Celanese Reports Second Quarter 2004 Results; Operating Performance Benefits from Improved Business Conditions and Efficiencies.

KRONBERG, Germany -- Celanese AG (NYSE:CZ)(FWB:CZZ):

--Volume grows strongly in most segments

--Significantly lower insurance recoveries results in reduced operating profit 

--Valuation allowance of EUR 146 million on U.S. deferred tax asset burdens net income

--Net earnings decline to a loss of EUR 91 million or EUR 1.85 per share

Celanese AG (NYSE:CZ)(FWB:CZZ) today reported a second quarter operating profit of EUR 54 million compared to EUR 109 million in the same period last year, which included EUR 90 million of insurance recoveries related to the previously disclosed plumbing litigation cases. In the second quarter 2004 report, the company said it had a net loss for the period of EUR 91 million, or EUR 1.85 per share, compared to net earnings of EUR 96 million, or EUR 1.95 per share, in the same period last year.

Stronger business conditions than a year earlier were unable to compensate for the negative impact on net earnings of a valuation allowance of EUR 146 million against deferred tax assets associated with our U.S. net operating loss (NOL) carry forwards. Under U.S. tax law, a change in ownership of more than 50 percentage points results in an annual limitation on the future utilization of the NOL carry forwards. In April, BCP Crystal Acquisition GmbH & Co. KG, a limited partnership controlled by a group of investment funds advised by The Blackstone Group, acquired 84.32% of outstanding Celanese shares.

Operating profit benefited in particular from higher volumes in the Ticona, Chemical Products and Performance Products segments, significantly lower stock appreciation rights expenses and the absence of a loss from the European oxo business which was transferred into a joint venture in October 2003. Higher raw material and energy costs and slightly lower pricing lessened operating profit.

Net sales of EUR 1.02 billion in the second quarter were flat compared to those in the same period last year. Volume increases (+9%) were offset by changes in the composition of our Chemical Products segment (-5%), unfavorable currency effects (-3%), resulting mainly from the stronger euro versus the U.S. dollar and slightly lower pricing (-1%), driven by the Performance Products and Ticona segments. The changes in the composition of the Chemical Products segment mainly consist of the effects of the transfer of the European oxo business into a joint venture in the fourth quarter of 2003.

Outlook

In the third quarter 2004, the company is experiencing healthy demand for many of its products and expects that volumes will be stronger than those in the same period last year. Volatile pricing for crude oil, its derivatives and natural gas is expected to impact the raw material and energy costs of the company. Celanese will continue its efforts to raise prices, but expects that elevated costs for hydrocarbons will put pressure on margins. The company is also reviewing options to redesign the corporate and business organizations and processes and will continue the efforts to enhance productivity and the profitability of the businesses.

Please note:

The entire second quarter 2004 report can be found on our investor relations page on www.celanese.com

Celanese AG is a global chemicals company with leading positions in its key products and world class process technology. The Celanese portfolio consists of four main businesses: Chemical Products, Acetate Products, Technical Polymers Ticona and Performance Products. Celanese generated sales of around EUR 4.1 billion in 2003 and has about 9,500 employees. The company has 24 production plants and six research centers in 10 countries mainly in North America, Europe and Asia.

For further information please visit our website www.celanese.com.

Forward-looking statements: Any statements contained in this report that are not historical facts are forward-looking statements as defined in the U.S. Private Securities Litigation Reform Act of 1995. Words such as "anticipate", "believe," "estimate," "intend," "may," "will," "expect," "plan" and "project" and similar expressions as they relate to Celanese or its management are intended to identify such forward-looking statements. Investors are cautioned that forward-looking statements in this report are subject to various risks and uncertainties that could cause actual results to differ materially from expectations. Important factors include, among others, changes in general economic, business and political conditions, fluctuating exchange rates, the actual and expected length and depth of product and industry business cycles, changes in the price and availability of raw materials, actions which may be taken by competitors, application of new or changed accounting standards or other government agency regulations, the impact of tax legislation and regulations in jurisdictions in which Celanese operates, the timing and rate at which tax credit and loss carry forwards can be utilized, changes in the degree of patent and other legal protection afforded to Celanese's products, potential disruption or interruption of production due to accidents or other unforeseen events, delays in the construction of facilities, potential liability for remedial actions under existing or future environmental regulations and potential liability resulting from pending or future litigation, the completion of the BCP Crystal tender offer, Celanese's ability to comply with the covenants and other restrictions in Celanese's debt instruments, a failure of which could lead to additional restrictions, costs, or an acceleration of Celanese's indebtedness and other factors discussed above. Many of the factors are macroeconomic in nature and are therefore beyond the control of management. The factors that could affect Celanese's future financial results are discussed more fully in its filings with the U.S. Securities and Exchange Commission. Celanese AG does not assume any obligation to update these forward-looking statements, which speak only as of their dates.