SMT Scharf AG acquires South African supplier of mining equipment Sareco Engineering CC

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Hamm (euro adhoc) - Hamm, June 20, 2008 - SMT Scharf AG (German Securities Code
(WKN) 575198, ISIN DE0005751986), technology and world market leader for
rail-bound railway systems for the mining sector, has acquired Sareco
Engineering CC, a South African supplier of mining equipment. Sareco is market
leader for mining chairlifts in southern Africa. The company recorded revenues
of more than 20 million South African Rand in fiscal year 2007/08 and enjoyed
significantly positive earnings. Sareco´s main customers are South African
platinum and gold mines.
The previous owners of Sareco, Raymond Browning and John Gibson, will stay with
the company as managing director and technical consultant, respectively. The
acquisition agreement signed on June 18, 2008 applies retroactively as of March
1, 2008 and is subject to a change of legal form for the South African company
that will be implemented as part of the transfer.
"This acquisition bolsters our position with our South African customers. For
them, chairlifts are a transport technology which continues to increase in
importance," commented Dr. Friedrich Trautwein, SMT Scharf AG's CEO. "At the
same time, it gives us the opportunity to bring Sareco´s proven technology to
other markets. We expect this to make a visible contribution to SMT Scharf
Group´s further international growth," he continued.
In view of the acquisition, SMT Scharf AG's Managing Board confirmed its
forecast of generating further growth in revenues and earnings in 2008 and the
coming years. However it is still not possible to fully gauge the impact that
further developments in the mining sector in Germany's Saarland region could
have on SMT Scharf.

Company profile

The SMT Scharf Group develops, builds and maintains rail-bound railway systems
for mining and use in tunnels. The trains are used all over the world, primarily
in hard coal mines, gold mines and in underground mining for platinum, diamonds,
copper and nickel. They are used to transport material and personnel with
working loads of up to 35t. Rail-bound trains are the only means of transport
that can be used underground on branching lines to cope with inclines of more
than 13 degrees. The SMT Scharf Group has subsidiaries in Germany, Poland, South
Africa, China and Russia, as well as agencies around the world. The railways
developed by SMT Scharf are characterized, above all, by high-performance
engines, high working loads, high speed and low operating and maintenance costs.
SMT Scharf records more than 70% of its revenues in high-growth foreign markets
such as Russia, China and South Africa. The replacement parts and repairs
business constitutes around 50% of revenues. The advances in exploitation of
resources make underground conditions increasingly difficult which in turn
requires more high technology transport solutions in mining. The total market
for underground transport technology comprises around EUR 5 billion to EUR 7
billion per year according to company estimates. SMT Scharf AG has been listed
in the Prime Standard (regulated market) of the Frankfurt Stock Exchange since
April 11, 2007.

Further inquiry note:
Contact

Investor Relations
cometis AG
Henryk Deter
Tel.: +49(0)611 - 205855-13
Fax: +49(0)611 - 205855-66
e-mail: deter@cometis.de

end of announcement euro adhoc
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emitter: SMT Scharf AG
Römerstr. 104
D-59075 Hamm
phone: +49(0)2381-960212
FAX: +49(0)2381-960311
sector: Machine Manufacturing
ISIN: DE0005751986
indexes:
stockmarkets: regulated dealing/prime standard: Börse Frankfurt, free trade:
Börse Berlin, Börse München
language: English

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