• Group sales raised 7.5 % to € 888.3 million
• Earnings (EBITA) increased 17.6 % to € 62.4 million
• Germany: 8.1 % like-for-like increase in sales in the Second Quarter brings growth in first half to 1.1 %
• International: Sustained double-digit growth in sales (12.3 %)
• Outlook: Improvement in sales and earnings continues to be expected for financial year 2006

Kirkel, 26 July 2006 – Praktiker Bau- und Heimwerkermärkte Holding AG successfully closed the Second Quarter 2006 - and thus also the first half of the year. Wolfgang Werner, CEO of Praktiker Bau- und Heimwerkermärkte Holding AG: "We are fully back on track. The First Quarter losses were more than compensated. We have overcome the stagnation caused by the long winter season in Germany."

Group: Strong increase in sales and earnings
Group sales were raised by 7.5 % to € 888.3 million in the Second Quarter. At the close of the first six months of the year, Praktiker Bau- und Heimwerkermärkte Holding AG posted sales of € 1.61 billion. This corresponds to a year-on-year growth of 3.9 %.

The company continued to keep costs under control. In this context, the Second Quarter selling expenses remained unchanged over the same period last year despite the substantial increase in sales while general overheads rose by a mere 2.0 %.

The rise in sales and the cost control measures resulted in an increase in earnings from operations (EBITA = earnings before interest, taxes and goodwill amortization) of 17.6 % to
€ 62.4 million in the Second Quarter. For the first six months of the year the company reported EBITA in the amount of
€ 46.4 million. This corresponds to a year-on-year growth of 3.9 %.

Second Quarter earnings per share rose to € 0.78 and were thus € 0.10 above the prior-year level.


Germany: Good Second Quarter makes up for First Quarter slump
In Germany, Praktiker was able to make up for the weather-related First Quarter slump. Sales in the Second Quarter were raised by 5.8 %. “This“, said Wolfgang Werner, “was achieved with substantial efforts. Like-for-like, i.e. after consideration of store closures, sales in Germany even rose 8.1 %. This should be more than the industry average.“

EBITA in Germany increased by 8.3 % to € 45.8 million in the Second Quarter.

International: Sustained high growth rate
Growth in the Second Quarter 2006 was particularly strong in the international business coming in at 12.3 %. This was mainly attributable to the fact that, in Eastern Europe, Praktiker today operates six locations more than one year ago. But also net of the larger selling space sales grew 4.5 %. “The results show“, said Wolfgang Werner, “that the strategy to strengthen our market presence especially in Eastern Europe is right. In Bulgaria, for example, we have nearly tripled sales in the first half of 2006 while sales grew by more than 50 % in Romania.“

Earnings (EBITA) of the international segment also developed very positively in the Second Quarter soaring 54.6 % to € 16.6 million.

Key financials remain positive
Compared with the figures reported at the close of the last financial year, the balance sheet total and equity remained nearly unchanged. The net cash position at the end of June was clearly above the comparable prior-year level, the traditionally negative working capital rose slightly.

Outlook for the complete financial year remains unchanged
The good Second Quarter results confirm the expectations of the management of Praktiker Bau- und Heimwerkermärkte Holding AG that sales will rise in the low single-digit range and EBITA will again come in above last year’s level. Wolfgang Werner: “We will consistently pursue our strategy. In Germany, we will further consolidate our store portfolio and secure price leadership through cost leadership. At the same time, we are introducing the easy-to-shop concept in six pilot stores starting from the end of this month to make shopping easier and more convenient for our customers. Internationally, we want to continue to grow fast, sustainably and profitably and strengthen Praktiker as the market leader in all those countries were we have already reached the number one position.”

INTERIM REPORT Q2/2006

* Combined Financials: All figures presented for the Second Quarter and the first half of 2005 up until the consolidated Interim Report relate to the so-called “Combined Financial Results“. For a better comparability of the financials, they show the structure of Praktiker Bau- und Heimwerkermärkte Holding AG after the IPO in November 2005 – excluding the divested Austrian activities and including the services of METRO’s cross-divisional companies MGB and MIAG. The latter services were taken over by two newly founded Praktiker companies, Praktiker Group Buying HK Ltd. and Praktiker International AG, on 23 November 2005.
** Number of shares 2005 adjusted to match 2006.