Ad Hoc News Details

- Results for the period slightly below last year
- Increased price competition as a result of persistently weak  consumer   confidence
- As expected, market-related downtime at MM Karton in the second quarter
- Positive business trend in cartonboard converting
- Cost-cutting and rationalization intensified
- Forecast horizon remains short-term

Consolidated results - IFRS, in EUR millions

Outlook:  With further increasing uncertainty on the economic development and the existing overcapacities on the supply side, no pick up in the main Western European markets can be expected in the near future. For now, Eastern European markets remain attractive, with sluggish demand in Western Europe imposing increasing restraint here, too. The main focus of the cartonboard division is on retaining our market shares under the highest price discipline possible. In accordance with selectively necessary production downtime, special focus is laid on cost-cutting measures. In the folding carton business, further market penetration is at the forefront, backed by continuing increases in productivity. On the recovered paper markets, we expect no significant changes from a present-day perspective. The upward trend of energy and input factors dependent on crude-oil prices will nevertheless continue. In view of the short-term nature of the business, forecasting possibilities remain significantly limited. For the third quarter of 2005, our expectations are at least based on continuity. The acquisition strategy will be retained, and applies equally to both MM Karton and to MM Packaging.

The press release and 1st Half-Year Report 2005 are available at
http://www.mayr-melnhof.com

Mayr-Melnhof Karton AG Brahmsplatz 6 1040 Vienna Austria ISIN: AT0000938204 WKN: 093820 Official Quotation in Vienna; OTC in Berlin-Bremen, Frankfurt, Hamburg, München und Stuttgart