Frauenthal Holding AG

Earnings Release • Jan 15, 2009

Stock exchange announcement pursuant to section 48d(1) Austrian Stock Exchange Act (BörseG)

Frauenthal Holding AG anticipates a 35% year-on-year fall in order intake by its Automotive Components Division in the 2009 financial year. The expected decline in revenue and the cost of the restructuring actions required to adjust capacity to demand point to substantial losses by the division in the 2009 financial year, which cannot be fully offset by the continued growth of the group's Industrial Honeycombs and Wholesale Plumbing Supplies (SHT) divisions. The Industrial Honeycombs Division (Porzellanfabrik Frauenthal) is investing EUR 5 million in additional capacity in response to the rapid growth in order backlog.

The group budget approved by the supervisory board on 15 January 2009 takes account of these developments.

Management will be focusing on maximising liquidity.

Following the resignation of Michael Ostermann from the Executive Board at year end 2008 Magnus Baarman, 44 was appointed as the new chief executive of the Automotive Components Division. He will report to the executive board member responsible for the division, Hans Peter Moser. Mr Baarman has been a manager with the Automotive Components Division since 2005.

In addition, the management board of Frauenthal subsidiary SHT Haustechnik AG has been expanded. Beatrix Pollak, 38 has been appointed to the board, and will head up the purchasing and sales departments. She joined the SHT Haustechnik Group in 2003, and has held various senior positions, the most recent of which was as Vice President Product Management and Strategic Purchasing.

Frauenthal Holding AG Prinz Eugen Strasse 30/4, A-1040 Vienna, Austria Tel. +43 0(1) 505 4206; fax +43 0(1) 505 4206 33; holding@frauenthal.at