Ad-hoc | 27 October 2005 14:46

METRO AG: METRO AG prepares for Praktiker’s IPO

Ad hoc announcement §15 WpHG Strategic corporate decision METRO AG: METRO AG prepares for Praktiker’s IPO Ad hoc announcement transmitted by DGAP. The issuer is solely responsible for the content of this announcement. —————————————————————————— Duesseldorf, 27 October 2005 – Today METRO AG decided to set the course for an IPO of its sales division Praktiker and intends to divest the majority of its shareholding in Praktiker. Preparations for an IPO have reached an advanced stage. METRO AG Schlüterstr. 1 40235 Düsseldorf Deutschland ISIN: DE0007257503 (DAX); DE 000 725 753 7 WKN: 725 750; 725 753 Listed: Amtlicher Markt in Düsseldorf und Frankfurt (Prime Standard); Freiverkehr in Berlin-Bremen, Hamburg, Hannover, München und Stuttgart; EUREX; Zürich End of ad hoc announcement (c)DGAP 27.10.2005 Issuer’s information/explanatory remarks concerning this ad hoc announcement: Besides the leading banks (joint lead managers and joint bookrunners) J.P. Morgan, ABN AMRO, and Deutsche Bank, the syndicate also includes Dresdner Bank and HSBC as co-lead managers and HypoVereinsbank and Commerzbank as co- managers. A stock market listing will enable Praktiker to accelerate the internationalisation of its business. During the first nine months of 2005 Praktiker has been able to further enhance its market position and to continue the positive business development of the preceding year. In the first nine months of the financial year 2005 Praktiker achieved sales of EUR 2.3 bn. METRO Group is one of the most important international retailing companies. In 2004 the group reached sales of EUR 56.4 billion. The company has a headcount of about 250,000 employees and operates around 2,400 locations in 30 countries. The operating business is performed by the sales divisions which operate independently in the market: Metro/Makro Cash & Carry – world market leader in cash & carry wholesale, Real SB hypermarkets and Extra supermarkets, Media Markt and Saturn – market leader in consumer electronics centers in Europe, Praktiker home improvement and DIY centers, and Galeria Kaufhof department stores. More information at: www.metrogroup.de. This publication constitutes neither an offer to sell nor a solicitation to buy securities. Any offer would be made solely by means of, and on the basis of, a securities prospectus which would be published and registered with the German Federal Financial Supervisory Authority (BaFin). The securities prospectus would be available free of charge from the Admissions Office of the Frankfurt Stock Exchange, Praktiker Bau- und Heimwerkermärkte Holding AG and the syndicate banks on a date to be determined. Not for release in the United States, Canada and Japan. These materials do not constitute an offer of securities for sale in the United States. The securities referred to herein have not been and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an exemption from registration. No public offering of securities will be made in the United States. End of message (c)DGAP 271446 Okt 05