WashTec AG — Interim / Quarterly Report 2006

May 4, 2006

washtec ag – Quarterly Report for the Period From January 1 to March 31, 2006 Unaudited translation for convenience purposes only

Foreword by the Management Board

WashTec continued to expand its position as the world leading provider of solutions for carwash systems in the first quarter of 2006.

The successful product and marketing campaign led to a year-on-year rise in Q1 revenues, which were up EUR 9.7m to EUR 59.5m (Q1/2005: EUR 49.8m). This growth can be attributed to the first-time consolidation of the revenues of Mark VII, USA, and the ongoing positive trend in the rollover wash systems of the SoftCare family in Europe.

Earnings before Taxes (EBT) stood at EUR 0.2m, compared to EUR 1.2m in the prior year. Due to the above-average share performance in the first quarter, this includes extraordinary personnel expenses of EUR 4.2m (Q1/2005: EUR 0.7m) for phantom stocks.

Following the announcement of the acquisition of Mark VII Equipment LLC on January 19, 2006, the projects for the integration of Mark VII were launched as scheduled in the first quarter. The transaction was financed by the WashTec Group's banking syndicate. In the first quarter, EUR 16.2m was paid to the seller. As a result, net indebtedness to banks rose to EUR 57.3m as of March 31, 2006, compared with the EUR 44.2m as of December 31, 2005.

Cash flows from operating activities stood at EUR 4.1m (prior-year period: EUR 7.3m). Due to the cash outflows from investing activities, including the acquisition of Mark VII, there was a net decrease of EUR 2.1m in cash and cash equivalents (prior-year period: increase of EUR 5.6m) in the first quarter.

In February, WashTec held a symposium in Augsburg, Germany, for national and international mineral oil companies from Russia, in which representatives of the mineral oil companies took part in various presentations on the car wash business, visited sites and discussed current developments in the car wash business in their region.

As a new member of the WashTec Group, Mark VII attended the ICA show, the largest industry trade fair in Las Vegas, in March. In addition to WashTec, the main European competitors were represented for the first time with products for the US market. This is a sign that European manufacturers are increasingly focusing their attention on the world's second largest market for car wash systems.

Integration of Mark VII is on track. The team responsible for product development has commenced activities led by a strategic product committee. Relocation of the production of Softwash to Denver has commenced and will be completed in the third quarter. The cost reduction project group confirmed the findings of the due diligence review and began implementing the measures.

The successful product and marketing campaign led to a year-on-year rise in Q1 revenues.

Integration of Mark VII on track: strategic product committee started, efficiency programmes implemented.

Dynamic Revenue Growth in the First Quarter:

• Revenues up EUR 9.7m to EUR 59.5m, representing a growth of 19.5%
• EBT at EUR 0.2m in Q1 (prior year: EUR 1.2m) due to high non-recurring expenses
• Scheduled start of the integration of Mark VII, USA

	Q1 2 006	Q1 2 005	Chan ge
Rev EUR enu es m	59.5	49.8	19.5 %
EBIT DA EUR m	2.7	4.3	–37 .2%
EBT EUR m	0.2	1.2	–83 .3%
Inve stm ents EUR m	17.0	1.1	5% 1,44
of e mpl s of ch 3 No. Mar 1 oye es a	1,40 9	1,31 2	7.4%
sha Earn ings re* EUR per	0.01	0.06	–85 .5%
flow Cash EUR m	–2.1	5.6	–13 7.5%

* diluted = basic, number of shares 2006: 15,200,000, 2005 weighted average 11,653,333

Earnings

At EUR 2.7m, EBITDA is down EUR 1.6m on the prior year. This is mainly attributable to extraordinary expenses of EUR 4.2m (prior year: EUR 0.7m) for phantom stocks recognized under personnel expenses. The phantom stock program 2003 to 2005 has been completed with the release of the 2005 results. Disbursement will take place during the current fiscal year.

Earnings in the first quarter also include extraordinary income of EUR 0.1m from the sale of the property in Schöllkrippen as well as other extraordinary income of EUR 0.5m.

At 59.4% (Q1/2005: 61.2%), the gross profit margin in the first quarter was lower than the prior year. The slight decrease in the gross profit margin is attributable to a shift in the region and product mix. Since Mark VII mainly sells its products via a dealer network, it generates significantly lower gross profits in relative terms.

Personnel expenses rose to EUR 24.2m (Q1/2005: EUR 18.3m) due to extraordinary expenses. It should also be noted that headcount increased due to the first-time inclusion of employees of the subsidiaries in the US, Austria and Italy.

At EUR 8.4m, other operating expenses were slightly higher than in the prior year (Q1/2005: EUR 7.9m) due to the consolidation of Mark VII.

At EUR 1.6m, amortization, depreciation and impairment losses remained at the prior-year level (prior year: EUR 1.7m).

Financial expenses decreased by EUR 0.6m to EUR 0.9m due to improved conditions following refinancing of the credit lines. EBT stood at EUR 0.2m, compared with EUR 1.2m in the prior year.

The share price has performed exceptionally well since the start of the year, jumpstarted by the announcement of the acquisition of Mark VII and the preliminary results for fiscal year 2005. Within the scope of a placement, the shareholders Edelmar, Archernar and Augias sold some 37% of the shares in WashTec AG to various institutional investors in the first quarter. This increased the free-float considerably.

Economic Climate and Market

The economic climate in Germany is cautiously optimistic.

The Ifo business climate index for the German economy rose in March. At the end of the first quarter, economic growth of some 1.5% in real terms was forecasted for 2006. The rest of Europe remains stable. Direct effects of the general economic trend on investment behavior in the car wash business were not noticeable in the first quarter. The economic climate in the US is also optimistic. Investments in car wash systems on the US market fell short of expectations in the first quarter.

Revenues

At EUR 59.5m, revenues were up EUR 9.7m compared to the prior-year level, with Q1 revenues including the revenues of Mark VII, USA, for the first time. However, in contrast to the prior-year period, no revenues were contributed by SSI Corp., Canada following its closure at the end of fiscal year 2005. Extraordinary revenue of EUR 1.1m was realized as a result of the final inspection of the last train wash project from 2003. Revenue growth on the back of the acquisition of Mark VII, USA, lagged behind expectations due to the current market situation.

Revenues from the SoftCare family in Europe continued to develop well. SoftCare Bravo, introduced in the basic segment in the third quarter of the prior year, also contributed to the increase in revenues.

At the end of fiscal year 2005, the Company concluded a Europe-wide framework agreement with Shell as preferred supplier, which has already had positive effects in the first quarter.

Revenue growth at the WashTec Group in Europe is being propelled by WashTec's subsidiaries.

Economic climate cautiously positive in Germany – remains stable in the rest of Europe.

EBITDA stood at EUR 2.7m, down EUR 1.6m on the prior year, due to the extraordinary expenses of EUR 4.2m for phantom stock recognized under personnel expenses.

In E UR m, I FRS s	ch 3 Mar 1, 2 006	ch 3 Mar 1, 2 005
otal Rev es t enu	59.5	49.8
Dom estic	23.5	22.2
Abr oad	36.0	27.6

In E UR m, I FRS s	ch 3 Mar 1, 2 006	ch 3 Mar 1, 2 005
EBIT DA	2.7	4.3
EBT	0.2	1.2

Balance Sheet

Mark VII has been consolidated in the WashTec Group since January 1. Mark VII will prepare its final opening balance sheet following joint approval of the financial statements for 2005. Intangible assets rose from EUR 42.2m as of December 31, 2005 to EUR 57.2m as of March 31, 2006.

The consolidation of Mark VII drove inventories and trade receivables up in the first quarter. Adjusted for Mark VII, the inventories of the WashTec Group decreased against the prior year. Trade receivables rose from EUR 33.4m to EUR 35.4m, and inventories from EUR 29.0m to EUR 31.4m.

As a result of the financing of the acquisition of Mark VII by the banking syndicate of the WashTec Group, liabilities to banks climbed to EUR 62.2m in comparison to December 31, 2005.

Trade payables increased from EUR 7.0m to EUR 11.3m. Current provisions rose mainly due to the increase in provisions for personnel (EUR 29.7m; December 31, 2005: EUR 26.7m). Consolidated equity increased to EUR 49.5m (December 31, 2005: EUR 49.3m). The equity ratio stood at 24.5% as of March 31, 2006.

Cash Flow Statement

Cash flows from operating activities came to EUR 4.1m in the first quarter of 2006 (Q1/2005: EUR 7.3m), and cash flows from investing activities to EUR 17.0m (2005: EUR 1.1m). Investments mainly related to payments for the acquisition of Mark VII of EUR 16.2m. Cash and cash equivalents decreased overall by EUR 2.1m as of March 31, 2006 (prior-year period: up EUR 5.6m).

Consolidation of Mark VII led to an extension of balance sheet total.

The equity ratio stood at 24.5% as of March 31, 2006. At the end of the period under review, the WashTec share, at EUR 15.30, outstripped the 2005 closing rate by some 46% (EUR 10.85).

The majority of the shares in WashTec AG are in free float. The liquidity of the share has increased considerably

Employees

Headcount rose by 97 to 1,409 in comparison to March 31, 2005. In comparison with December 31, 2005, this is an increase of 127 employees. WashTec's employee statistics comprise 142 employees of Mark VII, USA, included for the first time.

The Share

The share price has risen sharply since the beginning of the fiscal year, reaching a provisional annual peak of EUR 16.00 on March 27, 2006. At the end of the quarter, the price was EUR 15.80, up some 46% compared to the 2005 closing price (EUR 10.85).

In the first quarter, Henderson Global Investors and the shareholders Edelmar Vermögensverwaltung GmbH, Achernar Vermögensverwaltung GmbH and Augias Vermögensverwaltung GmbH sold their shares in WashTec AG, Augsburg, Germany, to various institutional investors. Threadneedle Asset Management Limited reported that its share in voting rights exceeded the reporting threshold on February 14, 2006 and now amounts to 11.1%.

Thus, the majority of the shares in WashTec AG is free float. The liquidity of the share has increased considerably, bringing us one step closer to our goal of establishing WashTec in the SDAX in the medium term.

Numerous one-on-one discussions were held during roadshows in London, Zurich and Paris. On January 31, WashTec attended the HSBC – Sustainable Growth Conference in Düsseldorf, Germany, and presented the Company to »sustainability« investors.

At the start of the year, HSBC Trinkaus&Burkardt and HVB started to cover WashTec. Berenberg, Cazenove, Merill Lynch and MM Warburg continue to cover WashTec.

Source: Announcements in accordance with Paragraph 15a of the German Securities Trading Law (WpHG).

(in E s) Ass UR m, I FRS ets	ch 3 Mar 1, 2 006	Dec 31, 200 5
Non rent ets -cur ass	125 .1	108 .6
Curr ent ts asse	75.1	72.3
aid Prep expe nses	2.1	1.5
Bala she otal et t nce	202 .3	182 .5

nd l iabi litie Equ ity a (In E UR m, I FRS s) s	Mar ch 3 1, 2 006	Dec 31, 200 5
Equ ity	49.5	49.3
Liab ilitie ban ks s to	62.2	51.1
Oth er li abil and ities visio pro ns	84.3	75.7
Defe rred inc ome	6.3	6.4
Bala she otal et t nce	202 .3	182 .5

Sha reho ldin % g in	ch 3 1, 2 006 Mar
Thre adn eed le A sset Ma t nage men	11.1
Cycl adic ital t Ltd Cap Man age men	10.6
nal evel bH IED – In atio Equ ity D Gm tern ent opm	8.9
Pow e Ca l Ltd pita	6.2
floa Free t	63.2

Mar 31, 2 006	Mar 31, 2 005
k EUR	k EUR
23,0 77	20,2 87
1,64 0	1,65 1
0	0
934	1,52 0
170	1,16 3
–68	–46 0
0.01	0.06

	Mar 31, 2 006	Mar 31, 2 005
	k EUR	k EUR
Reve	96	78
nues Cha in in vent orie s	59,4 –2,7 58	49,7 303
nge Oth ting inco er o pera me	1,70 0	675
rform Tota l ope ratin g pe ance	58,4 38	50,7 56
of m ials Cost ater	23,0 77	20,2 87
ofit Gros s pr	35,3 60	30,4 69
Pers el ex onn pens es	24,2 41	18,2 58
Oth ting er o pera exp ense s	8,37 5	7,87 6
EBIT DA	2,74 4	4,33 5
, dep and losse Amo rtiza tion recia tion imp airm ent s	1,64 0	1,65 1
dwil l am Goo ortiz atio n	0	0
EBIT	1,10 4	2,68 4
l res ult ( net fi ial e se) Fina ncia nanc xpen	934	1,52 0
Profi t fro rdin s (E BT) acti vitie m o ary	170	1,16 3
Inco me t axes	–68	–46 0
profi t for the iod Net per	102	703

Earnings per share*

Risks

There were no major changes in comparison to the risks presented in the annual report for 2005.

Outlook

In 2006, focus will be placed on integrating Mark VII. In a first step, we will push ahead with the integration projects in the areas of finance & financial control, development and supply chain. The final assembly of the Softwash rollover systems will start from the second quarter at the Denver location. The other production processes at Mark VII will also be examined and optimized in accordance with the WashTec benchmark. In the second integration phase, focus will be placed on optimizing sales activities in the US.

We will continue to actively sound out individual markets in order to ensure an optimal marketing approach. In this context, acquisitions on a small scale may be made.

In September 2006, WashTec will unveil a number of innovations in all product fields at automechanika, the world's largest industry trade fair. These will include a basic rollover system that is being developed especially for lower requirements in terms of options and numbers of washes.

WashTec aims to build on its position as market and innovation leader with the best returns on an investment. As the most dynamic company in the industry, we target another significant increase in earnings in 2006.

WashTec AG consolidated income statement

*Number of shares: Q1 2006: 15,200,000, Q1 2005: 13,653,333

Rounded-off to K€, rounding off differences possible

ity a nd l iabi litie Equ s	Mar 31, 2 006	Dec 31, 2 005
	k EUR	k EUR
ity Equ
Subs crib ed c al apit	40,0 00	40,0 00
ital r Cap eser ves	44,3 38	44,3 38
Oth er re serv es	316	179
ryfo Loss d car rwar	–35 ,236	–44 ,659
Net profi t for the iod per	102	9,42 3
	49,5 20	49,2 81
liab ilitie Non rent -cur s
To b anks and sim ilar i nstit utio ns	54,4 63	43,5 34
d lia bilit Loan ies s an	4,10 8	5,98 7
Prov ision s	15,8 04	16,1 48
liab ilitie Curr ent s
Liab ilitie bank d sim ilar i s to nstit utio s an ns	7,71 4	7,58 8
Trad yabl e pa es	11,2 79	6,96 2
Adv d on t of orde eive ance s rec acc oun rs	2,30 0	5,55 2
Prov ision s	29,6 59	26,6 53
Oth er	21,2 13	14,4 07
	72,1 65	61,1 62
aid e Prep xpen ses	6,25 0	6,36 2

ity a nd l iabi litie Equ s	Mar 31, 2 006	Dec 31, 2 005
	k EUR	k EUR
Equ ity
Subs crib ed c al apit	40,0 00	40,0 00
ital r Cap eser ves	44,3 38	44,3 38
Oth er re serv es	316	179
ryfo d Loss car rwar	–35 ,236	–44 ,659
profi t for Net the iod per	102	9,42 3
	49,5 20	49,2 81
liab ilitie Non rent -cur s
To b anks and ilar i sim nstit utio ns	54,4 63	43,5 34
d lia bilit Loan ies s an	4,10 8	5,98 7
Prov ision s	15,8 04	16,1 48
liab ilitie Curr ent s
Liab ilitie bank d sim ilar i nstit utio s to s an ns	7,71 4	7,58 8
Trad yabl e pa es	11,2 79	6,96 2
Adv d on t of orde eive ance s rec acc oun rs	2,30 0	2 5,55
Prov ision s	29,6 59	26,6 53
Oth er	21,2 13	14,4 07
	72,1 65	61,1 62
aid e Prep xpen ses	6,25 0	6,36 2
Tota l eq uity and liab ilitie s	202 ,311	182 ,475

Asse ts	Mar 31, 2 006	Dec 31, 2 005
	k EUR	k EUR
Non rent ets -cur ass
ngib le as Inta sets	57,2 03	42,2 29
, pla nd e Prop erty nt a quip t men	37,7 08	36,2 04
l ass Fina ncia ets	26	26
	94,9 37	78,4 59
Defe rred tax ts asse	30,1 27	30,1 11
ivab les a nd o ther Non rent ts -cur rece asse	70	70
l no Tota	125	108
t as sets n-cu rren	,134	,640
ivab les a nd o ther Curr ent ets rece ass
le fo Non ailab r sal rent ts av -cur asse e	291	1,34 1
Inve ntor ies	31,4 48	29,0 00
Trad bles eiva e rec	35,3 89	33,3 88
Oth sets er as	2,97 5	1,69 0
	70,1 03	65,4 19
Cash and h eq lents uiva cas	4,94 0	6,90 9
l cur Tota rent ets ass	75,0 43	72,3 27
aid e Prep xpen ses	2,13 3	1,50 8
l ass Tota ets	202 ,311	182 ,475

WashTec AG Consolidated Balance Sheet

Rounded-off to K€, rounding off differences possible

Rounded-off to K€, rounding off differences possible

	Mar 31, 2 006	Mar 31, 2 005
	k EUR	k EUR
EBIT	1,10 4	2,68 4
from Cash ived inte and divid ends rest rece	48	51
paid Inte rest	–98 2	–1,5 72
e-do Writ rent ts wns on non -cur asse	1,64 0	1,65 1
Cha in no t pro visio nge n-cu rren ns	–344	–13 7
eeds /loss from the sale of n Proc nt as sets on-c urre	–38 5	–22 3
sh fl Gros s ca ow	1,08 0	2,45 4
decr Incre ase/ in i torie ease nven s	1,38 2	–87 3
decr rade ivab les Incre ase/ in t ease rece	856	–1,1 89
Incre in tr ade bles ase paya	2,42 4	4,23 4
Cha her in ot net c nt as sets nge urre	–1,6 26	2,70 1
cash flow s fro ting iviti es (n ash flow ) Net act et c m o pera	4,11 6	7,32 7
Cash paid for inve stme nts i t ass ets n no n-cu rren	–1,1 08	–1,2 12
Cash ived from the sale of n nt as sets rece on-c urre	251	120
Cash paid for the n of k VI isitio Mar I acqu	–16 ,165	0
cash flow ed i Net n inv esti ctiv ities s us ng a	–17 ,022	–1,0 92
Cash ived from the f lon rm b rais ing o g-te wing rece orro s	11,0 00	0
Cash paid for the f sub ordi d lo nt o nate repa yme ans	0	0
f no t lia bilit ies f fina lease Repa nt o yme n-cu rren rom nce s	–18 8	–61 5
f no Repa t lia bilit ies t o ba nks nt o yme n-cu rren	0	0
cash flow ed i n fin anci ctiv ities Net s us ng a	10,8 12	–61 5
Net decr /inc e in cash and h eq uiva lent ease reas cas s	– 2,0 94	5.62 0
Cash and h eq uiva lent of J 1 cas s as anu ary	–68 0	,941 –58
Cash and h eq uiva lent of M arch 31 cas s as	–2,7 74	–53 ,321
Ban k ba lanc es	4,94 0	2,22 6
Liab ilitie ban ks s to	–7,7 14	–55 ,547

	Clea Tech nolo ning gy		Syste ms		olida Cons tion		Grou p
	2006	2005	2006	2005	2006	2005	2006	2005
	R k in EU	R k in EU	R k in EU	R k in EU	R k in EU	R k in EU	R k in EU	R k in EU
nal re Exter venu es	58,7 26	48,7 26	987	1,05 1	–21 7		59,4 96	49,7 78
Othe r inco me	1,71 0	682	0	3	–10	–10	1,70 0	675
EBIT	984	2,35 6	229	328	–109	0	1,10 4	2,68 4
e fro and finan cial a Incom m int erest ssets	48	51	0	0			48	51
nd si milar Inter est a expe nses	–94 1	–1,5 21	–41	–51			–98 2	–1,5 72
Profi t fro dina tiviti m or ry ac es	91	887	188	277	–109	0	170	1,16 3
Incom e tax es							–68	–46 0
Cons olida ted n ofit f or th riod et pr e pe							102	703

	Subs cribe d	Capi tal	mula ted Accu	Othe r	l Tota
	capit al	reser ve	profi t	reser ves
	R k in EU	R k in EU	R k in EU	R k in EU	R k in EU
f De As o c. 31 , 200 5	40,0 00	44,3 38	–35 ,236	179	49,2 81
of c Cost al in apit crea se					0
ital i Cap ncre ase					0
Profi t/los ized dire ctly in eq uity s rec ogn				250 *	250
ized dire ctly Taxe item in eq uity s on s rec ogn				113 *	113
profi t for Net 200 5			102		102
f Ma As o r. 31 , 200 6	40,0 00	44,3 38	–35 ,134	316	49,5 20

WashTec AG consolidated cash flow statement

Equity statement of WashTec AG

Segment report to IFRS from January 1 to March 31, 2006

* Changes in value recognized in equity: EUR 363k

Rounded-off to K€, rounding off differences possible Rounded-off to K€, rounding off differences possible

General

Accounting Policies

The Q1 report has been prepared in accordance with the International Financial Reporting Standards (IFRSs) applicable as of March 31, 2006. The accounting policies have not changed in comparison to those applied in the consolidated financial statements as of December 31, 2005.

To improve the clarity and readability of the balance sheet, income statement and cash flow statement of the WashTec Group, individual items have been grouped.

Consolidated Group

The consolidated group remained unchanged in comparison to the consolidated financial statements as of December 31, 2005.

Balance Sheet/Equity

WashTec AG's capital stock amounted to EUR 40m as of March 31, 2006 and was divided into 15,200,000 shares.

Earnings Per Share

The earnings per share are calculated by dividing the net consolidated result by the number of shares:

*Number of shares: weighted average ** diluted = basic

Notes on the Parent Company

WashTec AG does not have any operations of its own. It is the ultimate group parent company. WashTec AG has a management board and performs group controlling and risk management functions; it also has a legal department. It provides advisory services in the areas of legal services, finance, marketing, development and production. WashTec AG's most important assets are its direct and indirect investments in advisory services, which largely shape its result. As of March 31, 2006, WashTec AG had 4 employees.

Financial Calendar

General Shareholders' Meeting May 31, 2006Q2 Report August 2006Q3 Report November 2006Analysts Conference/ Equity Forum November 28 to 29, 2006Annual Report for 2006 March 31, 2007

Contact

WashTec AG Karoline Kalb Argonstrasse 7 86153 Augsburg, Germany Telephone +49 821/5584-0 Fax +49 821/5584-1135 www.washtec.de washtec@washtec.de

	ch 3 Mar 1, 2 006	ch 3 Mar 1, 2 005
Net lt resu	0.1 EUR m	0.7 EUR m
ber of s hare Num s	15,2 00,0 0	11,6 53,3 33*
sha Earn ings re ** per	EUR 0.0 1	EUR 0.0 6

WashTec AG Argonstrasse 7 D-86153 Augsburg, Germany Telephone (+49 821) 55 84-0 Fax (+49 821) 55 84-1410