EANS-News: BAUER Aktiengesellschaft / BAUER Group expecting major contract to remediate the Mosul Dam in Iraq

--------------------------------------------------------------------------------
Corporate news transmitted by euro adhoc. The issuer/originator is solely
responsible for the content of this announcement.
--------------------------------------------------------------------------------

Government Contracts/Company Information

Subtitle: - Contract expected to be signed within the next few months
- Largest contract to date in the long history of the Group
- Contract value of around EUR 1.9 billion

Schrobenhausen (euro adhoc) - The BAUER Group, an international
construction and machinery manufacturing concern, has signed a Letter
of Understanding with the Ministry of Water Resources of Iraq in
connection with the visit of Philipp Rösler, Germany´s Federal
Minister of Trade and Industry, to Baghdad. This document announces
that the company will be awarded the contract for the Mosul Dam
remediation project, subject to further contractual details being
agreed.

The bid relating to the construction of a cut-off wall to seal the
dam, involving a contract value of some EUR 1.9 billion, has been
selected for final negotiation. The project is scheduled to take
around six years to complete.

Professor Thomas Bauer, Chairman of the Management Board of BAUER AG,
comments: "A contract on this scale would represent a major challenge
for our business, but equally a major opportunity. It will take great
efforts over the coming years to master this technically demanding
project. We are fully convinced, however, that our wealth of
experience in dam projects and range of machinery will enable us to
meet the challenge. We expect the contract to be ready for signing
within the next few months, after some final details have been
clarified."

The Mosul Dam is situated in the north of Iraq, approximately 70
kilometres from the Turkish border, and is the country's largest.
Located on the River Tigris, it is some 3.6 kilometres long, and
supplies water and electricity to the city of Mosul as well as to
extensive agricultural areas. Construction of the cut-off wall has
become necessary because the ground beneath the dam is becoming
increasingly water-permeable.

About Bauer

Bauer is a provider of services, machinery and ancillary products in
the earth-working and groundwater fields. The Group markets its
products and services all over the world. Its global spread allows it
to remain largely unaffected by fluctuating business cycles.

The operations of the Group are divided into three segments:
Construction, Equipment and Resources. The Construction segment
carries out specialist foundation engineering work all over the
world, developing foundation and excavation projects as well as
providing related construction services. In its Equipment segment, in
which it is the world market leader, Bauer offers an extensive range
of machinery, equipment and tools for specialist foundation
engineering and related fields. The Resources segment encompasses the
Group's operations in the exploitation of raw materials, in
environmental technology, in geothermal drilling operations and also
in equipment for wells (including pumps and drills, screens and
casings).

Bauer profits greatly from the collaboration between its three
separate segments, enabling the Group to position itself as an
innovative, highly specialized provider of complete solutions and
services for demanding projects on the specialist foundation
engineering and related markets.

Founded in 1790, Bauer today generates around three quarters of its
total revenues outside of Germany. Employing some 9,100 people, the
Group's total revenues in 2010 were EUR 1.30 billion (previous year:
EUR 1.28 billion). BAUER Aktiengesellschaft has been listed on the
official market of the Frankfurt Stock Exchange since July 4, 2006
(Prime Standard, ISIN DE0005168108).

Further inquiry note:
Bettina Erhart / Christopher Wolf
Investor Relations
Telefon: +49(0)8252 97 1918
E-Mail: investor.relations@bauer.de

end of announcement euro adhoc
--------------------------------------------------------------------------------

company: BAUER Aktiengesellschaft
BAUER-Straße 1
D-86529 Schrobenhausen
phone: +49 (0)8252-97-1918
FAX: +49 (0)8252-97-2900
mail: investor.relations@bauer.de
WWW: http://www.bauer.de
sector: Construction & Property
ISIN: DE0005168108
indexes: SDAX, CDAX, Classic All Share, Prime All Share
stockmarkets: regulated dealing/prime standard: Frankfurt, free trade: Berlin,
Hamburg, Stuttgart, Düsseldorf, München
language: English