Klöckner & Co SE approves another package of measures and suspends dividend for 2008

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companies/package of measures

Duisburg (euro adhoc) - Duisburg, 03 March 2009 - Faced with a
continuing strong drop in demand, the Management Board at Klöckner &
Co has approved another package of measures to lower costs and
inventories. In a program that builds on the initial measures taken
last September, personnel-related actions will be increased again,
operating expenses will be reduced in all areas, and inventories will
be decreased further. After cutting the jobs of 800 employees as part
of the initial package of measures, the workforce will be reduced by
an additional 700 employees in a decision that will significantly
lower fixed costs. The Management Board assumes that savings of about
EUR100 million can be achieved during the ongoing financial year as a
result of the packages of measures working in combination with the
performance program STAR. In spite of these far-reaching measures,
earnings are expected to fall significantly below the previous year´s
level.

As a result of these developments, the Management Board has decided
to propose to the Annual General Meeting that the payment of a
dividend for the financial year of 2008 will be suspended. "Against
the backdrop of the difficult economic situation and the uncertain
outlook, we are forced to use all available options to cut costs and
further reduce outstanding debt. Unfortunately, these steps include
reducing personnel and suspending the dividend," said Dr. Thomas
Ludwig, Chairman of the Management Board at Klöckner & Co SE.

About Klöckner & Co: Klöckner & Co is the largest
producer-independent distributor of steel and metal products in the
European and North American markets combined. The core business of
the Klöckner & Co Group is the storage and distribution of steel and
non-ferrous metals. About 185,000 active customers are supplied
through more than 260 distribution locations in 15 countries in
Europe and North America. During the financial year 2007, the Company
achieved sales of approximately EUR6.3 billion with more than 10,000
employees. The shares of Klöckner & Co SE are admitted to trading on
the official market segment (Amtlicher Markt) of the Frankfurt Stock
Exchange (Frankfurter Wertpapierbörse) with simultaneous admission to
the sub-segment (Prime Standard) to the official market with further
post-admission obligations. ISIN: DE000KC01000; WKN: KC0100; Common
Code: 025808576. Klöckner & Co shares are listed in the MDax® Index
of Deutsche Börse.

end of announcement euro adhoc
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ots Originaltext: Klöckner & Co SE
Im Internet recherchierbar: http://www.presseportal.de

Further inquiry note:

Peter Ringsleben - Corporate Communications

Phone: +49-203-307-2800

E-mail: peter.ringsleben@kloeckner.de

Claudia Uhlendorf - Corporate Communications

Phone: +49-203-307-2289

E-mail: claudia.uhlendorf@kloeckner.de

Dr. Thilo Theilen - Investor Relations

Phone: +49-203-307-2050

E-Mail: thilo.theilen@kloeckner.de

Branche: Metal Goods & Engineering
ISIN: DE000KC01000
WKN: KC0100
Index: CDAX, Classic All Share, Prime All Share
Börsen: Börse Frankfurt / regulated dealing/prime standard
Börse Berlin / free trade
Börse Hamburg / free trade
Börse Stuttgart / free trade
Börse Düsseldorf / free trade
Börse München / free trade