Muehlhan AG

Regulatory Filings • Dec 15, 2008

News Details

Corporate | 15 December 2008 08:57

Muehlhan AG: Business in the Middle East remains strong despite the international financial crisis

Muehlhan AG / Development of Sales/Miscellaneous

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PRESS RELEASE

Muehlhan’s business in the Middle East remains strong despite the
international financial crisis

• Subsidiaries take hold in the region
• Muehlhan focuses on systematic expansion of existing businesses
• Additional orders for Dubai Metro and continuing work at the Burj Dubai

Hamburg, 15 December 2008 – Despite the generally gloomy forecasts for the
overall economic situation worldwide, the Muehlhan Group (Entry Standard;
ISIN DE000A0KD0F7) continues to show an upward trend. In particular, the
industrial business in the Middle East, which has expanded steadily
throughout the year, can draw a positive year-end balance.

In the first nine months alone, Muehlhan posted sales revenues of EUR 6.2
million in the region. Of this amount, EUR 3.6 million were attributable to
the business activities in Qatar and a further EUR 2.6 million to the two
passive fire protection companies that the Group has owned since the
beginning of the year, Procon Emirates LLC in Dubai and Abu Dhabi (both in
the United Arab Emirates). This represents an increase for the Group of
more than EUR 5 million over the prior-year figure for the first nine
months of the year.

In Qatar, Muehlhan is benefiting from the strong business growth at the
world’s largest construction site, Ras Laffan, which continues to offer
significant growth potential despite the economic trend. Qatar plans to
monetize its huge gas reserves over the coming decades through various gas
liquefaction and GTL (Gas-to-Liquids) plants that are currently under
construction or, in some cases, already in operation.

Muelhan’s Dubai subsidiary, Procon, has landed another infrastructure
order. This order involves coating 13 pedestrian bridges for the first of
three planned Dubai Metro lines with fire-protection material by the end of
the first quarter of 2009. The steel pedestrian bridges will connect to the
stations for the Metro line, which will run above ground on concrete
pillars and completely without drivers. The total contract volume is
approximately EUR 3.0 million. Completion of the first line is scheduled
for 2009; two additional lines will be added by 2012.

Meanwhile, the company has successfully concluded the first contract to
coat the elevator shafts of what is currently the tallest building in the
world, the Burj Dubai (Dubai Tower). Additional work for coating the upper
floors above the 600-meter level will start soon. Although the overwhelming
bulk of the building will be constructed of concrete for climatic reasons,
these upper floors will be of steel construction for static reasons.
'Prestige projects such as these have contributed to the fact that our
subsidiaries have developed an outstanding reputation throughout the entire
region for providing high-quality specialty services,' says the Chairman of
the Muehlhan Group, Dr Andreas Krüger.

Consequently, Muehlhan is confident that the positive contributions from
the business in the Middle East will continue in the future, despite the
global financial and economic crisis. 'With these contract awards, Muehlhan
is focusing on major projects that are economically sound. Moreover, in
this part of the world, construction projects such as the Burj Dubai are
driven not simply by economic interests; the implementation of such
projects always has a political dimension for the people in the region, as
well. Therefore, we are working on the assumption that financial resources
are just as likely to be made available for these projects as for major
trans-regional transportation projects, such as the Metro and the new cargo
airport in Dubai or for major industrial projects such as the expansion of
the Ras Laffan gas processing plant in Qatar', says Krüger.

As a result, Muehlhan is confident about 2009 and beyond and plans to
further increase revenues by participating in the projects mentioned above.

About Muehlhan:
The Muehlhan Group is a leading world provider of marine surface
protection. Its core business consists of applying and renewing corrosion
protection coatings to steel structures. They include steel surfaces of
ships and of oil and gas rigs and platforms. The Muehlhan Group is also
active in the Industry Services segment, which, besides scaffolding for
marine and industry customers, includes surface protection for wind
turbines, chemical production plants, and fuel storage depots, steel
bridges, cranes, and machinery. The company’s patented technology
brand-named μ-jet® guarantees especially high quality and efficiency
in the removal of old coatings and rust, particularly in the open sea.
Muehlhan was established in Hamburg in 1881 and employs some 2,400
employees around the world. In 2007 the company generated revenue of EUR
196 million (IFRS). For further information visit www.muehlhan.com.

Press contact: Ties Kaiser c/o Muehlhan AG, Phone +49 40 752 71 156, email:
kaiser@muehlhan.com

15.12.2008 Financial News transmitted by DGAP

Language: English
Issuer: Muehlhan AG
Schlinckstrasse 3
21107 Hamburg
Deutschland
Phone: +49 40 75271 0
Fax: +49 40 75271 130
E-mail: investorrelations@muehlhan.com
Internet: www.muehlhan.com
ISIN: DE000A0KD0F7
WKN: A0KD0F
Listed: Freiverkehr in Berlin, Hamburg, München, Stuttgart; Entry
Standard in Frankfurt

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