ad hoc

European Commission states objections – Suspicion of behavior contrary to antitrust laws in European calcium carbide and magnesium sector – SKW Metallurgie reviews allegations

Unterneukirchen (Germany), June 26, 2008. The European Commission has carried out investigations against several companies in the calcium carbide sector because of the suspicion of behavior contrary to antitrust laws. Today, the Commission informed SKW Stahl-Metallurgie Holding AG (ISIN DE000SKWM013) and its subsidiary SKW Stahl-Metallurgie GmbH of the so-called statement of objections. In that statement the Commission raises the accusation of a coordination of business behavior contrary to antitrust laws between several companies in connection with the sale of calcium carbide powder and of magnesium granules.

The submission of a statement of objections is part of the routine procedure in antitrust cases and is intended to grant the company involved the opportunity to make a statement. The proceedings proper may last for a longer period, with undetermined result. The time period investigated by the Commission in the case of SKW Metallurgie encompasses the period from April 2004 to January 2007. The annual sales volumes that SKW Metallurgie realized with the products in question amounted to ca. €25 million. Only trading business in Europe belonging to the “Powder and Granules” segment is concerned. SKW Metallurgie acquired this business only in September 2004 as successor of the then Degussa AG.

In case the Commission should determine a breach of art. 81 EC by companies of the SKW Metallurgie Group, a fine may be imposed against SKW Metallurgie. SKW Metallurgie has provided all relevant information to the competent authorities during the investigation period and has cooperated in the best way possible. The company will continue doing so.

Executive Board reviews allegations

SKW Metallurgie has documented in detail the topic in question since the annual accounts 2006 as part of its Annual Reports. In case of new developments, SKW Metallurgie will continue informing the public immediately and transparently. As next step, SKW Metallurgie will subject the allegations entailed in the statement of objections to a detailed legal analysis. SKW Metallurgie cannot state at present whether, and if so to what extent, fines may be imposed against companies of the SKW Metallurgie Group.