ad hoc

SKW Stahl-Metallurgie Holding AG: capital increase resolved

Unterneukirchen (Germany), November 11, 2009. The Managing Board of SKW Stahl-Metallurgie Holding AG today resolved, with the approval of the Supervisory Board, to partially use its authorized capital and to execute a capital increase with shareholders’ subscription rights in the ratio of 25:12. The share capital is to be increased from the current total of EUR 4,422,250 to up to EUR 6,544,930 by issuing up to 2,122,680 new shares. The proceeds will be used to finance the equity component of the acquisition of a two-thirds interest in Brazilian Tecnosulfur, and to optimize the financing structure for additional investment projects in BRIC countries that are already being implemented.

The new shares carry profit-participation rights from January 1, 2009 and will be offered to shareholders at a subscription price of EUR 11.50 per share. The subscription period is expected to run from November 16, 2009 to November 30, 2009 (12 noon, CET).

Shareholders will be granted indirect subscription rights for the up to 2,122,680 new shares as part of the non-public offer. When the subscription offer is published, the company’s shareholders will be requested to exercise their subscription rights to avoid exclusion. There will be no organized trading of subscription rights. M.M.Warburg & Co. and Landesbank Baden-Württemberg (LBBW) are both equally authorized to subscribe for and acquire the new shares; Landesbank Baden-Württemberg (LBBW) is the subscription agent in the technical sense.

Any shares not subscribed after the end of the subscription period will be offered only to the shareholders for subscription. Each shareholder with subscription rights can issue a binding offer to acquire additional shares from the capital increase at a subscription price of EUR 11.50 per share – over and above the number of new shares due to their existing shareholding. In the event of over-subscription, the new shares will be issued in line with the respective proportionate existing shareholdings.

Further details of the capital increase can be found in the subscription offer, which is expected to be published in the German Electronic Federal Gazette on November 13, 2009.