Wiesbaden / Munich, October 29, 2009. SGL Group and BMW Group announced today the foundation of a joint venture to manufacture carbon fibers and fabrics for the automotive industry.

Within the joint venture, the construction of two new sites, in North America for the carbon fiber production and in Germany for the subsequent fabrics, is planned. The joint venture will be structured as follows: SGL Group holds 51%, BMW Group 49% of the shares with both partners nominating management and shareholder committee on an equal basis. BMW Group will use its favorable access to the capital markets to ensure the funding of the debt financing for the joint venture. In addition, BMW Group - as initially the only customer - guarantees certain minimum purchasing volumes of the carbon fiber fabrics at contractually agreed conditions within the context of safeguarding the overall project.  The joint venture will create more than 180 jobs in the following years.

The investments in the first stage of development for both production sites will be € 90 million until 2012. Both companies will contribute each initial equity of € 18 million.

The overall investment volume for the joint venture will amount to € 230 million subject to BMW Group confirming all stages of development. In the final stage of development, annual carbon fiber and fabric consumption is expected in the range of several thousand tons p.a..

The transaction is subject to the approval of the relevant antitrust authorities.

ISIN: DE0007235301
Listing: Amtlicher Markt / Prime Standard / Frankfurter Wertpapierbörse
(Official Market / Prime Standard / Frankfurt Stock Exchange)
Company’s seat: Wiesbaden

SGL Group is one of the world’s leading manufacturers of carbon-based products. It has a comprehensive portfolio ranging from carbon and graphite products to carbon fibers and composites. SGL Group’s core competencies are its expertise in high-temperature technology as well as its applications and engineering know-how gained over many years. These competencies enable the Company to make full use of its broad material base. SGL Group’s carbon-based materials combine several unique properties such as electrical and thermal conductivity, heat and corrosion resistance as well as high mechanical strength combined with low weight. Due to the paradigm shift in the use of materials as a result of the worldwide shortage of energy and raw materials, there is a growing demand for SGL Group’s highperformance materials and products from an increasing number of industries. Carbon and graphite products are used whenever other materials such as steel, aluminum, copper, plastics, wood etc. fail due to their limited properties. Products from SGL Group are used predominantly in the steel, aluminum, automotive, chemical and glass/ceramics industries. However, manufacturers in the semiconductor, battery, solar/wind energy, environmental protection, aerospace and defense industries as well as in the nuclear energy industry also figure among the Company’s customers.

With 40 production sites in Europe, North America and Asia as well as a service network covering more than 100 countries, SGL Group is a company with a global presence. In 2008, the Company’s workforce of around 6,500 generated sales of €1.6 billion. The Company’s head office is located in Wiesbaden/Germany.

This press release contains statements on future developments that are based on currently available information and that involve risks and uncertainties that could lead to actual results deviating from these forward-looking statements. The statements on future developments are not to be understood as guarantees. The future developments and events are dependent on a number of factors, they include various risks and unanticipated circumstances and are based on assumptions that may not be correct. These risks and uncertainties include, for example, unforeseeable changes in political, economic and business conditions, particularly in the area of electrosteel production, the competitive situation, interest rate and currency developments, technological developments and other risks and unanticipated circumstances. We see other risks in price developments, unexpected developments relating to acquired and consolidated companies and in the ongoing cost optimization programs. SGL Group does not intend to update these forward-looking statements.