PWO concludes takeover of Cartec, Mexico

Oberkirch, May 16, 2008 - Progress-Werk Oberkirch AG has closed the deal for the takeover of Mexican automotive supplier Cartec S.A de C.V., Puebla. The company's plans to increase its ownership interest to 100 per cent had been announced on April 4, 2008. Prior to this, PWO had acquired a 60 per cent stake in Cartec in January 2007.

The purchase price for the second stage of the acquisition is within the lower single-digit million-dollar (US) range, with PWO benefiting from the favourable exchange rate between the dollar and the euro. The takeover will be financed from existing funds and has already been accounted for in the company's investment budget for the current financial year.

Cartec employs 360 people. The growth target for revenue in 2008 stands at approx. 15 per cent, which would take this figure to around USD 33 million.

Progress-Werk Oberkirch AG

The Management Board