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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 - Seite 2

- The D&O-Insurer will pay a total amount of EUR 3.35 Mio. to SKW group of companies.

- The former CEO waives her right to have the 50 per cent reduction of her pension rights (to be resolved by the supervisory board) judicially reviewed, resulting in a positive accounting effect in the amount of approximately EUR 1.75 Mio. for SKW

- The Company undertakes to abandon its liability claim for damages pending at Landgericht Traunstein and undertakes to refrain from raising further claims against former members of the management board.

- The former members of the management board waive any potential rights to receive payment of a bonus based on a long-term-incentive program, respectively to compensation for a post-contractual non-compete obligation.

Furthermore, any payment by the insurance will be directly cash-effective and can thus be used counted as a contribution of SKW group of companies to the reduction of its financial debt. Additionally, the reduction of the pension obligations will strengthen the future liquidity of SKW group of companies.

The amicable settlement, which has now been reached, is in the best interest of SKW group of companies and its shareholders. The payment by the insurer will be directly cash-effective and can thus be counted as a contribution by SKW to the reduction of its financial debt. Furthermore, the payment of the insurer and the reduction of the pension claims will have positive effects on the income of SKW group of companies and will strengthen its equity.

In any case, to continue these legal proceedings would have resulted in significant risks and costs connected to long and complex legal proceedings. This amicable settlement, on the other hand, enables SKW to focus once again on its future. Management board and supervisory board will recommend to the general assembly to approve the amicable settlement.

The SKW group of companies will direct all its energy towards meeting the challenges of the ongoing steel-crisis, and to consequently implement the efficiency enhancement program ReMaKe, as well as to further advance the financial restructuring of SKW group of companies.