DGAP-News: SKW Stahl-Metallurgie Holding AG: Agreement

SKW Stahl-Metallurgie Holding AG / Agreement/Alliance

23.06.2008

Release of a Corporate News, transmitted by DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
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Press release

Agreement signed for long-standing supply agreement with ThyssenKrupp CSA
Brazil&#61607; Agreement spans ten-year supply agreement for calcium
carbide-based desulfurization mixes from 2009&#61607; Operational business in 2008 on record level

Unterneukirchen (Germany), June 23, 2008. SKW Stahl-Metallurgie GmbH, a
wholly owned subsidiary of SDAX-listed SKW Stahl-Metallurgie Holding AG,
has signed an agreement for a ten-year supply agreement for carbide-based
desulfurization mixes (CaD) with ThyssenKrupp CSA (Brazil). In this
connection, SKW Metallurgie will supply the steel group's Brazilian plant,
which is currently being built. SKW Metallurgie will build its own plant
for the production of carbide-based desulfurization mixes in the direct
proximity of ThyssenKrupp in the Rio de Janeiro region (Brazil). The
agreement covers at least 75% of ThyssenKrupp CSA's annual CaD requirements
in Brazil. The start of production is scheduled to parallel the steel plant
going live in 2009. A close, successful strategic alliance has linked SKW
Metallurgie and ThyssenKrupp through many years for the supply of the steel
group's German production facilities. SKW Metallurgie will enter into a
joint venture with a South American supplier for raw materials to secure
the supply of raw materials for this key account.

Strong growth expected for ongoing second quarter

After the very successful start into business year 2008, also the second
quarter 2008 has so far developed very well. Therefore, the Executive Board
again anticipates significantly increased sales and earnings figures.
Accordingly, the SKW Metallurgie Group remains on an operational record
level for 2008 and confirms the already communicated 2008 guidance of
improving sales to 310 to 330 million and EBITDA to 23 to 25 million.
Publication of Q2 results is scheduled for August 14, 2008.

Further information on SKW Metallurgie can be found online at:
www.skw-steel.com

Contact:
SKW Stahl-Metallurgie Holding AG
Christian Schunck
Head of Investor Relations and Corporate Communications
Fabrikstraße 6
84579 Unterneukirchen
Germany
Tel.: +49 8634 -617596
Fax: +49 8634 -617594
E-Mail: schunck@skw-steel.com
Internet: www.skw-steel.com

About SKW Stahl-Metallurgie Holding AG
SKW Metallurgie is the global market leader for chemical additives for hot
metal desulfurization, and for cored wire used in secondary metallurgy. The
Groups products enable steel-makers to efficiently manufacture
high-quality steel products. Clients include the world's leading companies
in the steel industry. The SKW Metallurgie Group has more than 50 years of
metallurgical know how, and currently operates in more than 40 countries.
Approximately 44% of revenues are recorded in Europe and approx. 42% in the
NAFTA region (2007; ESM revenues included as of initial consolidation).
What is more, the Group is a leading supplier of Quab specialty chemicals,
which are mainly used in the global production of industrial starch for the
paper industry. SKW Metallurgies operations are structured into the three
business segments 'Cored Wire', 'Powder and Granules', and 'Quab'. The SKW
Metallurgie Group is headquartered in Germany with production facilities in
France, the US (6), Canada, South Korea, the Peoples' Republic of China (2)
and India (2 via joint ventures)..
Shares of SKW Stahl-Metallurgie Holding AG have been listed in Frankfurt
Stock Exchange's Prime Standard since December 1, 2006 with ISIN
DE000SKWM013. SKW Stahl-Metallurgie Holding AG shares are listed in the
SDAX.

DISCLAIMER
This press release contains statements on future developments that are
based on currently available information and involve risks and
uncertainties that could cause the actual results to differ from these
forward-looking statements. These risks and uncertainties include, for
example, unforeseeable changes to political and economic conditions, in
particular in the steel and paper production industry, the competitive
situation, changes in interest rates and exchange rates, technological
developments and other risks and unexpected circumstances. SKW
Stahl-Metallurgie Holding AG and its Group companies accept no obligation
to update such forward-looking statements.

DGAP 23.06.2008
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Language: English
Issuer: SKW Stahl-Metallurgie Holding AG
Fabrikstrasse 6
84579 Unterneukirchen
Deutschland
Phone: +49 (0)8634 61 7596
Fax: +49 (0)8634 61 7594
E-mail: info@skw-steel.com
Internet: www.skw-steel.com
ISIN: DE000SKWM013
WKN: SKWM01
Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
in Berlin, Stuttgart, München, Hamburg, Düsseldorf
End of News DGAP News-Service
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DGAP-News: SKW Stahl-Metallurgie Holding AG: Agreement signed for long-standing supply agreement with ThyssenKrupp CSA Brazil