Klöckner & Co sells B.V. Aluminium Verkoop Zuid (AVZ) in the Netherlands / Rating raised

• Divestment of non core assets
• Standard & Poors raises rating

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Duisburg, 3 July 2006 - Today, an affiliate of Klöckner & Co
Aktiengesellschaft has entered into an agreement for the sale of its
interest in AVZ in the Netherlands with CRH Nederland B.V., which is
part of the CRH plc. Group, Dublin.

AVZ is responsible for the sun protection products in the Klöckner &
Co group. By disposing of this non-core business activity, Klöckner &
Co Aktiengesellschaft is consistently focussing on its core business.
The indebtedness of the Klöckner & Co group can be further reduced by
using the sale proceeds.

AVZ is active in the business sectors of "outdoor sun
protection/blinds" and has approx. 150 employees. In the financial
year 2005, the revenues of AVZ amounted to EUR 54 million.

The proceeds of the sale will further reduce the indebtedness of
Klöckner & Co Aktiengesellschaft, thus generating additional headroom
for growth.

Klöckner & Co Aktiengesellschaft had already announced that it
expected to realize up to approx. EUR 110 million from divestments in
the financial year 2006, including the sale of interests in the
Netherlands. The sale of AVZ was realized faster than anticipated. By
disposing of assets that are not essential for its core business and
as a result of the capital increase in connection with the initial
public offering, Klöckner & Co Aktiengesellschaft already realized
nearly EUR 180 million in cash during the financial year 2006.
Klöckner & Co Aktiengesellschaft intends to use these proceeds to
further reduce its indebtedness.

Against the background of the successful initial public offering,
Klöckner & Co Aktiengesellschaft and the opportunity to reduce its
indebtedness, Standard & Poors has already raised its rating for
Klöckner's long-term liabilities from B+ to BB on 30 June 2006.

Klöckner & Co Aktiengesellschaft thus continues its course of playing
an active role in the ongoing consolidation of the industry by
further strengthening its financial position.

About Klöckner & Co:

Klöckner & Co is the largest producer-independent steel and metal
distributor in the European and North American markets combined. The
core business of the Klöckner & Co group is the storage and
distribution of steel and non-ferrous metals. About 200,000 active
customers are supplied through approximately 240 distribution
locations in 14 countries in Europe and North America. Klöckner & Co
was founded 100 years ago by Peter Klöckner. During the financial
year 2005, the company achieved sales of approximately 5 billion
Euros with around 10,000 employees. The shares of Klöckner & Co
Aktiengesellschaft are admitted to trading on the official market
segment (Amtlicher Markt) of the Frankfurt Stock Exchange
(Frankfurter Wertpapierbörse) with simultaneous admission to the
sub-segment (Prime Standard) to the official market with further
post-admission obligations. ISIN: DE000KC01000; WKN: KC0100; Common
Code: 025808576.

Contacts:
Peter Ringsleben, Claudia Uhlendorf - Corporate Communications

Klöckner & Co AG
Am Silberpalais 1
47057 Duisburg

Peter Ringsleben
Phone: +49 203 307 2800
Fax: +49 203 307 5060
e-mail: peter.ringsleben@kloeckner.de

Claudia Uhlendorf
Phone: +49 203 307 2289
Fax: +49 203 307 5103
e-mail: claudia.uhlendorf@kloeckner.de

end of announcement euro adhoc 03.07.2006 21:12:23
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ots Originaltext: Klöckner & Co AG
Im Internet recherchierbar: http://www.presseportal.de

Further inquiry note:
Claudia Uhlendorf
Public Relations
Telefon: +49(0)203-307-2289
E-Mail: claudia.uhlendorf@kloeckner.de

Branche: Metal Goods & Engineering
ISIN: DE000KCO1000
WKN: KCO100
Index: CDAX
Börsen: Frankfurter Wertpapierbörse / official dealing/prime standard
Börse Berlin-Bremen / free trade
Hamburger Wertpapierbörse / free trade
Baden-Württembergische Wertpapierbörse / free trade
Börse Düsseldorf / free trade
Bayerische Börse / free trade