November 13, 2007

K+S Group

Significant Earnings Increase in Third Quarter

• High worldwide demand for potash fertilizers meets full capacity utilisation
• At € 727.1 million, revenues for the quarter rise 9%
• Operating earnings reach € 79.4 million (up 54%)
• Positive outlook for 2007 as a whole and promising prospects for 2008

The K+S Group continued to grow revenues and earnings in the third quarter too. “ We were able to post strong gains in revenues, especially for our potash fertilizers but also for fertiva's nitrogen fertilizers as well as COMPO's specialities and plant care products,” said Norbert Steiner, chairman of the Board of Executive Directors of K+S Aktiengesellschaft. The increase in operating earnings EBIT I is primarily attributable to price-driven strong growth in the Potash and Magnesium Products business segment. “With international potash fertilizer manufacturers currently all producing at close to the limits of their capacity, increased demand has resulted in product scarcity and thus, in further price increases for potash fertilizers,” Steiner went on to say.

Third quarter revenues rise by just under 9%

At € 727.1 million, third quarter revenues exceeded the figure for the same period last year by € 57.0 million or just under 9%. In the first nine months, Group revenues rose by € 224.7 million or 10% to € 2,450.4 million as a result of both positive price effects and the first-time inclusion of SPL for the entire year.

At € 79.4 million, third quarter operating earnings rise significantly

In the third quarter of 2007, operating earnings EBIT I rose by € 27.7 million or just under 54% to € 79.4 million. At € 252.1 million, K+S Group EBIT I for the first nine months exceeded last year’s level by about 12%. Thus, the significantly lower earnings contribution of the Salt business segment as a result of exceptionally low de-icing salt sales at the beginning of the year could be more than made up for.

In the third quarter, adjusted Group earnings after taxes rose by 51% to € 47.6 million. At € 152.4 million, adjusted Group earnings for the first nine months were only up on the same period last year by just under 8% because of the weak de-icing salt business at the start of the year and the lower financial result.

For the quarter under review, adjusted earnings per share amounted to € 1.15, thus up 51% on the same period last year (€ 0.76). For the first nine months, earnings per share reached € 3.70 – compared with the figure of a year ago (€ 3.44), an increase of just under 8%.

Positive outlook for 2007 as a whole

For the current year, K+S anticipates a tangible rise in revenues despite currency-related decreases. This is also assisted by the consolidation effect from the first-time inclusion of SPL for the entire year.

Revenues for 2007 as a whole should therefore reach € 3.1 billion to € 3.2 billion (previously: € 3.1 billion to € 3.3 billion; 2006: € 2.96 billion). After K+S had to adjust its US dollar hedging once again in October and November to take account of the accelerated depreciation of the US dollar in relation to the euro, K+S now expects operating earnings EBIT I to reach a value of between € 300 million and € 310 million. In relation to the record figure of last year this represents an increase of between 8% and 12% (previously: € 310 million to € 325 million; 2006: € 278.0 million).

The outlook for the remaining months of the year is based on average de-icing salt business in Europe and North America in the fourth quarter. Given the conditions described, adjusted earnings after taxes for 2007 should amount to between € 175 million and € 185 million (previously: € 185 million to € 195 million; 2006: € 176.2 million, without non-recurrent deferred tax income), corresponding to adjusted earnings per share of approximately € 4.30 to € 4.45 per share.

Promising prospects for 2008

K+S is also optimistic about the course of business in 2008. Revenues should increase appreciably. This estimate is mainly based on higher than previously anticipated revenues in the Potash and Magnesium Products business segment as a result of significant price increases on global potash markets.

K+S also estimates that operating earnings for financial 2008 will be significantly higher. This is related first and foremost to the markedly rising average prices in the Potash and Magnesium Products business segment. that significantly exceed costs. In addition, a normalisation of the de-icing salt business next year should result in a tangible increase in operating earnings for the Salt business segment.

Experience Growth

The K+S Group is one of the world's leading suppliers of speciality and standard fertilizers as well as plant care and salt products. Achieving healthy and sustainable growth is its goal as a company and a general challenge at the same time. K+S offers agriculture, industry and private consumers a range of services geared towards needs that serve as the basis for growth in almost all areas of day-to-day life in the form of tailor-made products and branded goods. The K+S Group employs 12,000 people and posted revenues of about € 3 billion for 2006. The K+S share is listed on all German stock exchanges (ISIN: DE0007162000, Symbol: SDF) and included in the MDAX share index.

Conference call with analysts

On the occasion of the publication of the figures for the third quarter on 13 November 2007, Norbert Steiner, Chairman of the Board, and Joachim Felker, Member of the Board of Executive Directors of K+S Aktiengesellschaft, will answer questions from analysts at a conference call. From 3 p.m. onward you can follow this at www.k-plus-s.com.