Klöckner & Co prices convertible bond offering

• Coupon of 1.50%
• Conversion price set at EUR 80.75

--------------------------------------------------------------------------------
ots.CorporateNews transmitted by euro adhoc. The issuer is responsible for
the content of this announcement.
--------------------------------------------------------------------------------

borrowings/convertible bond

Duisburg (euro adhoc) - Duisburg, 18 July 2007 - The management board
of Klöckner & Co AG ("Klöckner & Co") announces the pricing of its
offering (the "Offering") to institutional investors outside of the
US only of EUR 325 million, senior unsecured convertible bonds (the
"Bonds"), including the immediate exercise of the increase option of
EUR 25 million. "We are pleased about the successful placement of the
convertible bonds. The proceeds from the sale of the convertible
bonds will be partly used for continuing our successful acquisition
strategy," commented Dr. Thomas Ludwig, CEO at Klöckner & Co AG.

The Bonds will be issued by Klöckner & Co Finance International S.A.
(the "issuer"), a wholly-owned Luxembourg subsidiary of Klöckner &
Co, guaranteed by Klöckner & Co, and will be convertible into
existing or new shares of Klöckner & Co.

The Bonds will have a maturity of five years and a coupon of 1.50 per
cent. The conversion price has been set at EUR 80.75, which
represents a premium of 35 per cent above the reference price of EUR
59.8146 and approximately 405 per cent above the IPO price.

Deutsche Bank AG and JPMorgan are acting as joint bookrunners and
lead managers for the Offering.

The issuer has granted the lead managers a greenshoe option of up to
EUR 25 million to cover over-allotments (if any) exercisable until
the settlement date (27 July 2007). The issue size can therefore
reach up to EUR 350 million which, based on the conversion price,
could result in up to approximately 4.3 million shares underlying the
bond at the outset.

About Klöckner & Co AG: Klöckner & Co is the largest independent
producer and 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 200,000 active customers are supplied
through approximately 250 distribution locations in 15 countries in
Europe and North America. Klöckner & Co was founded more than 100
years ago by Peter Klöckner. During the financial year 2006, the
Company achieved sales of approximately EUR5.5 billion with around
10,000 employees. The shares of Klöckner & Co Aktiengesellschaft 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.

Contacts:
Peter Ringsleben, Claudia Uhlendorf - Corporate Communications

Klöckner & Co AG
Am Silberpalais 1
D - 47057 Duisburg

Peter Ringsleben
Phone: +49 203 307 2800
Fax: +49 203 307 5060
e-mail: peter.ringsleben@kloeckner.de

Claudia Uhlendorf
Phone: +49 203 307 2289
Fax: +49 203 307 5103
e-mail: claudia.uhlendorf@kloeckner.de

*****

IMPORTANT NOTE

NOT FOR DISTRIBUTION OR RELEASE IN OR INTO THE UNITED STATES OF
AMERICA (OR TO US PERSONS), AUSTRALIA, CANADA OR JAPAN, OR IN ANY
OTHER JURISDICTION IN WHICH OFFERS OR SALES WOULD BE PROHIBITED BY
APPLICABLE LAW

This press release is for information purposes only and does not
constitute or form part of, and should not be construed as an offer
or an invitation to sell, or issue or the solicitation of any offer
to buy or subscribe for, any securities. In connection with this
transaction there has not been, nor will there be, any public
offering of the Bonds. No prospectus will be prepared in connection
with the offering of the Bonds. The Bonds may not be offered to the
public in any jurisdiction in circumstances which would require the
Issuer of the Bonds to prepare or register any prospectus or offering
document relating to the Bonds in such jurisdiction. The
distribution of this press release and the offer and sale of the
Bonds in certain jurisdictions may be restricted by law. Italy has
only partially implemented the Prospectus Directive and, accordingly,
the provisions of the Prospectus Directive shall apply with respect
to Italy only to the extent to which the relevant provisions of the
Prospectus Directive have already been implemented in Italy. The
Bonds may not be placed, sold or offered to individuals resident in
Italy in the primary or in the secondary market. Any persons reading
this press release should inform themselves of and observe any such
restrictions.

In connection with the offering of the convertible bonds, Deutsche
Bank (the "Stabilising Manager") or any person acting on behalf of
the Stabilising Manager, may over-allot and effect transactions with
a view to supporting the market price of the Bonds at a level higher
than that which might otherwise prevail. However, there is no
assurance that the Stabilising Manager (or persons acting on behalf
of the Stabilising Manager) will undertake stabilisation action. Any
stabilisation action shall begin on or after the date on which
adequate public disclosure of the final terms of the offer of the
Bonds is made and, if begun, may be ended at any time, but it must
end no later than the earlier of 30 days after the Settlement Date
and 60 days after the allotment of the Bonds. Stabilisation FSA

This press release does not constitute an offer to sell or a
solicitation of an offer to purchase any securities in the United
States. The securities referred to herein (including the Bonds and
the shares of Klöckner & Co) have not been and will not be registered
under the U.S. Securities Act of 1933, as amended (the "Securities
Act") or the laws of any state within the U.S., and may not be
offered or sold in the United States or to or for the account or
benefit of U.S. persons, except in a transaction not subject to, or
pursuant to an applicable exemption from, the registration
requirements of the Securities Act or any state securities laws. This
press release and the information contained herein may not be
distributed or sent into the United States, or in any other
jurisdiction in which offers or sales of the securities described
herein would be prohibited by applicable laws and should not be
distributed to United States persons or publications with a general
circulation in the United States. No offering of the Bonds is being
made in the United States.

This press release is only being distributed to and is only directed
at (i) persons who have professional experience in matters relating
to investments falling within Article 19(1) of the Financial Services
and Markets Act 2000 (Financial Promotion) Order 2005 (the "Order")
and (ii) high net worth entities falling within Article 49(2) of the
Order and (iii) persons to whom it would otherwise be lawful to
distribute it (all such persons together being referred to as
"relevant persons"). The Bonds are only available to, and any
invitation, offer or agreement to subscribe, purchase or otherwise
acquire such Bonds will be engaged in only with, relevant persons.
Any person who is not a relevant person should not act or rely on
this press release or any of its contents.

*****

end of announcement euro adhoc 18.07.2007 16:10:41
--------------------------------------------------------------------------------

ots Originaltext: Klöckner & Co AG
Im Internet recherchierbar: http://www.presseportal.de

Further inquiry note:
Claudia Uhlendorf
Telefon: +49(0)203-307-2289
E-Mail: claudia.uhlendorf@kloeckner.de

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