Wiesbaden, December 21, 2009. In the process of preparing the Consolidated Financial Statements for the year ending December 31, 2009, SGL Group has undertaken goodwill and asset impairment tests as required under IAS 36.

In the recent years, the Business Unit Carbon Fibers & Composites made substantial investments in technologies and new capacities. As a result of the global financial and economic crisis, many of the new end market developments for light weight materials, alternative energies, automotive, aircraft, and other industrial applications were delayed for demand or funding reasons. As a consequence, the Business Unit Carbon Fibers & Composites in particular experienced low utilization of capacities and temporary deterioration of price levels. It is anticipated that it will take some time for market demand to fully recover to precrisis levels.

In this context SGL Group will book a non-cash asset impairment charge in the Busi-ness Unit Carbon Fibers & Composites according to IFRS rules in the annual results 2009. This charge is estimated at € 70 to 80 million.

Independent of this accounting measure, SGL Group remains confident of its Carbon Fibers & Composites business in the longer term prospects. This view is both supported by established customers, who are placing additional business with SGL Group and new customers, who continue to be attracted by the Group’s expertise in the field of carbon fibers and composites as well as by the strength of SGL Group’s financial position.

In relation to the impairment tests, SGL Group’s deferred tax assets need to be reevaluated in light of lowered future income expectations following the global crisis. SGL Group expects to recognize an additional tax charge with respect to the company’s previously capitalized deferred tax assets related to tax losses carried forward. This non-cash charge will be reflected in the tax computation and will not exceed a medium double digit million € amount. The measure will not restrict the possibility to take advantage of the tax losses carried forward in future. The normalized operational tax rate remains unchanged at approximately 30%.

These statements are subject to finalization of the SGL Group’s financial statements 2009 and the year-end audit.

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.