The unaudited interim report of Linde AG at March 31, 2006 has been drawn up in accordance with International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB), London, where these became effective on or before March 31, 2006. The term IFRS also includes International Accounting Standards (IAS), where these are still effective, and the Interpretations issued by the International Financial Reporting Interpretations Committee (IFRIC), formerly the Standing Interpretations Committee (SIC). In accordance with the EU Regulation dated July 19, 2002 (EC No. 1606/2002), only those IFRS which have already been adopted by the European Commission have been applied in the quarterly report.

We have used the same recognition and measurement policies to draw up the interim report as those used to prepare the Group financial statements for the year ended December 31, 2005, with the exception of the following changes and have also applied IAS 34 "Interim Financial Statements".

With effect from January 1, 2006, Linde AG has applied IFRIC 4 "Determining Whether an Arrangement Contains a Lease". The application of this Standard will result in certain technical equipment in the Linde Gas division being recognized as finance leases. As a result, there was a transfer from tangible assets to receivables from financial services and the reclassification of part of the corresponding revenue in the financial result. The change in accounting policy required by IFRIC 4 results in a restatement of prior year figures ("restated"). Further details about the effect of the change in accounting policy are given in the note on "Embedded leases".

Furthermore, in fiscal 2005, IAS 19 was amended in respect of the recognition of actuarial gains and losses relating to the measurement of pension provisions. At December 31, 2005, Linde AG made use of the newly available option of immediately recognizing actuarial gains and losses in equity. As a result of this change in accounting policy at December 31, 2005, the comparatives in these quarterly financial statements have been restated ("restated"). Further details about the effect of the amendment to IAS 19 are given in the note on "Pension obligations".

In addition to the Standard referred to above, the following new or amended Standards and Interpretations issued by IASB and IFRIC came into effect on January 1, 2006. However, either these did not have a significant effect on the net assets, financial position and results of operations of the Group or they were not relevant for the Group financial statements.

• Amendment to IAS 39 and IFRS 4 "Financial Guarantee Contracts"
• Amendment to IFRS 4 "Revised Guidance on Implementing IFRS 4"