DGAP-News: H&R WASAG AG equipped for further growth

| Source: EQS Group AG EQS Group AG 

H&R WASAG AG / Final Results

14.04.2008 

Release of a Corporate News, transmitted by DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
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- Earnings before tax (EBT) of € 73.0 million, the second best result in
the history of the company
- New syndicated loan for a total volume of € 300 million allows solid
financing of the planned investments in the core business
- Projected turnover of a billion euros for the first time in 2008 
- Projects to increase capacity and improve value creation mean increasing
turnover and revenues can be expected from 2009

Salzbergen, 14 April: 

In the financial year 2007, H&R WASAG AG achieved the second best result in
the history of the company with earnings before tax of € 73.0 million.
While the company is planning for a turnover of around a billion euros for
the first time this year, and earnings before tax (EBT) between € 50 and 60
million, increasing turnover and growing revenues should continue from the
financial year 2009. Major investments in the 'Projekt 40' capacity
expansion project, and the 'Golden Cut' project to improve the value
creation chain, should contribute to this. This was announced today at the
Financial Report press conference in Hamburg by Gert Wendroth, CEO of H&R
WASAG AG.
H&R WASAG benefit in their new syndicated loan from their improved credit
rating

Against the background of further rapid turnover growth in the
Chemical-Pharmaceutical Raw Materials Division, to a new total of € 729.3
million (2007: € 700.5 million), H&R WASAG AG are continuing to grow in the
sector of their core business. The company has already arranged financing
for the projects with which it plans to create this growth. Due to the
positive development of the company's credit rating, all collateral on the
old syndicated loan - amounting to a volume of € 170 million - were
released as of 31 December 2007. The new syndicated loan was concluded on 7
April 2008 with a syndicate of eleven banks under the leadership of the DZ
BANK AG Deutsche Zentral-Genossenschaftsbank, the HSH Nordbank AG, and
WestLB for a total volume of € 300 million on significantly improved terms,
and without collateral being required. This syndicate also consists of the
Deutsche Bank AG, the Dresdner Bank AG, the Commerzbank AG, the
HypoVereinsbank AG, the Landesbank Rheinland-Pfalz, the SEB AG, the Fortis
Banque Luxembourg, and the Bayerische Landesbank. 'This flexibly usually
useable loan together with our comfortable equity position easily enables
us to finance and implement the currently planned and foreseeable strategic
investments and other measures,' said Andreas Keil CFO of H&R WASAG AG.
Furthermore, he stated, the release of the collateral issued previously and
the considerably improved terms underline the good, solid financial
structure of the company.

Projects running on schedule

After boosting the investment volume for the 'Projekt 40' capacity
expansion project by € 15 million to € 70 million, the Executive Board
expects significant progress on the path to more efficient production
processes at the Salzbergen and Hamburg-Neuhof refineries. 'The activities
for the implementation of 'Projekt 40' are currently running on schedule,'
explained the CEO, Gert Wendroth. The production downtime necessary in the
course of the expansion investments were also kept to an absolute minimum
over the first quarter of 2008, such that contributions to profits on an
EBT basis are already expected to reach € 9 million in the financial year
2008, € 14 million in 2009, and € 20 million in 2010. The estimates for the
'Golden Cut' project are currently once again being subjected to detailed
analysis, in order to take further advantage of the project by optimising
its configuration. The project is primarily intended to allow more
extensive refinement of the products manufactured at the Hamburg refinery,
and hence to reduce dependence on market indices.

Internationalisation well underway

The further internationalisation of the group is well underway. H&R WASAG
had already acquired ExxonMobil Manufacturing Malaysia Sdn. Bhd. in 2007, a
production and distribution company specialising in speciality wax products
for the construction materials industry. In addition to this, the company
concluded an agreement in February 2008 with a partner in Southeast Asia
regarding a production partnership for label-free mineral oil specialities
(in particular plasticisers for the rubber and tyre industry). Niels H.
Hansen (COO) explained, 'We have thus reached important milestones for our
growth strategy in the Asian zone. For H&R WASAG, these steps are vital
building blocks for internationalisation. Further growth developments in
Asia, but also in other attractive growth regions, will follow in the
foreseeable future.'

Due to the costs arising from the joint venture in China, H&R WASAG AG
decided to take over the outstanding 50% of the shares. This takeover was
approved by the Chinese authorities at the start of April. 'We shall in
future be able to positively influence business developments in China, and
to take better advantage of the growth opportunities that arise there,'
explained Hansen.

Growth story intact

'Despite the boundary conditions normalising again as expected, 2008 will
be at least as good a year as 2007 from an operative perspective. With the
turnover and revenue increases expected from 2009 onwards, H&R WASAG will
continue its growth curve,' said Wendroth, (CEO). As supported by the
dividend recommendation for this year of € 0.80 per ordinary share, the
company also considers it important to involve its shareholders in this
positive development.

Upcoming dates:
14 May 2008 Publication of the Report for the First Quarter 2008
24 June 2008 AGM in Hamburg
14 August 2008 Publication of the Report for the Second Quarter 2008
14 November 2008 Publication of the Report for the Third Quarter 2008


Contact:
H&R WASAG AG
Investor Relations / Kommunikation 
Christian Pokropp
Am Sandtorkai 64, 20457 Hamburg
Tel.: 040-43218-321, Fax: 040-43218-390 
Mail: Christian.Pokropp@hur-wasag.de
www.hur-wasag.de


DGAP 14.04.2008 
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Language:     English
Issuer:       H&R WASAG AG
              Neuenkirchener Str. 8
              48499 Salzbergen
              Deutschland
Phone:        +49 (0)40 43 218 321 
Fax:          +49 (0)40 43 218 390
E-mail:       investor.relations@hur-wasag.de
Internet:     www.hur-wasag.de
ISIN:         DE0007757007
WKN:          775700
Indices:      SDAX
End of News                                     DGAP News-Service
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