Ad hoc release – KWS SAAT AG with restrained forecast for the 2005/2006 fiscal year

February 27, 2006

In its semi-annual report published today, KWS SAAT AG (ISIN: DE0007074007) states that the EU sugar reform will lead to a faster decline in sugarbeet acreage than previously assumed. This will have a direct impact on seed sales and subsequently on KWS results. This will be charged by a change in the sales tax assessment of seed licensing businesses by the tax authorities.

Since growth in the corn segment is expected to more than offset the decline in sugarbeet seed sales, KWS expects a slight increase in the current 2005/2006 fiscal year.