Not for distribution in the United States Initial listing on Frankfurt's Official Market (Prime Standard) planned for May 15 (Munich, May 2, 2007) Wacker Construction Equipment AG began marketing its shares today, with an offering of up to 18.4 million shares based on a secondary placement combined with a capital increase. The company intends to use the IPO proceeds to consolidate its leading market position and pursue its international growth strategy. Placement and planned schedule "We feel that the time is right for an IPO. Capital market conditions are favorable and the company is extremely well-positioned," confirms Dr.-Ing. Georg Sick, CEO and President of the Executive Board. "We significantly improved sales and earnings again in fiscal 2006 and steadily prepared ourselves for stock market flotation." The offer period in which investors can subscribe for shares is expected to run from May 9 to May 14, 2007. The price range will be published by this date and is determined using decoupled bookbuilding, based on investor feedback. Initial listing of the shares is planned for May 15, 2007. Under the umbrella of the German public offering and international private placements (including a qualified institutional placement (QIP) in the USA, in accordance with Rule 144 A of the US Securities Act), up to 7.5 million shares will be placed through a capital increase and 8.5 million shares will be placed from the portfolio of Wacker Beteiligungs GmbH & Co. KG and one of the family shareholders. Up to 2.4 million shares from the Wacker Beteiligungs GmbH & Co. KG portfolio are also slated for additional allotments. Following placement of all shares (assuming green shoe option is fully exercised) the free float will total around 36%. Use of emission proceeds The company is planning to invest the IPO proceeds to secure profitable growth in the long term. The investments will focus on expanding the rental business field and building up the compact equipment segment. The manufacturing plants in Korbach and Manila are also scheduled for completion in 2007. In the USA, the company intends to expand its service partner network through the Equipro franchise concept, which it is currently extending. It also plans to construct a new research and development center in Munich. Securities prospectus on the Internet Wacker Construction Equipment AG shares will be traded under ISIN DE000WACK012 on Frankfurt Stock Exchange's Official Market (Prime Standard). The joint global coordinators and joint bookrunners are Deutsche Bank, Sal. Oppenheim and UBS Investment Bank. The IPO securities prospectus was approved by the German Financial Supervisory Authority (BaFin) and published on the Wacker Construction Equipment AG website (www.wackergroup.com) on April 30, 2007. The prospectus is also available in printed form from both the company and the underwriters. Market position and profitability improved in fiscal 2006 Wacker Construction Equipment AG continued its dynamic growth path in fiscal 2006. The company increased sales by 23.1 percent, from EUR 503.2 million the previous year to EUR 619.3 million. Profit before interest, tax, depreciation and amortization (EBITDA*) grew 42.7 percent to EUR 100.2 million (previous year: EUR 70.3 million), with the EBITDA margin up 16.2 percent (previous year: 14.0 percent). Profit before interest and tax (EBIT) rose 51.3 percent, from EUR 50.7 million the previous year to EUR 76.7 million. Planned merger with Neuson Kramer Baumaschinen AG In the course of 2007, Wacker Construction Equipment AG plans to merge with Neuson Kramer Baumaschinen AG (Austria), a leading manufacturer of compact equipment in Europe. The merger will be realized through the issue of 19.1 million through contributions in kind and the use of 4.3 million treasury stock. The new company is set to be a major global manufacturer of light and compact equipment. Wacker views the companies' high-quality product portfolios as highly complementary. The aim is to tap market potential in the USA, Europe and Asia, focusing particularly on the compact equipment segment. In fiscal 2006/07 (February 1 - January 31), Neuson Kramer Baumaschinen AG achieved sales of EUR 262.5 million (up 32.3 percent) and EBIT of EUR 45.3 million (up 49.2 percent). About Wacker Construction Equipment AG: Founded in 1848 as a blacksmith's shop, today Wacker is a major global manufacturer of high-quality light and compact equipment designed to help customers increase operational efficiency. With over 250 product categories and complementary rental, spare parts and repair services, Wacker is the partner of choice among professional users in construction, gardening, landscaping and agriculture. The company has over 160 sales and service stations in more than 30 countries, ensuring it has the consulting and support depth and reach necessary to give its customers the best possible service. In fiscal 2006, Wacker increased sales by 23.1 percent to EUR 619.3 million and profit before interest and tax by 51.3 percent to EUR 76.7 million. Maintaining its traditional roots, the company is almost exclusively in the hands of its founder family. Contacts: Imre Szerdahelyi Dr. Kay Baden Head of Corporate Communication Member of the Executive Committee Wacker Construction Equipment AG Kirchhoff Consult AG Preußenstr. 41 Ahrensburger Weg 2 80809 Munich 22359 Hamburg Germany Germany Phone: +49 - (0)89 - 354 02 - 251 Phone: +49 - (0)40 - 609 186 - 39 Fax +49 - (0)89 - 354 02 - 298 Fax: +49 - (0)40 - 609 186 - 60 [email protected] [email protected] * EBITDA is not a key figure recognized by IFRS and differs significantly from IFRS-approved figures Disclaimer: This publication constitutes neither an offer to sell nor an invitation to buy securities. The offer in Germany will be made exclusively by means of and on the basis of the prospectus which has been approved by the German Federal Financial Supervisory Authority and which is published on the websites of Wacker Construction Equipment AG and available free of charge at the company and the syndicate banks. This document does not constitute an offer of securities for sale or a solicitation of an offer to purchase securities in the United States. The shares in Wacker Construction Equipment AG (the "Shares") may not be offered or sold in the United States absent registration or an exemption from registration under the U.S. Securities Act of 1933, as amended. Neither Wacker Construction Equipment AG nor any selling shareholder intends to register any portion of the offering in the United States or to conduct a public offering of the Shares in the United States. This document is only being distributed to and is only directed at (i) persons who are outside the United Kingdom or (ii) to investment professionals falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the "Order") or (iii) high net worth entities, and other persons to whom it may lawfully be communicated, falling within Article 49(2)(a) to (d) of the Order (all such persons together being referred to as "relevant persons"). The Shares are only available to, and any invitation, offer or agreement to subscribe, purchase or otherwise acquire such securities will be engaged in only with, relevant persons. Any person who is not a relevant person should not act or rely on this document or any of its contents. --- End of Message --- Wacker Construction Equipment AG Preußenstr. 41 München Deutschland WKN: WACK01; ISIN: DE000WACK012; Listed: Amtlicher Markt in Frankfurter Wertpapierbörse, Prime Standard in Frankfurter Wertpapierbörse;