The condensed Group interim financial statements of Linde AG for the three months ended 31 March 2008 have been drawn up in accordance with International Financial Reporting Standards (IFRS) applicable to interim financial reporting, as adopted by the European Union.

A review of the financial statements included in the condensed Group interim financial statements has been performed by KPMG Deutsche Treuhand-Gesellschaft.

We have used the same accounting policies in the condensed Group interim financial statements as those used to prepare the Group financial statements for the year ended 31 December 2007 and have also applied IAS 34 "Interim Financial Reporting". With effect from 1 January 2008, amounts due to third parties for outstanding invoices have been disclosed under Trade payables. The prior year figures for Other current provisions and Trade payables have been adjusted accordingly.

The effective date of IFRIC 14 "The Limit on a Defined Benefit Asset, Minimum Funding Requirements and their Interaction" is 1 January 2008. However, as this standard has not yet been adopted by the European Union, IFRIC 14 has not been applied in the Group interim financial statements for the three months ended 31 March 2008. The application of this standard is expected to result in an increase in the provision for pension obligations, not affecting profit or loss, as Linde is obliged to make contributions to plan assets as a result of legal requirements or contractual agreements. It will, however, not lead to the recognition of an asset, because of the asset ceiling described in IAS 19.58.

In addition to the interpretation mentioned above, the following new or revised standards and interpretations have been issued by the IASB and IFRIC. These have not been applied in the condensed Group interim financial statements for the three months ended 31 March 2008, as they are either not yet mandatory or have not yet been adopted by the European Commission:

• IFRIC 12 "Service Concession Arrangements"
• IFRIC 13 "Customer Loyalty Programmes"
• Revised IFRS 3 "Business Combinations"
• Amendments to IAS 27 "Consolidated and Separate Financial Statements"
• Amendments to IAS 32 and IAS 1 "Puttable Financial Instruments and Obligations Arising on Liquidation"
• Amendments to IAS 1 "Presentation of Financial Statements"

With the exception of IFRIC 14, the impact on the net assets, financial position and results of operations of The Linde Group of the standards and interpretations which have not been applied will not be significant overall.