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EANS-News: SHW AG: One-off proceeds in the mid double-digit million range from sale of stake in Canadian STT

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Joint Ventures/Cooperation/Collaboration

Aalen (euro adhoc) - High proceeds from the sale of the Canadian participation
- Arbitration proceedings settled amicably
- Further internationalisation with wholly-owned subsidiaries

Aalen, 28 September 2012. SHW AG, one of the leading automotive suppliers for
CO2-relevant pumps and engine components as well as brake discs has reached an
agreement with its joint venture partner for the sale of its 50% stake in STT
Technologies Inc., Canada. The sales price in Euro will be in the mid
double-digit million range. The closing of the transaction is planned until the
end of October 2012.

The proportionately consolidated STT achieved a sales contribution of EUR 31.2
million in the first six months of fiscal year 2012. This equals approximately
15 percent of group sales.

"We shall amicably settle the arbitration proceedings and hence strengthen
considerably our financial basis for the internationalization of our business,"
says CEO Dr. Wolfgang Krause, who is responsible for the Pumps and Engine
Components business segment. 

International market development with wholly-owned subsidiaries

SHW AG will follow through its internationalisation strategy with wholly-owned
subsidiaries. With the sale of its joint venture SHW gains free access to the
North American market. Therefore the NAFTA region will be a special focus point
besides the existing activities in China and Brazil. 

"We still consider the North American vehicle market as very interesting. Based
on our CO2-relevant products we see good growth opportunities there," emphasises
Dr. Krause. We also gain tailwind from the latest initiative of the Obama
administration, requiring from the OEMs to cut fuel consumption by approximately
50 percent until 2025.

Sale proceeds enable repayment of bank liabilities

With the sales proceeds we shall repay our bank liabilities (30 June 2012: EUR
21.4 million). "At the same time, we gain considerable room for further growth
through acquisitions," says CFO Oliver Albrecht. 

About SHW
The enterprise was established in 1365, making it one of the oldest industrial
enterprises in Germany. Today, the SHW Group is a leading supplier for the
automotive industry with products that contribute to a reduction of fuel
consumption and consequently CO2 emissions. In its Pumps and Engine Components
business segment, the SHW Group develops and produces pumps for passenger
vehicles and truck and off-highway applications, e.g. trucks, farm and
construction vehicles, stationary motors and wind power stations. The Brake
Discs business segment develops and produces monobloc ventilated brake discs
made of cast iron and lightweight brake discs made from a combination of an iron
friction ring and an aluminium pot. Customers of the SHW Group include leading
producers of passenger cars and commercial vehicles with manufacturing
facilities in Europe and North America. The SHW Group has four manufacturing
sites in Germany, located in Bad Schussenried, Aalen-Wasseralfingen,
Tuttlingen-Ludwigstal and Neuhausen ob Eck. Via its 50 percent interest in the
Canadian company STT Technologies Inc., the company also has production sites in
Canada and Mexico. With more than 1,000 employees, the SHW Group generated
approx. EUR 360 million in sales in 2011. Further information is available at:

Future-oriented statements
This press release contains certain future-oriented statements that are based
upon current assumptions and forecasts made by the management of SHW AG. Various
known and unknown risks, uncertainties and other factors may lead to the actual
results, financial position, development or performance of the company deviating
considerably from the appraisals specified here. The company assumes no
obligation to update future-oriented statements of this nature or adapt them to
future events or developments.

This announcement does not constitute an offer to sell securities in the United
States of America, Canada, Australia, Japan or any other jurisdictional
territory where offers are subject to statutory restrictions. The securities
named in this announcement may only be sold or offered for sale in the United
States of America following their prior registration in accordance with the
provisions of the version of the US Securities Act of 1933 currently in force
(the "Securities Act") or, without prior registration, only on the basis of an
exemption. Unless provided for by certain exceptions within the Securities Act,
the securities named within this announcement may not be sold or offered for
sale in Australia, Canada or Japan, nor may they be sold or offered for sale to
or for account of residents of Australia, Canada or Japan. No registration of
the offer or sale of the securities named in this announcement will take place,
as stipulated by the relevant statutory provisions in Canada, Australia and
Japan. There is no public solicitation to buy securities in the United States of

Further inquiry note:
Michael Schickling
Head of Investor Relations & Corporate Communications
Telephone: +49 (0) 7361 502 462

end of announcement                               euro adhoc 

company:     SHW AG
             Wilhelmstrasse 67
             D-73433 Aalen
phone:       +49 7361 502-1
FAX:         +49 7361 502-674
sector:      Automotive Equipment
ISIN:        DE000A1JBPV9
stockmarkets: free trade: Düsseldorf, Stuttgart, regulated dealing/prime
             standard: Frankfurt 
language:   English

Original content of: SHW AG, transmitted by news aktuell

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