Dürr seals forward-looking financing package

09/11/2008

• New syndicated loan in the amount of € 440 million
• Bond redemption initiated with repayment of a tranche of 50%

Stuttgart, September 11, 2008 – Dürr AG concluded an agreement with a banking consortium for a new syndicated loan in the amount of € 440 million. The lead banks are Baden-Württembergische Bank, Commerzbank, HypoVereinsbank and Deutsche Bank; the syndicate comprises a total of 7 banks. At the same time Dürr announces the redemption of a tranche of € 100 million of its high-yield bond.

The syndicated multi-currency credit facility concluded for a term of three years comprises a revolving credit line of € 200 million and a guarantee facility of € 240 million. This provides Dürr with much greater financing scope than before. The syndicated credit facility it replaces, which would have expired in mid-2009, consisted of a credit line of € 100 million and a guarantee facility of € 171 million. At the mid-year mark 2008 Dürr also had € 116 million of cash and cash equivalents at its disposal; in July the company booked a further € 44 million of cash proceeds from a capital increase. 

The credit line can be drawn upon flexibly over the term of the loan in order to meet financing requirements during the year. The charges for the syndicated loan are spread over the three-year term. Dürr can draw on the guarantee facility of € 240 million to provide surety bonds for prepayments received from customers and other obligations.  

As a next step Dürr will be redeeming the high-yield bond issued in 2004 as announced. The first tranche of € 100 million will be redeemed at mid-October 2008 at a price of 105.250%. It is planned to redeem the other half in the third quarter of 2009 at a price of 102.625%. As a result of the bond redemption Dürr expects a significant reduction in interest expense already in 2009. 

Dürr’s CFO Ralph Heuwing commented: “We are pleased that the banks are supporting Dürr´s strategic orientation despite the financial market crisis. Together with our cash resources, the syndicated loan comfortably covers our financing requirements, especially as we also expect a good cash flow from operating activities again for 2008. The package of measures comprising the capital increase placed in June, the syndicated loan and the bond redemption strengthens our equity ratio, makes us more flexible and significantly improves our interest result.”

The Dürr Group is a supplier of plant and equipment that commands leading global market positions in its areas of activity. Business with the automotive industry accounts for about 85% of its sales. Dürr also supplies innovative manufacturing and environmental technologies for the aircraft, mechanical engineering, chemical and pharmaceutical industries. The Dürr Group operates in the market through two divisions. The Paint and Assembly Systems division supplies production and painting technologies, mainly for automotive body & chassis manufacturing. The equipment and systems supplied by the Measuring and Process Systems division are used, among other things, for engine and transmission production and for final vehicle assembly. Dürr achieved sales of close to € 1.5 billion with approximately 6,000 employees in 2007. Dürr is present in 47 locations in 21 countries around the world. 

Contact: 
Dürr Aktiengesellschaft                              
Günter Dielmann / Mathias Christen
Corporate Communications & Investor Relations 
Phone +49 (0)711 136-1785 / -1381
Fax +49 (0)711 136-1716                         
E-mail corpcom(at)durr.com