Wiesbaden, October 25, 2007 - SGL Group – The Carbon Company – has strengthened its core expertise in high-performance materials by acquiring epo GmbH, one of the leading European manufacturers of carbon fiber composites . Particularly as manufacturer of unidirectional semifinished carbon fiber -based products (prepregs) , epo ranks among the technology leaders. With a global presence in these markets, epo GmbH generated sales of around € 20 million in 2006. The transaction is still subject to approval by the antitrust authorities.

Dr. Hariolf Kottmann, Member of SGL Group’s Board of Management: ”With this strategic acquisition, SGL Group has strengthened its market position as the sole European integrated carbon fibers and composites manufacturer . The integration of epo’s business activities into the Business Unit Carbon Fibers and Composites (CFC) will enlarge SGL Group’s technological expertise and expand its capacity for producing carbon fiber composites. In addition, epo’s product portfolio and international market presence are a perfect match to SGL Group’s resources.”

Based in Willich (Germany ), epo GmbH specializes in high-performance, carbon fiber-based composites combining ultra-low weight with high mechanical strength and stiffness. Due to these characteristics, composite materials are in increasing demand as substitutes in a wide range of industrial applications, particularly in aerospace, mechanical engineering and plant construction, as well as in the automotive industry. Another major application are wind power generators – a key area in the alternative energy sector. Given the growing diameters of rotor blades and the resulting strong mechanical loads, rotors are increasingly built with carbon fiber-based materials.

The acquisition of epo represents a further important milestone in SGL Group’s Carbon Fibers and Composites strategy and is a major extension of its core CFC activities. These include own production capacities of raw material ( precursor ), the manufacturing of carbon fibers in diverse qualities, strengths and specifications, as well as the next stage along the value added chain, where carbon fibers are processed into fabrics, preforms, or prepregs (composite materials). In this context, epo GmbH will reinforce SGL Group’s existing investment in a state-of-the-art prepreg plant at its Meitingen site, as well as SGL Kümpers GmbH & Co. KG, which was established in January 2007 following an acquisition.

SGL Group plans to increase sales of its Carbon Fibers & Composites (CFC) Business Unit by at least 15% p.a. until 2011. CFC’s nine-month figures for 2007 already indicate a sales growth of 28%, up from € 96.8 million during the same period of 2006, to € 123.7 million. Whilst the ROS for the previous fiscal year remained negative at -3 % as a result of development and start-up costs, a positive return is already expected in 2007. The company expects an high single digit ROS for 2008. An ROS exceeding 10% is expected by 2011.

About SGL Group – The Carbon Company
The SGL Group is one of the world’s leading manufacturers of carbon-based products. It has a comprehensive portfolio ranging from carbon and graphite products to carbon fibers and composites. SGL Group’s core competencies are its expertise in high-temperature technology as well as its applications and engineering know-how gained over many years. These competencies enable the Company to make full use of its broad material base. SGL Group’s carbon-based materials combine several unique properties such as electrical and thermal conductivity, heat and corrosion resistance as well as high mechanical strength combined with low weight. Due to the paradigm shift in the use of materials as a result of the worldwide shortage of energy and raw materials, there is a growing demand for SGL Group’s high-performance materials and products from an increasing number of industries. Carbon and graphite products are used whenever other materials such as steel, aluminum, copper, plastics, wood etc. fail due to their limited properties.

Products from the SGL Group are used predominantly in the steel, aluminum, automotive, chemical and glass/ceramics industries. However, manufacturers in the semiconductor, battery, solar/wind energy, environmental protection, aerospace and defense industries as well as in the nuclear energy industry also figure among the Company’s customers.

With around 30 production sites in Europe, North America and Asia as well as a service network covering more than 100 countries, the SGL Group is a company with a global presence. In 2006, the Company’s workforce of 5,250 generated sales of € 1.2 billion. The Company’s head office is located in Wiesbaden/Germany.

Important note – forward-looking-statements:
This press release contains statements on future developments that are based on currently available information and that involve risks and uncertainties that could lead to actual results deviating from these forward-looking statements. The statements on future developments are not to be understood as guarantees. The future developments and events are dependent on a number of factors, they include various risks and unanticipated circumstances and are based on assumptions that may not be correct. These risks and uncertainties include, for example, unforeseeable changes in political, economic and business conditions, particularly in the area of electrosteel production, the competitive situation, interest rate and currency developments, technological developments and other risks and unanticipated circumstances. We see other risks in price developments, unexpected developments relating to acquired and consolidated companies and in the ongoing cost optimization programs. SGL Group does not intend to update these forward-looking statements.