Grammer Holding GmbH subscribes to the capital increase by Grammer AG

3.5 million new shares issued at a price of € 12.50 each

Capital stock increased by € 8.95 million whereby subscription rights were excluded

Amberg, June 6, 2001 - As announced, the capital stock of Grammer AG has been increased by € 8.95 million to € 26.9 million, thus making fully use of the conditional capital. A total of 3.5 million new bearer shares with a profit participation entitlement as of Jan. 1 2001 were issued and acquired against a cash contribution by the newly founded Grammer Holding GmbH. The statutory subscription rights were excluded. The Grammer Holding GmbH unites and represents the interests of the investors advised by Schroder Ventures, who will procure a 68-percent stake in Grammer AG, as well as the majority shareholder to date, namely the Grammer family. Plans also foresee offering to take over the shares held by free shareholders at a price of € 12.50 per share.

The overall transaction will generate € 43.7 million in cash for Grammer AG. This will significantly reduce the Company’s debt load - as at March 31, 2001 the Group had a balance sheet total of € 406.6 million and liabilities due to banks and a bond valued at a total of € 210.5 million - and place the Company’s ongoing growth on a solid financial footing. After the impressive turnaround in 2000, Grammer expects Group sales to grow more than ten percent in 2001 (2000: € 671 million), with EBIT surging even more strongly (EBIT 2000: € 26.5 million).