SALZGITTER AG: Negotiations for the takeover of the precision tube activities of Vallourec SA successfully concluded

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merger, acquisition and takeover

Salzgitter (euro adhoc) - Salzgitter AG and Vallourec SA, Paris, have
signed the final agreements on the takeover of Vallourec Précision
Etirage (VPE), France. All preconditions having been fulfilled,
especially the approval by the EU antitrust authority. The transfer
of the shares of the business is to take place on July 2, 2007. As
from this date, the company will be included in the financial
statements of Salzgitter AG.

The precision tubes business of VPE, with five plants in France,
ideally supplements the current activities of the Salzgitter Group in
this tubes segment which consist of the four plants of MHP Mannesmann
Präzisrohr (MHP) in Germany and one of Mannesmann Robur (ROB) in the
Netherlands. To secure the extensive independence of VPE, MHP and ROB
in respect of the supply of seamless tubes as a primary material,
part of the transaction also includes the takeover of a mill for
hot-rolled tubes for further processing in Zeithain (Saxony).

The combination of the companies will be named Salzgitter Mannesmann
Precision GmbH and form the European market leader for seamless and
welded precision tubes with annual sales of around EUR 500 million
and a workforce of 2,700 employees. The most important customers
include the automotive industry and its suppliers, the mechanical
engineering and the energy producing sectors. The precision tube is a
growth product for industrial applications where great forces and
high pressures, temperatures or rotational speeds are to be absorbed
while construction remains light weight.

The new group of companies enjoys an outstanding market position,
especially in Germany and France, and is set to significantly
strengthen its future potential by leveraging existing industrial and
product-related synergies.

end of announcement euro adhoc 02.07.2007 17:47:53
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ots Originaltext: Salzgitter AG
Im Internet recherchierbar: http://www.presseportal.de

Further inquiry note:
Bernhard Kleinermann
Tel.: +49 (0) 5341-21-3783
E-Mail: ir@salzgitter-ag.de

Branche: Iron & Steel
ISIN: DE0006202005
WKN: 620200
Index: MDAX, CDAX, HDAX, Midcap Market Index, Classic All Share,
Prime All Share
Börsen: Börse Frankfurt / official dealing/prime standard
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Börse Hannover / official dealing