OFFER PRICE FOR KLÖCKNER & CO AT EUR16 PER SHARE

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ots-CorporateNews transmitted by euro adhoc.
The issuer is responsible for the content of this announcement.
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Duisburg (euro adhoc) - Duisburg, June 27,2006 - Today, Klöckner & Co
Aktiengesellschaft, the selling shareholder Multi Metal Investment S.à r.l. and
the Joint Bookrunners UBS Investment Bank, Deutsche Bank and JPMorgan jointly
determined the offer price at EUR 16.00 per share. At the offer price the
Klöckner & Co shares were oversubscribed.
"We are very pleased with the success of our roadshow, especially as we
celebrate our 100th anniversary on the first day of trading. Despite difficult
market conditions, investors believe in the sustainability of our business model
and in our strong upward potential in the long term," said CEO Thomas Ludwig.
Based on the issue price, and including the new shares from the capital
increase, the market capitalization will amount to EUR744 million. The company
will receive gross proceeds of EUR104 million from a capital increase consisting
of a total of 6.5 million new shares. The first day of trading on the Prime
Standard Market of the Frankfurt Stock Exchange will be June 28, 2006.
Based on the offer price, the offer size will be EUR264 million and EUR296
million if the greenshoe option is fully exercised. 10 million shares are being
placed from the holdings of the selling shareholder, 6.5 million new shares from
a capital increase and further 2 million additional shares from the holdings of
the selling shareholder in connection with the overallotments. The free float
will amount to around 40 percent if the greenshoe option is fully exercised.
98.7 percent of the 18.5 million offered shares were placed with institutional
investors and 1.3 percent with private investors. All shares carry a full
dividend entitlement for the financial year, which has commenced on January 1,
2006. The shares were allotted to private investors in Germany in compliance
with the "Principles for the Allotment of Share Issues to Private Investors"
issued by the Stock Exchange Commission of Experts at the Federal Ministry of
Finance on June 7, 2000.The allocation to private investors was based upon
uniform criteria by the Joint Bookrunners, i.e., each private investor received
an identical percentage allotment of their demand.
The selling shareholder will retain an interest of around 60 percent in the
company if the greenshoe option is fully exercised. Under a lock-up agreement,
the selling shareholder has undertaken to retain its remaining shares for a
period of twelve months from the delivery of the shares. The company has agreed
not to announce or effect any increases from authorized capital during this
period, or to propose such increases to its general meeting.
The company will receive gross proceeds of EUR104 million. After deduction of
commissions, these will be used to further improve the capital structure of the
Klöckner & Co Group and to repay third-party debt, thus generating additional
headroom for growth. Specifically, the company is considering a partial
redemption of the notes issued by Klöckner Investment S.C.A.

About Klöckner & Co
Klöckner & Co is the largest producer-independent steel and metal distributor in
the European and North American markets combined. The core business is the
warehouse distribution of steel and non-ferrous metals. Around 200,000 active
customers are served from around 240 distribution and service centers in 14
countries across Europe and North America.
Klöckner & Co was founded by Peter Klöckner a century ago. In the financial year
2005, the company reported sales of around EUR5 billion, with a staff of around
10,000.

Contacts:
Peter Ringsleben and Claudia Uhlendorf, Corporate Communications
Klöckner & Co AG
Am Silberpalais 1
47057 Duisburg

Peter Ringsleben
Phone: +49 203 307 2800
Fax: +49 203 307 5060
E-mail: [email protected]

Claudia Uhlendorf
Phone: +49 203 307 2289
Fax: +49 203 307 5103
E-mail: [email protected]

This publication is not for direct or indirect distribution in or into the
United States (including its territories and outlying areas, any State of the
United States and the District of Columbia). This publication does not
constitute or form a part of any offer or solicitation to purchase or subscribe
for securities. The shares of Klöckner & Co AG referred to herein (the "Shares")
may not be offered or sold in the United States absent registration or an
exemption from registration under the U.S. Securities Act of 1933, as amended
(the "Securities Act"). The Shares have not been, and will not be, registered
under the Securities Act and will not be publicly offered anywhere outside
Germany. The offer in Germany will be made exclusively by means of and on the
basis of a prospectus and the supplement No. 1 to the prospectuses, that have
been published. That prospectus and the supplement No. 1 have been made
available on the company website at www.kloeckner.de. The prospectus and the
supplement No. 1 to the prospectus are available in printed from free of charge
from the company and the Joint Bookrunners.

This ad hoc announcement does not constitute an offer of securities to the
public in the United Kingdom. This ad hoc announcement is directed only at (i)
persons who have professional experience in matters relating to investments and
who fall within Article 19(5) of the Financial Services and Markets Act 2000
(Financial Promotion) Order 2005 (the "Order") or (ii) persons falling within
Article 49(2)(a) to (d) (high net worth companies, unincorporated associations,
etc.) of the Order or to whom it may otherwise lawfully be communicated (all
such persons together being referred to as "relevant persons") or in
circumstances in which section 21 of the FSMA does not apply to the Company. Any
person who is not a relevant person must not act or rely on this communication
or any of its contents. Any investment or investment activity to which this
communication relates is available only to relevant persons and will be engaged
in only with relevant persons.

Further inquiry note:
Claudia Uhlendorf
Public Relations
Telefon: +49(0)203-307-2289
E-Mail: [email protected]

end of announcement euro adhoc 27.06.2006 23:44:45
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emitter: Klöckner & Co AG
Am Silberpalais 1
D-47057 Duisburg
phone: +49(0)203-307-0
FAX: +49(0)203-307-5000
mail: [email protected]
WWW: http://www.kloeckner.de
ISIN: DE000KCO1000
indexes:
stockmarkets: admission applied: official dealing: Frankfurter Wertpapierbörse
sector: Metal Goods & Engineering
language: English

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