• Sales growth of 15 percent to €1,373 million
• EBIT growth of 50 percent to €254.5 million
• Earnings per share more than tripled to €2.06
• Excellent order backlog level ensures full utilization of capacity
• Outlook 2008: 10-15 percent sales increase and a more than proportionate EBIT growth of 15-20 percent

Wiesbaden, 12 March 2008. The SGL Group – The Carbon Company – significantly exceeded its targets for 2007 and reached new records for both sales revenue and earnings. The 15 percent sales increase to € 1,373.0 million (2006: €1,191.8 million) was considerably in excess of the 7 to 10 percent growth target that had been set at the beginning of 2007. Operating profit (EBIT) increased more than proportionately with a 50 percent plus to €254.5 million, also comfortably exceeding its growth target of 40 percent (2006: €170.0 million on a like-for-like basis). Return on sales rose from 14.3 percent to 18.5 percent. The successful new positioning of the SGL Group on specific growth areas, further cost savings and efficiency gains of around €27 million from the groupwide SGL Excellence Initiative, as well as the strong demand in the core steel and aluminum markets significantly contributed to this success. All three Business Units contributed to the high earnings growth, in particular the new Business Unit Carbon Fibers & Composites (CFC).

Robert J. Koehler, CEO of the SGL Group: "2007 has been the most successful year in the company's history so far. After the Group’s repositioning and refinancing in the last year, we now have entered a growth phase in which we will further strengthen our business by increasing capacity as well as targeting strategic acquisitions and establishing joint ventures. We are benefiting from the global trend towards alternative materials and renewable energy sources, and are supported by our strong innovation capability. With an excellent order backlog level and an enhanced market position, we remain confident that we will reach new records for sales and earnings in 2008."

As part of the new financing, the SGL Group issued convertible bonds and a corporate bond of €200 million each in 2007 with significantly better conditions than the syndicated loan and 8.5 percent high-yield bond they replaced. With undrawn credit facilities of over €200 million and cash and cash equivalents of €130 million, the financial flexibility of the Group is therefore secured over the medium term.

Net profit and earnings per share more than tripled
Net financing costs increased by just €3.9 million to €65.4 million (2006: €61.5 million including an interest expense of €12.8 million relating to antitrust proceedings), despite the one-time charge of €30.8 million in connection with the refinancing of the Group carried out in 2007. Profit before tax rose by 148 percent to €189.1 million (2006: €76.4 million). The tax rate was significantly reduced from 46 to less than 31 percent.  Net profit was more than tripled from €40.7 million in 2006 to €130.9 million accordingly. Earnings per share rose from €0.66 in 2006 to €2.06 in 2007.

Further balance sheet strengthening - gearing at 0.45
The strong net profit for the year and the new financing package contributed to further improvement of the balance sheet structure in 2007. The equity ratio rose to 42.1 percent (2006: 35.3 percent) and gearing was reduced to 0.45 (2006: 0.51). Given the cash outflows in connection with our acquisition activities, the one time refinancing costs and capital expenditure on property, plant and equipment, net debt had risen to €285.2 million as at December 31, 2007 (December 31, 2006: €229.1 million). The strong business performance was reflected in a higher operating cash flow of €171.9 million (2006: €111.7 million). Free cash flow was minus €0.9 million (2006: €47.9 million) due to the one-time refinancing cost and the doubling of capital expenditure on property, plant and equipment from €65.2 million in 2006 to €130.5 million.

Significant increase in sales and earnings in all Business Units

Performance Products (PP): Strong, profitable growth
In 2007, sales in the Business Unit  PP jumped by 17 percent to €836.2 million (2006: €713.4 million) due to persistently strong demand for steel and aluminum as well as the economic upturn in the emerging markets of Asia, South America and Eastern Europe. Despite higher material prices and energy costs, EBIT grew more than proportionately by 42 percent year-on-year to €244.5 million (2006: €172.4 million). This rise in EBIT is attributable to increased sales prices and sales volumes as well as cost savings of €10 million. Return on sales increased from 24 percent in 2006 to 29 percent. The new, fully-integrated carbon and graphite plant for the production of graphite electrodes and cathodes, currently under construction in Banting (Malaysia), will have a total annual capacity of approximately 60,000 tonnes, and will further enhance PP's international competitiveness.

Graphite Materials & Systems (GMS): Enhanced profitability
Sales of the Business Unit GMS increased by 7 percent to €364.3 million in 2007 (2006: €340.3 million) due to a strong demand for customized, graphite-based products in the semiconductor, solar and chemical industries and for lithium-ion batteries, and despite portfolio adjustments of the less profitable, traditional products. EBIT rose by 30 percent to €47.9 million (2006: €36.8 million) including cost savings of €8 million. Return on sales grew accordingly from 11 to 13 percent. With the production capacity expansion for isostatic graphite, the integration of the joint ventures in Asia, the addition of the Dr. Schnabel activities, as well as the increase in research and development expenditure, foundation for further growth in GMS has been laid.

Carbon Fibers & Composites (CFC): Turns into profit
The Business Unit CFC’s sales increased significantly by 25 percent to €163.4 million (2006: €130.5 million) mainly due to high sales volumes for composite materials and brake disks. This growth was also supported by the joint venture with F.A. Kümpers GmbH & Co. KG concluded in 2007 as well as the acquisition of epo GmbH and the acquisition of Aldila Inc.’s 50 percent stake in Carbon Fiber Technology LLC, which had previously been run in a joint venture. The full extent of the business growth benefiting from these new acquisition activities will materialize in 2008. EBIT improved from minus €4.4 million in 2006 to plus €3.1 million in 2007, representing a return on sales of 2 percent.

The Business Unit CFC covers the entire value chain from carbon fibers to composite materials through to finished components and is benefiting, above all, from strong growth in demand from the aerospace and automotive industries and the rise in alternative energy sources such as wind energy. With the global trend towards substitution for basic materials, the SGL Group announced in 2007 plans to triple carbon fiber production capacity up to 12,000 tonnes by the year 2012 to ensure participation in the growing future demand. By the beginning of 2009, operative production capacity of carbon fiber is scheduled to 6,000 tonnes per year.

Outlook for 2008: Records highs again for sales revenue and earnings
Given the excellent level of orders on hand and the positive signals that continue to come from customer industries, the SGL Group expects to increase sales revenue by between 10 – 15 percent compared with 2007, in spite of the generally gloomy economic outlook as a result of the global subprime crisis. EBIT is expected to grow more than proportionately by between 15 and 20 percent. As a result of the new financing package, net financing costs will be improved to around minus €40 million - assuming the same level of debt and excluding valuation effects of interest and currency hedging instruments. Consequently, profit before tax, net profit and earnings per share are expected to grow more than proportionately to EBIT.

To finance the growth projects in 2008, capital expenditure of around €200 million on property, plant and equipment is planned (2007: approx. €130 million). Necessary funds for this organic growth will be generated from operating cash flow.

Medium-term targets: strong, profitable growth
The SGL Group has clearly defined its strategic priorities: Focus will be on profitable growth and implementation of the new strategic positioning as "The leading Carbon Company". Therefore, the SGL Group will focus its technology and product portfolio on specific growth markets resulting from the accelerated substitution of traditional materials with carbon and graphite. This applies both to the ongoing industrialization of the emerging economies of eastern Europe, Asia and South America as well as to the increasing demand for alternative materials and renewable energy sources. In the medium term (four to five years), the SGL Group expects organic revenue growth of between 5 and 10 percent p.a., even under consideration of possible economic cycle effects. Return on sales revenue is expected to remain above 12 percent over the coming years and return on capital employed (ROCE) above 17 percent.

Summary of medium-term objectives by Business Unit

Business Unit Growth  (p.a.) Return on sales revenue (ROS) Performance Products 2-3% volume growth >20% Graphite Materials & Systems 6-8% sales revenue growth 10-15% Carbon Fibers & Composites 15% sales revenue growth >10% (from 2009)

The complete 2007 Annual Report and the up-to-date company presentations (from 10:00 am onwards) are available on the SGL Group website (www.sglcarbon.com).

Financial Highlights of SGL Group
( € million)

Full Year 2007 2006 Change Sales revenue 1,373.0 1,190.8 +15.3 % Gross profit 477.0 384.0 +24.2 % EBITDA 303.8 223.4(1) +36.0 % Operating profit (EBIT) 254.5 170.0(1) +49.7 % Return on sales (ROS)(2) 18.5 % 14.3 % +420 BP(3) Net profit attributable to equity holders 130.9 40.7 >>100% Earnings per share, basic (in €) 2.06 0.66 >>100% Cash flow from operating activities (3) 171.9 111.7 +53.94 %

Dec. 31, 2007 Dec. 31, 2006 Change Total assets 1,505.5 1,260.8 +19.4% Shareholders' equity 633.4 445.0 +42.3% Net dept 285.2 229.1 +24.5% Gearing (4) 0.45 0.51   Equity ratio(5) 42.1% 35.3%

⁽¹⁾ Before EU antitrust expenses of €32.1 million in 2006
⁽²⁾ Ratio of operating profit to sales revenue
⁽³⁾ Before antitrust payments of €99.7 million in 2006 and €22.5 million in 2007
⁽⁴⁾ Net debt divided by shareholders' equity
⁽⁵⁾ Shareholders equity divided by total assets

About SGL Group – The Carbon Company
The SGL Group is one of the world’s leading manufacturers of carbon-based products. It has a  comprehensive portfolio ranging from carbon and graphite products to carbon fibers and composites. SGL Group’s core competencies are its expertise in high-temperature technology as well as its applications and engineering know-how gained over many years. These competencies enable  the Company to make full use of its broad material base. SGL Group’s carbon-based materials combine several unique properties such as electrical and thermal conductivity, heat and corrosion resistance as well as high mechanical strength combined with low weight. Due to the paradigm shift in the use of materials as a result of the worldwide shortage of energy and raw materials, there is a growing demand for SGL Group’s high-performance materials and products from an increasing number of industries. Carbon and graphite products are  used whenever other materials such as steel, aluminum, copper, plastics, wood etc. fail due to their limited properties. Products from the SGL Group are used predominantly in the steel, aluminum, automotive, chemical and glass/ceramics industries. However, manufacturers in the semiconductor, battery, solar/wind energy, environmental protection, aerospace and defense industries as well as in the nuclear energy industry also figure among the Company’s customers.
With 38 production sites in Europe, North America and Asia as well as a service network covering more than 100 countries, the SGL Group is a company with a global presence. In 2007, the Company’s workforce of around 5,900 generated sales of € 1.4 billion. The Company’s head office is located in Wiesbaden/Germany.

Important note:
This press release contains statements on future developments that are based on currently available information and that involve risks and uncertainties that could lead to actual results deviating from these forward-looking statements. The statements on future developments are not to be understood as guarantees. The future developments and events are dependent on a number of factors, they include various risks and unanticipated circumstances and are based on assumptions that may not be correct. These risks and uncertainties include, for example, unforeseeable changes in political, economic and business conditions, particularly in the area of electrosteel production, the competitive situation, interest rate and currency developments, technological developments and other risks and unanticipated circumstances. We see other risks in price developments, unexpected developments relating to acquired and consolidated companies and in the ongoing cost optimization programs. SGL Group does not intend to update these forward-looking statements.