Nordwind Capital acquires SHW Automotive

Munich, September 30, 2005 —- The acquisition of Schwäbische Hüttenwerke (SHW) by Nordwind Capital has now been closed. Aalen-Wasseralfingen based SHW is an automotive supplier which until now was owned jointly by MAN AG and the German State of Baden-Württemberg. It will in the future act as SHW Automotive. The share purchase price amounts to about EUR 100 million and was the first investment out of the NCP Fund I that is invested via the Nordwind Capital holding companies.

Having been founded as a mining operation and foundry in 1365, SHW is the oldest industrial company in Germany. The company today is a leading producer of high performance hydraulic pumps mainly for car engines, high end ventilated brake discs and powder metallurgy products. Its customer base comprises renowned automobile producers such as Volkswagen, Audi, BMW and DaimlerChrysler. The company employs approximately 1,300 people at its production sites in Germany, Canada and Brazil, and produced a consolidated turnover of EUR 246 million in 2004. Operational performance improvements and further investments plannedAs an active investor, Nordwind Capital targets companies which in spite of good competitive positions in stable markets still offer a potential for considerable operational performance improvements. Jointly with management, Nordwind Capital plans to realize SHW’s considerable further growth and profitability potentials and to secure and improve the company’s global competitive position. Planned measures comprise significant sales growth by means of further improving operational efficiencies and adding new products, customers and geographic areas in which the company will be active. In this context, about EUR 70 million will be invested to facilitate the expansion of the company’s present operations.

Dr. Lothar Hauck, managing director of SHW, on the closing of the deal: “We are very pleased to have in Nordwind Capital a new owner who is a value oriented investor and will therefore support our strategic plans, help us to further improve our operations and to accelerate our growth. With the financial support of Nordwind we will focus on our core business as a leading independent component supplier”. Hans Albrecht, one of the founders of Nordwind Capital: “Due to its leading technological position in its markets, its highly motivated team and its significant growth potential, SHW constitutes a very attractive investment opportunity for us. Together with management we will further develop SHW’s potential and help the company to expand both locally and globally”.

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