DGAP-News

SKW Stahl-Metallurgie Holding AG: Legal disputes with former members of the management board finally settled - SKW Metallurgie group of companies focusses on its future

DGAP-News: SKW Stahl-Metallurgie Holding AG / Key word(s): Scheme of Arrangement SKW Stahl-Metallurgie Holding AG: Legal disputes with former members of the management board finally settled - SKW Metallurgie group of companies focusses on its future 21.03.2017 / 20:00 The issuer is solely responsible for the content of this announcement. Legal disputes with former members of the management board finally settled - SKW Metallurgie group of companies focusses on its future

- SKW Metallurgie receives an amount of EUR 3.35 Mio. from D&O-Insurer, which will be directly cash-effective; as well as waiver of former CEO of her right to have the 50 per cent reduction of her pension rights judicially reviewed, resulting in a positive accounting effect in the amount of approximately EUR 1.75 Mio.

- ultimate settlement, mutually without acknowledging any legal obligations

- avoidance of long and expensive legal disputes

- approval of the general assembly is prerequisite for the amicable settlement becoming effective

- SKW Metallurgie group of companies is now focusing on future challenges

Munich (Germany), March 21, 2017. SKW group of companies (WKN SKWM02 / ISIN DE000SKWM021), a leading global material supplier for primary and secondary metallurgy solutions for liquid metal treatment for the steel industry, its former members of the management board Ines Kolmsee (CEO) and Gerhard Ertl (CFO) and the D&O-Insurer have reached an amicable settlement for their ongoing legal disputes. These disputes involved in particular the disputed liability to pay damages in connection with the expansion projects in Bhutan and Sweden, which - from SKW group of companies' perspective - have been winded up in the meantime.

The amicable settlement, the effectiveness of which is conditioned on the approval of the general assembly of SKW Stahl-Metallurgie Holding AG, does not contain any acknowledgement of any legal obligations for either party and otherwise contains the following major points: