PWO to sell stake in Chinese joint venture
 

• Korean partner taking over joint venture completely
  
• One-off, non-cash impacting book loss of presumably EUR 0.5 million in 2008
  
• Own PWO subsidiary starting operations in China at the beginning of 2009 as scheduled

Oberkirch, December 18, 2008 - Progress-Werk Oberkirch AG and TAE HWA Enterprise Co., Ltd. have agreed that TAE HWA Enterprise is to take over the 50 percent stake held by PWO in the Chinese joint venture. PWO is therefore making a full withdrawal from the joint venture which was established as a platform to enter the Chinese market in 2006. The sale of the stake will probably result in a non-cash impacting book loss of EUR 0.5 million which will be recorded in the 2008 results.

PWO is now in a position to offer its customers the entire product and service range from its wholly-owned subsidiary in Suzhou. The company was established during this financial year and will be starting production for already received orders at the beginning of 2009, as scheduled.

Progress-Werk Oberkirch AG

The Management Board