Greiffenberger : press release, june 26, 2014

Press Release by the Greiffenberger AG (WKN 589 730 / ISIN DE0005897300)

Greiffenberger AG generates total turnover of € 63.3 m in the first five months of 2014

• Marked growth in revenue and earnings expected in the second half of 2014
• All agenda items submitted for resolution approved with a large majority at the Annual General Meeting

Marktredwitz and Augsburg, June 26, 2014 - In the first five months of the current 2014 fiscal year Greiffenberger AG generated a turnover on a par with that of the previous year, at € 63.3 m. At the company's Annual General Meeting in Marktredwitz today CEO Stefan Greiffenberger outlined the targets for 2014 and presented an outlook for an overall slight growth in turnover. All the agenda items tabled for resolution were passed with a large majority by the shareholders.

As the Group's largest business unit, Drive Technology (ABM) generated revenues of € 39.4 m in the first five months of 2014, the equivalent of a 1 percent increase over the same period the previous year (€ 39.1 m). Turnover at the Metal Band Saw Blades & Precision Strip Steel (Eberle) unit exactly matched that of the previous year, at € 18.8 m. Turnover generated at the Pipeline Renovation Technology (BKP) business unit was 7% down, standing at € 5.1 m (previous year: € 5.4 m). This unit is typically affected by temporarily strong fluctuations in the seasonal business of gas pipe sheathing. However, turnover from pipe liners, which are the unit's main product, continued to increase steadily in the first five months of 2014 also, with increases very much in the double-digit range.

Stefan Greiffenberger, CEO of Greiffenberger AG, commented: "For the second half of the year we are expecting an increasing momentum compared to the first five months, with a much greater turnover per month. In particular this should reflect the positive sales and cost effects that are the result of the improvements we have been actively pursuing and the solid positioning of the operating companies in the Group. The first half year cannot yet serve as our benchmark here. In 2013 we placed the emphasis of our investment activity on our process chain, which we improved across the entire Group. As a result of this upgraded supply chain and production we are now able to work off the orders backlog quicker and convert it into turnover faster. Moreover, our growth and quality strategy combined with our increasingly international approach - we have an export ratio of currently 66% - will benefit us over the long term. We say this because we are already noticing that our activities in the important growth markets of the USA and China are performing well above par," commented the CEO at the speech he gave today at the Annual General Meeting.

Shareholders give clear approval for all resolutions

At the Annual General Meeting the shareholders approved all the agenda items submitted for resolution with a large majority. The shareholders ratified the actions taken by the management board and the supervisory board during their period of office and selected the auditor. They also approved the retention of Greiffenberger AG's accumulated profit of € 1.19 m as reported in the annual financial statements at December 31, 2013. This profit will be transferred to retained earnings as proposed by the management board and supervisory board. The shareholders also gave their approval to authorize the issue of convertible bonds and/or warrants as well as for the creation of new authorized capital. This will allow the management board to increase the share capital of the company once or repeatedly during the period up to June 25, 2019, subject to the approval of the supervisory board. This move on the part of the Annual General Meeting has provided the necessary flexibility to raise new capital for the future as well.

Capital successfully increased in April 2014

The restructuring of capital was primarily the result of the cash capital increase carried out in April of this year by partially utilizing the authorized capital in order to further strengthen the company's own equity position. With the backing of the supervisory board the management board decided on April 14, 2014, to increase the share capital of the company from its original € 12,388,992.00 by up to € 1,238,656.00, taking it up to a total of € 13,627,648.00 through the issue of up to 483,850 new no-par value bearer shares. The transaction was completed
on April 15, 2014, and the new shares were admitted to trading on the stock exchange without a prospectus and included in the existing listing on the regulated market of the Munich stock exchange and on the regulated market of the Frankfurt stock exchange (General Standard). The gross issuing proceeds from the capital increase amounted to around € 2.9 m, which will be used primarily to finance the further growth of the company.

Overview of the key figures for the first five months 2014 (IFRS):

	May, 31. 2014 (5 months)	May, 31. 2013 (5 months)	compared to previous year
	€ m	€ m	%
Turnover	63.3	63.3	+0 %
thereof business unit:
Drive Technology (ABM Greiffenberger, Marktredwitz; 738 employees)	39.4	39.1	+1 %
Metal Band Saw Blades & Precision Strip Steel (Eberle, Augsburg; 284 employees)	18.8	18.8	+0 %
Pipe Renovation Technology (BKP, Velten; 64 employees)	5.1	5.4	-7 %
Incoming orders, total	63.9	75.4	-15 %
Volume of orders, total	34.2	43.8	-22 %

On the Greiffenberger AG:

Registered in Marktredwitz, Greiffenberger AG is a family-led industrial holding with 1,087 employees. With an export ratio of 66 % it operates successfully worldwide in technologically demanding niche areas of three growth markets:

• Drive Technology: efficient drive technology for companies that develop market-leading solutions, particularly
industrial applications, e-mobility and renewable energies.
• Metal Band Saw Blades & Precision Strip Steel: the finest quality for demanding industrial applications
• Pipeline Renovation Technology: state-of-the-art trenchless technology and pipe surface protection technology

The company's strategic focus is on continuing to develop sector expertise and advancing environmental technology in areas that include pipeline renovation technology, biomass heating and wind power. Organic growth will be generated by increasingly internationalizing sales and procurement, and complemented optionally by acquisitions of companies. The company has been listed since 1986 (WKN 5897300, ISIN DE0005897300, ticker symbol GRF).

Contact information:

Stefan Greiffenberger		Thorsten Braun
CEO of Greiffenberger AG		Assistant to the CEO
Eberlestraße 28
86157 Augsburg
Tel.: [phone]
Fax: [phone]
[e-mail]		[e-mail]