1st quarter 2009: The Linde Group remains relatively stable and continues its prudent approach

* Sales down 7.6 percent to 2.695 billion euro, 5.3 percent after
adjusting for exchange rate effects
* Operating profit* down 10.6 percent to 538 million euro, 7.3
percent after adjusting for exchange rate effects
* Accelerated implementation of programme for sustainable
improvements in productivity
* Capacity adjustments necessary in some areas and regions - at an
expected cost of around 70 million euro, of which 20 million euro
have already been booked in Q1
* Outlook for 2009 unchanged: scenario-driven based on the global
economic development

Munich, 5 May 2009 - The technology group The Linde Group saw
relatively steady trends in the first quarter of the 2009 financial
year against the background of a significant weakening in the global
economy. After adjusting for exchange rate effects, there was a
single-digit decline in sales and earnings. "We are still
comparatively stable, despite the fact that also we are being
affected by substantial falls in demand," said Professor Dr Wolfgang
Reitzle, Chief Executive Officer of Linde AG. "There is currently no
evidence to suggest a swift recovery. It is therefore our
responsibility as entrepreneurs to do everything we can to survive
this difficult economic phase relatively unscathed. We will
accelerate the implementation of our integrated programme for
sustainable process optimisation and increased productivity. In
certain areas and regions this is combined with capacity adjustments,
for example through process and organisational improvements such as
an overall consolidation of functions. The cost of these measures in
the first quarter was 20 million euro. We will continue to adopt a
prudent approach and will apply an additional amount of around 50
million euro to sustainable efficiency improvements in the coming
months." Linde's overall aim is to achieve cost reductions of between
650 million and 800 million euro over the next four years as a result
of its optimisation programme.

Linde is continuing to examine various scenarios in its corporate
planning for the rest of the 2009 financial year against the
background of the uncertainty attached to future global economic
development. "Sales and earnings trends can not be determined before
the second half of the year," explained Reitzle. "Seen from today's
standpoint, we need to anticipate a decline. Our positive scenario,
Group sales and earnings on the same level as in 2008 has become less
likely in the light of the further deterioration of the economic
outlook."

In the first quarter of 2009, Group sales fell by 5.3 percent
compared with the prior year period after adjusting for exchange rate
effects. On the basis of reported figures, i.e. if exchange rate
effects are not taken into account, Group sales for the first quarter
of 2.695 billion euro were 7.6 percent below the prior year figure of
2.917 billion euro. Group operating profit* was 7.3 percent lower,
after adjusting for exchange rate effects. Furthermore, if the cost
of the capacity adjustments had not been charged to income, Group
profit would be a mere 3.8 percent lower than the prior year figure.
On the basis of reported figures, Group operating profit of 538
million euro was 10.6 percent lower than the prior year figure of 602
million euro.

Earnings before taxes on income (EBT) of 170 million euro were lower
than the figure for the comparable prior year period of 239 million
euro. The reasons for the decrease include the restructuring costs of
20 million euro incurred in 2009 and the gains on disposal of
businesses of 15 million euro achieved in the first quarter of 2008.

Earnings after tax at 31 March 2009 were 128 million euro (2008: 172
million euro). Earnings attributable to Linde AG shareholders were
115 million euro (2008: 160 million euro), giving earnings per share
(EPS) of 0.68 euro (2008: 0.96 euro). Account should be taken here
too, when comparing the figures for the first quarters of 2009 and
2008, of the restructuring costs charged in 2009 and the gains on
disposal of businesses recognised in 2008. On an adjusted basis, i.e.
after adjusting for the impacts of the purchase price allocation on
the acquisition of BOC as well as profits on disposal, earnings per
share in the first quarter of 2009 stood at 0.99 euro (2008: 1.29
euro). In this figure, the restructuring costs booked in the first
quarter are still included. Cash flow from operating activities rose
by 22.3 percent from 337 million euro in the first quarter of 2008 to
412 million euro in the first quarter of 2009. This was mainly due to
improvements in working capital management.

Gases Division
In the Gases Division, sales in the first quarter fell by 6.3 percent
to 2.157 billion euro (2008: 2.301 billion euro). The decline in
sales after adjusting for exchange rate effects was 3.5 percent. On a
comparable basis, i.e. if changes in the price of natural gas and
changes in Group structure are also taken into account, the fall in
sales was 4.4 percent.

The operating profit of the Gases Division for the three months ended
31 March 2009 was 546 million euro, 6.8 percent below the prior year
figure of 586 million euro. After adjusting for exchange rate
effects, this represents a reduction of 3.2 percent. The operating
margin at 25.3 percent has remained virtually the same as the figure
for the first quarter of 2008 of 25.5 percent.

The business trends in the individual regions and product areas of
the Gases Division were as follows:

In the Western Europe operating segment, sales declined by 9.2
percent to 935 million euro (2008: 1.030 billion euro), partly as a
result of the substantial loss in value of the British pound. On a
comparable basis, the fall in sales would have been a mere 3.5
percent. Operating profit in Western Europe of 247 million euro was
12.7 percent lower than the figure for the corresponding prior year
period of 283 million euro. The operating margin fell from 27.5
percent to 26.4 percent. As industrial production weakened
considerably, the markets in the Western Europe region saw volume
reductions, sometimes significant. Our main sales markets in Germany,
the UK and Scandinavia were also affected.

In the Americas operating segment, we achieved sales of 501 million
euro in the first quarter of 2009, 5.1 percent below the figure for
the first quarter of 2008 of 528 million euro. On a comparable basis,
the fall in sales was 7.1 percent. Operating profit in the Americas
of 104 million euro was, however, exactly the same as the prior year
figure. The operating margin rose from 19.7 percent to 20.8 percent.

In the Asia & Eastern Europe operating segment, sales in the first
quarter of 2009 were down by 7.8 percent compared with the prior year
quarter to 428 million euro (2008: 464 million euro). On a comparable
basis, the fall was 7.9 percent. Operating profit was 129 million
euro, only 1.5 percent lower than the figure for the first quarter of
2008 of 131 million euro. The operating margin improved by a further
190 basis points to 30.1 percent from the high figure achieved in the
first three months of 2008 of 28.2 percent.

In the South Pacific & Africa operating segment, we also achieved an
increase in sales in the first three months of 2009 - by 4.0 percent
to 309 million euro (2008: 297 million euro). On a comparable basis,
this is an increase of 2.0 percent. Operating profit, which was 66
million euro, was almost as high as the prior year figure of 68
million euro. The operating margin during the reporting period was
21.4 percent, below the figure of 22.9 percent for the first quarter
of 2008. One of the reasons for the fall in margin was the first-time
consolidation of the Australian LPG company Elgas. The LPG (liquefied
gases) business has rather lower margins than the traditional
industrial gases business. Elgas is the leading marketer of LPG in
Australia and a key strategic addition to our product portfolio in an
attractive market.

The business performance of the individual product areas in the Gases
Division was also affected by the difficult global economic
environment. On a comparable basis, sales in our liquefied gases
business fell by 6.9 percent to 536 million euro (2008: 576 million
euro). Sales in the tonnage or on-site business, where we supply
industrial gases from plants situated directly on the user's site,
were 499 million euro, 4.4 percent below the prior year figure of 522
million euro. In our cylinder gas business sales fell by 5.5 percent
to 871 million euro (2008: 922 million euro). The Healthcare product
area proved itself largely immune to the crisis. Sales here rose by
5.5 percent to 251 million euro (2008: 238 million euro).

Gases Division - Outlook
The current weakness in demand has not caused us to change in any way
our original target for the gases business. We want to grow at a more
rapid pace than the market and to continue to improve our
productivity. Following the latest, once again worsened, forecasts
for the global economic development, the probability for the weaker
scenario has increased.

Engineering Division
In the Engineering business, The Linde Group achieved sales in the
first quarter of 2009 of 549 million euro, 1.3 percent above the
figure for the first quarter of 2008 of 542 million euro. Operating
profit fell slightly from 47 million euro to 45 million euro. This
corresponds to an operating margin of 8.2 percent. Once again we
exceeded our 8 percent target, a target well above the industry
average. On the other hand, order intake of 285 million euro was
lower than the prior year figure of 406 million euro, as expected,
due to a significant reluctance to award new projects. The order
backlog at 31 March 2009 was 4.082 billion euro (31 December 2008:
4.436 billion euro), a figure which remains very high.

Almost half the order backlog related to the air separation plant
product segment. The oxygen and nitrogen produced in these plants is
required primarily by oil companies for the efficient exploitation of
oilfields and natural gas fields to meet the rising demand for energy
worldwide. We are currently working on major projects in this area,
principally for customers in the Middle East. Examples are the
Enhanced Gas Recovery plant we are building for Abu Dhabi National
Oil Corporation (ADNOC) and the Gas-to-Liquids (GTL) plant we are
supplying for Shell in Qatar.

Engineering Division - Outlook
The continuing high order backlog provides a good basis for a
relatively stable business performance in our Engineering Division
over the next two years. However, even in global large-scale plant
construction, we will have to contend with the award of new projects
being postponed. In our weaker scenario, we must therefore assume
that new orders will not be sufficient to achieve the same very high
level of sales in the 2009 financial year as in 2008. On the other
hand, the target for our operating margin remains at 8 percent.

N.B.: To coincide with the publication of our quarterly report, a
teleconference for analysts will take place today at 2pm (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)69 589 99 0509. 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: 832453.

The Linde Group is a world leading gases and engineering company with
almost 52,000 employees working in around 100 countries worldwide. In
the 2008 financial year it achieved sales of EUR 12.7 billion. 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 online at
http://www.linde.com

For additional information:

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

* Operating profit: EBITDA before non-recurring items, including
share of net income from associates and joint ventures

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