Dear Shareholders The first half of 2006 was marked by increasingly lively demand in the textile market. In addition to the already established increase in demand for cot-ton processing machines, demand for filament spinning and texturing was stronger than expected. The Asian markets of India, China and Pakistan, in particular, demonstrate strong demand for investment in new and replace-ment machinery. Because of the low order book at the beginning of the year, sales in the first acquisitions. Transmission Systems developed in line with expectations communicated at the beginning of the year. The integration of Fairfield is well advanced. The first phase of the expansion of capacity for transmission components using the infrastructures of the textile division in the Czech Republic and China will be completed by the end of the year and the enlarged plant in India will start production in August, as scheduled. Overall, Saurer is on track with the implementation of its growth strategy.