Amendment Report

The first quarter of the year 2006 was despite a great deal of snow and a long winter on the sales level of the previous year. In 2006 we again assume a sales growth of 5 percent. Through the start-up of the production of DIMEX in Russia and the installation of the press at the parquet factory in Redon, there will again arise preproduction costs.

The results are analogcially to the previous year marked by a tense raw material and transportation costs situation.

The announced market and client potential at the end of the previous year are developed as planned.

The essentially planned investments for 2006 are currently realized.

Due to seasonal influences the liquidity situation is tight in all areas. There are no evident liquidity squeezes. The annual supports were made according to plan.

Through the capital increase in December 2005 in nominal value of E 170,000, the company has gained E 1,286,320 in cash contribution and E 2,091,780 in investment in kind. The entry in the commercial register was made in March 2006.

Market risks

In addition to the influences through the general economic business environment the MDB Group is dependent on the trend of demand in the building sector due to its focused business activity.

Future prospects report

The opinions regarding the domestic market development are currently divided. Thus, the association of the German building industry HDB (Hauptverband der deutschen Bauindustrie) assumes the downswing to stop. They assume a consolidation in the year 2006 and a lasting trend reversal in 2007. Contrary to this, the umbrella organisation of the German building industry ZDB (Zentralverband des Deutschen Baugewerbes), which is pro-medium-sized companies, assumes a recession. There is only disagreement about the speed of the downswing. For the year 2006 another sales decline in the building industry of approximately 2.5 percent is expected.

Our visits to international trade shows during the first quarter have proven a reluctant optimism, while in Eastern Europe - with the exception of Russia - an end of the boom is seen, however, a consolidation at the present level.

Due to our good international positioning we see again a growth at last years' level of approximately 5 percent.