Wacker Construction Equipment AG launches IPO

5/2/2007, 9:30 AM (Source: GlobeNewswire)
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Not for distribution in the United States

Initial listing on Frankfurt's Official Market (Prime Standard)
planned for May 15

(Munich, May 2, 2007) Wacker Construction Equipment AG began
marketing its shares today, with an offering of up to 18.4 million
shares based on a secondary placement combined with a capital
increase. The company intends to use the IPO proceeds to consolidate
its leading market position and pursue its international growth
strategy.

Placement and planned schedule
"We feel that the time is right for an IPO. Capital market conditions
are favorable and the company is extremely well-positioned," confirms
Dr.-Ing. Georg Sick, CEO and President of the Executive Board. "We
significantly improved sales and earnings again in fiscal 2006 and
steadily prepared ourselves for stock market flotation." The offer
period in which investors can subscribe for shares is expected to run
from May 9 to May 14, 2007. The price range will be published by this
date and is determined using decoupled bookbuilding, based on
investor feedback. Initial listing of the shares is planned for May
15, 2007. Under the umbrella of the German public offering and
international private placements (including a qualified institutional
placement (QIP) in the USA, in accordance with Rule 144 A of the US
Securities Act), up to 7.5 million shares will be placed through a
capital increase and 8.5 million shares will be placed from the
portfolio of Wacker Beteiligungs GmbH & Co. KG and one of the family
shareholders. Up to 2.4 million shares from the Wacker Beteiligungs
GmbH & Co. KG portfolio are also slated for additional allotments.
Following placement of all shares (assuming green shoe option is
fully exercised) the free float will total around 36%.

Use of emission proceeds
The company is planning to invest the IPO proceeds to secure
profitable growth in the long term. The investments will focus on
expanding the rental business field and building up the compact
equipment segment. The manufacturing plants in Korbach and Manila are
also scheduled for completion in 2007. In the USA, the company
intends to expand its service partner network through the Equipro
franchise concept, which it is currently extending. It also plans to
construct a new research and development center in Munich.



Securities prospectus on the Internet
Wacker Construction Equipment AG shares will be traded under ISIN
DE000WACK012 on Frankfurt Stock Exchange's Official Market (Prime
Standard). The joint global coordinators and joint bookrunners are
Deutsche Bank, Sal. Oppenheim and UBS Investment Bank. The IPO
securities prospectus was approved by the German Financial
Supervisory Authority (BaFin) and published on the Wacker
Construction Equipment AG website (www.wackergroup.com) on April 30,
2007. The prospectus is also available in printed form from both the
company and the underwriters.

Market position and profitability improved in fiscal 2006
Wacker Construction Equipment AG continued its dynamic growth path in
fiscal 2006. The company increased sales by 23.1 percent, from EUR
503.2 million the previous year to EUR 619.3 million. Profit before
interest, tax, depreciation and amortization (EBITDA*) grew 42.7
percent to EUR 100.2 million (previous year: EUR 70.3 million), with
the EBITDA margin up 16.2 percent (previous year: 14.0 percent).
Profit before interest and tax (EBIT) rose 51.3 percent, from EUR
50.7 million the previous year to EUR 76.7 million.

Planned merger with Neuson Kramer Baumaschinen AG
In the course of 2007, Wacker Construction Equipment AG plans to
merge with Neuson Kramer Baumaschinen AG (Austria), a leading
manufacturer of compact equipment in Europe. The merger will be
realized through the issue of 19.1 million through contributions in
kind and the use of 4.3 million treasury stock. The new company is
set to be a major global manufacturer of light and compact equipment.
Wacker views the companies' high-quality product portfolios as highly
complementary. The aim is to tap market potential in the USA, Europe
and Asia, focusing particularly on the compact equipment segment. In
fiscal 2006/07 (February 1 - January 31), Neuson Kramer Baumaschinen
AG achieved sales of EUR 262.5 million (up 32.3 percent) and EBIT of
EUR 45.3 million (up 49.2 percent).



About Wacker Construction Equipment AG:
Founded in 1848 as a blacksmith's shop, today Wacker is a major
global manufacturer of high-quality light and compact equipment
designed to help customers increase operational efficiency. With over
250 product categories and complementary rental, spare parts and
repair services, Wacker is the partner of choice among professional
users in construction, gardening, landscaping and agriculture. The
company has over 160 sales and service stations in more than 30
countries, ensuring it has the consulting and support depth and reach
necessary to give its customers the best possible service. In fiscal
2006, Wacker increased sales by 23.1 percent to EUR 619.3 million and
profit before interest and tax by 51.3 percent to EUR 76.7 million.
Maintaining its traditional roots, the company is almost exclusively
in the hands of its founder family.


Contacts:


Imre Szerdahelyi Dr. Kay Baden
Head of Corporate Communication Member of the Executive
Committee
Wacker Construction Equipment AG Kirchhoff Consult AG
Preußenstr. 41 Ahrensburger Weg 2
80809 Munich 22359 Hamburg
Germany Germany
Phone: +49 - (0)89 - 354 02 - 251 Phone: +49 - (0)40 - 609
186 - 39
Fax +49 - (0)89 - 354 02 - 298 Fax: +49 - (0)40 - 609
186 - 60
imre.szerdahelyi@eu.wackergroup.com baden@kirchhoff.de


* EBITDA is not a key figure recognized by IFRS and differs
significantly from IFRS-approved figures

Disclaimer:

This publication constitutes neither an offer to sell nor an
invitation to buy securities. The offer in Germany will be made
exclusively by means of and on the basis of the prospectus which has
been approved by the German Federal Financial Supervisory
Authority and which is published on the websites of Wacker
Construction Equipment AG and available free of charge at the company
and the syndicate banks.

This document does not constitute an offer of securities for sale or
a solicitation of an offer to purchase securities in the United
States. The shares in Wacker Construction Equipment AG (the "Shares")
may not be offered or sold in the United States absent registration
or an exemption from registration under the U.S. Securities Act of
1933, as amended. Neither Wacker Construction Equipment AG nor any
selling shareholder intends to register any portion of the offering
in the United States or to conduct a public offering of the Shares in
the United States.

This document is only being distributed to and is only directed at
(i) persons who are outside the United Kingdom or (ii) to investment
professionals falling within Article 19(5) of the Financial Services
and Markets Act 2000 (Financial Promotion) Order 2005 (the "Order")
or (iii) high net worth entities, and other persons to whom it may
lawfully be communicated, falling within Article 49(2)(a) to (d) of
the Order (all such persons together being referred to as "relevant
persons"). The Shares are only available to, and any invitation,
offer or agreement to subscribe, purchase or otherwise acquire such
securities will be engaged in only with, relevant persons. Any
person who is not a relevant person should not act or rely on this
document or any of its contents.



--- End of Message ---

Wacker Construction Equipment AG
Preußenstr. 41 München
Deutschland

WKN: WACK01; ISIN: DE000WACK012;
Listed: Amtlicher Markt in
Frankfurter Wertpapierbörse, Prime Standard in Frankfurter
Wertpapierbörse;
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