washtec ag – Report on the Period From January 1 to June 30, 2007

Stable Business Performance and Further Expansion of Direct Business in the US:

Revenues at EUR 129.3m (prior year: EUR 125.9m) Strongest growth in southern and eastern Europe and the US
EBIT at EUR 8.6m (prior year: EUR 7.8m)
Takeover of activities of Mark VII's Texas distributor

		H1 2007	H1 2006	Change
Revenues	EUR m	129.3	125.9	3.4
EBITDA	EUR m	12.2	11.0	1.2
EBIT	EUR m	8.6	7.8	0,8
EBIT adjusted for non-recurring effects	EUR m	8.3	11.3	–3.0
Investments	EUR m	–4.0	–18.8	14.8
cash paid for acquisitions	EUR m	–2.8	–16.2	13.4
No. of employees as of June 30		1,516	1,418	98
Earnings per share*	EUR	0.26	0.24	0.02
Cash flow	EUR m	6.4	6.0	0.4

* diluted = basic, number of shares: 15,200,000

Interim Management Report (Unaudited)

1. Results of Operations, Financial Position and Net Assets

As forecasted, we enjoyed a stable business performance during the first six months of the year. Revenues for the WashTec Group were up EUR 3.4m (2.7%) to EUR 129.3m compared to EUR 125.9m generated during the first six months of 2006. Revenues in the core markets in Europe were down slightly year-on-year, with major customers keeping a tight rein on their spending in the first half of the year. The investment slowdown in the first quarter in Germany mainly levelled-off during the second quarter.

The subsidiary Mark VII Equipment, USA, saw its revenues climb EUR 3.9m during the first six months to EUR 14.3m. Revenues of the Spanish subsidiary acquired in January, which continues to develop well, were on target and consolidated in the revenues of the WashTec Group for the period under review.

EBT stood at EUR 6.6m, compared with EUR 6.0m in the prior year. EBIT for the period rose from EUR 7.8m in 2006 to EUR 8.6m; last year's result, however, was clipped by non-recurring expenses of EUR 3.5m, mainly for phantom stocks. The decrease in EBIT adjusted for these non-recurring effects can be mainly attributed to the temporary cut-back in spending by major customers in the core markets in Europe during the first six months and also to expenses relating to activities aimed at strengthening the Group's sales and service organization in Spain and the US.

The operating cash flow stood at EUR 6.4m, a slight increase on the prior year (first six months 2006: EUR 6.0m).

The US subsidiary continues to perform well. As part of optimizing the sales and service channels, direct business activities in the US were stepped up further. The Tennessee region has been serviced directly since the beginning of the year, and activities of Mark VII's Texas distributor Aqua Pro were acquired at the beginning of July.

In connection with the international expansion of the systems division, a cooperation agreement was concluded with the Dutch service station operator Argos Oil. In future, carwashes will be operated under the WesuRent model in the name and for the account of the customer in the Netherlands.

Several international trade fairs were held in Q2 2007. WashTec's innovations were presented at Autovak in Amsterdam, Motortec in Madrid and Autopromotec in Bologna. WashTec's 3D car scan system, which won the Innovation Award at automechanika in 2006, also achieved distinction at Motortec in Madrid.

Stable business performance: revenue increases mainly in the US and southern and eastern Europe.

USA: Takeover of activities of Texas distributor of Mark VII. The international product launches of the roll-over car wash system NEW SoftWash for the basic segment and the commercial vehicle washing system MaxiWash Vario are on schedule.

Collective agreement in Germany concluded: Increase in regular working hours to 37 hours in exchange for protection of employment in Germany until 2010.

With regard to the projects aiming at boosting competitiveness, a supplementary collective agreement for WashTec Germany was signed by WashTec, the works council and IG Metall union representatives. This agreement provides for the gradual increase in regular weekly working hours to 37 hours and the abolishment of collectively agreed special payments until the end of 2010. In return, WashTec announced that there will be no job cuts in Germany until the end of 2010.

WashTec AG's shareholders' meeting was held on May 22 in Augsburg, Germany. The management board presented a detailed report on the successful fiscal year 2006 to the shareholders. All proposals for resolutions were adopted with a large majority. For example, the Company's shareholders adopted a resolution on a share buy-back program and an option plan for the management board and top management which replaces the current virtual stock option plan for members of the management board. The options for executives and management board members were issued on July 23.

In addition, the supervisory board was re-elected. The previous chairman of the supervisory board Alexander von Engelhardt did not stand for another term of office. The current supervisory board members Michael Busch and Jürgen Lauer were reelected by the shareholders. The shareholders' meeting appointed Roland Lacher as the third member of the supervisory board. Michael Busch was appointed as chairman of the supervisory board at the constituent meeting.

1.1 Economy and Market

The economic climate in Germany and Europe has not significantly changed since the last management report was published and remains positive. As the short-term investment pattern in the car wash business does not have any direct correlation with the economic conditions, only some of the positive effects from the economic trend were felt in the first six months. The effects of the positive general economic development are pushing up procurement and personnel expenses.

The corporate tax reform approved at the beginning of July and the ensuing tax relief will improve the overall competitiveness of companies operating in Germany. Following an extraordinary burden in 2007 due to the wide off of deferred tax assets as a result of the fall in tax rates, WashTec expects the tax charge to decrease as of 2008.

The Euro/US dollar exchange rate is currently at an all-time high. Component imports from Germany are thus driving up costs for the US business. The sales growth generated in US dollars in the US is also higher than the growth disclosed in euros.

Economic climate remains positive, increased expenses for procurement and personell. Market conditions in the US are still favorable. Investments in car wash systems in the US market were as forecasted.

The competitive conditions have not changed since publication of the last management report. There have been no major changes in technology.

1.2 Business and Earnings Situation

Revenues by region

in EUR m	Jan. 1 to	Jan. 1 to	Apr. 1 to	Apr. 1 to
	Jun. 30, 2007	Jun. 30, 2006	Jun. 30, 2007	Jun. 30, 2006
Germany	44.3	44.5	23.8	21.0
Rest of Europe	69.1	69.2	36.9	38.1
North America	14.3	10.4	7.3	6.3
Rest of world*	1.6	1.8	1.0	1.0
Total	129.3	125.9	69.0	66.4

Domestic revenues on prioryear-level after a good performance in Q2, revenues for rest of core Europe slightly below prior year-period.

* Especially Asia and Australia

in EUR m	Jan. 1 to	Jan. 1 to	Apr. 1 to	Apr. 1 to
	Jun. 30, 2007	Jun. 30, 2006	Jun. 30, 2007	Jun. 30, 2006
Machines	79.7	82.6	43.2	45.2
Spare parts, service	39.6	36.3	20.9	18.6
Used machines	2.1	1.9	1.0	1.1
Chemicals	5.1	3.8	2.6	1.9
Accessories	1.1	1.0	0.4	0.1
Cleaning Technology segment	127.6	125.6	68.1	66.9
Systems Business segment	1.7	1.9	0.9	0.9
Consolidation	0	–1.6	0	–1.4
Total	129.3	125.9	69.0	66.4

Revenues by segment

Revenues for the WashTec Group were up EUR 3.4m (2.7%) to EUR 129.3m compared to the EUR 125.9m achieved in the first six months of 2006.

However, it should be noted that domestic revenues during the first six months of last year were boosted by an income of EUR 1.1m from the completion of the train wash projects. Adjusted for revenues relating to the completion of the above projects, WashTec managed to make up for the sales losses in the first quarter in Germany.

At EUR 14.3m, revenues of the subsidiary Mark VII Equipment, USA, were up EUR 3.9m from EUR 10.4m last year; although it must be said that revenues during the first six months of the prior year were well below target. Revenues grew mainly on the back of the positive development of roll-over brush wash systems.

Spanish subsidiary continues to perform well.

Revenues in the core markets in Europe (excluding Germany) were down year-onyear due to the low investment appetite of major customers coupled with the fact that revenues were above target in the prior-year period. Revenues in southern and eastern Europe continued to develop well.

In comparison to the prior-year period, it should be noted that the revenues of the Spanish subsidiary acquired in January were consolidated for the first time. For the year as a whole, the Company expects to see revenues grow by more than EUR 3m on the basis of additional revenues generated from service and machines sales in Spain. Revenues from machines and spare parts in Spain were reported under export revenues in the prior-year figures.

Although the systems business segment managed to push its revenues up in Q2, it could not reverse the full effects from the revenue losses suffered in Q1 due to the downward trend in the number of washes as a result of unusual weather conditions.

in EUR m	Jan. 1 to	Jan. 1 to	Apr. 1 to	Apr. 1 to
	Jun. 30, 2007	Jun. 30, 2006	Jun. 30, 2007	Jun. 30, 2006
EBITDA	12.2	11.0	7.8	8.3
EBIT	8.6	7.8	5.9	6.7
EBIT adjusted
for non-recurring effects	8.3	11.3	5.6	6.6
EBT	6.6	6.0	4.9	5.8

Earnings

EBIT at EUR 8.6m (prior-year

period: EUR 7.8m).

EBITDA effects rose EUR 1.2m year on year from EUR 11.0m in 2006 to EUR 12.2m.

The prior-year figure includes non-recurring expenses of EUR 3.5m (in particular the burden from phantom stocks and several offsetting effects). The positive one-off effects during the first six months of 2007 are mainly attributable to the final liquidation of the Canadian company (SSI) which discontinued operations at the end of fiscal year 2005.

The decrease in EBIT adjusted for these non-recurring effects can be mainly attributed to the temporary cut-back in spending by major customers in the core markets in Europe during the first six months and also to expenses relating to activities aimed at strengthening the Group's sales and service organization in Spain and the US.

At 58.0%, the gross profit margin during the first six months was below the prioryear level (prior year period: 59.4%). The main factors behind the development of the gross profit margin are the increase in the revenue contributed by Mark VII and the southern European companies, which generate lower margins than the WashTec Group in its core markets in Europe.

At EUR 42.7m, personnel expenses were down compared to the prior year period (first six months of 2006: EUR 45.3m). In 2006, this item included personnel expenses of EUR 4.0m for the expired phantom stock program. The adjusted year-onyear increase in personnel expenses can be attributed to the increase in headcount at the WashTec Group due to corporate acquisitions in 2006 and 2007. Headcount rose by 98 to 1,516 in the last 12 months mainly due to the acquisition in Spain and the expansion of direct sales in the US.

At EUR 19.7m, other operating expenses were up EUR 1.5m compared to EUR 18.2m during the first six months of 2006. This rise can be attributed to the restructuring costs associated with the M&A activities in Spain, costs due to stepped-up sales activities in the US as well as the start-up and planning costs for further projects for future growth and efficiency gains.

The amortization, depreciation and impairment loss expense equaled to EUR 3.7m, an increase of EUR 0.5m compared to the EUR 3.2m reported in 2006. The increase is mainly due to the write-down on investments in connection with the implementation of projects on production restructuring in Germany and the US.

EBIT rose to EUR 8.6m, compared to EUR 7.8m in 2006. Adjusted for non-recurring effects, EBIT was EUR 3.0m down year-on-year. Finance costs were up slightly from EUR 1.8m to EUR 2.0m, mainly due to inreased EURIBOR rates.

EBT increased to EUR 6.6m for the period, compared with EUR 6.0m during the first six months of 2006. After deducting taxes, net profit equated to EUR 4.0m (prior year: EUR 3.6m). Earnings per share (diluted = basic) stood at EUR 0.26 (prior-year period: EUR 0.24).

Balance Sheet

Assets in EUR m	Jun. 30, 2007	Dec. 31, 2006
Non-current assets	121.7	124.7
Current assets	87.9	83.0
Non current assets held for sale	3.1	1.1
Balance sheet total	212.7	208.8

Intangible assets recognized under non-current assets as of June 30, 2007 increased from EUR 61.2m as of December 31, 2006 to EUR 62.5m mainly as a result of the first-time consolidation of WashTec Spain.

Inventories increased from EUR 34.0m to EUR 39.1m during the first six months of 2007 due to the expansion of direct sales in southern Europe and the US as well as a temporary increase in finished goods.

Trade receivables decreased from EUR 41.8m as of December 31, 2006 to EUR 38.6m due to seasonal factors.

Increased personnel expenses due to increase in headcount. Other assets increased from EUR 2.8m to EUR 3.7m due to the recognition of hedging instruments for interest and exchange rates.

Equity and Liabilities in EUR m	Jun. 30, 2007	Dec. 31, 2006
Equity	65.7	61.7
Liabilities to banks	60.0	57.3
Other liabilities and provisions	81.8	82.9
Deferred income	5.2	6.9
Balance sheet total	212.7	208.8

The acquisition in Spain was financed through the WashTec Group's credit facilities. Liabilities to banks rose to EUR 60.0m from EUR 57.3m as of December 31, 2006.

The increase in trade payables from EUR 11.4m as of December 31, 2006 to EUR 17.9m was essentially driven by the purchasing volume and the related increase in inventories as of the balance sheet date.

Provisions decreased from EUR 31.3m as of December 31, 2006 to EUR 29.5m due to their utilization.

Due to the positive result for the period, consolidated equity increased from EUR 61.7m to EUR 65.7m. Equity ratio at 30.9%.

Cash Flow Statement

Cash flows from operating activities equated to EUR 6.4m during the first six months of 2007, a moderate increase on the prior-year period of EUR 6.0m.

Cash flows from investing activities equated to EUR 4.0m, compared with EUR18.8m achieved in the first six months of 2006. The focus of investments in the current year was on the acquisition of the exclusive partner in Spain and the replacement investments in Europe. The acquisition of Mark VII Equipment in the US was the investment focus of last year.

Cash and cash equivalents decreased overall marginally EUR 1.4m as of June 30, 2007 compared with the balance of EUR 1.6m as of January 1, 2007.

Employees

Headcount rose by 98 to 1,516 in comparison to June 30, 2006 due to the acquisition in Spain and the expansion of direct sales in the US. In comparison with December 31, 2006, this is an increase of 65 employees. WashTec's employee statistics for the period under review include 33 employees of Motor Mediterraneo, now WashTec Spain, for the first time.

The WashTec Stock

The WashTec stock price rose from a year-end price of EUR 13.84 to a closing price of EUR 15.70 as of June 29, 2007.

Management was in continuous contact with journalists and the financial community during the first six months. A number of conference calls and meetings were held with analysts and investors in connection with the Company's publications.

The WashTec stock is currently being covered by Berenberg, Cazenove, HVB, HSBC Trinkaus & Burkard, Merill Lynch and MM Warburg.

After the close of the second quarter, the Company received the following voting rights announcements: on July 17, 2007, Threadneedle Asset Management reported that its share in voting rights had decreased to 5.3%; Powe Capital Management reported that its share in voting rights has increased to 16.1%. The current shareholder structure thus breaks down as follows:

Shareholding in %	July 17, 2007
Cycladic Capital Management LLP.	21.0
Powe Capital Ltd.	16.1
IED – International Equity Development GmbH	8.9
Julius Baer Investment Funds Services	5.9
Threadneedle Asset Management	5.3
Free float	42.8

Changes in share in voting rights: Powe Capital Management increases to 16.1%.

* Source: notifications pursuant to the German Securities Trading Act ["Wertpapierhandelsgesetz": WpHG]

Events After the End of the Reporting Period

Mark VII Equipment acquired the activities of its Texas distributor at the beginning of July 2007. This acquisition is hoped to drive and further expand the direct business in the US.

767.000 stock options in-line with the stock option plan agreed on during the shareholders' meeting on May 22, 2007 were issued on July 23, 2007 to the subscription holders.

The corporate tax reform adopted in May 2007 is due to take effect as of January 1, 2008. The consequences of this reform for WashTec are discussed in the notes to the financial statements.

2. Forecast

Strategy scheduled to be presented at WashTec's first investor day in September.

The management board still aims at achieving an EBIT margin of between 10% and 12% with moderate organic growth for the entire fiscal year. The margin at the end of the fiscal year will essentially depend on the total amount invested in future growth which, together with the described expansion of the sales and service activities in southern Europe and the US and other projects in the planning phase, is and will remain an important element of WashTec's strategy so long as an overall EBIT margin of at least 10% is expected.

Following an extraordinary burden in the current fiscal year, the net profit of the WashTec Group is likely to improve by more than 10% due to the implementation of the corporate tax reform in Germany.

The medium-term forecast plan will be reviewed and approved during the third quarter. Key elements include projects on growth and efficiency with concrete measures for achievement. The aim is to take up a leading position as a full-service provider for car wash systems in all major global markets in the medium-term. Further acquisitions may also be made in this context.

The expansion of the service range, especially in the core European markets with high market shares, is a major part of the strategy as are the efficiency projects for maintaining WashTec's competitive edge.

The strategy is scheduled to be presented to the Company's institutional investors during the course at an investor day to be held in Augsburg in September. This will be WashTec's first investor day and is aimed at further intensifying the relationship with the financial markets.

3. Opportunities and Risks Relating to Future Development

There were no major changes compared to the opportunities and risks presented in the annual report 2006.

Consolidated Income Statement (Unaudited)

	Jan. 1 to	Jan. 1 to	Apr. 1 to	Apr. 1 to
	June 30, 2007	June 30, 2006	June 30, 2007	June 30, 2006
	EUR k	EUR k	EUR k	EUR k

Revenues	129,325	125,868	68,989	66,372
Change in inventories of work in progress	1,619	3,256	1,396	6,014
Own work capitalized	230	226	100	136
Other operating income	1,907	2,527	1,232	917

Total	133,081	131,877	71,717	73,439

Cost of materials	58,020	57,125	31,742	34,048

Personnel expenses	42,708	45,250	21,848	21,009

Other operating expenses	19,736	18,181	10,165	9,952

Amortization, depreciation and impairment of intangible assets
and property, plant and equipment	3,689	3,230	1,864	1,590

Other taxes	373	296	190	150

Totel operating expenses	124,526	124,082	65,809	66,749

EBIT	8,555	7,795	5,908	6,690

Financial result	1,980	1,835	1,010	900

Result from ordinary activities (EBT)	6,575	5,960	4,898	5,790

Income taxes	–2,577	–2,384	–1,918	–2,316

Consolidated profit for the period	3,998	3,576	2,978	3,474

Earnings per share (basic = diluted)	EUR 0.26	EUR 0.24	EUR 0.20	EUR 0.23

Consolidated Balance Sheet (Unaudited)

Assets	June 30, 2007	Dec 31, 2006
	EUR k	EUR k
Non-current assets
Intangible assets	62,474	61,215
Property, plant and equipment	35,815	38,471
Financial assets	25	173
	98,314	99,858

Deferred tax assets	23,373	24,840
Non-current receivables and other assets	32	32
Total non-current assets	121,719	124,730

Current receivables and other assets
Inventories	39,073	34,020
Trade receivables	38,553	41,842
Other assets	3,697	2,762
	81,323	78,624
Cash and cash equivalents	4,966	3,045
Prepaid expenses	1,580	1,327

Total current assets	87,869	82,996
Non-current asstes held for sale	3,126	1,110
Total assets	212,715	208,836

Equity and liabilities	June 30, 2007	Dec 31, 2006
	EUR k	EUR k
Equity
Subscribed capital	40,000	40,000
Capital reserves	44,338	44,338
Other reserves	103	124
Loss carryforward	–22,734	–35,236
Net profit for the period	3,997	12,502
	65,704	61,728
Non-current liabilities
Liabilities to banks and similar institutions	48,852	48,226
Other	5,469	5,049
Non-current provisions	13,374	13,474
Total non-current liabilities	67,694	66,749

Current liabilities
Liabilities to banks and similar institutions	11,119	9,024
Trade payables	17,864	11,389
Advances received on account of orders	3,464	5,951
Provisions	16,125	17,797
Other	25,546	29,269
Deferred income	5,199	6,929
Total current liabilities	79,317	80,359
Total equity and liabilities	212,715	208,836

Consolidated Cash Flow Statement (Unaudited)

	Jan to June	Jan to June
	2007	2006
	EUR k	EUR k

Result from ordinary activities (EBT)	6,575	5,960

Reconciliation of Profit and Cash Flows From Operating Activities
Amortization, depreciation and impairment of non-current assets	3,689	3,230
Gain/loss from the disposal of non-current assets	–338	–711
Interest and similar earnings	–432	–284
Interest and similar income	2,412	2,118
Change in non-current provisions	–100	–494
Increase/decrease in trade receivables	5,307	–2,690
Decrease/increase in inventories	–4,483	3,620
Increase/decrease in trade payables	6,501	2,031
Change in other net working capital	–11,809	–5,994
Income taxes paid	–874	–794
Net cash from operating activities (net cash flow)	6,447	5,992


Cash paid for investments in non-current assets	–2,242	–5,027
Cash received from the disposal of non-current assets	1,021	2,426
Cash paid for the acquisition of a subsidiary, net of cash acquired	–2,781	–16,165
Net cash used in investing activities	–4,001	–18,766


Repayment of subordinated loans	0	–1,836
Raising of long-term loans	292	9,390
Interest paid	–1,980	–1,834
Repayment of non-current liabilities from finance leases	–818	–846
Net cash/net cash used from financing activities	–2,506	4,874


Net increase/decrease in cash and cash equivalents	–60	–7,900

Correction of foreign exchange differences	–83	0

Cash and cash equivalents as of January 1	1,570	6,856

Cash and cash equivalents as of June 30	1,427	–1,044

Statement of Recognized Income and Expenses (Unaudited)

	June 30, 2007 June 30, 2006

Changes in the fair value of financial instruments used for
hedging purposes recognized under equity	277	745

Adjustment item for the currency translation of foreign subsidiaries and currency changes	–112	–317

Exchange differences on net investments in subsidiaries	–156	–484

Actuarial gains/losses from defined benefit obligations and similar obligations	0	0

Deferred taxes on changes in value taken directly to equity	–31	–132

Valuation gains/losses recognized directly in equity	–22	–188

Result after taxes	3,998	3,576

Total income and expense and valuation gains/losses recognized directly in equity	3,976	3,388

Rounded-off to EUR k, rounding differences are possible. The notes to the consolidated statements form an integral part of the consolidated financial statements for the first six months of fiscal year 2007. See notes for explanations to the consolidated cash flow statement.

Statement of Changes in Equity (Unaudited)

T?	Subscribed	Capital	Accumul.	Other	Exchange	Total
	capital	reserve	loss	reserves	effects

As of December 31, 2005	40,000	44,338	–35,236	–692	871	49,281
Income and expenses
recognized directly in equity				569	–352	217
Taxes on transactions recognized
directly in equity				–272		–272
Consolidated profit for the period			12,502			12,502
As of December 31, 2006	40,000	44,338	–22,734	–395	519	61,728
Earnings recognized directly
in equity				277	–267	10
Taxes on transactions recognized
directly in equity				–31		–31
Consolidated profit for the period			3,998			3,998
As of June 30, 2007	40,000	44,338	–18,737	–149	252	65,704

Notes to the Condensed Interim Consolidated Financial Statements of WashTec AG (IFRSs) for the Period from January 1 to June 30, 2007 (Unaudited)

General

1. Information on the Company

The condensed interim consolidated financial statements for the period from January 1 to June 30, 2007 are to be authorized for issue by the management board after the supervisory board meeting on July 31, 2007.

The ultimate parent company of the WashTec Group is WashTec AG, which is entered in the commercial register in Augsburg, Germany, under HRB No. 81.

The Company's registered office is Argonstrasse 7 in 86153 Augsburg, Germany.

The Company's shares are publicly traded.

Unless otherwise indicated, the consolidated financial statements are presented in euros. Amounts are rounded to the nearest euro and shown in thousands of euros (EUR k).

The purpose of WashTec AG, as the ultimate parent company, is the acquisition, holding and sale of shares in other entities, and the assumption of the function of the holding company for the WashTec Group.

The purpose of the WashTec Group also comprises the development, manufacture, sale and service of car wash products, as well as leasing and all related services and financing solutions required to operate car wash systems.

2. Accounting Policies

Basis of Preparation

The condensed interim consolidated financial statements for the period from January 1 to June 30, 2007 were prepared in accordance with IAS 34, »Interim Financial Reporting«.

The condensed interim consolidated financial statements do not contain all the disclosures and explanations required in annual financial statements and should be read in conjunction with the consolidated financial statements as of December 31, 2006.

Significant Accounting Policies

The accounting policies applied in preparing the condensed interim consolidated financial statements are in line with the methods used in preparing the consolidated financial statements for the fiscal year as of December 31, 2006 except for the following amendments to standards and interpretations. The application of these amendments did not have an effect on the Group's results of operations or financial position.

IFRIC 9 only requires an entity to assess whether an embedded derivative is required to be separated from the host contract and accounted for separately as a derivative when the entity first becomes a party to the contract.

Subsequent assessment at a later date is prohibited unless there are changes in the terms of the contract that significantly modify the cash flows resulting from the original contract, in which case reassessment is required.

On first-time application, the assessment as to whether an embedded derivative must be separated must be made based on the circumstances existing when the entity first became a party to the contract unless there were subsequent changes in the terms of the contract which significantly modified the cash flows.

IFRIC 10 stipulates that an entity may not reverse an impairment loss recognized in a prior interim period on goodwill and investments in equity instruments and in financial assets carried at cost and that an entity may not extend this consensus by analogy to other areas of potential conflict between IAS 34 and other standards.

3. Cash and Cash Equivalents

For the purposes of the condensed consolidated cash flow statement, cash and cash equivalents break down as follows:

in EUR k	June 30, 2007	June 30, 2006
Bank balances and cash on hand	4,966	3,559
Bank overdrafts	–3,539	–4,603
Cash and cash equivalents	1,427	–1,044

4. Income Taxes

For the purposes of the condensed consolidated cash flow statement, cash and cash equivalents break down as follows:

in EUR k	June 30, 2007	June 30, 2006
Deferred tax expense	–1,703	–1,591
Actual tax expense	–874	–793
Income taxes	–2,577	–2,384

5. Business Combination

Under an agreement dated December 12, 2006, the Company resolved to acquire all the shares in the Spanish entity Motor Mediterraneo S.A. The agreement was concluded subject to a condition precedent. WashTec obtained control over the entity at the beginning of 2007 on fulfillment of the contractual conditions.

Motor Mediterraneo S. A., with its registered office in Barcelona, Spain, and a branch office in Madrid, had been the exclusive trading partner of the WashTec Group in Spain since 1964. The entity operates, installs and maintains car wash systems and has some 30 employees. In recent years, Motor Mediterraneo has generated revenues of some EUR 7m and has had a sustained positive net result.

A purchase price of up to EUR 6.3m was agreed. This includes a cash acquisition of EUR 2.9m and comprises an amount retained vis-à-vis the seller. Incidental acquisition costs of EUR 160k were incurred for due diligence services and other transaction costs in connection with the acquisition. Due diligence reviews were performed for all major areas, such as legal, financial, IT and market risks.

Pursuant to IFRS 3, the amounts of assets and liabilities allocated to the purchase price can be broken down into their fair values and carrying amounts as follows:

Motor Mediterraneo in EUR k	Fair value	Carrying amount
Cash and cash equivalents	2,880	2,880
Trade receivables	2,306	2,306
Other receivables	577	787
Inventories	557	557
Property, plant and equipment	12	28
Intangible assets	685	116
Goodwill (acquired)	543	543
Trade payables	–1,596	–1,596
Other liabilities	–2,381	–2,476
	3,583	3,145

Goodwill of EUR 2.6m comprises the fair value of expected synergies.

The consolidated profit includes half-yearly earnings of EUR 51k and revenues of EUR 3,933k.

6. Segment Reporting

The Group defines the following business segments:

The Cleaning Technology segment comprises the development, design, production, sale and servicing of automatic wash systems for cars and commercial vehicles.

The Systems Business segment offers system solutions for the operation of vehicle wash systems. The machines produced are sold to a leasing company and then leased back in order to lease them on to customers, especially large operator groups or oil companies, within the scope of their operator model. As a rule, these agreements have a term between five and ten years.

The Systems Business is consolidated in WesuRent Car Wash Marketing GmbH, Augsburg, Germany. All other entities have been assigned to the Cleaning Technology segment.

Business Segments

The following table presents the earnings and profit of the Group's business segments for the period from January 1 to June 30, 2007, and 2006, respectively.

In EUR k		Cleaning Technology		Systems Business		Consolidation		Group
	2007	2006	2007	2006	2007	2006	2007	2006
Revenues	127,561	125,475	1,764	1,948	0	–1,555	129,325	125,868
Other earnings	2,136	2,753	1	0	0	0	2,137	2,753
EBIT	8,433	8,139	122	434	0	–778	8,555	7,795
Income from interest and
financial assets	432	284	0	0	0	0	432	284
Interest and similar expenses	–2,292	–2,027	–120	–91	0	0	–2,412	–2,118
Profit from ordinary activities	6,573	6,395	2	343	0	–778	6,575	5,960
Income taxes							–2,577	–2,385
Consolidated profit for the period							3,998	3,576

In the prior year, revenues from consolidation chiefly related to proceeds from sales of machines to other segments.

7. Property, Plant and Equipment

In the first half of 2007, non-current assets of EUR 2,242k (prior year: EUR 5,027k) were acquired, not including acquisitions from business combinations.

In addition, specific measures were introduced to sell the site of a former production facility. Please see the further explanations on non-current assets held for sale for more information.

8. Non-Current Assets Held for Sale

As part of the production restructuring plan and related consolidation of production facilities, the Company plans to sell its land and buildings which are no longer in use.

In 2007, concrete sales negotiations for the land and buildings at Gubener Strasse in Augsburg were entered into. The sales price is expected to amount to EUR 2m. As of June 30, 2007, the carrying amount of the property was EUR 2m and was allocated to the Cleaning Technology segment.

9. Interest-Bearing Loans

In January 2007, additional loans of EUR 5,800k were raised from the existing credit line of the syndicated loan to finance the acquisition in Spain. These loans were granted at the same terms existing as of December 31, 2006. A repayment of EUR 2,500k was made in March 2007.

10. Contingent Liabilities and Other Financial Obligations

Contingent liabilities and other financial obligations are largely unchanged against December 31, 2006.

11. Related Party Disclosures

In 2007, a bonus for 2006 and a consideration for the execution of a contractually agreed noncompete provision totaling EUR 441k was paid to a former member of the management board.

In 2006, WashTec Cleaning Technology GmbH acquired technology for the production of hydraulic car wash tunnels from a private person, who was subsequently a temporary general manager of a foreign subsidiary of the WashTec Group. The purchase price included contractually agreed earn-out targets. In 2007, an agreement was concluded with the general manager on his employment contract and the earn-out targets.

The terms of the transaction are arm's length.

12. Financial Instruments

As of June 30, 2007, WashTec holds the same financial instruments as of the end of 2006. The carrying amounts and fair values break down as follows:

in EUR k	Carrying amount	Fair value	Carrying amount	Fair value
	Jun. 30, 2007	Jun. 30, 2007	Dec. 31, 2006	Dec. 31, 2006
Financial assets
Cash	4,966	4,966	3,045	3,045
Derivative financial instruments	1,692	1,692	1,414	1,414
Financial liabilities
Bank overdrafts	3,539	3,539	1,476	1,476
Obligations under finance leases	6,054	6,054	6,948	6,948
Variable-rate loans	56,431	56,431	55,774	55,774

13. Subsequent Events

In its meeting on July 6, the German upper house of parliament (Bundesrat) passed the corporate tax reform. The corporate tax reform provides for a reduction in the corporate income tax rate from 25% to 15% and a decrease in the trade tax base rate. Trade tax is no longer a deductible business expense. For the WashTec Group, these changes will negatively impact the subsequent measurement of deferred tax assets and, from 2008, will have a positive effect on actual taxes payable due to a decrease in the tax rate from 39.2% to less than 31%. Based on estimated net tax profit/loss, the subsequent measurement of deferred tax assets will result in an expected expense of between EUR 3m and EUR 4m in 2007, which must be recognized in profit or loss. Based on the same conditions, net profit/loss will rise by more than 10% from 2008 due to the corporate tax reform.

767,000 stock options at a nominal value of EUR 2.63 each were issued after the balance sheet date in line with the plan resolved by the shareholder meeting on May 22, 2007. The stock option plan supersedes the payment commitments made to management board members from the virtual stock option plan which were described in detail in the notes to the financial statements from December 31, 2006.

Of the stock options, 600,000 relate to management board members and 167,000 to executive employees who report directly to the management board.

For the purposes of the terms of these options, the issue date is July 23, 2007.

The exercise price is EUR 15.34.

The stock options may be exercised after a waiting period of two years. The waiting period starts from the issue date of the stock options. The stock options have a term of five years from the issue date (the »term«). If they cannot be or are not exercised by the end of the term, they expire without replacement or compensation.

The stock options may only be exercised after the end of the waiting period, if the performance target has been achieved:

The performance target has been achieved if the unweighted average of the closing rates of the Company's stock in XETRA trading on the Frankfurt Stock Exchange exceeds the exercise price by 20% over a period of ten consecutive trading days during the waiting period.

The option terms may stipulate that the Company is entitled, instead of issuing new shares, to disburse the fair value of the shares less the exercise price (in this case, payment of the exercise price is not required) or to provide shares from its own portfolio of treasury shares or those acquired for this purpose, in return for payment of the exercise price.

As part of optimizing sales and service channels, direct business activities in the US were stepped up by assuming all the assets and liabilities totaling USD 1,400k of a trading partner in Texas under a purchase agreement dated July 6, 2007.

Review Report

To WashTec AG

»We reviewed the condensed interim consolidated financial statements prepared by WashTec AG, Augsburg, Germany, comprising a condensed balance sheet, condensed income statement, condensed cash flow statement, condensed statement of changes in equity and selected explanatory notes, together with the group management report for the period from January 1, 2007 to June 30, 2006, which make up the half-year financial report pursuant to Sec. 37w WpHG [»Wertpapierhandelsgesetz«: German Securities Trading Act]. The preparation of the condensed interim consolidated financial statements in accordance with IFRSs for interim reporting as adopted by the EU and of the interim group management report in accordance with provisions prescribed by the German Securities Trading Act for interim group managements is the responsibility of the Company's management. Our responsibility is to issue a report on the condensed interim consolidated financial statements and on the interim group management report based on our review.

We conducted our review of the condensed interim consolidated 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 [Institute of Public Auditors in Germany] (IDW). Those standards require that we plan and perform the review to obtain, following critical appraisal, a level of assurance that the condensed interim consolidated financial statements have been prepared, in all material respects, in accordance with the IFRSs for interim reporting as adopted by the EU and that the interim group management report has been prepared, in all material respects, in accordance with the provisions prescribed by the German Securities Trading Act for interim group management reports. A review is limited primarily to making inquiries of the Company's employees and analytical assessments, and therefore does not provide the assurance obtainable in an audit. In accordance with our engagement, we have not performed an audit and, accordingly, we cannot express an audit opinion.

Based on our review, nothing has come to our attention that causes us to believe that the condensed interim consolidated financial statements have not been prepared, in all material respects, in accordance with the IFRSs for interim 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 provisions prescribed by the German Securities Trading Act for interim group management reports.«

Munich, Germany, July 31, 2007 Ernst & Young AG Wirtschaftsprüfungsgesellschaft Steuerberatungsgesellschaft

Broschulat Schönhofer Wirtschaftsprüfer Wirtschaftsprüfer [German Public Auditor] [German Public Auditor]

Management Compliance Statement

To the best of our knowledge, and in accordance with the applicable reporting principles for the interim consolidated financial statements give a true and fair view of the net assets, liabilities, financial position and profit or loss of the group, and the interim management report of the group includes a fair view of the development and performance of the business and the position of the group, together with a description of the principal opportunities and risks associated with the expected development of the group for the remaining months of the financial year.

Thorsten Krüger Christian Bernert Spokesman of the Member of the

management board management board

Financial Calendar

9 Month Period	November 2007
Analysts Conference/
Equity Forum	November 12 to 14, 2007
Annual Report for 2007	March 31, 2008

Contact

WashTec AG Karoline Kalb Argonstrasse 7 86153 Augsburg, Germany Tel.: +49 821/5584-0 Fax: +49 821/5584-1135 www.washtec.de [email protected]