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(Ad-hoc) Moody's downgrades Dürr rating by one notch to "B1"

04/11/2005 - Dürr AG - WKN 556520 / ISIN DE0005565204

Moody's has downgraded Dürr AG's credit rating from "Ba3" to "B1". This information was communicated to the company by the rating agency today at around 4 p.m. CET. The credit rating outlook is stable.

In explaining its position, Moody's cites the earnings and cash flow development in fiscal 2004. Moody's also refers to the difficult market environment in the European and North American automotive industry. The rating agency views the recently announced business reorganization as positive, as this should yield further opportunities for cost savings through increased operational efficiency. Moody's also takes comfort from the recent strategic reorientation towards industrial sectors such as aerospace, the mining industry and general industrial.

Moody's has adapted the issue rating for Dürr's subordinated corporate bond placed in July 2004 for EUR 200 million from "B2" to "B3". The outlook is stable.

The Board of Management intends to improve the rating as soon as possible by increasing efficiency through the current earnings enhancement program SPRINT and by a greater market clout as a result of the implementation of the new corporate structure in early March. The main goal is to increase profitability and to reduce financial liabilities.

As of March 1, 2005, Dürr realigned its corporate structure. Ever since business operations are organized into two divisions: Paint and Assembly Systems and Measuring and Process Systems (continuing operations). For fiscal 2004 Dürr has reported preliminary earnings before taxes according to IFRS of EUR 11.8 million. Preliminary earnings before taxes of continuing operations amount to EUR 18.6 million, and those of discontinued operations (Services and DTS) to EUR minus 6.8 million.

Dürr AG
The executive board

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