KWS SAAT AG with conservative forecast

Einbeck, February 27, 2006 – KWS SAAT AG (ISIN: DE0007074007) says in its Semiannual Report, which it released today, that it expects the EU’s sugar market reform to result in a quicker reduction in the cultivation area for sugar beet than previously anticipated. This will have a direct influence on seed sales and thus on KWS’ earnings, which will also be impacted by a change in the assessment of its seed licensing business for the purpose of value-added tax by German tax authorities.

Since the growth expected in the corn segment should more than compensate for the decline in sales from sugar beet seed, KWS expects its consolidated net sales to rise slightly (previous year: €495.3 million). Nevertheless, the company anticipates that its operating profit (EBIT) will be as much as 20% lower year-on-year (previous year: €56.3 million).

Contact:
Georg Folttmann
Phone: +49 (0)55 61 / 311-640
Mobile: +49 (0)173 / 2910520
g.folttmann@kws.de