* Sales growth of 12.9 percent after adjusting for exchange rate effects to 6.256 billion euro; sales growth of 6.3 percent on the basis of reported figures

* 15.4 percent increase in operating profit* after adjusting for exchange rate effects to 1.258 billion euro; earnings up 8.6 percent on the basis of reported figures

* Adjusted earnings per share up 24.8 percent to 2.72 euro

* Outlook for 2008 reaffirmed: Sales expected to increase and earnings expected to rise at a faster rate than sales

* Medium-term target for 2010 confirmed, i.e. operating profit of more than 3 billion euro and ROCE (return on capital employed) of at least 13 percent

Munich, 1 August 2008 - In the first six months of the 2008 financialyear, the technology group The Linde Group achieved an increase insales of 12.9 percent, after adjusting for exchange rate effects, to6.256 billion euro, and an increase in operating profit, afteradjusting for exchange rate effects, of 15.4 percent to 1.258 billioneuro. The operating margin at Group level rose by 40 basis points to20.1 percent, compared with the figure for the six months to 30 June2007.

"In economically difficult times, we can clearly see the benefits ofour robust business model and the advantages of our globalorientation. We have improved our profitability even further," saidProfessor Dr Wolfgang Reitzle, Chief Executive Officer of Linde AG."Our international gases and engineering business remains stable, sowe have every reason to be confident about the future. We aretherefore reaffirming our short-term and medium-term forecasts. Wecontinue to assume that Group sales will increase in the currentfinancial year and that earnings will increase at a faster rate thansales. By 2010, we are seeking to achieve Group operating earnings ofmore than 3 billion euro. We want to achieve a return on capitalemployed, our key performance indicator, of at least 13 percent by2010."

If exchange rate effects are not taken into account, the increase inGroup sales was 6.3 percent, given sales in the first half of 2007 of5.888 billion euro. On the basis of reported figures, Group operatingprofit* rose 8.6 percent from the comparable figure in 2007 of 1.158billion euro.

Earnings before taxes on income (EBT) at the end of June 2008 were544 million euro (2007: 896 million euro). However, this decrease ismainly due to the fact that the figure for the first six months of2007 included a book profit of 574 million euro from the disposal ofbusinesses. In the current financial year, Linde made a book profiton the disposal of businesses of 59 million euro.

Earnings after tax at the end of the first half of the year were 402million euro (2007: 614 million euro). Earnings attributable to LindeAG shareholders were 375 million euro (2007: 589 million euro),giving earnings per share of 2.24 euro (2007: 3.66 euro). Here too,the book profit on the sale of businesses should be taken intoaccount. On an adjusted basis, i.e. after adjusting for the effect ofthe book profit on the sale of businesses and the effect of thepurchase price allocation in the course of the BOC acquisition,earnings per share increased from 2.18 euro at the end of the secondquarter in 2007 to 2.72 euro at 30 June 2008.

As a result of the Group's good business performance in the first sixmonths of 2008, cash flow from operating activities also improvedsignificantly when compared with the prior year period, by 9.5percent to 816 million euro (2007: 745 million euro).

Gases Division

In a relatively stable global market environment, the Gases Divisionachieved a 10.1 percent increase in sales in the first six months ofthe year, after adjusting for exchange rate effects, to 4.709 billioneuro. If changes in the price of natural gas and changes to Groupstructure are also taken into account, the rate of sales growth was8.5 percent. If all these factors are ignored, sales increased by 3.4percent from 4.553 billion euro at 30 June 2007.

The operating profit of the Gases Division rose 12.7 percent, afteradjusting for exchange rate effects, to 1.194 billion euro, anincrease which was again greater than the increase in sales. On thebasis of reported figures, the increase in operating profit in theGases Division was 6.1 percent given the prior year figure of 1.125billion euro. The operating margin improved once again to 25.4percent, which was 70 basis points above the figure for the prioryear period. We were able to more than compensate for cost increases,as a result of continual improvements in efficiency, pricingadjustments and cost synergies arising from the acquisition of BOC.

The following business trends were to be seen in the various regionsand product segments in the Gases Division:

In the Western Europe operating segment, we achieved a 6.4 percentincrease in sales in the first half of 2008, after adjusting forexchange rate effects, changes in the price of natural gas andchanges in Group structure, to 2.083 billion euro. If these factorsare not taken into account, the increase in sales was 5.5 percent(2007: 1.975 billion euro). Operating profit rose 6.3 percent to 575million euro (2007: 541 million euro).

We were able to benefit from a positive market environment,especially in Northern Europe, Germany and Italy. In the UK, thecylinder gas and Healthcare (medical gases) product segmentsperformed particularly well.

In the Americas' operating segment, the Gases Division achieved a 9.2percent increase in sales in the first six months of 2008 on acomparable basis. If exchange rate effects, changes in the price ofnatural gas and changes to Group structure are not taken intoaccount, sales in this segment of 1.082 billion euro were below theprior year figure of 1.275 billion euro. This decrease is due mainlyto unfavourable exchange rate movements and to changes in Groupstructure. The prior year sales figures included the US cylindergases business, which was sold in 2007, and the American INO medicalgases business, as well as the eight air separation plants whichLinde had to sell as a result of the conditions imposed by thecompetition authorities. Given these factors, the operating profit inthis segment of 206 million euro was lower than the figure for theprior year period of 240 million euro.

In the Asia & Eastern Europe operating segment, we achieved anincrease in sales on a comparable basis of 10.4 percent to 945million euro. On the basis of reported figures, the rate of growthwas 32.7 percent, from 712 million euro in the first half of 2007. Itshould be noted that in the reporting period some of the former jointventures in Malaysia, Hong Kong and Taiwan were included in sales forthe first time. There was a 35.9 percent increase in operating profitto 269 million euro (2007: 198 million euro). Operating profitincreased at a faster rate than sales.

In the South Pacific & Africa operating segment, on a comparablebasis, the Gases Division achieved a 14.5 percent increase in salesto 632 million euro. On the basis of reported figures, the increaseover the prior year figure of 606 million euro was 4.3 percent, whichwas due to unfavourable exchange rate movements in the South Africanrand. Operating profit in this segment was 144 million euro, almostthe same figure as for the prior year period (2007: 146 millioneuro).

There were also increases in the various product areas in the GasesDivision. On a comparable basis, i.e. after adjusting for exchangerate effects, changes in the price of natural gas and changes inGroup structure, the tonnage or on-site business grew 6.5 percent to1.183 billion euro (2007: 1.111 billion euro). Sales in the bulkbusiness rose 6.4 percent to 1.149 billion euro (2007: 1.080 billioneuro) and in the cylinder gas business by 11.1 percent to 1.890billion euro (2007: 1.701 billion euro). The product area Healthcare,our fast-growing medical gases business with a promising future,achieved an 8.2 percent increase over the comparable prior yearperiod to 487 million euro (2007: 450 million euro).

Gases Division - Outlook

Linde expects average annual growth of around 7 percent in 2008 andin subsequent years in the global gases industry. Our short-term andmedium-term targets remain the same. We want the Gases Division togrow at a more rapid pace than the market and to increase itsearnings at a faster rate than sales. Contributing to this will be ahigh rate of growth in the emerging markets and growth synergiesbetween the gases and engineering business we are vigorouslypursuing.

Engineering Division

The Engineering Division continued to perform extremely well in thefirst half of 2008, achieving a 24.4 percent increase in sales forthe six months to June to 1.411 billion euro (2007: 1.134 billioneuro). In comparison with the prior year period, operating profitrose 28.6 percent to 126 million euro (2007: 98 million euro). Theoperating margin was 8.9 percent, once again exceeding our 8 percenttarget, a target which is well above the average in the internationalengineering market.

Order intake in the Engineering Division in the first six months of2008 was 1.557 billion euro, once again even better than the highlevel achieved in the prior year period of 1.499 billion euro. Theorder backlog at 30 June 2008 was 4.347 billion euro (31 December2007: 4.391 billion euro).

The positive business performance in this division was boosted by thecontinuing high level of demand in the four main product segments(olefin plants, natural gas plants, air separation plants, hydrogenand synthesis gas plants). The most notable order for the EngineeringDivision in the first half of 2008 came from Abu Dhabi (United ArabEmirates). We will build two large air separation plants for thecompany Elixier, a joint venture between Abu Dhabi National OilCorporation (ADNOC) and our Gases Division, an order which is worthmore than 800 million US dollars.

Engineering Division - Outlook

The global situation for international plant construction businessremains good. Against this background, and on the basis of a highorder backlog and the anticipated processing of orders, we expect anaverage increase in sales in the Engineering Division in the comingyears of 8 to 10 percent per annum. Our operating margin target forthe 2008 financial year is unchanged at 8 percent, a figure wellabove the market average.

* EBITDA before non-recurring items, including share of net incomefrom associates and joint ventures

N.B.: To coincide with the publication of our quarterly report, ateleconference for analysts will take place today at 2pm (Germantime) in English with Georg Denoke, CFO and member of the Linde AGExecutive Board. Journalists will have the opportunity to listen tothe conference live by dialling +49 (0)69 589 99 0509. Please tellthe operator your name and the name of your company.

Following the teleconference, you will be able to hear a recording ofthe event by calling +49 (0)30 726 167 224. Please give the followingreference number: 802997.

The Linde Group is a world-leading gases and engineering company withmore than 50,000 employees working in around 100 countries worldwide.In the 2007 financial year, it achieved sales of 12.3 billion euro.The strategy of The Linde Group is geared towards sustainableearnings-based growth and focuses on the expansion of itsinternational business with forward-looking products and services.Linde acts responsibly towards its shareholders, business partners,employees, society and the environment - in every one of its businessareas, regions and locations across the globe. Linde is committed totechnologies and products that unite the goals of customer value andsustainable development.

For more information, please see The Linde Group online athttp://www.linde.com

Further information:Press                        Investor RelationsUwe Wolfinger                Thomas EisenlohrTelephone: +49.89.35757-1320 Telephone: +49.89.35757-1330

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