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Mannesmann on Track

23 September 1998

Mannesmann on Track

             Significant Earnings Improvement for 1998 Confirmed

                   Telecommunications Reports Strong Growth

                       Portfolio Optimization Continues

    DUSSELDORF, Germany, Sept. 23 -- Mannesmann confirms the
improved earnings forecast for the full year 1998 made in August:  Mannesmann
expects a significant improvement in earnings in comparison to 1997.  This
announcement is made by the Management Board at today's meeting of the
Supervisory Board.
    Thanks to the continuing substantial earnings improvement at Mannesmann
D2, the Group's Telecommunications Sector is expected to report significantly
better earnings despite increased start-up losses and goodwill amortization at
its European telecommunications activities outside Germany.  The strong growth
at Mannesmann D2, Mannesmann Arcor, Omnitel (Italy) and SFR (France) has also
continued in recent months.  Mannesmann D2 now has well in excess of
five million subscribers.  Mannesmann Arcor currently handles more than
10 million minutes per day.  With more than 4.7 million subscribers, Omnitel
has advanced from rank eight to rank four among European mobile telephone
operators in the last 12 months.
    Automotive and Tubes & Trading also contribute to the boost in earnings,
as well as Engineering which reports a significant improvement.

    Further Improvement in Return on Gross Operating Assets (GOA)
    Mannesmann expects the return on GOA to increase to a similar degree as
the year before.  The higher return will be achieved on increased GOA.
In 1998, Mannesmann is thus making a further step in reaching the return
target for the year 2000 of 15%.  In 1997, Mannesmann improved its return on
GOA to 10.3% (1996:  8%).
    Mannesmann rigidly continues with its portfolio optimization in order to
support its value oriented development.  Most recently, Mannesmann sold its
building material businesses in Germany and Austria.  In Germany, this sale is
still subject to the approval by the cartel authorities.  Today, the
Management Board will ask the Supervisory Board for its approval.