FORM 6-K

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Report of Foreign Private Issuer

Pursuant to Rule 13a-–16 or 15d-–16 of ~~the Securities Exchange Act of 1934 Commission file number 001-14264~~

~~For~~ the ~~month~~Securities Exchange Act of ~~June 2005~~1934 Commission file number 001-14264

~~PFEIFFER~~For ~~VACUUM~~the ~~TECHNOLOGY~~month ~~AG (Translation~~ of ~~registrant’s name into English)~~ March 2006

PFEIFFER VACUUM TECHNOLOGY AG

(Translation of registrant’s name into English)

Berliner Strasse 43
D–35614 Asslar
Federal Republic of Germany
(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover of ~~form~~ Form 20-–F or Form 40-–F.

Form 20-–F þ Form 40-–F o

Indicate by check mark if the registrant is submitting the Form 6-–K in paper as permitted by Regulation S-–T Rule 101(b) (1):

Yes o No þ

Indicate by check mark if the registrant is submitting the Form 6-–K in paper as permitted by Regulation S-–T Rule 101(b) (7):

Yes o No þ

Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-–2(b) under the Securities Exchange Act of 1934.

Yes o No þ

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-–2(b): 82~~-________~~–______

~~PFEIFFER~~Interim ~~VACUUM~~Report ~~TECHNOLOGY~~First AGQuarter 2006

~~Table of~~ Contents

		~~Page~~		Page
Consolidated Statements of Income for the periods ended June 30, 2005 and June 30, 2004			3
		Pfeiffer Vacuum Overview			3
Consolidated Balance Sheets at June 30, 2005 and December 31, 2004			4
		Pfeiffer Vacuum Share Performance			4
Consolidated Statements of Shareholders’ Equity for the periods ended June 30, 2005 and December 31, 2004			5
		The Pfeiffer Vacuum Group’s Business and Position			5
Consolidated Statements of Cash Flows for the periods ended June 30, 2005 and June 30, 2004			6
		Interim Financial Statements			13
Notes to the Consolidated Financial Statements			7
		Consolidated Statements of Income			13
1.	The Company and Basis of Presentation		7
		Consolidated Balance Sheets			14
2.	Summary of Significant Accounting Policies		7
		Consolidated Statements of Shareholders’ Equity			15
3.	New U.S. Legislation and Accounting Rules		8
		Consolidated Statements of Cash flows			16
4.	Restructuring		8
		Notes to the Interim Financial Statements			17
5.	Discontinued Operations		9
		Additional Information			27
6.	Inventories		10
7.	Investment Securities		10
8.	Stock-Based Compensation — Convertible Bonds		10
9.	Earnings per Ordinary and Diluted Share and ADR		11
10.	Share Ownership		12
11.	Employees		12
12.	Pension Benefits and Similar Obligations		12
13.	Warranty		13
14.	Segment Information		13
15.	Income Tax Expense		15
Management’s Discussion and Analyses of Financial Condition and Results of Operations			16
Signatures			24

Page 2

~~PFEIFFER~~Pfeiffer ~~VACUUM~~Vacuum ~~TECHNOLOGY AG~~Overview

CONSOLIDATED STATEMENTS OF INCOME (in thousands other than per share amounts) (unaudited)



		Q1 2006		Q1 2005		Change

Results
Total sales	K €		43,662		37,588		16.2	%
Germany	K €		11,827		9,535		24.0	%
Other countries	K €		31,835		28,053		13.5	%
Operating profit	K €		10,540		8,152		29.3	%
Net income	K €		6,407		4,928		30.0	%
Return on sales	%		14.7		13.1		—
Operating cash flow	K €		5,247		3,202		63.9	%
Capital expenditures	K €		487		612		(20.4	)%
Earnings per share	K €		0.74		0.57		29.8	%



Workforce
Workforce			687		691		(0.6	)%
Germany			507		508		(0.2	)%
Other countries			180		183		(1.6	)%
Sales per employee	K €		64		54		18.5	%

	Three months ended						Six months ended
				March 31, 2006			December 31, 2005			Change
	June 30,						June 30,
Balance sheet
	2005			2004			2005			2004
Total assets		K €			146,458			138,824			5.5	%
	€			€			€			€
Cash and cash equivalents		K €			66,187			61,651			7.4	%
Net sales		39,931			37,816			77,519			75,283
Number of shares issued					8,790,600			8,790,600			—
Cost of sales		(21,371	)		(20,210	)		(41,462	)		(40,138	)
Shareholders’ equity		K €			118,979			112,631			5.6	%
Gross profit		18,560			17,606			36,057			35,145
Equity ratio		%			81.2			81.1			—
Selling and marketing expenses		(5,065	)		(4,736	)		(9,619	)		(9,308	)
General and administrative expenses		(3,042	)		(3,042	)		(6,057	)		(6,450	)
Research and development expenses		(1,624	)		(1,796	)		(3,400	)		(3,398	)
Operating profit		8,829			8,032			16,981			15,989
Interest expense		(95	)		(5	)		(103	)		(19	)
Interest income		431			586			607			661
Foreign exchange gain		552			243			997			742
Income from continuing operations before taxes		9,717			8,856			18,482			17,373
Income taxes		(3,871	)		(3,555	)		(7,365	)		(6,972	)
Income from continuing operations		5,846			5,301			11,117			10,401
Discontinued operations:
Loss from operations of DVD business net of tax		(338	)		(918	)		(681	)		(1,855	)
Loss on disposal net of tax		(138	)		—			(138	)		—
Loss on discontinued operations net of tax		(476	)		(918	)		(819	)		(1,855	)
Net income		5,370			4,383			10,298			8,546
Basic and diluted income per ordinary share and ADR from:
Continuing operations (in €)		0.67			0.61			1.28			1.20
Discontinued operations (in €)		(0.05	)		(0.11	)		(0.10	)		(0.22	)
Net		0.62			0.50			1.18			0.98

~~See~~Troughout ~~accompanying~~this ~~notes~~interim toreport, ~~the~~all ~~consolidated~~percentages ~~financial~~are ~~statements~~caculated based on amounts in thousands €.

Page 3

~~PFEIFFER~~Pfeiffer ~~VACUUM~~Vacuum ~~TECHNOLOGY~~Share AGPerformance

~~CONSOLIDATED~~The ~~BALANCE~~shares ~~SHEETS~~of Pfeiffer Vacuum Technology AG have been traded in New York since July 16, 1996, (and in ~~thousands~~Frankfurt since April 15, ~~unaudited)~~1998.

	June 30,			December 31,
•	Deutsche Börse, Prime Standard, Frankfurt		Trading Symbol: PFV
	2005			2004
•	International Securities Identification Number:		ISIN DE0006916604
	€			€
•	Reuters Symbol:		PV.DE
Assets
•	New York Stock Exchange (NYSE), New York		Trading Symbol: PV
Cash and cash equivalents		52,171			44,986
•	International Securities Identification Number:		ISIN US7170671025
Trade accounts receivable — net		22,645			18,967
•	Number of shares issued:		8,790,600 (including 100,076 treasury stock)
Other accounts receivable		2,139			4,056
•	Free-float as of March 31, 2006:		100%
Inventories — net		15,174			13,954
•	Market capitalization as of March 31, 2006:		€ 485.2 million
Investment securities		—			9,000
Prepaid expenses		763			541
Deferred tax assets — net		945			774
Other current assets		150			564
Assets held for sale		265			1,519
Total current assets		94,252			94,361
Intangible assets		568			491
Property, plant and equipment — net		23,179			23,225
Investment Securities		4,002			1,002
Deferred tax assets — net		2,428			2,328
Prepaid pension cost		2,822			2,817
Other assets		1,220			1,009
Total non-current assets		34,219			30,872
Total assets		128,471			125,233
Liabilities and shareholders’ equity
Trade accounts payable		3,608			2,965
Accrued liabilities		7,347			9,519
Income tax liabilities		5,701			5,720
Customer deposits		1,105			1,911
Other payables		3,929			2,328
Other current liabilities		142			—
Liabilities held for sale		301			1,186
Total current liabilities		22,133			23,629
Convertible bonds		768			794
Accrued pension		2,050			1,455
Total non-current liabilities		2,818			2,249
Shareholders’ equity
Share capital (13,459,350 no par value ordinary shares authorized, 8,790,600 issued and 8,690,524 outstanding at June 30, 2005 and at December 31, 2004)		22,504			22,504
Additional paid-in capital		2,821			2,821
Retained earnings		81,733			79,256
Accumulated other comprehensive loss		(1,100	)		(2,788	)
Treasury stock, at cost (100,076 ordinary shares)		(2,438	)		(2,438	)
Total shareholders’ equity		103,520			99,355
Total liabilities and shareholders’ equity		128,471			125,233

~~See~~On ~~accompanying~~the ~~notes~~stock exchange in Frankfurt, Pfeiffer Vacuum share performance virtually paralleled the positive TecDAX develeopment in the first three months of 2006. While the TecDAX advanced by 21.0% from 601 to 727 points, Pfeiffer Vacuum shares increased by 18.0%. On January 2, 2006, the ~~consolidated~~shares opened ~~financial~~at ~~statements~~€ 46.76 and closed on March 31, 2006, at € 55.20. This marked the period’s high, too. The low for the period was recorded on January 17, 2006 with € 44.45.

4The prices of Pfeiffer Vacuum ADRs on the NYSE, which are traded in U.S. dollars, reflect changes in the share price and changes in the exchange rate parity between the euro and the U.S. dollar over the course of the year 2006. The ADRs opened on January 3, 2006, at a price of US$ 54.82 and closed on march 31, 2006, at US$ 66.50. On the NYSE, too, this marked the first quarter’s high. The ADRs’ low for the period was US$ 53.81 on January 17, 2006.

As one of the highest dividend issuers in the TecDAX, Pfeiffer Vacuum distributed a dividend to its shareholders for the seventh year in a row in 2005 (€ 0.90 per share for fiscal year 2004). Management Board and Supervisory Board will propose a dividend of € 1.35 per share (+50.0%) for the the fiscal year 2005 at the forthcoming shareholders meeting on May 31, 2006.

Page 4

~~PFEIFFER~~The ~~VACUUM~~Pfeiffer ~~TECHNOLOGY~~Vacuum AGGroup’s Business and Position

~~CONSOLIDATED~~During ~~STATEMENTS~~the OFfirst ~~SHAREHOLDERS~~quarter of 2006, Pfeiffer Vacuum succeeded once more in significantly increasing both, sales and operating profit in the Company’s ~~EQUITY~~core line of business. Our net income was € 6.4 million as of end of March 2006, up 30.0% over prior year.

								Accumulated OtherComprehensive Income
			Additional					Minimum			Cumulative			Unrealized						Total
	Share		paid-in		Retained			pension			translation			gain/(loss)			Treasury			shareholders’
	capital		capital		earnings			liability			adjustment			on hedges			stock			equity
	(€ in thousands)
Balance at January 1, 2003		22,504		2,821		65,870			(656	)		1,560			409			—			92,508
Dividends paid						(4,903	)														(4,903	)
Treasury stock																		(2,438	)		(2,438	)
Net income						12,746															12,746
Components of other comprehensive income — net of tax of € (305) —									592			(3,609	)		141						(2,876	)
Total comprehensive income																					9,870
Balance at December 31, 2003		22,504		2,821		73,713			(64	)		(2,049	)		550			(2,438	)		95,037
Dividends paid						(6,083	)														(6,083	)
Net income						11,626															11,626
Components of other comprehensive income — net of tax of € (11) —									(100	)		(765	)		(360	)					(1,225	)
Total comprehensive income																					10,401
Balance at December 31, 2004		22,504		2,821		79,256			(164	)		(2,814	)		190			(2,438	)		99,355
Dividends paid						(7,821	)														(7,821	)
Net income						10,298															10,298
Components of other comprehensive income — net of tax of € 159 —												1,966			(278	)					1,688
Total comprehensive income																					11,986
Balance at June 30, 2005		22,504		2,821		81,733			(164	)		(848	)		(88	)		(2,438	)		103,520

Overall Economic Environment and Industry Situation

~~See~~The ~~accompanying~~general ~~notes~~slowdown toin the ~~consolidated~~pace ~~financial~~of ~~statements~~growth in the world economy was roughly parallel to 2005 level. Structural problems in many industrialized nations coupled with rising interest rates and increasing energy prices reduced growth potential overall.

5The competitive situation in the vacuum industry, coupled with the heightened competitive pressure in the vacuum market get worse in 2006. Due to enhancements and new developments of our products we were able to hold our technological leading, resulting in an increase of our business in the first quarter of 2006.

Business

Our business operations include the development, manufacture, sale and service of vacuum pumps, vacuum measurement, components and analysis equipment and instruments, as well as vacuum systems.

Sales

Presented below are net sales by segment, by region and by product for the periods ended March 31, 2006 and 2005. It should be noted with respect to net sales by segment that the sales shown in this presentation were allocated on the basis of the location that invoiced the sales. The segment-based presentation thus shows net sales by subsidiaries. Net sales by region, on the other hand, include all sales in a given region, regardless of which subsidiary within the Pfeiffer Vacuum Group actually invoiced the sales. Net sales by segment and by region can thus differ from one another to a greater or lesser extent. Net sales in the Asian segment, for example, differ from those shown for the Asian region, as the Asian segment includes only the sales of our two Asian subsidiaries in India and Korea. The presentation for the Asian region, on the other hand, additionally includes sales generated directly with Asian customers by the German company. In net sales by segment, the sales of the German company generated through direct shipments to agents and/or customers outside Germany are significantly higher than German sales by region. Net sales in the U.S.A. region and the U.S.A. segment, on the other hand, are nearly identical, because virtually all sales in this region are handled by our American subsidiary.

Page 5

~~PFEIFFER~~The ~~VACUUM~~Pfeiffer ~~TECHNOLOGY~~Vacuum AGGroup’s Business and Position

~~CONSOLIDATED~~Sales ~~STATEMENTS~~by OFSegment ~~CASH FLOWS~~ (~~in thousands, unaudited~~Companies)

	Six months ended June 30,
	2005			2004
	€			€
Cash flow from operating activities:
Net income		10,298			8,546
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation		1,644			1,664
Gain on disposal of fixed assets		(11	)		(47	)
Change in deferred taxes		—			(43	)
Provision for doubtful accounts		170			(303	)
Loss on disposal of discontinued operations and changes in assets and liabilities held for sale		205			(3,393	)
Effects of changes in operating assets and liabilities:
Trade accounts receivable		(3,227	)		914
Other accounts receivable		1,930			(199	)
Inventories		(814	)		(2,383	)
Prepaid expenses		(202	)		(21	)
Other current assets		108			254
Other long-term assets		(158	)		131
Prepaid pension cost		(5	)		—
Accrued pension liabilities		506			876
Accounts payable trade		630			613
Income tax liabilities		(64	)		3,292
Accrued other liabilities		(2,308	)		(208	)
Customer deposits		(807	)		482
Other payables		1,582			2,750
Net cash provided by operating activities		9,477			12,925
Cash flow from investing activities:
Proceeds from disposal of fixed assets		37			87
Proceeds from disposal of discontinued operations		171			—
Capital expenditures		(1,686	)		(845	)
Purchase of investment securities		(3,000	)		—
Repayment of investment securities		9,000			—
Net cash provided by (used in) investing activities		4,522			(758	)
Cash flow from financing activities
Dividend payment		(7,821	)		(6,083	)
Net cash used in financing activities		(7,821	)		(6,083	)
Effects of foreign exchange rate changes on cash and cash equivalents		1,007			376
Net increase in cash and cash equivalents		7,185			6,460
Cash and cash equivalents at beginning of period		44,986			29,432
Cash and cash equivalents at end of period		52,171			35,892
Non-cash transactions:
Repayments of convertible bonds and employee loans		(26	)		(26	)

Our subsidiaries in the individual countries are independent legal entities with their own management which distribute the products and provide services. Accordingly, the Company identifies its operating segments geographically. Due to the similarity of their economic characteristics, including nature of products sold, type of customers, method of product distribution and economic environment, the Company aggregates its European subsidiaries outside Germany into one reportable segment, “Europe (excluding Germany).”

~~See~~Sales ~~accompanying~~by ~~notes to the consolidated financial statements.~~Segment



	Three Months Ended
	March 31,
In K €	2006		2005

Net sales
Germany		19,209		15,882
Europe (excluding Germany)		12,549		13,264
United States		10,869		7,715
Asia		1,035		727

Total		43,662		37,588

In the first quarter of 2006 our total net sales increased significantly from € 37.6 million by € 6.1 million or 16.2% to € 43.7 million.

Analysis of these numbers shows that we were able to increase sales in most of our segments. In Germany, our sales increased from € 15.9 million by € 3.3 million or 20.9% to € 19.2 million. In the U. S. segment we recorded a sales increase by € 3.2 million (40.9%) to € 10.9 million. This increase was enforced by approximately € 0.9 million foreign exchange gains due to the strengthened U.S. dollar against the Euro. The sales increase of our subsidiaries in Asia accounted for 42.4%. Only in the segment Europe (excluding Germany) we recorded a sales decrease by 5.4%. This decrease was primarily attributable to a big order in vacuum systems in the prior year.

Germany thus continued to be the segment that accounted for the highest share of total sales, 44.0% (42.3% in the first quarter of 2005). Rigorous efforts aimed at winning new customers and expanding business with existing customers and new products enabled us to go against the general economic trend in growing sales.

Page 6

~~PFEIFFER~~The ~~VACUUM~~Pfeiffer ~~TECHNOLOGY~~Vacuum AGGroup’s Business and Position

~~NOTES~~Sales TOby ~~THE CONSOLIDATED FINANCIAL STATEMENTS~~Region ~~(UNAUDITED)~~

~~June 30~~To provide additional information, ~~2005~~the Company is also presenting sales by region in the following table. It includes all sales in a given region, regardless of which company in the Pfeiffer Vacuum Group actually generated these sales.

Sales by Region



	Three Months Ended
	March 31,
In K €	2006		2005

Net sales
Germany		11,827		9,535
Europe (excluding Germany)		12,735		13,881
United States		10,743		7,665
Asia		8,158		6,125
Rest of World		199		382

Total		43,662		37,588

This table, too, shows that we were able to increase our sales in the regions Germany, the United States and Asia. Accounting for 29.2% of total sales, Europe (excluding Germany) continues to be the Company’s largest market.

Sales by Product



	Three Months Ended
	March 31,
In K €	2006		2005

Net sales
Turbopumps		19,653		14,503
Measurement/analysis equipment, components		12,013		10,464
Service		5,855		5,467
Backing pumps		5,510		5,041
Systems		631		2,113

Total		43,662		37,588

The table above shows the overriding importance of turbopumps to Pfeiffer Vacuum. During the first three months of 2006, this product line generated total sales of € 19.7 million, representing an increase of € 5.2 million, or 35.5%, over the prior year. Turbopumps generated 45.0% of our total sales.

Page 7

The Pfeiffer Vacuum Group’s Business and Position

Sales in vacuum instruments and components also developed positively, rising by € 1.5 million, or 14.8%, to € 12.0 million as per the end of March 2006. Additionally our service sales increased by 7.1% and sales in backing pumps rose by 9.3%. On the other hand, there was a decline by € 1.5 million in net sales of vacuum systems. In the first quarter of 2005 we delivered in the segment Europe a major order for a coating system. In 2006 we did not have adequate sales in this product group.

Order Intake and Order Backlog

Our order intake increased from € 41.4 million in the first three months of 2005 by € 3.7 million to € 45.1 million in 2006. New orders in our core product, turbopumps, advanced by € 1.4 million responding 37.8% of the total increase. In addition, new orders for our backing pumps increased by € 0.5 million, or 9.1%, from € 5.5 million to € 6.0 million. Service orders increased sligthly from € 5.8 million in 2005 to € 5.9 million, while new orders in connection with systems likewise grow moderately by € 0.1 million. The book-to-bill ratio, the quotient of new orders and sales, thus stood at 103% on March 31, 2006.

Our order backlog increased by € 0.8 million, from € 30.1 million at March 31, 2005 to € 30.9 million at March 31, 2006. This 2.7% increase was predominantly attributable to the higher level of orders on hand for turbopumps, which rose by € 0.7 million from € 16.5 million to € 17.2 million. Order backlog in systems advanced by € 0.3 million to € 3.3 million, orders on hand in vacuum components and instruments which accounted for € 3.5 million were flat to the prior year amounts. Order backlog in service declined sligthly by € 0.1 million.

Contracts are only recorded as orders when they are based upon binding contracts. The value of orders on hand should not be used to predict future sales and order volumes.

Cost of Sales and Gross Profit

Our total cost of sales increased from € 20.1 million in the three month period 2005 to € 21.6 million in 2006. This increase by € 1.5 million is primarily due to our significantly raised sales. As a result of the product mix and the economies of scale, we could improve our gross profit from € 17.5 million in 2005 to € 22.1 million in 2006. Our gross margin (gross profit as percentage of sales) enhanced from 46.6% in 2005 to 50.5% in 2006.

Permanent cost management in the production aligned with keeping our commodity prices for e.g. cast iron, stainless steel and aluminum at a virtually constant level, enables us to leverage our cost of sales.

Page 8

The Pfeiffer Vacuum Group’s Business and Position

Selling and Marketing Expenses

Selling and marketing expenses totaled € 6.0 million as of March 31, 2006, as opposed to € 4.6 million for the corresponding period the year before. Our selling and marketing expenses increased by € 1.4 million as a result of various marketing measures. Our goal is to expand our market share and to withdraw the competitive price pressure. Relative to sales, the ratio increased from 12.1% in the first quarter of 2005 to 13.7 % in 2006.

General and Administrative Expenses

In the first three months of 2006, our general and administrative expenses amounted to € 3.9 million and increased from € 3.0 million in the comparable prior year’s period. This increase by € 0.9 million is partly due to expenses related to the adoption of SOA 404 at end of the fiscal year 2006 and additional personnel cost. Relative to sales, the ratio increased from 8.0% to 8.9%.

Research and Development Expenses

Research and development expenses decreased sligthly from € 1.8 million in the three month period 2005 to € 1.7 million in 2006. As percentage of sales our research and development expenses declined from 4.7% to 3.8%, due to the significantly increased sales.

We will maintain the percentage of expenses allocated for research and development at a high level. We are dependent upon maintaining our technological edge in designing and manufacturing vacuum pumps, and invest in order to be able to continue to sustain our position on the world market, to expand our market shares and to open up new markets. All expenditures for research and development are expensed as they are incurred.

Operating Profit

During the first three months of 2006, our operating profit rose sharply from € 8.2 million to € 10.5 million, representing growth of € 2.3 million or 29.3%. The ratio between operating profit and sales, totaled 24.1% in the first quarter of 2006 compared to 21.7% in the first quarter of 2005.

Page 9

The Pfeiffer Vacuum Group’s Business and Position

Financial Income

Financial income comprises interest expense, interest income and exchange rate gains or losses. At March 31, 2006, our interest income offset by the interest expense amounted to € 0.3 million as opposed to € 0.2 million in the prior year’s period. Our foreign exchange gain in the first quarter of 2005 amounting to € 0.4 million turned to a loss in 2006 of € 0.3 million, primarily due to the stengthened U.S. dollar against the Euro.

Income Taxes

Our income tax rate totaled 39.0% in the three month period ended March 31, 2006 and 39.9% in 2005.

Income from Continuing and Discontinued Operations and Net Income

In fiscal year 2005 we recorded losses from discontinued operations (see Note 5 “Discontinued operations” to our Notes to the Interim Financial Statements). These discontinued operations resulted in the first quarter of 2005 in a loss of € 0.3 million; the net income of 2006 was not burdend with any expenses due to these discontinued operations. Additionally, we do not expect any charges in future periods.

Income from continuing operations totaled € 6.4 million at March 31, 2006 and € 5.3 million at March 31, 2005. This represents an improvement of € 1.1 million, or 21.6%, over March 2005.

Net income increased 30.0% from € 4.9 million in 2005 to € 6.4 million in 2006.

Financial Position

The financial position of the Pfeiffer Vacuum Group continues to be characterized by cash and cash equivalents on the assets side of the balance sheet and by shareholders’ equity on the opposite side. Our balance sheet total on March 31, 2006, increased by € 7.6 million or 5.5%, in comparison with December 31, 2005. On the liability side of the balance sheet, this increase was especially attributable to the € 6.3 million, or 5.6%, rise in shareholders’ equity. Our equity ratio stood at 81.2%, representing a further improvement from its high level of 81.1% in 2005. Our shareholders’ equity continues to enable us to finance our investments and operations without having to resort to bank debt.

Page 10

The Pfeiffer Vacuum Group’s Business and Position

On the asset side, the increase in the balance sheet total was predominantly attributable to the € 4.5 million increase in cash and cash equivalents to € 66.2 million, as well as the € 2.1 million increase in our inventories. The cash flow statement shows the development of liquid assets.

Cash Flow

Further on, we are able to generate required cash from operating activities to financing our day-to-day business and investment projects.

Cash flow from operating activities totaled € 5.2 million for the first three months of 2006 and represents an increase of € 2.0 million from the € 3.2 million total for the comparable period in 2005. The increase of our inventories led to cash usage of approximately € 2.2 million, offset by an increase in trade payables of approximately € 0.6 million (cash provided). In the first quarter of 2006 we paid income tax liabilities and received income tax claims. Our trade accounts receivable as of March 31, 2006 increased by approximately € 0.6 million, primarily due to higher net sales. Additionally, the increase in net income from continuing operations had a positive effect of approximately € 1.1 million at the cash flow provided by operating activities.

Net cash used by investing activities totaled € 0.5 million for the first three months of the year 2006 compared to € 3.6 million for 2005. In the first quarter of 2005 we purchased investment securities amounting to € 3.0 million.

Workforce

As of March 31, 2006, the Company employed a workforce of 687 people, 507 of them in Germany and 180 in other countries.

Workforce



	Germany				Other Countries
	March 31,
	2006		2005		2006		2005

Manufacturing		271		276		53		58
Research and Development		75		79		—		—
Sales and Marketing		103		98		98		96
Administration		58		55		29		29

Total		507		508		180		183

Workforce decreased sligthly by 0.6 % as compared to March 31, 2005.

After 19 employees as of March 31, 2005 no employees were engaged in discontinued operations on March 31, 2006.

Page 11

The Pfeiffer Vacuum Group’s Business and Position

Risk Report

During the first three months of the 2006 fiscal year, there were no changes in the risks as described in our Annual Report (Geschäftsbericht) and our Annual Report on Form 20-F for the year ended December 31, 2005. Both reports are available on our homepage at www.pfeiffer-vacuum.net.

Major Events in Fiscal 2006

Since the beginning of the 2006 fiscal year, there have not been any significant changes in the Company’s position or the industry environment.

Outlook

The forecast for the world economic growth in 2006 is still very low. We estimate that sales growth in the vacuum industry in 2006 will be the same as in the past fiscal year. Given our orders on hand and rising customer demand, we anticipate that our sales will grow faster than the market in 2006.

Nevertheless, we cannot exclude negative impacts – due to the US dollar exchange rate or significant increases in commodity prices – in the next few months.

Overall, we assume that along with constantly growing sales our profitability will remain in line with the last years or slightly improve.

Page 12

Interim Financial Statements

Consolidated Statements of Income (unaudited)



	Three months ended March 31,
In K €	2006			2005

Net sales		43,662			37,588
Cost of sales		(21,599	)		(20,091	)
Gross profit		22,063			17,497



Selling and marketing expenses		(5,994	)		(4,554	)
General and administrative expenses		(3,868	)		(3,015	)
Research and development expenses		(1,661	)		(1,776	)
Operating profit		10,540			8,152



Interest expense		(72	)		(8	)
Interest income		381			176
Foreign exchange (loss) gain		(273	)		445
Income from continuing operations before income taxes and minority interests		10,576			8,765



Income taxes		(4,124	)		(3,494	)
Minority interests		(45	)		—



Income from continuing operations, net of tax		6,407			5,271



Loss from discontinued operations, net of tax		—			(343	)



Net income		6,407			4,928



Earnings per ordinary share and ADR (in €)
From continuing operations, basic		0.74			0.61
From discontinued operations, basic		—			(0.04	)

Total, basic		0.74			0.57

From continuing operations, diluted		0.73			0.61
From discontinued operations, diluted		—			(0.04	)

Total, diluted		0.73			0.57

See accompanying notes to the interim financial statements.

Page 13

Interim Financial Statements

Consolidated Balance Sheets (unaudited)



	March 31,			December 31,
In K €	2006			2005

Assets
Cash and cash equivalents		66,187			61,651
Trade accounts receivable		23,124			22,481
Other accounts receivable		2,069			1,259
Inventories		15,874			13,747
Investment securities		3,000			3,000
Prepaid expenses		1,019			872
Deferred tax assets		993			1,124
Other current assets		105			334

Total current assets		112,371			104,468



Intangible assets		509			487
Property, plant and equipment		22,092			22,394
Investment securities		6,000			6,000
Deferred tax assets		4,548			4,563
Other assets		938			912

Total non-current assets		34,087			34,356



Total assets		146,458			138,824



Liabilities and shareholders’ equity
Trade accounts payable		3,825			3,184
Other payables		3,382			2,659
Accrued liabilities		9,732			9,640
Income tax liabilities		3,414			3,938
Customer deposits		1,180			1,375

Total current liabilities		21,533			20,796



Convertible bonds		461			461
Accrued pension		4,882			4,382
Minority interests		603			554

Total non-current liabilities		5,946			5,397



Shareholders’ equity
Share capital (13,459,350 no par value ordinary shares authorized, 8,790,600 issued and 8,690,524 outstanding at March 31, 2006 and at December 31, 2005)		22,504			22,504
Additional paid-in capital		2,937			2,821
Retained earnings		100,590			94,183
Accumulated other comprehensive loss		(4,614	)		(4,439	)
Treasury stock, at cost (100,076 ordinary shares)		(2,438	)		(2,438	)

Total shareholders’ equity		118,979			112,631



Total liabilities and shareholders’ equity		146,458			138,824

See accompanying notes to the interim financial statements.

Page 14

Interim Financial Statements

Consolidated Statements of Shareholders’ Equity (unaudited)



								Accumulated Other
								Comprehensive Income/Loss
			Additional					Minimum			Cumulative			Unrealized						Total
	Share		paid-in		Retained			pension			translation			gain/(loss)			Treasury			shareholders’
In K €	capital		capital		earnings			liability			adjustment			on hedges			stock			equity

Balance at January 1, 2004		22,504		2,821		73,713			(64	)		(2,049	)		550			(2,438	)		95,037
Dividends paid						(6,083	)														(6,083	)
Net income						11,626															11,626
Components of other comprehensive income - net of tax of € 294 -									(100	)		(765	)		(360	)					(1,225	)

Total comprehensive income																					10,401

Balance at December 31, 2004		22,504		2,821		79,256			(164	)		(2,814	)		190			(2,438	)		99,355

Dividends paid						(7,821	)														(7,821	)
Net income						22,748															22,748
Components of other comprehensive income - net of tax of € 2,429 -									(3,592	)		2,327			(386	)					(1,651	)

Total comprehensive income																					21,097

Balance at December 31, 2005		22,504		2,821		94,183			(3,756	)		(487	)		(196	)		(2,438	)		112,631

Compensation expenses convertible bonds				116																	116
Net income						6,407															6,407
Components of other comprehensive income - net of tax of € (130) -									—			(387	)		212						(175	)

Total comprehensive income																					6,232

Balance at March 31, 2005		22,504		2,937		100,590			(3,756	)		(874	)		16			(2,438	)		118,979

See accompanying notes to the interim financial statements.

Page 15

Interim Financial Statements

Consolidated Statements of Cash Flows (unaudited)



	Three months ended March 31,
In K €	2006			2005

Cash flow from operating activities:
Income from continuing operations		6,407			5,271
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		761			748
Gain on disposal of fixed assets		(8	)		(22	)
Change in deferred taxes		12			5
Provision for doubtful accounts		11			90
Non-cash compensation expense (convertible bonds)		116			—
Other-non cash income and expenses		45			—
Changes in net cash from discontinued operations		—			(690	)
Effects of changes in operating assets and liabilities:
Inventories		(2,174	)		(22	)
Receivables and other assets		(1,527	)		38
Accrued pension liabilities		519			252
Accrued liabilities, including income tax liabilities		(412	)		(3,161	)
Payables, other liabilities		1,497			693
Net cash provided by operating activities		5,247			3,202



Cash flow from investing activities:
Proceeds from disposals of fixed assets		8			26
Proceeds from disposals of discontinued operations		—			20
Capital expenditures from continuing operations		(487	)		(612	)
Purchase of investment securities		—			(3,000	)
Net cash used in investing activities		(479	)		(3,566	)



Effects of foreign exchange rate changes on cash and cash equivalents		(232	)		664

Net increase in cash and cash equivalents		4,536			300


Cash and cash equivalents at beginning of period		61,651			44,986


Cash and cash equivalents at end of period		66,187			45,286


Non-cash transactions:
Repayments of convertible bonds and employee loans		—			(26	)

See accompanying notes to the interim financial statements.

Page 16

Notes to the Interim Financial Statements (unaudited)

1. The Company and Basis of Presentation

Pfeiffer Vacuum is a full-line manufacturer in the vacuum technology business offering ~~solutions~~ solutions for a variety of customer applications relating to the generation, control and measurement of vacuum. The products developed and manufactured at ~~the~~its production facility in Asslar, Germany, include turbomolecular pumps, a range of backing pumps, such as rotary vane, Roots and dry pumps, complete pumping stations as well as customized vacuum systems, vacuum components and instruments.

Pfeiffer Vacuum distributes its products through a network of its own sales offices and subsidiaries as well as independent marketing agents. Moreover, there are service support centers in most major industrial locations throughout the world. The Company’s primary markets are located in Europe, the United States and Asia.

The Consolidated Financial Statements of Pfeiffer Vacuum Technology AG and its subsidiaries (“the Company” or “Pfeiffer Vacuum”) have been prepared in accordance with United States Generally Accepted Accounting Principles (U.S. GAAP). The interim financial statements reflect all adjustments (consisting only of normal recurring adjustments) which are necessary for a fair presentation of the financial position, results of operations and cash flows of the Company. For further information, refer to the consolidated financial statements and footnotes thereto included in the Pfeiffer Vacuum Technology AG Annual Report (Geschäftsbericht) and the Annual Report on Form 20-F for the year ended December 31, 2005, both available at the Company’s homepage (www.pfeiffer-vacuum.net).

Pfeiffer Vacuum presents its Consolidated Financial Statements in euros (€).

2. Summary of Significant Accounting Policies

Consolidation Principles

All companies which Pfeiffer Vacuum Technology AG directly or indirectly controls are consolidated. The Company is considered to control an entity if it either directly or indirectly holds a majority of the voting rights and can therefore exercise a controlling influence.

All material intercompany gains and losses, receivables, liabilities, revenues and expenses are eliminated as part of the consolidation process.

Page 17

Notes to the Interim Financial Statements (unaudited)

Use of Estimates

The preparation of the Consolidated Financial Statements requires management to make estimates and assumptions that affect the amounts of assets and liabilities on the date of the financial statements and the reported amounts of revenues and expenses during the reporting period that are reported in the financial statements and accompanying notes. These estimates and assumptions could differ from the actual results.

Components of ~~operating~~Operating ~~expenses~~Expenses

Cost of sales include all expenses that are related to the sold product or service in a direct or or indirect manner, for example, material consumption (including inbound freight charges), ~~production~~ production related wages and salaries, purchasing and receiving costs, inspection costs, warehousing costs and certain service costs. Inventory excess and obsolescence charges are also recorded in cost of sales as well as warranty related expenses. Selling and marketing expenses mainly include wages and salaries, costs for marketing and advertising and costs related to trade fairs and conventions as well as other merchandising costs (including catalogs, brochures, etc.). General and administrative expenses predominantly include wages and salaries, allowance for doubtful accounts, audit and other general consulting fees and other costs that relate to the ~~company~~ Company as a whole (e.~~g., IT consulting).~~

PFEIFFER VACUUM TECHNOLOGY AG NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Reclassifications

Certain prior-year amounts have been reclassified to provide comparability with the presentation of the current year financial statements.

Foreign Currency Translation

The financial statements of the Company’s foreign subsidiaries have been translated into euros (€) in accordance with Statement of Financial Accounting Standards (“SFAS”) No. 52, “Foreign Currency Translation”. The functional currency of all of the Company’s foreign subsidiaries is the applicable local currency in which that entity conducts its business. When translating foreign functional currency financial statements, year-end exchange rates are applied to the assets and liabilities, while average annual exchange rates are applied to income statement accounts. The resulting translation adjustments are recorded as accumulated other comprehensive income (loss).

Page 18

Notes to the Interim Financial Statements (unaudited)

3. New U.S. Legislation and Accounting Rules

As a result of the Company’s listing at New York Stock Exchange, it is subject not only to the provisions of German law (corporation, codetermination and capital market legislation) and of its own Articles of Association but also to the licensing requirements of the New York Stock Exchange. American capital market legislation —– specifically the Sarbanes-Oxley Act and the rules and regulations of the Securities and Exchange Commission (“SEC”) —– also apply to Pfeiffer Vacuum.

4. ~~Restructuring~~ Stock-based Compensation – Adoption of SFAS 123R

In ~~July 2002,~~order ~~the~~to ~~FASB~~allow ~~issued~~its ~~SFAS~~employees ~~No. 146,~~to ~~“Accounting~~participate ~~for~~in ~~Costs~~the ~~Associated~~future ~~with~~growth ~~Exit~~and ~~or Disposal~~development ~~Activities.”~~of ~~This~~Pfeiffer Vacuum ~~Standard~~Technology ~~requires~~AG ~~that~~and aits ~~liability~~subsidiaries, ~~for~~the ~~costs~~Company ~~associated~~established ~~with~~a ~~exit~~convertible orbond arrangement ~~disposal~~also ~~activities~~known beas ~~recognized in~~ the ~~period~~employee inparticipation ~~which~~program ~~the~~implemented ~~costs~~on ~~are~~July 7, ~~incurred~~2002 ifand arunning ~~reasonable~~through ~~estimate of fair value can be made~~2007.

~~During~~The ~~the~~purpose ~~third quarter~~ of ~~2004~~this ~~and~~employee ~~after~~participation ~~other~~program ~~cost~~is ~~reduction~~to ~~measures~~provide ~~proved~~compensation ~~ineffective,~~and motivate the ~~Company~~management ~~entered~~and ~~into~~some akey ~~plan of termination which impacted~~ employees inby ~~the~~providing ~~DVD~~them ~~business. This business deals~~ with ~~development~~an ~~and~~opportunity ~~production of manufacturing lines for digital versatile discs and falls within the operating segment Germany. Due~~ to ~~the~~share ~~German~~in ~~Works Council Constitution Act (Betriebsverfassungsgesetz)~~ the Company ~~must reach and reached an agreement with its workers~~’s ~~council~~stock ~~regarding~~price ~~the provisions of the one-time termination benefits for 51 employees~~development. ~~This~~ agreement included the date of termination of each employment contract, amounts of termination payments and the payment date. The accrued amount includes only the severance payment and not regular salaries which are paid out during the minimum retention period and reflected as period costs. An employee will receive severance regardless of whether such employee remains with the Company for the minimum retention period.

~~The~~In ~~redundancy~~prior ~~plan~~years, ~~was~~when ~~approved~~stock byoption ~~the~~plans ~~management,~~were ~~having~~not ~~the~~allowed ~~corresponding~~under ~~authority~~German tolaw, dothe ~~so,~~use of convertible ~~the~~bonds ~~employees~~was tocommon bepractice ~~terminated,~~among ~~their~~German ~~function~~public ~~and~~companies. ~~their~~Pfeiffer ~~location~~Vacuum’s ~~were~~employee ~~identified~~participation program utilizes convertible bonds in lieu of stock options. Under this ~~plan~~program, the Company ~~each~~provides ~~dismissed~~an employee ~~was~~a ~~able~~loan to ~~calculate~~purchase ~~their~~a ~~individual~~Company-issued ~~indemnity~~convertible bybond. ~~using~~The ~~the~~loan ~~formula~~and ~~set~~the nominal upvalue inof the ~~plan~~convertible ~~(depending~~bond onare ~~age,~~equal ~~seniority~~to each other (and ~~salary~~to what would be the exercise price in the case of a stock option), and itthe ~~was~~interest ~~and~~rate on the loan is ~~still~~equal ~~unlikely~~to ~~that~~the interest rate on the ~~significant~~convertible ~~changes~~bond. Accordingly, there is no out-of-pocket cost to the ~~plan~~Company ~~will~~or beto ~~made~~the employee for either the loan or ~~that~~the convertible bond (as in the ~~plan~~case ~~will~~of a stock option). The employee may then exercise her/his right to convert the bond to Company stock (equivalent to the exercise of a stock option) by repaying the loan to the Company for the nominal value of the convertible bond (which is equal to what would be ~~withdrawn~~the exercise price in the case of a stock option).

~~The~~Within ~~total amount expensed in~~ the ~~third~~scope ~~quarter~~ of ~~2004 regarding~~ this ~~redundancy~~employee ~~plan~~participation ~~was approximately~~program, €on ~~1.2~~July ~~million.~~7, ~~The~~2002, ~~accrued restructuring costs due to~~ the ~~redundancy~~Company ~~program~~issued ~~amounted~~4,600 toconvertible €bonds ~~0.9 million~~having atan ~~December 31,~~aggregate ~~2004~~principal ~~and~~amount ~~decreased~~of ~~to approximately~~ € 0.16 million atto ~~June 30, 2005,~~members asof ~~payments~~management and ~~were~~certain ~~made.~~salaried ~~The~~employees ~~remaining~~of ~~payment~~the ~~will~~Company be in ~~the~~Germany ~~third~~and ~~quarter~~other ~~2005~~countries.

8The conversion feature entitles the bearer to convert each bond into 50 no-par ordinary shares of Pfeiffer Vacuum. The conversion price is based upon 110% of the average closing price on the Frankfurt Stock Exchange for the last ten trading days prior to issuance. The conversion price for the July 2002 issue was set at € 42.86 per share.

Page 19

~~PFEIFFER~~Notes ~~VACUUM~~to ~~TECHNOLOGY~~the ~~AG NOTES~~Interim TOFinancial ~~THE~~Statements ~~CONSOLIDATED FINANCIAL STATEMENTS~~ (~~UNAUDITED~~unaudited)

There were 180,000 option shares, relating to the convertible bonds for the 2002 issue outstanding at March 31, 2006. Fair value at the date of grant was € 10.35 per ordinary share option. Each holder of convertible bonds could convert up to 30% of such bonds to ordinary shares subsequent to the Annual Shareholders’ Meeting in 2004, up to 60% following the Annual Shareholders’ Meeting in 2005 and can convert up to 100% following the Annual Shareholders’ Meeting in 2006. The final conversion date is December 9, 2007. Conversion is only possible during specific periods of time.

The convertible bonds bear interest at 6% p.a. and are redeemable at their principal amount on December 10, 2007, unless previously converted or called. The bonds may be called by the Company at their principal amount upon termination of employment. Employees were given the opportunity of financing the purchase of the convertible bonds through interest-bearing employee loans. These loans bear interest at the same fixed rate as the bonds, have identical terms, are classified as other non-current assets in the balance sheet and are repayable upon conversion of the bonds or if the bonds are called by the Company upon termination of employment.

There is a right of setoff for both, principal and interest between the loan and the bond. Employee loans granted under this program amounted to € 313,600 as of March 31, 2006.

Should the conversion right be exercised, interest on the converted convertible bonds shall cease to accrue at the day on which said conversion right was exercised. The shares of stock stemming from exercise of conversion rights shall participate in earnings from the beginning of the fiscal year in which said shares of stock were created through exercise of the conversion rights.

As of March 31, 2006, employees had forfeited 1,000 of these convertible bonds having an aggregate principal value of € 128,000 and repaid the corresponding employee loans. The Company did not recognize any compensation expense for the stock-based compensation awards in the years 2005, 2004 and 2003.

The fair value of each option grant was estimated on the date of grant using the Black-Scholes option pricing model, with the following assumptions being used for grants issued in 2002. The risk-free interest rate was 4.5%; expected term 4 years; expected dividend yield of 1%; and expected volatility 30%. Expected volitility was based on historical volitility. The risk-free rate is based on the average interest rate of German government bonds. Expected term represents the period of time that options are expected to be outstanding.

Page 20

Notes to the Interim Financial Statements (unaudited)

A summary of option shares related to the convertible bonds of the 2002 issue is as follows:

Shares Related to the Convertible Bonds



				Weighted Average
	Number of Shares			Exercise Price
	Outstanding			€ per Share

Convertible shares outstanding January 1, 2005		190,000			42.86
Granted		—			—
Exercised		—			—
Forfeited		(10,000	)		42.86
Convertible shares outstanding December 31, 2005		180,000			42.86
Granted		—			—
Exercised		—			—
Forfeited		—			—
Convertible shares outstanding March 31, 2006		180,000			42.86

108,000 option shares of this program were exercisable at March 31, 2006, 72,000 option shares are non-vested. In December 2004 the FASB issued SFAS 123 (revised 2004), “Share-Based Payments”) (“SFAS 123R”). At January 1, 2006, the Company adopted SFAS 123R, using the modified-prospective transition method. Pfeiffer Vacuum has a fixed plan (under the convertible debt arrangement) with the number of shares fixed at 230,000 and the exercise price fixed at € 42.86. The exercise price was greater than the quoted market price of the stock as it was based on 110% of the ten day average traded stock prior to the grant date plus € 2.56 (€ 128 face value of each bond divided by 50 shares).

All participants were employees within the consolidated Pfeiffer Vacuum Group as defined under common law. There have been no program modifications to date. In fact, despite partial vesting, no one has exercised options to date. There were € 232,876 of total unrecognized compensation costs. These costs are expected to be recognized in the first six months of the fiscal year 2006, as the four year vesting period ends in June 2006. Under the assumption, that there will be no forfeitures through the end of vesting period, the Company recorded in the first quarter of 2006 compensation expenses amounting to € 116.438. In its cash flow statements these expenses are disclosed in a separate line.

Under German tax law, expense related to share-based payment arrangements or specifically expense related to the intrinsic value of an instrument on a specified date is not tax deductible. Consequently, there were no deferred taxes recorded as part of SFAS 123R adoption.

Page 21

Notes to the Interim Financial Statements (unaudited)

5. Discontinued Operations

In ~~the~~spring ~~second quarter of~~ 2005, the ~~management~~Management ~~board~~Board committed to a plan to dispose of ~~this~~ the DVD business, having obtained ~~supervisory~~Supervisory ~~board~~Board approval as required in order to terminate this sideline activity. Beginning ~~with~~in ~~the second quarter of~~ 2005, the DVD business as part of the segment Germany is reflected as a discontinued operation. All prior period statements have been restated accordingly.

In April 2005 the Company sold by auction the fixed assets and the respective inventories of the manufacturing site in Aschaffenburg. The disposal of the fixed assets and the respective inventories resulted in a loss of approximately € 0.2 million.

Gains and losses of discontinued operations were as follows:

	Three months ended						Six months ended
	June 30,						June 30,
	2005			2004			2005			2004
	€ (in thousands)						€ (in thousands)
Loss from operations of DVD business before income tax benefit		(545	)		(1,477	)		(1,097	)		(2,985	)
Income tax benefit		207			559			416			1,130
Net loss from operations of DVD business		(338	)		(918	)		(681	)		(1,855	)
Loss on disposal before income tax benefit		(222	)		—			(222	)		—
Income tax benefit		84			—			84			—
Net loss on disposal		(138	)		—			(138	)		—
Total loss from discontinued operations before income tax benefit		(767	)		(1,477	)		(1,319	)		(2,985	)
Income tax benefit		291			559			500			1,130
Net total loss from discontinued operations		(476	)		(918	)		(819	)		(1,855	)

Gains and Losses

The Company expects that any future expenses due to the discontinued operations will not be material.



	Three months ended
	March 31,
In K €	2006		2005

Loss from operations of DVD business before income tax benefit		—		(552	)
Income tax benefit		—		209

Net total loss from discontinued operations		—		(343	)

The ~~assets~~Company ~~and~~expects ~~liabilities~~no offuture ~~the~~expenses ~~discontinued~~due ~~operations~~to ~~were~~these asdiscontinued ~~follows:~~operations.

	June 30,		December 31,
	2005		2004
	€ in thousands
Assets
Cash and cash equivalents		8		—
Trade accounts receivable and other receivables		42		6
Inventories — net		215		911
Intangible and fixed assets		—		602
Total current assets		265		1,519
Liabilities
Trade accounts payable and other payables		186		1,060
Accrued other liabilities		115		126
Total current liabilities		301		1,186

On March 31, 2006 and December 31, 2005 no assets or liabilities from discontinued operations were existent.

PFEIFFER VACUUM TECHNOLOGY AG NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

6. Inventories

Inventories are stated at the lower of cost or market. Cost is determined using the first-in, first-out method.

Inventories consist of the following:

	June 30,		December 31,
	2005		2004
	(€ in thousands)
Raw materials		4,098		4,218
Work-in-process		4,433		4,241
Finished products		6,643		5,495
Total inventories		15,174		13,954

Inventories



	March 31,			December 31,
In K €	2006			2005

Raw materials		5,275			5,441
Work-in-process		5,365			3,989
Finished products		8,788			7,773
Reserves		(3,554	)		(3,456	)

Total inventories		15,874			13,747

The Company’s positive order situation connected with a high plant utilization led to increased inventories in work-in-process as well as in finished products. Inventories are stated at the lower of cost or market.

Page 22

Notes to the Interim Financial Statements (unaudited)

7. Investment Securities

The Company holds investment securities amounting to € 49.0 million, which will be held until final maturity and are consequently valued at carrying cost of acquisition. Compared to December 31, 2005, there were no changes in the first quarter of 2006.

~~Within the second quarter of 2005, the issuer executed the right to repay the investment security amounting to € 9~~8.~~0 million~~ ~~before~~Earnings ~~original~~per ~~maturity~~Ordinary ~~according~~and toDiluted ~~the~~Share ~~notes of the investment. Interest income amounting to € 144,000 for the six month ended June 30, 2005 was paid by the issuer~~ and ~~included in the Company’s interest income of 2005.~~ADR

~~8. Stock-Based~~The ~~Compensation~~following —table ~~Convertible~~sets ~~Bonds~~forth the computation of basic and diluted earnings per share and ADR from continuing operations:

AsEarnings ~~permitted~~per ~~under~~Ordinary ~~SFAS~~and ~~No. 123,~~Diluted ~~“Accounting~~Share ~~for~~and ~~Stock-Based~~ADR Compensation,” as amended, the Company applies the intrinsic value-based method in accordance with APB Opinion No. 25 for its stock-based compensation plans. Under APB No. 25 “Accounting for Stock Issued to Employees,” compensation expense is recorded on the measurement date only if the current market price of the underlying stock exceeds the exercise price.

As of June 30, 2005, employees had returned 3,000 of these convertible bonds having an aggregate principal value of € 384,000 and repaid the corresponding employee loans.



	Three months ended
	March 31,
	2006		2005

Numerator:
Net income from continuing operations (in thousands €)		6,407		5,271

Denominator:
Denominator for basic earnings per share — weighted-average shares		8,690,524		8,690,524

Effect of dilutive securities:
Convertible bonds		31,352		—

Denominator for diluted earnings per share — adjusted weighted average shares and assumed conversions		8,721,876		8,690,524


Earnings per share and ADR from continuing operations (in €)
Basic		0.74		0.61
Diluted		0.73		(0.04	)

~~Accounting~~9. ~~for~~Pension ~~Stock~~Benefits ~~Based~~and ~~Compensation~~Similar Obligations

AMost ~~summary~~employees of ~~option~~the ~~shares~~Company ~~related~~are entitled to receive pension benefits from Pfeiffer Vacuum, which are covered by defined benefit plans. Plan assets for the ~~convertible~~German ~~bonds~~Pension Plans are held in the Pfeiffer Vacuum Trust e. V. (“the Trust”), a registered association. It is an independent, bankruptcy-protected, separate legal entity whose sole purpose is to act in a fiduciary capacity as trustee ~~follows:~~for the assets held. The trust has invested this cash in a mutual fund managed by an unrelated third party that pursues a target allocation of 30 % in equities and 70 % in fixed-income securities and cash.

	Number of			Weighted Average
	Shares			Exercise Price
	Outstanding			per Share
				€
Convertible shares outstanding January 1, 2004		330,000			44.74
Granted		—			—
Exercised		—			—
Forfeited		(20,000	)		42.86
Convertible shares outstanding December 31, 2004		310,000			44.86
Granted		—			—
Exercised		—			—
Forfeited		(10,000	)		42.86
Convertible shares outstanding June 30, 2005		300,000			44.93

Page 23

~~PFEIFFER~~Notes ~~VACUUM~~to ~~TECHNOLOGY~~the ~~AG NOTES~~Interim TOFinancial ~~THE~~Statements ~~CONSOLIDATED FINANCIAL STATEMENTS~~ (~~UNAUDITED~~unaudited)

Shares exercisable at June 30, 2005 totaled 228,000. The fair value of each option grant is estimated on the date of grant using the Black-Scholes option pricing model with the following assumptions used for grants in 2002 and 2000: Risk-free interest rates ranging from 4% to 5%; expected lives ranging from 4.5 to 6 years; expected dividend yield of 1% to 2%; and expected volatility ranging from 30% to 40%.

SFAS 123 requires disclosure of pro forma information regarding net income and earnings per share as if the Company had accounted for its stock-based compensation to employees using the fair value method. For pro forma purposes, using the fair value method the Company’s net income from continuing operations would have been K€ 10,901 and the respective earnings per share would have been € 1.25 and net loss from discontinued operations would have been K€ 1.035 and the respective earnings per share would have been € (0.12) for the six months ended June 30, 2005. For the three months ended June 30, 2005 the proforma net income from continuing operations would have been K€ 5,738 and the respective earnings per share would have been € 0.66, the net loss from discontinued operations would have been K€ 584 and the respective earnings per share would have been € (0.07).

9. Earnings per Ordinary and Diluted Share and ADR

The following table sets forth the computation of basic and diluted earnings per share and ADR:

	Three months ended						Six months ended
	June 30,						June 30,
	2005			2004			2005			2004
Numerator:
Income from continuing operations (in thousands €)		5,846			5,301			11,117			10,401
Loss on discontinued operations (in thousands €)		(476	)		(918	)		(819	)		(1,855	)
Net income (in thousands €)		5,370			4,383			10,298			8,546
Denominator:
Denominator for basic earnings per share — weighted-average shares		8,690,524			8,690,524			8,690,524			8,690,524
Effect of dilutive securities:
Convertible bonds		—			—			—			—
Denominator for diluted earnings per share — adjusted weighted average shares and assumed conversions		8,690,524			8,690,524			8,690,524			8,690,524
Basic earnings per share and ADR from:
Continuing operations (€)		0.67			0.61			1.28			1.20
Discontinued operations (€)		(0.05	)		(0.11	)		(0.10	)		(0.22	)
Net		0.62			0.50			1.18			0.98
Diluted earnings per share and ADR from:
Continuing operations (€)		0.67			0.61			1.28			1.20
Discontinued operations (€)		(0.05	)		(0.11	)		(0.10	)		(0.22	)
Net		0.62			0.50			1.18			0.98

PFEIFFER VACUUM TECHNOLOGY AG NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

10. Share Ownership

The following table shows (known to the Company) the number of Ordinary Shares, ADR and Convertible Bonds of the Company as of June 30, 2005 owned by all members of the Supervisory Board and the Management Board:

	Ordinary				Convertible
Members of the Supervisory Board	Shares		ADRs		Bonds
Dr. Michael Oltmanns		100		0		0
Michael J. Anderson		0		0		0
Prof. Dr. Klaus Jürgen Kügler		0		0		0
Götz Timmerbeil		0		0		0
Edgar Keller		0		0		0
Günter Schneider		80		0		0

	Ordinary				Convertible
Members of the Management Board	Shares		ADRs		Bonds
Wolfgang Dondorf		34,100		200		0
Manfred Bender		140		0		750

11. Employees

As of June 30, 2005 the Company employed 694 people, of which 511 are in Germany and 183 in other countries.

Headcount

	June 30,
	2005		2004		2005		2004
	Germany				Other Countries
Production		277		298		56		57
Research and Development		79		95		—		—
Selling and Marketing		101		104		96		93
Administration		54		65		31		35
Total		511		562		183		185

The Company’s manpower dropped in Germany by 9.1% primarily due to its withdrawal from DVD business. The above figures for the German production group as of June 30, 2005 contain three remaining employees from the discontinued DVD business.

12. Pension Benefits and Similar Obligations

Most employees of the Company are entitled to receive pension benefits from Pfeiffer Vacuum, which are covered by defined benefit plans. Plan assets for the German Pension Plans are held in the Pfeiffer Vacuum Trust e.V. (“the Trust”), a registered association. It is an independent, bankruptcy-protected, separate legal entity whose sole purpose is to act in a fiduciary capacity as trustee for the assets held. Contributions for the year 2004 totaled K€ 836. The trust has invested this cash in a mutual fund managed by an unrelated third party that pursues a target allocation of 30% in equities and 70% in fixed-income securities and cash.

PFEIFFER VACUUM TECHNOLOGY AG NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Pension expense for all plans included the following components:

	Three months ended						Six months ended
	June 30,						June 30,
	2005			2004			2005			2004
	(€ in thousands)
Service cost		252			221			502			441
Interest cost		551			516			1,101			1,032
Expected return on assets		(545	)		(501	)		(1,089	)		(1,002	)
Amortization of:
unrecognized net actuarial (gains) losses		38			3			76			7
unrecognized prior service cost		18			19			37			38
unrecognized net obligation		6			—			12			—
Net pension cost		320			258			639			516

Pension Expense for All Plans

In March 2005, the Company contributed approximately € 0.8 million to the Pfeiffer Vacuum Trust e.V. as plan assets for its German based early retirement obligation. Analog to the pension plan presentation, Pfeiffer Vacuum offsets these designated assets against the early retirement obligation in the liabilities section of the consolidated financial statements.



	Three months ended
	March 31,
In K €	2006			2005

Service cost		295			251
Interest cost		557			550
Expected return on assets		(473	)		(544	)
Amortization of
unrecognized net actuarial (gains) losses		149			38
unrecognized prior service cost		17			18
unrecognized net obligation		6			6
Net pension cost		551			319

13The increase in pension expense is predominantly due to lower expected returns on assets and higher amortization for actuarial losses. ~~Warranty~~ Both factors are caused by the decreased interest rate level in fiscal 2005.

10. Warranty

Warranty accruals are established in the period the related revenue is recognized. The estimate is based on managements’ estimate and historical experience by specific product type.

Warranty provisions ~~consist~~developed ofas ~~the following~~follows:

	June 30,
	2005			2004
	(€ in thousands)
Balance at beginning of period		2,897			3,529
Warranties issued during the period		1,285			773
Utilization of accruals		(167	)		(88	)
Balance at end of period		4,015			4,214

Warranty Provisions

14. Segment Information



	Three months ended
	March 31,
In K €	2006			2005

Balance at beginning of period		2,887			2,897
Warranties issued during the period		349			244
Utilization of accruals		(217	)		(109	)
Balance at end of period		3,019			3,032

~~The~~11. ~~Company~~Segment ~~evaluates the success and performance of its subsidiaries on the basis of their~~Information ~~income before income tax.~~

The Company’s business activities include the development, manufacture, sale and service of vacuum pumps, vacuum components and instruments, as well as vacuum systems. The subsidiaries in the individual countries are independent legal entities with their own management. ~~Consequently,~~which distribute the ~~segment~~products ~~reporting~~and isprovide ~~country-based~~services. Accordingly, the Company identifies its operating segments geographically.

13Page 24

~~PFEIFFER~~Notes ~~VACUUM~~to ~~TECHNOLOGY~~the ~~AG NOTES~~Interim TOFinancial ~~THE~~Statements ~~CONSOLIDATED FINANCIAL STATEMENTS~~ (~~UNAUDITED~~unaudited)

Due to the similarity of their economic characteristics, including nature of products sold, type of customers, method of product distribution and economic environment, the Company aggregates its European subsidiaries outside Germany into one reportable segment, “Europe (excluding Germany).” The Company evaluates the success and performance of its subsidiaries on the basis of their income before income tax.

Information concerning the Company’s continuing operations by geographic locations is summarized as follows:

	Three months ended						Six months ended
	June 30,						June 30,
	2005			2004			2005			2004
	(€ in thousands)						(€ in thousands)
Net Sales
Germany
Unaffiliated		17,645			16,581			33,527			33,039
Intercompany		13,999			12,722			27,537			25,426
		31,644			29,303			61,064			58,465
Europe excluding Germany		12,287			11,630			25,586			22,974
United States		9,132			8,623			16,850			16,498
Rest of World		1,303			1,158			2,189			3,096
		54,366			50,714			105,689			101,033
Intercompany eliminations		(14,435	)		(12,898	)		(28,170	)		(25,750	)
Total		39,931			37,816			77,519			75,283
Operating profit
Germany		6,633			6,137			13,318			12,358
Europe excluding Germany		914			1,132			1,818			1,931
United States		877			542			1,193			1,115
Rest of World		353			157			501			424
		8,777			7,968			16,830			15,828
Intercompany eliminations		52			64			151			161
Total		8,829			8,032			16,981			15,989
Information concerning the Company’s discontinued operations by geographic locations is summarized as follows:
	Three months ended						Six months ended
	June 30,						June 30,
	2005			2004			2005			2004
	(€ in thousands)						(€ in thousands)
Net Sales
Germany
Unaffiliated		363			1,431			406			3,004
Intercompany		(12	)		2			(12	)		2
		351			1,433			394			3,006
Intercompany eliminations		12			(2	)		12			(2	)
Total		363			1,431			406			3,004
Operating profit
Germany		(812	)		(1,471	)		(1,363	)		(2,971	)
Intercompany eliminations		12			(2	)		12			(2	)
Total		(800	)		(1,473	)		(1,351	)		(2,973	)

Continuing Operations by Geographic Locations



	Three months ended
	March 31,
In K €	2006			2005

Net Sales
Germany
Unaffiliated		19,209			15,882
Intercompany		16,468			13,538

		35,677			29,420
Europe (excluding Germany)		12,555			13,299
United States		10,823			7,718
Asia		1,283			886
		60,338			51,323
Intercompany eliminations		(16,676	)		(13,735	)


Total net sales		43,662			37,588


Net Cost of Sales
Germany		(19,399	)		(16,844	)
Europe (excluding Germany)		(9,572	)		(10,641	)
United States		(8,558	)		(5,942	)
Asia		(754	)		(498	)
		(38,283	)		(33,925	)
Intercompany eliminations		16,684			13,834


Total cost of sales		(21,599	)		(20,091	)


Operating profit
Germany		8,622			6,685
Europe (excluding Germany)		1,096			904
United States		608			316
Asia		206			148
		10,532			8,053
Intercompany eliminations		8			99


Total operating profit		10,540			8,152

Page 25

~~PFEIFFER~~Notes ~~VACUUM~~to ~~TECHNOLOGY~~the ~~AG NOTES~~Interim TOFinancial ~~THE~~Statements ~~CONSOLIDATED FINANCIAL STATEMENTS~~ (~~UNAUDITED~~unaudited)

1512. Income Tax Expense

Under German corporate tax law, taxes on income are composed of corporate taxes, trade taxes and an additional surtax.

The Company’s effective tax rate of its continuing operations was 39.80 % for the first ~~six~~three months of ~~2005~~of 2006 and 4039.19 % for the first ~~six~~three months of ~~2004~~2005.

The tax rate used for calculation of the income tax benefit from discontinued operations was 37.9 % in ~~both,~~ the ~~six~~three month period ended ~~June~~March 3031, 2005 ~~and 2004, respectively~~.

15Page 26

~~PFEIFFER~~Additional ~~VACUUM TECHNOLOGY AG~~Information

~~MANAGEMENT’S~~Financial ~~DISCUSSION~~Calendar ~~AND ANALYSIS OF FINANCIAL CONDITION~~2006 ~~AND RESULTS OF OPERATIONS~~

~~Results~~• ofAnnual ~~Operations~~ Shareholders MeetingWednesday, May 31, 2006 • 2nd Quarter 2006 (1st Half Year) ResultsThursday, August 3, 2006 • 3rd Quarter 2006 (9-Months) ResultsTuesday, November 7, 2006

~~Three Months Ended June 30, 2005 Compared to Three Months Ended June 30, 2004~~Contacts ~~(Percentages calculated based on amounts in thousands €)~~

~~Since~~Investor ~~the~~Relations Gudrun ~~second~~Geissler Berliner ~~quarter~~Strasse of43 35614 ~~2005~~Asslar Germany Phone: +49 ~~the~~(0) 6441 ~~Company~~802-314 Fax: +49 ~~reported~~(0) 6441 ~~gains and losses from discontinued~~802-365 ~~operations~~Gudrun. ~~All prior periods amounts have been reclassified to provide comparability with the~~Geissler@pfeiffer-vacuum.de ~~presentation of the current year financial statements~~www.pfeiffer-vacuum.net

~~Net~~Public ~~Sales~~Relations Sabine Trylat Berliner Strasse 43 35614 Asslar Germany Phone: +49 (0) 6441 802-169 Fax: +49 (0) 6441 802-883 Presse@pfeiffer-vacuum.de www.pfeiffer-vacuum.net

~~The~~Page ~~following table summarizes the Company’s net sales by segment:~~27

	Three months ended
	June 30, 2005				June 30, 2004
	(€ in thousands)		%		(€ in thousands)		%
Net Sales from continuing operations
Germany		17,645		44.2		16,581		43.8
Europe excluding Germany		12,277		30.7		11,588		30.6
United States		9,130		22.9		8,620		22.8
Rest of World		879		2.2		1,027		2.8
		39,931		100.0		37,816		100.0

Discontinued operations:

	Three months ended
	June 30, 2005		June 30, 2004
	(€ in thousands)
Net Sales from discontinued operations
Germany		363		1,431

The Company’s total net sales from continuing operations amounted to € 39.9 million in the three months ended June 30, 2005 and increased by € 2.1 million or 5.6% from € 37.8 million in the previous year’s period. The segment Germany (German subsidiaries) increased its sales by € 1.1 million primarily due to increased demand of German customers in the second quarter of 2005 compared to the second quarter of 2004. The sales of the European subsidiaries increased by € 0.7 million. The revenues of the U.S. sales company increased in U.S. dollar by $1.1 million or 11.0%, but due to the weakness of the U.S. dollar against the euro the sales were adversely impacted by the effect of exchange rate differences amounting to approximately € 0.4 million. The sales of the Company’s DVD business, reported in discontinued operations (segment Germany), decreased by € 1.1 million.

Net sales revenue in the Company’s core product, the turbo pump, increased by € 1.6 million or 10.2% from € 15.5 million in the second quarter of 2004 to € 17.0 million in 2005. In fore vacuum pumps an increase by € 1.6 million or 40.4% was recorded, offset by decreased sales in vacuum system by € 1.1 million. Revenue in service decreased by € 0.3 million, sales in vacuum instruments and components increased by € 0.3 million.

The Company’s sales increase in the second quarter of the year 2005 compared to the second quarter of the year 2004 was mainly due to an increase in the volume of products slightly offset by an altered product mix.

PFEIFFER VACUUM TECHNOLOGY AG MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Additionally, for the readers convenience the Company summarized its net sales by geographical area in the following table. Net sales by geographical area include all sales within a particular area, regardless of which subsidiary realizes the revenues.

The Company’s net sales from continuing operations by geographical area are:

	Three months ended
	June 30, 2005				June 30, 2004
	(€ in thousands)		%		(€ in thousands)		%
Net Sales
Germany		10,944		27.4		9,865		26.1
Europe excluding Germany		12,263		30.7		13,079		34.6
United States		9,059		22.7		8,556		22.6
Asia		7,194		18.0		5,979		15.8
Rest of World		471		1.2		337		0.9
Total		39,931		100.0		37,816		100.0

The Company’s total net sales from continuing operations increased by € 2.1 million or 5.6% from € 37.8 million in the three months ended June 30, 2004 to € 39.9 million in the respective period of the current year. In the second quarter of 2005 sales in Germany increased by € 1.1 million and made up the sales decrease in Germany in the first quarter of 2005, offset by decreased sales in Europe (excluding Germany) by € 0.8 million. Sales in the U.S. increased by € 0.5 million despite the adversely effect of the weakness of the U.S. dollar against the euro amounting to approximately € 0.4 million. The Company’s efforts to expand its sales in the Asian region led to a sales increase of € 1.2 million or 20.3%. In the rest of world a small increase by € 0.1 million was realized.

Order intake and Order backlog

The order intake increased by € 2.5 million (6.4%) from € 39.1 million in the three month period ended June 30, 2004 to € 41.6 million in 2005. Orders in turbo pumps, the Company’s core product, recorded a significant increase by € 4.1 million or 29.7% from € 13.8 million in the second quarter of 2004 to € 17.9 million in 2005. Additionally, orders received in fore vacuum pumps increased by € 1.5 million or 33.3%, offset by decreased orders in vacuum systems amounting to € 1.8 million. Service orders declined slightly by € 0.3 million.

Order backlog increased by € 6.8 million from € 24.6 million at June 30, 2004 to € 31.4 million in June 30, 2005. The significant increases were recorded in turbo pumps by € 5.9 million or 51.3% and fore vacuum pumps by € 1.6 million or 48.5%. The Company considers its order intake and order backlog positions as an indication for a business development against the general economic trend.

Contracts are included in backlog only if they represent firm orders and include firm shipping schedules. The backlog position at any particular time should generally not be construed to represent future levels of sales and orders.

Gross Profit

The gross profit increased by € 1.0 million (5.4%) from € 17.6 million in the second quarter 2004 to € 18.6 million in 2005, primarily due to the higher sales revenues. The Company’s gross margin decreased slightly from 46.6% in 2004 to 46.5% in 2005.

PFEIFFER VACUUM TECHNOLOGY AG MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Selling and Marketing Expenses

Selling and marketing expenses increased from € 4.7 million in the three month ended June 30, 2004 to € 5.1 million in the respective period in 2005. As a percentage of sales, selling and marketing expenses increased from 12.5% in 2004 to 12.7% in 2005. The increased net sales revenue determined increasing selling and marketing expenses.

General and Administrative Expenses

General and administrative expenses amounted to € 3.0 million in both the second quarter of 2005 and 2004, due to the Company’s ongoing ability to manage all headquarter and subsidiary needs with a small staff. As a percentage of sales, general and administrative expenses decreased from 8.0% in 2004 to 7.6% in 2005, due to the higher net sales.

Research and Development

Research and development expenses decreased from € 1.8 million the three months ended June 30, 2004 to € 1.6 million in the same period of 2005. The percentage of sales was 4.1% in 2005 and 4.8% in 2004.

The Company continues to maintain a high ratio of research and development expenditures relative to total sales. Pfeiffer Vacuum depends on continuing technological advances in vacuum pump design and manufacturing and has invested in the needs of future markets, improving its market position and entering new markets. The Company expenses all research and development costs as they are incurred.

Operating Profit

Operating profit increased from € 8.0 million in the second quarter of 2004 to € 8.8 million in the second quarter of 2005. As a percentage of sales the operating profit increased from an already high level of 21.3% to 22.1%, primarily due to the Company’s cost reduction measures, implemented in past. Pfeiffer Vacuum intends to continue its worldwide cost management.

Interest Expense and Interest Income

The Company was subject to a tax audit by the German tax authorities for the years 1999 through 2002. The outcome of this tax audit led to supplementary tax payments, which bear interest expense of € 45,000. Interest income in the second quarter of 2005 amounted to € 0.4 million compared to € 0.6 million in the second quarter of 2004.

Foreign Exchange Gain

Foreign exchange gain in the second quarter of 2004 amounted to € 0.2 million and increased by € 0.4 million to € 0.6 million in the second quarter of 2005, primarily due to realized exchange gains in connection with payments received by the Company in U.S. dollars.

Income Tax Expense

The effective tax rate of the Company’s continuing operations for the three month period ended June 30, 2005 was 39.8% compared to 40.1% in the respective period of 2004.

The tax rate used for calculation of the income tax benefit from discontinued operations was 37.9% in both, the three month period ended June 30, 2005 and 2004, respectively.

PFEIFFER VACUUM TECHNOLOGY AG MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The Company was subject to a tax audit by the German tax authorities for the years 1999 through 2002. The outcome of this tax audit led to supplementary tax payments of approximately € 152,000, paid in the second quarter of 2005.

Net income

Net income from continuing operations increased by 10.3% from € 5.3 million in the second quarter of 2004 to € 5.8 million in the second quarter of 2005. Net loss from discontinued operations accounted for € 0.9 million in the respective period in 2004 and € 0.5 million in 2005.

Net income from continuing operations per ordinary share and ADR was € 0.67 both basic and diluted in the three months ended June 30, 2005 compared to € 0.61 both basic and diluted in the three months ended June 30, 2004. Net loss from discontinued operations per ordinary share and ADR amounted to € (0.05) basic and diluted in the second quarter of 2005 and € (0.11) in the prior year’s quarter.

PFEIFFER VACUUM TECHNOLOGY AG MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Results of Operations

Six Months Ended June 30, 2005 Compared to Six Months Ended June 30, 2004 (Percentages calculated based on amounts in thousands €)

Since the second quarter of 2005 the Company reported gains and losses from discontinued operations. All prior periods amounts have been reclassified to provide comparability with the presentation of the current year financial statements.

Net Sales

The following table summarizes the Company’s net sales by segment:

	Six months ended
	June 30, 2005				June 30, 2004
	(€ in thousands)		%		(€ in thousands)		%
Net Sales from continuing operations
Germany		33,527		43.3		33,039		43.9
Europe excluding Germany		25,541		32.9		22,919		30.4
United States		16,845		21.7		16,491		21.9
Rest of World		1,606		2.1		2,834		3.8
		77,519		100.0		75,283		100.0

Discontinued operations:

	Six months ended
	June 30, 2005		June 30, 2004
	(€ in thousands)
Net Sales from discontinued operations
Germany		406		3,004

The Company’s total net sales from continuing operations amounted to € 77.5 million in the six months ended June 30, 2005 and increased by € 2.2 million or 3.0% from € 75.3 million in the previous year’s period. The segment Germany (German subsidiaries) increased its sales by € 0.5 million, primarily due to increased demand of German customers in 2005 compared to 2004. The sales of the European subsidiaries increased by € 2.6 million or 11.4%. The revenues of the U.S. sales company increased in U.S. dollar by $1.4 million or 7.0%, but due to the weakness of the U.S. dollar against the euro the sales were adversely impacted by the effect of exchange rate differences amounting to approximately € 0.8 million. The sales subsidiaries in the Asian market (rest of World) recorded a sales decrease of € 1.2 million. The sales of the Company’s DVD business, reported in discontinued operations (segment Germany), decreased by € 2.6 million.

The major part of the net sales increase was recorded in fore vacuum pumps by € 2.1 million or 24.5% from € 8.5 million in the first six months of 2004 to € 10.5 million in 2005. In the Company’s core product, the turbo pump, only a small increase by € 0.3 million to € 31.5 million was realized. Sales in vacuum systems increased by € 0.8 million, offset by declining service sales by € 0.8 million.

The Company’s sales increase in the six months ended June 30, 2005 compared to the previous year’s period was mainly due to a more favorable product mix and a decrease in the volume of products.

PFEIFFER VACUUM TECHNOLOGY AG MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The Company’s net sales of continuing operations by geographical area are:

	Six months ended
	June 30, 2005				June 30, 2004
	(€ in thousands)		%		(€ in thousands)		%
Net Sales
Germany		20,479		26.4		20,433		27.1
Europe excluding Germany		26,144		33.7		24,869		33.0
United States		16,724		21.6		16,381		21.8
Asia		13,319		17.2		13,020		17.3
Rest of World		853		1.1		580		0.8
Total		77,519		100.0		75,283		100.0

The Company’s total net sales from continuing operations increased by € 2.2 million or 3.0% from € 75.3 million in the six months ended June 30, 2004 to € 77.5 million in the respective period of the current year. In the German market the sales revenue of the current year was about the same like in 2004. Sales in Europe increased by € 1.3 million or 5.1% from € 24.9 million in the first half-year of 2004 to € 26.1 million in 2005. Sales in the U.S. increased by € 0.3 million despite the adversely effect of the weakness of the U.S. dollar against the euro amounting to approximately € 0.8 million. In the Asian region a small sales increase of € 0.3 million or 2.3% and in the rest of world a slightly increase by € 0.3 million was realized. The Company’s efforts to expand its sales was successful in all regions.

Order intake and Order backlog

The order intake increased by € 4.5 million (5.7%) from € 78.5 million in the six month period ended June 30, 2004 to € 83.0 million in 2005. Orders in turbo pumps, the Company’s core product, recorded a significant increase by € 6.3 million or 20.7% from € 30.4 million in 2004 to € 36.7 million in 2005. This high order intake give hope for significant increased sales revenues in the future in this product group. Additionally, orders received in fore vacuum pumps increased by € 2.9 million or 33.7% from € 8.6 million to € 11.5 million, offset by decreased orders in vacuum systems amounting to € 1.8 million. Service orders declined by € 0.8 million.

Order backlog increased by € 6.8 million from € 24.6 million in 2004 to € 31.4 million in 2005. The significant increases were recorded in Turbo pumps by € 5.9 million or 51.3% and fore vacuum pumps by € 1.6 million or 48.5%. The Company considers its order intake and order backlog positions as an indication for a business development against the general economic trend.

Gross Profit

The gross profit increased by € 0.9 million (2.6%) from € 35.1 million in the first half-year of 2004 to € 36.1 million in 2005, primarily due to the higher sales revenues. The Company’s gross margin decreased slightly from 46.7% in 2004 to 46.5% in 2005.

PFEIFFER VACUUM TECHNOLOGY AG MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Selling and Marketing Expenses

Selling and marketing expenses increased from € 9.3 million in the six month ended June 30, 2004 to € 9.6 million in the respective period in 2005. As a percentage of sales, selling and marketing expenses were 12.4% in both periods 2004 and 2005. The increased net sales revenue determined increased selling and marketing expenses, but no change in the percentage of sales.

General and Administrative Expenses

General and administrative expenses amounted to € 6.5 million in the first half-year of 2004 and decreased to € 6.1 million in 2005, due to the Company’s ongoing ability to manage all headquarter and subsidiary needs with a small staff. As a percentage of sales, general and administrative expenses decreased from 8.6% in 2004 to 7.8% in 2005, primarily due to the higher net sales.

Research and Development

Research and development expenses amounted to € 3.4 million in both, the six months period ended June 30, 2004 and 2005. The percentage of sales was 4.4% in 2005 and 4.5% in 2004.

Operating Profit

Operating profit increased from € 16.0 million in the first half-year of 2004 to € 17.0 million in the respective period of 2005. As a percentage of sales the operating profit increased from an already high level of 21.2% to 21.9%.

The Company implemented in past a variety of cost reduction measures. Pfeiffer Vacuum intends to continue its worldwide cost management.

Interest Expense and Interest Income

The Company was subject to a tax audit by the German tax authorities for the years 1999 through 2002. The outcome of this tax audit led to supplementary tax payments, which bear interest expense of € 45,000. Interest income in 2005 amounted to € 0.6 million compared to € 0.7 million in 2004.

Foreign Exchange Gain

Foreign exchange gain in 2004 amounted to € 0.7 million and increased by € 0.3 million to € 1.0 million in 2005, primarily due to realized exchange gains adherent with payments received by the Company in U.S. dollars.

Income Tax Expense

The Company’s effective tax rate of its continuing operations was 39.8% for the first six months of 2005 and 40.1% for the first six months of 2004.

The tax rate used for calculation of the income tax benefit from discontinued operations was 37.9% in both, the six month period ended June 30, 2005 and 2004, respectively.

PFEIFFER VACUUM TECHNOLOGY AG MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Net income

Net income from continuing operations increased by 6.9% from € 10.4 million in 2004 to € 11.1 million in 2005. Net loss from discontinued operations accounted for € 1.9 million in the respective period in 2004 and € 0.8 million in 2005.

Net income from continuing operations per ordinary share and ADR was € 1.28 both, basic and diluted in the six months ended June 30, 2005 compared to € 1.20 both, basic and diluted in the six months ended June 30, 2004. Net loss from discontinued operations per ordinary share and ADR amounted to € (0.10) basic and diluted in the second quarter of 2005 and € (0.22) in the prior years period.

Liquidity and Capital Resources

The Company’s business continues to generate sufficient cash to fund its operations, including its working capital and capital expenditure requirements. In the six month period ended June 30, 2005, net cash provided by operating activities totaled € 9.5 million as compared to € 12.9 million for the same period in the prior year. The decrease in net cash provided by operating activities is due to increased trade accounts receivable (€ 3.2 million) as result of high sales in June which become due in the third quarter of 2005, paid staff bonuses and other accrued expenses (€ 2.3 million), offset by repayments of tax claims (€ 1.9 million).

The Company’s cash provided by investing activities amounted to € 4.5 million in the six months period ended June 30, 2005 and was due to the repayment of a current investment security amounting to € 9.0 million and the purchase of investment securities amounting to € 3.0 million. Additionally, the capital expenditures increased from € 0.8 million in 2004 to € 1.7 million in 2005.

In June 2005 the Company paid dividends to its shareholders for the year 2004 amounting to € 7,821,471.60. In June 2004 the payment for dividends for the year 2003 amounted to € 6,083,366.80, both recorded in the cash flow from financing activities.

All investments have been financed by the Company’s cash reserves.

The Company had no long-term debt at June 30, 2005, except for convertible bonds related to employee participation programs.

PFEIFFER VACUUM TECHNOLOGY AG

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

~~August~~May 012, ~~2005~~2006

PFEIFFER VACUUM TECHNOLOGY AG ~~By: /s/ Wolfgang Dondorf Wolfgang Dondorf Chief Executive Officer By: /s/ Manfred Bender Manfred Bender Chief Financial Officer~~

24By: /s/ Wolfgang Dondorf

Wolfgang Dondorf
Chief Executive Officer

By: /s/ Manfred Bender

Manfred Bender
Chief Financial Officer

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