Vaillant Group intends to acquire majority interest in Turkish heating technology specialist DemirDöküm from Koç Group

• Excellent strategic fit
• Turkish market grows dynamically
• Close R&D cooperation

Remscheid/Istanbul, 28 May 2007 – With the acquisition of 72.56 per cent of the shares of the leading Turkish heating and air-conditioning technology specialist Türk DemirDöküm Fabrikalari A.S. (DemirDöküm), the Vaillant Group intends to take over a majority interest in the company. The largest current shareholder is the Koç Group, which will sell all its shares to the Vaillant Group. A contract on the transaction between the two family owned companies was signed today. The purchase price for the shareholding acquired by the Vaillant Group totals €211.1 million. 21.76 per cent of the DemirDöküm shares are publicly traded on the Istanbul Stock Exchange, and 5.68 per cent are owned by the Taylan Holding. The Vaillant Group will make a public offer for these remaining 27.44 per cent of DemirDöküm shares. With the acquisition of the iconic Turkish company DemirDöküm, Vaillant Group as one of the world's market and technology leaders, will further expand its core business of heating, ventilation and air-conditioning technology. The transaction is subject to the approval of the respective competition control authorities.
Dr Christoph M. Müller, representative of the Vaillant Group’s Partners Board and the Vaillant Family, said on a press conference today in Istanbul: “I am convinced that DemirDöküm and Vaillant complement each other perfectly and form a strong team. Both companies and their employees will benefit from the future cooperation and will grow jointly.”
Vaillant Group Managing Director Claes Göransson said: "As a very successful and strongly expanding company with know-how gained over many years and a comprehensive technology portfolio, DemirDöküm is an ideal strategic addition for the Vaillant Group. The acquisition represents a significant step in continuing the Vaillant Group’s strategy of good growth through geographic expansion, an expanded product portfolio and synergies."

Turkish market grows dynamically
DemirDöküm primarily serves the strongly growing Turkish market and it also has an increasing presence in international markets. With this acquisition, the Vaillant Group further expands its geographic presence and benefits from the dynamic economic development especially in Eastern Europe. Turkey is the third largest market in Europe with growth supported by the nationwide expansion of gas supply – all regions are to be connected to the gas grid by 2010 – as well as increasing prosperity and industrial and domestic construction.
The Vaillant Group has successfully acquired several companies in the past. The largest Vaillant Group acquisition so far was the takeover of the British company Hepworth plc, with the heating technology brands Saunier Duval, Glow-worm and Protherm in 2001. In addition, in the last three years the Vaillant Group has acquired the Italian heating technology company Hermann, and several service and sales companies.

Close R&D cooperation
Besides the expansion of the product ranges, both companies will benefit from a close R&D cooperation and a further enhancement of technology standards. Together with DemirDöküm, the Vaillant Group aims to be the leading supplier in Turkey of safe, energy efficient and environment-friendly heating, ventilation and air-conditioning systems.
The products of both companies will continue to be sold under their internationally successful brand names after the acquisition. The marketing and sales organisations of each company will continue to be run separately and the existing sales structures and channels will also be retained.

Information on DemirDöküm
Türk DemirDöküm Fabrikalari A.S. (DemirDöküm), based in Western Turkey, is one of the leading Eastern European manufacturers in the heating and air-conditioning technology sector. The company, founded in 1954, is part of the Koç Group. DemirDöküm today achieves 70 per cent of its sales in the domestic market, although exports are becoming more important. DemirDöküm products are sold in 50 countries in Europe, Asia and North Africa. The company has production plants in Turkey, China and Algeria. DemirDöküm had about 2,300 employees and achieved sales of €432 million in 2006. The operating earnings (EBIT) totalled €44 million. The company is listed on the Istanbul Stock Exchange.

Information on Vaillant Group
The Vaillant Group is an internationally operating heating, ventilation and air-conditioning technology group based in Remscheid, Germany. As one of the world's market and technology leaders, the company develops and produces tailor-made products, systems and services for domestic comfort. The product portfolio ranges from efficient heating appliances based on conventional energy sources to system solutions for using renewable energy sources. In 2006, the Vaillant Group, which has been family-owned since its founding in 1874, achieved sales totalling some €2 billion and operating earnings of €236 million with almost 10,100 employees.

Contact
Dr Jens Wichtermann
Head of Corporate Communications
Vaillant Group
D-42850 Remscheid
Phone: +49 2191 18-2754
Fax: +49 2191 18-2895
Mobile: +49 175 2951810
jens.wichtermann@vaillant.de
www.vaillant-group.com