Corporate | 20 October 2005 16:04

ARQUES plans the second initial public offer in 2005 with SKW Group

Corporate-news transmitted by DGAP. The issuer is solely responsible for the content of this announcement. —————————————————————————— ARQUES plans the second initial public offer in 2005 with SKW Group The SKW Group will be listed in the informal sector within this year Starnberg, October 20, 2005 – The Starnberg-based equity investment company, ARQUES Industries AG (ISIN DE0005156004), announces that the SKW Stahl- Metallurgie Group, with its headquarter in Unterneukirchen, Bavaria, will be listed on the stock exchange by means of a corporate shell, similar to the print holding company, ARQUANA, which today took up its operative activity in the informal sector of the stock market. In addition ARQUES has acquired 280.000 shares of Xerius Bioscience AG (ISIN DE0005188304), thereby acquiring 80% of the voting rights. At the general meeting of Xerius planned for December 2, 2005, the decision will be taken to bring the SKW Group into Xerius by way of a capital increase. Subsequently a capital increase against cash investment will be carried out to finance further growth. Discussions with potential investors have already commenced. As an evaluation according to IDW standards shows, the current company value of the SKW Stahl-Metallurgie Group amounts to between EUR50 million and EUR90 million. Within the scope of the capital increase, the capital stock of Xerius Bioscience will however not increase by more than EUR50 million. The SKW Stahl-Metallurgie Group develops, produces and sells products for desulphurisation and refining of raw iron and steel. With a market share of over 25%, SKW is the world-wide market leader in the main application range of industrial cored wire. SKW covers more than 10% of the world-wide demand and up to 60% of the domestic market for desulphurisation with calcium carbide. The company was acquired from Degussa in September 2004. At that time it still showed a turn-over of approximately EUR130 million. In 2005 the company will reach a turn-over of EUR180 million, with 200 employees at six locations in Europe, Asia and the USA. Ines Kolmsee, who, as managing director and ARQUES subsidiary manager was responsible for the successful turnaround of SKW since August 2004, will become Chairman of the Board of the new company. “The rapid economical development on the steel market has had a very positive effect on our business”, says Ines Kolmsee. “With new capital we now plan to develop our international presence “. The success of the SKW Group can be attributed to a large number of concentrated restructuring measures, among others the restructuring of purchasing and sales, the introduction of a new sales strategy moving to high- margin products and the establishment of strategic partnerships with selected customers and suppliers. The combined know-how of the ARQUES task force could be utilised in the turnaround management of the company. The ARQUES turnaround concept – active support, real entrepreneurship ARQUES supports its subsidiaries in the advancement of their business by means of its own task force of restructuring specialists with many years of experience. This distinguishes ARQUES substantially from other finance investors. The measures of active support and advancement range from the realignment of the product range and operational improvements for increased efficiency to the implementation of new technologies. “We are convinced that many companies which already have an extremely weak market position can be developed to competitive performers by means of professional Due Diligence on the acquisition side and the application of best management practices after the acquisition of subsidiaries”, according to Dr. Dr. Peter Löw, Executive Board Chairman of ARQUES Industries AG. “The extremely satisfactory development of SKW shows that our system works.” About ARQUES ARQUES Industries AG, Starnberg, is a turnaround specialist who focuses on the acquisition and the active restructuring of companies in transitional situations, in order to develop these, with its own team and own resources, to competitive enterprises with a positive yield. ARQUES revitalises its subsidiaries’ potential for creating value for the benefit of all its stakeholders, taking on the relevant social responsibility. ARQUES has made a duty of identifying underestimated companies with reduced survivability but with high appreciation potential, at the same time mastering complex company structures and transitional situations. The shares of ARQUES Industries AG are traded in the regulated market (Prime Standard) of the Frankfurt Stock Exchange under the symbol “AQU” (ISIN: DE0005156004) and are listed in the SDAX since September 19, 2005. Contact: ARQUES Industries AG Investor Relations & Corporate Communication Anke Lüdemann Tel.: +49 (0) 8151/ 651 0 Email: luedemann@arques.de DenkLeistung Kommunikationsmanagement Monika Schlesinger Tel.: +49 (0) 8141/ 53 97 02 Email: Monika.Schlesinger@t-online.de End of announcement (c)DGAP 20.10.2005 —————————————————————————— WKN: 515600 ; ISIN: DE0005156004; Index: SDAX Listed: Geregelter Markt (Prime Standard) in Frankfurt; Freiverkehr in Berlin- Bremen, München und Stuttgart 201604 Okt 05