Ad Hoc: Progress-Werk Oberkirch AG (FRA:PWO) : PWO To Sell Stake In Chinese Joint Venture

Progress-Werk Oberkirch AG (FRA:PWO) Progress-Werk Oberkirch AG / Joint Venture, Disinvestment / Ad hoc: PWO to sell stake in Chinese joint venture Ad hoc announcement according to §15 WpHG processed and transmitted by Hugin. The issuer is solely responsible for the content of this announcement. ---------------------------------------------------------------------- --------------



- Korean partner taking over joint venture completely - One-off, non-cash impacting book loss of presumably EUR 0.5 million in 2008 - Own PWO subsidiary starting operations in China at the beginning of 2009 as scheduled

Oberkirch, December 18, 2008 - Progress-Werk Oberkirch AG and TAE HWA Enterprise Co., Ltd. have agreed that TAE HWA Enterprise is to take over the 50 percent stake held by PWO in the Chinese joint venture. PWO is therefore making a full withdrawal from the joint venture which was established as a platform to enter the Chinese market in 2006. The sale of the stake will probably result in a non-cash impacting book loss of EUR 0.5 million which will be recorded in the 2008 results.

PWO is now in a position to offer its customers the entire product and service range from its wholly-owned subsidiary in Suzhou. The company was established during this financial year and will be starting production for already received orders at the beginning of 2009, as scheduled.

Progress-Werk Oberkirch AG The Management Board

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Progress-Werk Oberkirch AG Industriestrasse 8 Oberkirch Germany

WKN: 696800; ISIN: DE0006968001; Index: CLASSIC All Share, Prime All Share, CDAX; Listed: Amtlicher Markt in Frankfurter Wertpapierbörse, Prime Standard in Frankfurter Wertpapierbörse, Freiverkehr in Börse Berlin, Freiverkehr in Bayerische Börse München,

Freiverkehr in Börse Düsseldorf, Amtlicher Markt in Börse Stuttgart,

Freiverkehr in Hanseatische Wertpapierbörse zu Hamburg, Freiverkehr in Niedersächsische Börse zu Hannover;

Progress-Werk Oberkirch AG

http://www.progress-werk.de

ISIN: DE0006968001

Stock Identifier: XFRA.PWO