Greiffenberger : Press Release, October 25, 2016

Press Release by the Greiffenberger AG (WKN 589730 / ISIN DE0005897300)

Greiffenberger AG - Securing the medium-term financing of Greiffenberger AG and remaining subgroup Eberle; Supervisory Board decides on the future management of the Group

Augsburg, October 25, 2016 - Greiffenberger AG has agreed with its financial partners on an adjustment to the main financing agreements, effective October 24, 2016. As a result the medium-term financing of Greiffenberger AG and its remaining business unit Metal Band Saw Blades & Precision Strip Steel (subgroup Eberle) has now been placed on a new footing. Marco Freiherr von Maltzan, who since October 2015 has been responsible for the preparation and implementation of the restructuring measures that became necessary, including their financing, will rejoin the Supervisory Board on October 26, 2016. The Group is to be managed in future through a joint leadership structure.

The syndicated loan that was secured back in 2012 will continue to be the central component of the financing of Greiffenberger AG and its remaining subgroup Eberle. When the divestment of the Drive Technology business unit completed an amount in the double-digit millions was repaid on the syndicated loan. In the meantime agreement has been reached with the syndicate of banks for the syndicated loan to be continued at a now reduced volume with Greiffenberger AG and the lead company of the subgroup Eberle, J. N. Eberle & Cie. GmbH, until September 2019. The repayment of the interest deferment for the period March to October 2016 has been agreed for mid-2017, and payments on the loan are to recommence at the end of 2017. The existing participation right of Greiffenberger AG was taken over by a new creditor and adjusted. In addition to improved remuneration and repayment arrangements it was agreed to waive remuneration payments and part of the profit sharing capital.

After the divestment of the former business units Drive Technology (subgroup ABM) and Pipeline Renovation Technology (subgroup BKP - completion pending), the Greiffenberger AG Group will consist solely of the existing Metal Band Saw Blades & Precision Strip Steel business unit (Eberle subgroup). This focus of the Group is also to be reflected in its future management. The Management Board will consist of the two equal-ranking members Martin Doering (53), the current general manager and future head of the management of J. N. Eberle & Cie. GmbH, and Thorsten Braun (33). Both Management Board members have been appointed initially for the period through to the end of 2017. In addition to Martin Doering, Thorsten Braun will also join the management of J. N. Eberle & Cie. GmbH. Dr. Dieter Schenk, currently acting Chairman of the Supervisory Board of Greiffenberger AG, comments: 'As Managing Director at Eberle for 12 years now Martin Doering has established a stable performance of the company in an increasingly challenging market environment, and in particular demonstrated expertise and decisiveness in developing Eberle's competitive advantages, especially in high-margin niche markets. Thorsten Braun has been with the company since 2011 and as Assistant to the CEO has significantly supported and helped promote the current restructuring as well as the regular day-to-day business of Greiffenberger AG. The future joint leadership structure will enable Eberle to concentrate even more intensively on developing its competitive advantages, along with even more rapid improvements in product development and market processing. At the same time we are ensuring that the current process to improve earnings can continue to progress smoothly and that we can create an environment for our subgroup Eberle in which it can continue to develop with the focus strongly on the future. With these two gentlemen at the helm we therefore consider the future of our Group to be in the best possible hands.'

Marco Freiherr von Maltzan will now rejoin the Supervisory Board as its chairman on October 26, 2016, at the end of his appointment as representative of the sole director in accordance with section 105 (2) of the German Stock Corporation Act (AktG). Dr. Dieter Schenk comments: 'On behalf of the entire Supervisory Board I would like to thank Marco v. Maltzan for his special commitment and engagement as sole director during this extremely challenging phase. He has succeeded in stabilizing the Group again and, through severe cuts in some cases, placed it on a new and promising footing for the future. He has also identified and developed the approaches necessary for the further restructuring of the Group. All of us wish the new Management Board every success and good fortune in its admittedly demanding task of continuing to drive this process further ahead.'