Ad hoc disclosures

Audit of the annual and consolidated financial statements as of December 31, 2010

In the course of the audit of the annual and consolidated financial statements as of December 31, 2010, which has not yet been completed, it has just emerged that the sale of all shares in AlexanderSolia GmbH, as announced in the ad hoc announcement of August 12, 2011, will have negative consequences on the balance sheet. In the short term, these balance sheet consequences could lead to a further reduction in the share capital of Alexanderwerk AG, half of whose loss was already announced in the ad hoc announcement dated August 24, 2010. A final outcome depends on whether and to what extent claims for damages by Alexanderwerk AG (arising from other circumstances) are (or can be) included in the 2010 annual and consolidated financial statements in a compensatory manner and at an appropriate amount. Temporarily and presumably only in the annual and consolidated financial statements as of 31 December 2010, the share capital could become depleted and negative, subject to the above-mentioned compensatory capitalization of claims for damages. Currently, the Executive Board expects negative balance sheet consequences due to the aforementioned sale of AlexanderSolia GmbH in the amount of approx. EUR 3.107 million. If necessary, this could result in a negative commercial balance of equity in the annual financial statements as of December 31, 2010 for an almost equivalent amount. In the consolidated financial statements as of December 31, 2010 – compiled based on IFRS consolidated accounting – could result in negative equity of up to approx. (minus) EUR 1.72 million.

There are no further consequences, in particular there are still sustainable, compensating hidden reserves at Alexanderwerk AG. The liquidity situation of Alexanderwerk AG and the individual subordinate companies within the meaning of §§ 15 et seq. AktG is sustainably positive; thus, the going concern prognosis of Alexanderwerk AG or its subordinate companies within the meaning of §§ 15 et seq. AktG is positive.

Remscheid, October 5, 2011

Alexanderwerk AG
Executive Board