SALZGITTER AG: Negotiations for the takeover of the precision tube activities of Vallourec SA successfully concluded

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Salzgitter (euro adhoc) - Salzgitter AG and Vallourec SA, Paris, have signed the
final agreements on the takeover of Vallourec Précision Etirage (VPE), France.
All preconditions having been fulfilled, especially the approval by the EU
antitrust authority. The transfer of the shares of the business is to take place
on July 2, 2007. As from this date, the company will be included in the
financial statements of Salzgitter AG.

The precision tubes business of VPE, with five plants in France, ideally
supplements the current activities of the Salzgitter Group in this tubes segment
which consist of the four plants of MHP Mannesmann Präzisrohr (MHP) in Germany
and one of Mannesmann Robur (ROB) in the Netherlands.
To secure the extensive independence of VPE, MHP and ROB in respect of the
supply of seamless tubes as a primary material, part of the transaction also
includes the takeover of a mill for hot-rolled tubes for further processing in
Zeithain (Saxony).

The combination of the companies will be named Salzgitter Mannesmann Precision
GmbH and form the European market leader for seamless and welded precision tubes
with annual sales of around EUR 500 million and a workforce of 2,700 employees.
The most important customers include the automotive industry and its suppliers,
the mechanical engineering and the energy producing sectors. The precision tube
is a growth product for industrial applications where great forces and high
pressures, temperatures or rotational speeds are to be absorbed while
construction remains light weight.

The new group of companies enjoys an outstanding market position, especially in
Germany and France, and is set to significantly strengthen its future potential
by leveraging existing industrial and product-related synergies.

Further inquiry note:
Bernhard Kleinermann
Tel.: +49 (0) 5341-21-3783
E-Mail: [email protected]

end of announcement euro adhoc 02.07.2007 17:47:53
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emitter: Salzgitter AG
Eisenhüttenstraße 99
D-38239 Salzgitter
phone: +49 (0) 5341-21-3783
mail: [email protected]
WWW: http://www.salzgitter-ag.de
sector: Iron & Steel
ISIN: DE0006202005
indexes: MDAX, CDAX, HDAX, Midcap Market Index, Classic All Share, Prime
All Share
stockmarkets: official dealing/prime standard: Börse Frankfurt, free trade:
Börse Berlin, Börse Hamburg, Börse Stuttgart, Börse Düsseldorf,
Börse München, official dealing: Börse Hannover
language: English

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