansion of the rental business in Central and Eastern Europe, which fueled investments to the value of EUR 15.5, plus measures to expand capacity with the new Kramer-Werke GmbH manufacturing plant in Pfullendorf (Germany). Cash flow from investment activities came to EUR - 5.4 million in the reporting period (previous year: EUR - 22.4 million).

Cash flow from financing activities totaled EUR 25.2 million (previous year: EUR 10.5 million). Free cash flow amounted to EUR - 18.2 million (previous year: EUR - 29.3 million).

Free cash flow

in € K	Q1/2008	Q1/2007
Cash flow from operating activities	- 12,748	- 6,996
Cash flow from investment activities	- 5,386	- 22,419
Changes to consolidation structure	0	441
Costs of procuring capital	- 63	- 355
Issue of new shares	0	0
Free cash flow	- 18,197	- 29,329

At EUR 303.1 million, working capital was up 11.6 percent as a result of merger-related expenses (at December 31, 2007: EUR 271.5 million). Inventory increased to EUR 178.8 million (at December 31, 2007: EUR 175.1 million). Trade payables dropped to EUR 61.5 million (at December 31, 2007: EUR 63.1 million). Trade receivables reached EUR 185.8 million (at December 31, 2007: EUR 159.5 million). The change in working capital in relation to sales reflects the company's expansion policy.

Assets

Equity ratio remains high

The balance sheet total for the first three months of the year is EUR 1,252.4 million (EUR 1,214.5 million at December 31, 2007). Assets rose to EUR 674.3 million (EUR 651.5 million at December 31, 2007). This is due in particular to an increase in property, plant and equipment and expansion of the rental pool. Thanks also to inventory build-up and increased trade receivables, current assets reached EUR 531.4 million (up from EUR 517.5 million at December 31, 2007).

Equity in the reporting period grew to EUR 915.5 million (EUR 912.7 million at December 31, 2007), bringing the equity ratio to 73.1 percent (75.2 percent at December 31, 2007). Total non-current liabilities dropped 3.4 percent to EUR 103.5 million (EUR 107.1 million at December 31, 2007). At EUR 233.4 million, total current liabilities were up 19.9 percent (EUR 194.6 million at December 31, 2007).

At the end of Q1 2008, net financial debt totaled EUR - 6.4 million (EUR + 43.1 million at December 31, 2007).

Segment reporting

With its wide range of products and services, the Wacker Group caters both directly to end-customers and to dealers, rental companies and importers worldwide.

Results for Europe, the Americas and Asia

Strong sales growth in Europe as a result of the merger

Europe was again the strongest sales driver in the first quarter, accounting for 78.2 percent of total sales (previous year: 64.7 percent). This lead was augmented by the merger with Neuson Kramer Baumaschinen AG, as that company generates almost all of its sales in this region. The Wacker Group achieved sales of EUR 178.4 million here in the first three months of 2008 as a result of the merger (previous year: EUR 103.8 million), corresponding to 72.0 percent growth. Profit before interest and tax (EBIT) rose from EUR 11.5 million to EUR 14.5 million – an increase of 26.3 percent. Discounting the Neuson Kramer subgroup, sales for the region totalled EUR 94.2 million.

Europe

Q1 2007 and 2008

in € million

Sales

Q1/2008	178.4
Q1/2007	103.8

EBIT

Q1/2008	14.5
Q1/2007	11.5

This result was positively influenced by strong demand for equipment for the construction and agricultural industries and services, the expansion of sales operations, and a lively level of construction activity despite a harsher winter than last year. In Scandinavia, the launch of portable hydronic heating equipment from Ground Heaters, Inc. was wellreceived by the market. Thanks to growing demand, we continued to expand our sales and service network in Poland and the Czech Republic, opening service stations in locations including Szczecin, Warsaw and Lodz (Poland) and Ostrava (Czech Republic).

In Great Britain and Spain, a downturn in residential construction investment lead to a reduction in light equipment sales. In Austria, business operations at Stambach Baumaschinen GesmbH, a subsidiary of Neuson Kramer Baumaschinen AG, were incorporated in the Wacker Group's Austrian affiliate effective March 1, 2008.

Compact equipment roll-out in the US

In the first quarter, sales in the Americas fell 15.0 percent compared with the previous year to EUR 44.1 million (previous year: EUR 51.9 million). Profit before interest and tax (EBIT) rose from EUR 6.8 million to EUR 7.6 million – an increase of 12.1 percent. Due to the merger, this region's share of total sales dropped from 32.3 to 19.3 percent.

Americas

Q1 2007 and 2008

in € million

Sales

Q1/2008	44.1
Q1/2007	51.9
EBIT
Q1/2008	7.6
Q1/2007	6.8

Exchange rate effects resulting from the increased euro / US dollar parity had a particularly sustained impact here. Discounting exchange rate fluctuations, sales in the region only decreased by 3.9 percent as our US manufacturing facility increased exports to Europe and Asia.

This regional trend is also attributable to the downturn in residential construction investment in the US due to the subprime crisis there. Our Wacker Corporation affiliate again reported a slight drop in light equipment sales in the first quarter. Considered in the local currency (US dollars), this affiliate's sales were only 0.2 percent below the previous year's level. At the same time, the first quarter at Wacker Corporation was marked by numerous measures for rolling out compact equipment on the US market, including product presentations at trade fairs and training measures. Business development in Canada, Mexico and South America and results from Ground Heaters, Inc. and the EQUIPRO, Inc. service organization were in line with our expectations.

Expansion of sales activities in Asia

In the first quarter of 2008, sales in the Asia region were up 20.9 percent on the previous year, from EUR 4.8 million to EUR 5.8 million. Profit before interest and tax (EBIT) totaled EUR 0.3 million (previous year: EUR 0.5 million). Due to the merger, this region's share of total sales dropped from 3.0 percent to 2.5 percent.

Asia

Q1 2007 and 2008

in € million

Sales

Q1/2008	5.8
Q1/2007	4.8

EBIT

Q1/2008	0,3
Q1/2007	0,5

Overall, the Asian construction industry showed strong growth, partly fuelled by infrastructure projects. In order to capitalize more effectively on market opportunities, we continued to expand local sales operations in China during the quarter under review. Sales in China rose 38.6 percent. Performance was also positive in Australia and Japan, but down slightly in New Zealand and Thailand.

Results for light equipment, compact equipment and services segments

Sales by business segment

in € K	Jan.1–Mar.31, 2008	Jan.1–Mar.31, 2007
Segment revenue from external customers
Light Equipment	91,270	106,336
Compact Equipment	98,824	21,433
Services	39,176	33,760
	229,270	161,529
Less cash discounts	- 1,025	- 1,152
Total	228,245	160,377

Decreased product sales in light equipment segment

The light equipment segment covers the Wacker Group's activities within the business fields of concrete technology, soil and asphalt compaction, demolition and utility. In this segment, sales before discounts fell to EUR 91.3 million in the first three months of fiscal 2008 (previous year: EUR 106.3 million), primarily as a result of dwindling sales in the US, Spain and Great Britain. Due to the merger, this segment's share of total sales (before discounts) dropped to 39.8 percent (previous year: 65.8 percent).

The first quarter saw the launch of various new products in this business segment, including a walk-behind trowel, a cut-off saw and a new line of rebar cutters for the concrete technology field. On January 1, 2008, product prices in the light equipment segment rose 3.0 percent worldwide, with the exception of the US.

Sales in compact equipment segment affected by one-off items

In the first three months of 2008, sales before discounts in the compact equipment segment (which covers the manufacture and sale of compact equipment up to a weight of around 14 tons) rose from EUR 21.4 million to EUR 98.8 million. This boosted the segment's share of total sales (before discounts) from 13.3 percent to 43.1 percent, as a result of the merger. However, it should be noted that some of this compact equipment was used to stock our own rental pool and build up demo fleets and these activities do not initially contribute to earnings.

Development in this business segment was characterized by measures to launch compact equipment via our global sales and service network. Countries where we rolled out products in the first quarter include Switzerland, Australia and the US. Dealer feedback on the products we launched in the US in particular was extremely positive. We also paved the way to roll out compact equipment in Spain in Q2 2008. On January 1, 2008, the prices of wheel loaders and telescopic handlers rose by 3.0 percent.

Demand for agricultural products also remained high, with sales at our affiliate company Weidemann GmbH up 10.5 percent in the first quarter, from EUR 20.5 million to EUR 22.6 million. Consolidated external sales decreased to EUR 15.8 million (previous year: EUR 17.0 million) as a result, as mentioned, of stocking our rental pool and demo fleets with agricultural wheel loaders. Prices in this segment rose by between 4 and 5 percent from January 1, 2008.

Growth of rental business in services segment

The first quarter saw an increase in sales before discounts in the services segment, especially in Central and Eastern Europe. This segment comprises the after-market (repair and maintenance) and rental business fields. Sales were up 16.0 percent in the period under review, to EUR 39.2 million (previous year: EUR 33.8 million). This brought the segment's share of total sales (before discounts) to 17.1 percent (previous year: 20.9 percent).

Sales in the after-market business field (which covers the traditional repair and spare parts business) rose 21.0 percent to EUR 31.1 million (previous year: EUR 25.7 million), fueled by integration of the Neuson Kramer spare parts business. In response to rising demand, we again invested heavily in expanding the rental pool in the first quarter, and established further rental stations in Eastern Europe. Sales from the rental business in Central and Eastern Europe rose from EUR 8.0 million to EUR 8.1 million.

Other factors that impacted on results

High production efficiencies

Strong demand for our products ensured high capacity utilization at our manufacturing plants in the first quarter. While products from the light equipment segment can be delivered within 24 to 48 hours, delivery periods for compact equipment are currently at a normal range of two to five months. We also improved production process flows during the period under review.

Strong attendance at US trade fairs

The company attracted a high number of visitors and held rewarding discussions with customers at numerous US trade fairs, where we presented our portfolio of 14 marketready compact equipment products prior to launch. The highlight here was our participation in the largest trade fair for North and South America, Conexpo-CON/AGG 2008, held in March in Las Vegas (USA). We also exhibited our light and compact equipment portfolio at trade fairs in Europe, including Samoter 2008 in Italy.

Increased R&D cost ratio

Due to preparations for numerous product launches in the current fiscal year, research and development costs in the period under review amounted to EUR 6.6 million (previous year: EUR 4.5 million). In relation to sales, the R&D ratio rose slightly to 2.9 percent, in comparison with 2.8 percent the previous year.

Improved procurement processes

We implemented further measures to optimize our procurement processes in the first quarter, particularly in the compact equipment segment. In view of rising materials prices, we broadened operations at our new affiliate in Serbia, which was founded at the end of 2007. This affiliate is set to manufacture and supply the Group with steel construction components for compact equipment. The Wacker Group is also actively countering increasing materials costs through longer-term agreements with suppliers and a greater focus on the Asian procurement market.

Intensified training and development

At March 31, 2008, headcount at the Wacker Group totaled 3,724 (previous year: 2,878). This figure does not reflect the actual number of employees, but the number of positions as calculated on a full-time basis. The high level of growth here is attributable to the merger and to new hires in sales and service. The opening of our new training center in Reichertshofen also renewed the focus on employee training and development through the Wacker Academy in the first quarter.

Changes to the opportunity and risk situation

Altogether, in view of both our organic growth and the merger with Neuson Kramer Baumaschinen AG, we see positive opportunities to consolidate our leading market position in fiscal 2008. Despite partially dampening trends in the global economy and construction industry, we have identified growth prospects for the Wacker Group. We will be working intensively to continue our steady implementation of the goals contained in our business strategy, increasing unit sales, revenue and profit.

In the first quarter of 2008, the Wacker Group continued to implement its risk and opportunity management system as a key steering tool for business decisions and processes. This system covers planning for each of the core business segments, comprehensive Group reporting on all business processes and affiliates to provide every decision-maker with regular analysis, discussion and evaluation, process definitions for all business segments, and Group auditing.

The company has identified the following risks to the Wacker Group as of March 31, 2008 that deviate from the 2007 annual financial statements.

The company is increasing the flow of compact equipment into its rental pool and demo fleets. Proceeds from the rental of this equipment is distributed over the subsequent four to six years. There is a risk that the positive impact anticipated through the sale of demo products and end-of-life machines from the rental pool and through the rental of new machines from the rental pool may not materialize. The company is mitigating this risk through a proactive sales and rental strategy.

As a result of the current macroeconomic climate, defined above all by the crisis on the US property and mortgage market and the devaluation of the US dollar, the company is exposed to a negative climate on certain markets, the effects of which may include a drop in light equipment sales as well as increased exposure to local parity risks. These effects had a definite impact in the US in the first quarter of 2008. The company is mitigating these risks through proactive go-to-market strategies in these regions and active currency risk hedging policies.

We are not currently aware of any other significant risks to the Wacker Group. We have not identified any individual or collective risks to our continued existence as a going concern that might negatively affect individual companies within the Group or the Group as whole in the foreseeable future.

Supplementary report

There have been no significant events since the reporting date that could have an impact on future business development in the Wacker Group.

Outlook

Further global economic growth in 2008

According to a joint survey by leading economic research institutes, global economic expansion will continue but lose momentum over the course of 2008. The biggest risk remains the uncertain progression of the crisis in the property and financial sector and its possible impact on the global economy. While a further slowdown is looming for the US, the European and Asian economies should stay buoyant. The consensus of the above survey and the German Ministry of Economic Affairs and Technology (BMWi) is that the overall economic outlook for Germany will remain positive in 2008.

Promising mid-term outlook for international construction

Prospects for the international construction industry are promising for 2008 and beyond. The Global Insight market research institute expects growth of 3.6 percent in worldwide construction volumes for 2008. In particular, there are plans for numerous infrastructure improvements worldwide, including highway construction, telecommunications, and transport and traffic projects. In the US, experts anticipate that the downturn in private residential construction will continue during the first half of 2008. The North-American Association of Equipment Manufacturers for highway and industrial construction predicts sales growth of around 4 percent for the light equipment segment in Canada and the US in 2008. Experts from Euroconstruct assess that the European construction market will continue to experience growth in 2008, especially in non-residential and underground construction due to essential infrastructure projects and renovation and modernization work. The Federation of the German Construction Industry also expects non-residential and underground construction to remain key growth drivers in the German construction sector in 2008, with forecast nominal growth of 3.0 percent.

Wacker Group aims for sales and earnings growth

The Wacker Group continues to view fiscal 2008 with confidence. While the boundary conditions are characterized by growing uncertainty, the assessment we reached in the 2007 annual financial statements regarding business development in 2008 currently remains unchanged, taking into account the overall global economic forecast and the medium to long-term outlook for the construction and agricultural industries.

The Wacker Group is on a growth path and aims to consolidate its strong market position worldwide. Our intention is to achieve this largely through organic growth. We are particularly looking to harness sales opportunities by launching compact products from Neuson Kramer Baumaschinen AG through our established global sales and service network. This is a priority for the Wacker Group in fiscal 2008.

As part of our continued growth strategy, we intend to keep up our investment activities and go on driving growth across all regions and business segments. A particular focus here is further extension of our sales and service network across the globe. We also intend to continue expanding our rental business in Central and Eastern Europe and will be broadening our portfolio by rolling out numerous new products and product variants across all business fields. We are currently building a new research and development center and Group headquarters at our Munich location, and are planning construction of manufacturing facilities for compact equipment in the US. Process optimization remains a major focus for our company, and we will continue to ensure our costs grow at a slower rate than sales. However, we will also consider strategic acquisitions where these enhance our product portfolio to the benefit of our customers and increase our opportunities for international expansion.

In fiscal 2008 – the first full year for the future Wacker Neuson SE – integration and implementing market penetration measures will be top priorities, and we anticipate that sales will break the billion-euro boundary for the first time. We aim to achieve profit before interest, tax, depreciation and amortization (EBITDA) of at least 17 percent of Group sales. A more detailed forecast for the current fiscal year will become possible as developments unfold over the coming months.

Income Statement

For the period from January 1 through March 31

in € K	Jan. 1–Mar. 31, 2008	Jan. 1–Mar. 31, 2007
Revenue	228,245	160,377
Cost of sales	- 149,815	- 94,796
Gross profit	78,430	65,581
Sales and service expenses	- 37,422	- 32,939
Research and development expenses	- 6,610	- 4,454
General administrative expenses	- 16,166	- 10,692
Other income	3,034	1,107
Other expenses	- 2,159	- 532
Profit before interest and tax (EBIT)	19,107	18,071
Financial result	- 565	- 696
Profit before tax (EBT)	18,542	17,375
Taxes on income	- 5,964	- 6,791
Profit for the period before minority interests	12,578	10,584
Minority interests	- 250	0
Profit for the period	12,328	10.584
Earnings per share in euros (diluted and undiluted)	0.18	0.27

Balance Sheet

Balance at March 31, 2008

in € K	Mar. 31, 2008	Dec. 31, 2007
Assets
Property, plant and equipment	247,826	221,869
Investment property	2,056	2,105
Goodwill	325,192	325,676
Intangible assets	97,671	100,220
Other investments	1,603	1,649
Deferred taxes	12,809	10,994
Other non-current assets	33,903	34,523
Total non-current assets	721,060	697,036
Inventories	178,820	175,130
Trade receivables	185,781	159,477
Marketable securities	58,132	88,656
Current tax receivables	4,186	3,492
Other current assets	13,406	13,903
Cash and cash equivalents	91,033	76,816
Total current assets	531,358	517,474
Total assets	1,252,418	1,214,510
Equity and liabilities
Subscribed capital	70,140	70,140
Other reserves	576,411	586,186
Retained earnings	266,441	254,113
Equity before minority interests	912,992	910,439
Minority interests	2,530	2,280
Total equity	915,522	912,719
Long-term borrowings	44,120	44,219
Deferred taxes	30,692	33,724
Long-term provisions	28,715	29,200
Total non-current liabilities	103,527	107,143
Trade payables	61,531	63,084
Short-term borrowings from banks	104,271	72,103
Current portion of long-term borrowings	7,201	6,073
Short-term provisions	9,792	9,324
Current tax payable	3,264	1,366
Other current liabilities	47,310	42,698
Total current liabilities	233,369	194,648
Total liabilities	1,252,418	1,214,510

Statement of Changes in Equity

Balance at March 31

in € K	Sub scribed capital	Capital reserves	Exchange differ ences	Other neutral changes	Retained earnings	Treasury shares	Equity before minority interests	Minority interests	Total equity
Balance at December 31, 2006	43,500	72,330	- 21,526	501	224,260	- 36,691	282,374	0	282,374
Exchange differences	0	0	- 1,451	0	0	0	- 1,451	0	- 1,451
Other neutral changes	0	0	0	60	0	0	60	0	60
Subtotal							- 1,391	0	- 1,391
Profit for the period	0	0	0	0	10,584	0	10,584	0	10,584
Total profit for the period							9,193	0	9,193
Costs of procuring capital	0	- 355	0	0	0	0	- 355	0	- 355
Balance at March 31, 2007	43,500	71,975	- 22,977	561	234,844	- 36,691	291,212	0	291,212
Balance at December 31, 2007	70,140	618,450	- 32,845	581	254,113	0	910,439	2,280	912,719
Exchange differences	0	0	- 9,606	0	0	0	- 9,606	0	- 9,606
Other neutral changes	0	0	0	- 106	0	0	- 106		- 106
Subtotal							- 9,712	0	- 9,712
Profit for the period	0	0	0	0	12,328	0	12,328	250	12,578
Total profit for the period							2,616	250	2,866
Costs of procuring capital	0	- 63	0	0	0	0	- 63	0	- 63
Balance at March 31, 2008	70,140	618,387	- 42,451	475	266,441	0	912,992	2,530	915,522

Cash Flow Statement

For the period from January 1 through March 31

in € K	Jan. 1–Mar. 31, 2008	Jan. 1–Mar. 31, 2007
EBT	18,542	17,375
Depreciation and amortization	10,325	6,453
Foreign exchange result	- 5,595	- 155
Gains/losses from sale of intangible assets and property, plant and equipment	23	- 4
Book losses from the disposal of rental equipment	422	1,325
Gains/losses from sale of investments and marketable securities	- 60	60
Investment income	- 1,065	- 409
Interest expense	1,630	1,105
Changes in inventories	- 3,690	- 6,788
Changes in trade receivables and other assets	- 25,085	- 28,811
Changes in provisions	- 17	- 827
Changes in trade payables and other liabilities	3,074	11,005
Interest paid	- 1,645	- 1,062
Income tax paid	- 9,607	- 6,263
Cash flow from operating activities	- 12,748	- 6,996
Purchase of property, plant and equipment	- 36,555	- 23,221
Purchase of intangible assets	- 787	- 242
Proceeds from the sale of property, plant and equipment and intangible assets	469	113
Proceeds received on the sale of marketable securities	29,371	73
Change in consolidation structure	0	441
Interest received	2,116	417
Cash flow from investing activities	- 5,386	- 22,419
Costs of procuring capital	- 63	- 355
Proceeds from long-term borrowings	25,224	10,863
Cash flow from financing activities	25,161	10,508
Increase/decrease in cash and cash equivalents	7,027	- 18,907
Effect of exchange rates on cash and cash equivalents	- 783	- 762
Change in cash and cash equivalents	6,244	- 19,669
Cash and cash equivalents at beginning of period1	38,792	28,044
Cash and cash equivalents at end of period1	45,036	8,375

¹ Borrowings from banks from the Group's cash pool accounts are netted.

Segmentation

For the period from January 1 through March 31

Primary segmentation (geographical segments)

Europe Americas Asia Consolidation in € K	Group
Q1 2008
Segment revenue
Total external sales 259,026 71,021 8,203
Less intrasegment sales - 66,885 - 9,986 - 398
192,141 61,035 7,805
Intersegment sales - 13,718 - 16,965 - 2,053
Total 178,423 44,070 5,752 0	228,245
Segment result (EBIT)
From continuing business segments 14,501 7,587 302
From discontinued business
segments 0 0 0
Total 14,501 7,587 302 - 3,283	19,107
Q1 2007
Segment revenue
Total external sales 154,456 77,480 9,668
Less intrasegment sales - 42,175 - 7,660 - 471
112,281 69,820 9,197
Intersegment sales - 8,518 - 17,962 - 4,441
Total 103,763 51,858 4,756 0	160,377
Segment result (EBIT)
From continuing business segments 11,482 6,766 530
From discontinued business segments 0 0 0
Total 11,482 6,766 530 - 707	18,071

Secondary segmentation (business segments)

in € K	Jan. 1–Mar. 31, 2008	Jan. 1–Mar. 31, 2007
Segment revenue from external customers
Light Equipment	91,270	106,336
Compact Equipment	98,824	21,433
Services	39,176	33,760
	229,270	161,529
Less cash discounts	- 1,025	- 1,152
Total	228,245	160,377

Selected Explanatory Notes to the Consolidated Interim Financial Statements for the First Quarter 2008

Accounting rules

The Wacker Construction Equipment AG ("Wacker Neuson Group") consolidated interim financial statements to March 31, 2008 have been prepared in accordance with International Financial Reporting Standards (IFRS) and their interpretation as valid on the reporting date. The statements adhere to International Accounting Standard (IAS) 34 for condensed statements.

All interim financial statements of the domestic and foreign companies included in the consolidated statements were prepared according to the standardized Wacker Construction Equipment AG accounting principles and valuation methods.

As an information instrument, this interim report builds on the consolidated financial statements. We therefore refer to the notes to the consolidated statements of December 31, 2007. The comments there also apply to the quarter and half-year statements for fiscal 2008, unless explicitly stated otherwise.

The general accounting principles and valuation methods used for the fiscal 2007 consolidated statements have also been applied to these interim financial statements. Several equipment producing companies within the Wacker Neuson Group have started establishing internal reporting structures that distinguish between research and development costs by documenting and reporting both of these cost factors separately. This will give the company the information baseline it needs to comply with the terms of IAS 38.57 governing capitalization of development costs. Development investments made in 2008 and capitalized under IAS 38.57 are written down over a period of 6 years. Development costs capitalized in previous years are written down over a period of 4 to 5 years. The straight-line method is used for amortization. The development costs realized for the period under review as recognized under the requirements governing capitalization amounted to around EUR 0.6 million.

Legal changes to company structure

With effect as of March 1, 2008, the affiliate Wacker Baumaschinen GmbH purchased the entire business operations of Stambach Baumaschinen GesmbH, also a consolidated company of the Wacker Neuson Group.

The asset deal between Wacker Baumaschinen GmbH as the purchaser and Stambach Baumaschinen GesmbH as the seller does not classify as a business combination under IFRS 3 as both companies are under the common control of Wacker Construction Equipment AG.

The company established an affiliate in India in the first quarter of 2008. During the course of 2008, it is not expected that this affiliate will have any significant impact on the assets, liabilities, financial position or earnings of the Group.

At the AGM on June 3, 2008, Wacker Construction Equipment AG will propose renaming the company to Wacker Neuson SE and changing the company form from a stock corporation (Aktiengesellschaft) to a European Company. Several affiliates have already renamed in anticipation of this change.

Seasonal fluctuations

Due to the geographical distribution of its business, Wacker Group sales are subject to seasonal fluctuations, which are attributable to climate conditions and construction industry trends at local level. The quarterly distribution of consolidated sales in fiscal 2007 and 2006 was as follows:

in %	2007	2006	Average
Q1	24	24	24
Q2	28	27	27
Q3	25	25	25
Q4	23	24	24

Here it must be noted that revenue from the Neuson Kramer subgroup, which merged with Wacker on October 1, 2007, is not included in the 2007 figures. The annual analysis of the distribution of consolidated sales clearly shows that seasonal fluctuations in the Wacker Group only have a minor impact.

Earnings per share

In accordance with International Accounting Standard (IAS) 33, earnings per share are calculated by dividing the consolidated earnings by the average number of shares. There was no share dilution effect in the reporting periods shown.

	2008	2007
Q1
Quarterly earnings attributable to shareholders in € K	12,328	10,584
Weighted average number of issued shares in thousands	70,140	43,500
Less treasury shares in thousands	–	4,350
Weighted average number of ordinary shares in circulation
during the period in thousands	70,140	39,150
Earnings per share in EUR	0.18	0.27

Important events

The Executive Board of Wacker Construction Equipment AG will propose a dividend of EUR 0.50 per share at the AGM on June 3, 2008.

Events since reporting date

There have been no other significant events since the interim statements reporting date.

Munich, May 15, 2008

The Executive Board

Dr. Ing. Georg Sick (CEO)

(Deputy CEO)

Martin Lehner Richard Mayer

Günther Binder Werner Schwind

Review Report by the Auditors

To Wacker Construction Equipment AG, Munich, Germany

We have reviewed the condensed consolidated interim financial statements of the Wacker Construction Equipment AG, comprising the condensed income statement, the condensed balance sheet, the condensed cash flow statement, the condensed statement of changes in equity as well as selected explanatory notes, together with the interim group management report of the Wacker Construction Equipment for the period from January 1 to March 31, 2008 that are components of the quarterly financial report pursuant to § 37x Abs. 3 WpHG (German Securities Trading Act). The preparation of the condensed consolidated interim financial statements in accordance with those IFRS applicable to interim financial reporting as adopted by the EU, and of the interim group management report in accordance with the requirements of the WpHG applicable to interim group management report, is the responsibility of the Company's management. Our responsibility is to issue a report on the condensed consolidated interim financial statements and on the interim group management report based on our review.

We performed our review of the condensed consolidated interim financial statements and the interim group management report in accordance with German generally accepted standards for the review of financial statements promulgated by the Institut der Wirtschaftsprüfer (IDW). Those standards require that we plan and perform the review so that we can preclude through critical evaluation, with a certain level of assurance, that the condensed consolidated interim financial statements have not been prepared, in material aspects, in accordance with the IFRS applicable to interim financial reporting as adopted by the EU, and that the interim group management report has not been prepared, in material aspects, in accordance with the requirements of the WpHG applicable to interim group management reports. A review is limited primarily to inquiries of company employees and analytical assessments and therefore does not provide the assurance attainable in a financial statement audit. Since, in accordance with our engagement, we have not performed a financial statement audit, we cannot issue an auditor's report.

Based on our review, no matters have come to our attention that cause us to presume that the condensed consolidated interim financial statements have not been prepared, in all material respects, in accordance with the IFRS applicable to interim financial reporting as adopted by the EU, or that the interim group management report has not been prepared, in all material respects, in accordance with the requirements of the WpHG applicable to interim group management reports.

Munich, May 14, 2008

Rölfs WP Partner AG Wirtschaftsprüfungsgesellschaft

Reinke Jagosch Wirtschaftsprüfer (Public Auditor)

Wirtschaftsprüfer (Public Auditor)

Income Statements

Wacker Construction Equipment AG and NEUSON KRAMER Baumaschinen AG

for the period from January 1 through March 31

in € K	Jan. 1–Mar. 31, 2008	Jan. 1–Mar. 31, 2007
Wacker1
Revenue	144,043	160,377
Cost of sales	- 85,944	- 94,796
Gross profit	58,099	65,581
Sales and service expenses	- 33,632	- 32,939
Research and development expenses	- 4,074	- 4,454
General administrative expenses	- 11,048	- 10,692
Other income	992	1,107
Other expenses	- 446	- 532
Profit before interest and tax (EBIT)	9,891	18,071
Financial result	750	- 696
Profit before tax (EBT)	10,641	17,375
Taxes on income	- 4,170	- 6,791
Profit before disc. operations, minority interests	6,471	10,584
Result from discontinued operations	0	0
Minority interests	0	0
Profit for the period	6,471	10,584
Profit before interest and tax (EBIT)	9,891	18,071
Depreciation and amortization	7,189	6,453
EBITDA	17,080	24,524

¹ Excluding Neuson Kramer subgroup

in € K	Jan. 1–Mar. 31, 2008	Feb. 1–Apr. 30, 20072
Neuson Kramer
Revenue3	108,626	95,421
Cost of sales	- 80,680	- 66,632
Gross profit	27,946	28,789
Sales and service expenses	- 3,790	- 4,936
Research and development expenses	- 1,746	- 1,170
General administrative expenses	- 5,036	- 3,951
Other income	2,042	569
Other expenses	- 1,713	- 624
Profit before interest and tax (EBIT)	17,703	18,677
Financial result	- 1,237	138
Profit before tax (EBT)	16,466	18,815
Taxes on income	- 4,445	- 5,529
Profit before disc. operations, minority interests	12,021	13,286
Result from discontinued operations	0	- 3
Minority interests	- 307	- 247
Profit for the period	11,714	13,036
Profit before interest and tax (EBIT)	17,703	18,677
Depreciation and amortization	1,028	963
EBITDA	18,731	19,640

² February 1 through April 30, 2007. Converted to the calendar year on October 1, 2007.

³ Revenue in cost of sales format. 2006/2007 revenue in total expenditure format.

Wacker Neuson – Overview of purchase price allocation

in € K	Jan. 1–Mar. 31, 2008	Purchase price allocation	Jan. 1–Mar. 31, 2008
	without PPA1		with PPA
Revenue	228,245	0	228,245
Cost of sales	- 147,922	- 1,893	- 149,815
Gross profit	80,323	- 1,893	78,430
Sales and service expenses	- 37,422	0	- 37,422
Research and development expenses	- 5,820	- 790	- 6,610
General administrative expenses	- 16,082	- 84	- 16,166
Other income	3,034	0	3,034
Other expenses	- 2,159	0	- 2,159
Profit before interest and tax (EBIT)	21,874	- 2,767	19,107
Financial result	- 487	- 78	- 565
Profit before tax (EBT)	21,387	- 2,845	18,542
Taxes on income	- 6,831	867	- 5,964
Profit before disc. operations, minority interests	14,556	- 1,978	12,578
Result from discontinued operations	0	0	0
Minority interests	- 307	57	- 250
Profit for the period	14,249	- 1,921	12,328
Profit before interest and tax (EBIT)	21,874	- 2,767	19,107
Depreciation and amortization	8,139	2,186	10,325
EBITDA	30,013	- 581	29,432

¹ PPA = Purchase price allocation. Purchase price allocation describes the process where purchase costs resulting from acquisitions are allocated

to individually acquired assets, liabilities and contingent liabilities, which are measured at fair value.

Financial Calendar and IR/Press Contact

Contact

Wacker Construction Equipment AG

Imre Szerdahelyi Head of Corporate Communication Preußenstraße 41 80809 Munich Germany

Phone +49 - (0)89 - 354 02 - 251 Fax +49 - (0)89 - 354 02 - 203

ir@eu.wackergroup.com www.wackerneuson.com

Publishing Details

Issued by: Wacker Construction Equipment AG, Corporate Communication department

Concept & design: Kirchhoff Consult AG, Munich, Germany

Content: Wacker Construction Equipment AG

Print: p d peschke druck, Munich, Germany

Financial Calendar 2008

May 15, 2008	Publication of first-quarter report for fiscal 2008
June 3, 2008	AGM, Munich
June 4, 2008	Dividend payout
August 14, 2008	Publication of half-year report for fiscal 2008
November 11, 2008	Publication of nine-month report for 2008

Disclaimer

This quarterly report contains forward-looking statements which are based on the current estimates and assumptions by the corporate management of Wacker Construction Equipment AG. Forward-looking statements are characterized by the use of words such as expect, intend, plan, predict, assume, believe, estimate, anticipate and similar formulations. Such statements are not to be understood as in anyway guaranteeing that those expectations will turn out to be accurate. Future performance and the results actually achieved by Wacker Construction Equipment AG and its affi liated companies depend on a number of risks and uncertainties and may therefore differ materially from the forward-looking statements. Many of these factors are outside Wacker's control and cannot be accurately estimated in advance, such as the future economic environment and the actions of competitors and others involved in the marketplace. Wacker neither plans nor undertakes to update any forward-looking statements.

All rights reserved. Valid May 2008. Wacker Construction Equipment AG accepts no liability for the accuracy and completeness of information provided in this brochure. Reprint only with the written approval of Wacker Construction Equipment AG in Munich, Germany.

Wacker Construction Equipment AG

Preußenstraße 41 80809 Munich Germany Tel. +49 - (0)89 - 354 02 - 0 Fax +49 - (0)89 - 354 02 - 390 www.wackerneuson.com