Ad hoc: Progress-Werk Oberkirch AG: PWO to sell stake in Chinese joint venture

Progress-Werk Oberkirch AG / Joint Venture, Disinvestment / Ad hoc:
PWO to sell stake in Chinese joint venture

Ad hoc announcement according to §15 WpHG processed and transmitted
by Hugin. The issuer is solely responsible for the content of this
announcement.

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- 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

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Progress-Werk Oberkirch AG
Industriestrasse 8 Oberkirch
Germany

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