STEICO Aktiengesellschaft / Contract 25.01.2008 Release of a Corporate-announcement, transmitted by DGAP - a company of EquityStory AG. The issuer is solely responsible for the content of this announcement. --------------------------------------------------------------------------- - STEICO penetrates attractive markets with innovative hemp-based boards - Production planned for third quarter Feldkirchen (Munich) / January 25, 2008 STEICO AG, listed in the Frankfurt Stock Exchange's Entry Standard, has concluded an agreement to relocate its recently acquired production facility for boards made of hemp shives. Stuttgart-based Scholpp Montage GmbH will relocate the facility from Mecklenburg-Vorpommern to STEICO's facility in Czarnków (Poland). The contract for dismantling, transporting and rebuilding the plant has a volume of 1.86 million. This means that the STEICO Group is within its calculated total investment budget of 4.5 million. The project is scheduled to be completed in the third quarter of 2008. STEICO is forecasting substantial income from this project from 2009, with the potential total annual revenues totaling 20 million. High value-added from integrated production process STEICO, the European market leader for wood-fiber insulation materials and manufacturer of environmentally friendly construction materials, acquired this used production facility in September 2007. This is the only facility of its kind in the world and processes hemp shives to make boards that are low weight but very stable. This means that STEICO is able to further process the hemp shives that are created as a by-product when producing its hemp-based insulation materials, creating high value added. The shive boards can be used to make particularly lightweight tabletops or work surfaces. They are also used as bracing boards in wood construction. This acquisition has added a further key element to the company's ecological construction and insulation system, opening up additional attractive markets. 'Scholpp Montage GmbH is one of the leading specialists for relocating industrial equipment, and we are happy to have this company as our partner,' explained Thomas Frei, STEICO AG's CFO. 'This will ensure that this relocation is both fast and smooth.' Taking the machines into operation on schedule will open up major opportunities for the company to reinforce its position as a one-stop-shop for environmentally friendly building products, and to penetrate additional markets. Company profile: The STEICO group of companies develops, produces and sells ecological construction products made of renewable materials. The company leads the European market for wood-fiber insulation materials with a market share of more than 35%. The company also enjoys top rankings for its highly effective cost structure and its research and development activities, which are located in Germany. The group's new products 'Hemp insulation materials' and 'I-joists' as construction elements for residential construction mean that it has grown to become a system provider for ecological construction products. The production of natural fiber boards (NFB) as components for the I-joists rounds off STEICO's vertical integration, which is unique within the industry. The Munich-based company's products are successfully used in home building for floors, walls, ceilings and roofs. The STEICO Group plans to continue the double-digit sales and profits growth it has enjoyed in the past few years thanks to its clear strategic orientation. The strategic plans focus on existing and new products, including for new customers. The funds from the IPO in June 2007 have enabled the company to further bolster the group's solid foundations and also to accelerate its growth. STEICO AG's success is set to continue right on target. Contact: Andreas Schulze STEICO Aktiengesellschaft Hans-Riedl-Strasse 21 85622 Feldkirchen Fon: +49-(0)89-99 15 51-48 Fax: +49-(0)89-99 15 51-97 Email: schulze@steico.com www.steico.com DGAP 25.01.2008 --------------------------------------------------------------------------- Language: English Issuer: STEICO Aktiengesellschaft Hans-Riedl-Str. 21 85622 Feldkirchen Deutschland Phone: +49 - (0)89 - 99 15 51 - 0 Fax: +49 - (0)89 - 99 15 51 - 99 E-mail: info@steico.com Internet: http://www.steico.com ISIN: DE000A0LR936 WKN: A0LR93 Listed: Freiverkehr in Berlin, Düsseldorf, München; Entry Standard in Frankfurt End of News DGAP News-Service ---------------------------------------------------------------------------
DGAP-News: Hemp production facility to relocate
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