January - September 2008: The Linde Group continues to see steady growth and improves operating margin

Corporate news announcement processed and transmitted by Hugin AS.
The issuer is solely responsible for the content of this
announcement.
----------------------------------------------------------------------
--------------

* Sales growth of 11.0 percent after adjusting for exchange rate
effects to 9.392 billion euro; growth of 4.8 percent on reported
basis
* 12.9 percent increase in operating profit* after adjusting for
exchange rate effects to 1.910 billion euro, increase of 7.9
percent on reported basis
* Operating margin up 50 basis points to 20.3 percent
* Adjusted earnings per share up 16.6 percent to 4.14 euro
* Outlook for 2008 reaffirmed: sales expected to increase and
earnings expected to rise at a faster rate than sales
* New programme for sustainable productivity improvement already
launched

Munich, 3 November 2008 - The technology group The Linde Group
achieved an 11.0 percent increase in sales in the nine months to 30
September 2008, after adjusting for exchange rate effects, to 9.392
billion euro and a 12.9 percent increase in operating profit, after
adjusting for exchange rate effects, to 1.910 billion euro. Compared
with the prior year period, the operating margin at Group level
improved by 50 basis points to 20.3 percent.

"Our steady business performance is the result of the successful
restructuring of our Group," said Professor Dr Wolfgang Reitzle,
Chief Executive Officer of Linde AG. "The economic crisis has not yet
had an impact on us. We are still on track." Linde reaffirmed its
forecast and continues to assume that Group sales will increase in
the current financial year 2008 and that earnings will increase at a
faster rate than sales. "To meet our medium-term targets despite the
expected economic downturn, we have already launched a new programme
for sustainable process optimisation and productivity improvement. In
the next four years, starting in 2009, this integrated programme will
result in a reduction in gross cost of between 650 million and 800
million euro," explained CEO Reitzle.

If exchange rate effects are not taken into account, the increase in
Group sales in the first nine months of the year was 4.8 percent,
given sales in the first nine months of 2007 of 8.958 billion euro.
On the basis of reported figures, Group operating profit* increased
by 7.9 percent, given sales in the first nine months of 2007 of 1.770
billion euro.
Earnings before taxes on income (EBT) at 30 September 2008 were 796
million euro, which was lower than the figure for the prior year
period of 1.109 billion euro. This decrease is mainly due to the fact
that the figure for the first nine months of 2007 included a book
profit of 574 million euro from the disposal of businesses. In the
current financial year, Linde made a book profit on the disposal of
businesses of 59 million euro.

Earnings after tax in the first nine months of the year were 593
million euro (2007: 764 million euro). Earnings attributable to Linde
AG shareholders were 552 million euro (2007: 723 million euro),
giving earnings per share of 3.29 euro (2007: 4.48 euro). Here too,
the book profit on the sale of businesses should be taken into
account. On an adjusted basis, i.e. after adjusting for the effect of
the book profit on the sale of businesses and the effect of the
purchase price allocation in the course of the BOC acquisition,
earnings per share rose 16.6 percent from 3.55 euro to 4.14 euro.

As a result of the Group's good business performance in the first
nine months of 2008, cash flow from operating activities also
improved significantly when compared with the prior year period, by
11.2 percent to 1.301 billion euro (2007: 1.170 billion euro).

Gases Division
The Gases Division achieved an 11.0 percent increase in sales, after
adjusting for exchange rate effects, to 7.157 billion euro. If
changes in the price of natural gas and changes to Group structure
are also taken into account, the rate of sales growth was 8.7
percent. If all these factors are ignored, i.e. on the basis of
reported figures, sales increased by 4.5 percent from 6.850 billion
euro at 30 September 2007.

The operating profit of the Gases Division rose 11.8 percent, after
adjusting for exchange rate effects, to 1.819 billion euro, an
increase which was again greater than the increase in sales. On the
basis of reported figures, the increase in operating profit in the
Gases Division was 6.6 percent given the prior year figure of 1.707
billion euro. The operating margin improved once again. At 25.4
percent, it was 50 basis points above the figure for the prior year
period.

The following business trends were to be seen in the various regions
and product segments of the Gases Division.

In the Western Europe operating segment, we achieved a 5.9 percent
increase in sales in the nine months to 30 September, after adjusting
for exchange rate effects, changes in the price of natural gas and
changes to Group structure, to 3.131 billion euro. On the basis of
reported figures, the increase in sales was 4.5 percent (2007: 2.995
billion euro). Operating profit rose 4.7 percent to 854 million euro
(2007: 816 million euro). The main contributors to this positive
development were volume increases and upward price trends in the
cylinder gas business, in particular specialty gases, in the
important markets of Germany and the UK.

In the Americas operating segment, the Gases Division achieved a 6.9
percent increase in sales in the first nine months of 2008 on a
comparable basis. If exchange rate effects, changes in the price of
natural gas and changes to Group structure are not taken into
account, sales in this segment of 1.652 billion euro were below the
prior year figure of 1.837 billion euro. This decrease is due not
only to unfavourable exchange rate movements, but also to changes in
Group structure. The prior year figures included the US cylinder gas
business, which was sold in 2007, and the American INO medical gases
business, as well as the eight air separation plants which Linde had
to sell as a result of the conditions imposed by the competition
authorities. Given these factors, the operating profit in this
segment of 320 million euro was lower than the figure for the prior
year period of 338 million euro.

In the Asia & Eastern Europe operating segment, we achieved an
increase in sales on a comparable basis of 12.4 percent to 1.459
billion euro. On the basis of reported figures, the rate of growth
was even higher (27.4 percent), compared with the prior year figure
of 1.145 billion euro. It should be noted that in the reporting
period some of the former joint ventures in Malaysia, Hong Kong and
Taiwan were included in sales for the first time. There was a 26.0
percent increase in operating profit in the Asia & Eastern Europe
operating segment to 417 million euro.

In the South Pacific & Africa operating segment, on a comparable
basis, the Gases Division achieved a 12.7 percent increase in sales
to 969 million euro. On the basis of reported figures, the increase
over the prior year figure of 947 million euro was 2.3 percent, which
was due to unfavourable exchange movements in the South African rand.
Operating profit in this segment was 228 million euro, 2.7 percent
above the figure for the prior year period of 222 million euro.

There were also increases in the various product segments in the
Gases Division. On a comparable basis, sales in the bulk business
rose 6.2 percent to 1.761 billion euro (2007: 1.658 billion euro).
Sales in the cylinder gas product area increased by 11.6 percent to
2.843 billion euro (2007: 2.548 billion euro) and in the tonnage or
on-site business by 6.9 percent to 1.818 billion euro (2007: 1.700
billion euro). The Healthcare segment, our promising medical gases
business, achieved an 8.2 percent increase over the comparable prior
year period to 735 million euro (2007: 679 million euro).

Gases Division - Outlook
We expect the international gases business to remain a relatively
stable and lucrative market for the rest of the year and in the
coming years. We still anticipate that the rate of growth in this
division will be around twice as high as the rate of growth in gross
domestic product worldwide. We confirm our medium-term target and
continue to expect that we will outperform the market and increase
our earnings at a faster rate than sales. We will benefit here from
our leading market position in the emerging markets and from the
synergies between our Gases and Engineering divisions.

Engineering Division
Once again, we have seen a dynamic business performance from our
Engineering Division, which achieved a 12.4 percent increase in sales
in the first nine months of the year to 2.063 billion euro (2007:
1.835 billion euro). Operating profit also saw double-digit growth -
of 14.4 percent to 183 million euro (2007: 160 million euro). This is
equivalent to an operating margin of 8.9 percent (2007: 8.7 percent).
This means that we again easily exceeded our 8 percent target, a
target which is well above the industry average.

Incoming orders in the Engineering Division of 2.295 billion euro
were again higher than the impressive figure for the comparable prior
year period - of 2.248 billion euro. The order backlog at 30
September 2008 was 4.632 billion euro (31 December 2007: 4.391
billion euro).

The positive business performance in this division was boosted by the
continuing high level of demand in the four main product segments:
olefin plants, natural gas plants, air separation plants, hydrogen
and synthesis gas plants.

Engineering Division - Outlook
The global situation for the international plant construction
business remains good. Against this background, based on a high order
backlog, we still expect an average increase in sales in the
Engineering Division this year and in the coming years of 8 to 10
percent per annum. We expect an order intake of around 3 billion euro
in the current financial year 2008.

N.B.: To coincide with the publication of our quarterly report, a
teleconference for analysts will take place today at 4pm (German
time) in English with Georg Denoke, CFO and member of the Linde AG
Executive Board. Journalists will have the opportunity to listen to
the conference live by dialling +49 (0)30 726 167 227. Please tell
the operator your name and the name of your company.

Following the teleconference, you will be able to hear a recording of
the event by calling +49 (0)30 726 167 224. Please give the following
reference number: 812664.

The Linde Group is a world-leading gases and engineering company with
more 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 sustainable
earnings-based growth and focuses on the expansion of its
international 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 business
areas, regions and locations across the globe. Linde is committed to
technologies and products that unite the goals of customer value and
sustainable development.

For more information, see The Linde Group website at
http://www.linde.com

Further information:

Press Investor Relations
Uwe Wolfinger Thomas Eisenlohr
Telephone: +49.89.35757-1320 Telephone: +49.89.35757-1330

--- End of Message ---

Linde AG
Klosterhofstrasse 1 Munich Germany

WKN: 648300; ISIN:
DE0006483001; Index: CDAX, DAX, HDAX, Prime All Share;
Listed: Amtlicher Markt in Hanseatische Wertpapierbörse zu Hamburg,
Prime Standard in Frankfurter Wertpapierbörse,
Amtlicher Markt in Frankfurter Wertpapierbörse, Amtlicher Markt in
Bayerische Börse München,
Amtlicher Markt in Börse Berlin, Amtlicher Markt in Börse Düsseldorf,

Amtlicher Markt in Börse Stuttgart, Freiverkehr in Niedersächsische
Börse zu Hannover;
Copyright © Hugin AS 2008. All rights reserved.