EANS-Adhoc: PALFINGER AG signs two joint ventures with Sany Heavy Industry

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28.02.2012

- JV Sany Palfinger produces and sells PALFINGER products in China -
JV Palfinger Sany distributes Sany mobile cranes outside China - Sany
Heavy Industry is the market and technology leader in the field of
construction machinery in China - PALFINGER is the market and
technology leader in the field of truck-mounted cranes

Today PALFINGER AG, headquartered in Salzburg (Austria), and Sany
Heavy Industry Co.,Ltd headquartered in Changsha (People's Republic
of China), entered into an agreement on the establishment of two
joint venture companies in which both parties will each hold 50per
cent of the shares. Sany Palfinger will primarily produce and sell
PALFINGER products in Changsha for the Chinese market; Palfinger
Sany, with its registered office in Salzburg, will distribute the
mobile cranes produced by Sany in the global market outside China.
The establishment of the two joint ventures is subject to the
approval of the authorities.

Sany Palfinger SPV Equipment Ltd. in Changsha will develop and
produce truck-mounted knuckle boom cranes and telescopic cranes on
the basis of the technologies of PALFINGER and Sany for the Chinese
market. The medium-term target is a market share of 30per cent. Sany
Palfinger SPV Equipment Ltd. will establish a new plant near Sany's
facilities, with production capacities for 10,000 cranes. At the same
time, a dense sales and service network will be set up in China.
First, ten standard crane models will be produced in series for the
Chinese market. In a second step, other PALFINGER products, such as
container handling systems, tail lifts and access platforms should be
included in the production and sales portfolio. The company will
start operations in 2012 and will have reached full operational
effectiveness by 2013.

Palfinger Sany International Mobile Cranes Sales GmbH is being
established as an international sales and service company, having its
registered seat in Salzburg and exclusively distributing Sany's
mobile cranes in Europe and CIS. Furthermore, for the Americas, the
development of a truck mounted stiff boom crane is planned. The
company will start operations without delay and will have reached
full operational effectiveness by the end of the year.

Both companies will be subject to the Austrian Code of Corporate
Governance and will prepare their financial statements in accordance
with IFRS and Chinese GAAP, respectively.

A press conference will be held tomorrow, Wednesday 29 February 2012,
at 9.00am CET at PALFINGER's headquarters in Salzburg.

Sany Heavy Industry Co., Ltd, ranks the first in the concrete
machinery industry, and is the largest heavy equipment manufacturer
in China and seventh-largest in the world. Founded in 1994, Sany
Heavy Industry mainly engaged in R&D, manufacturing and sales of
construction machinery. Its main products include concrete machinery,
excavator, hoisting machinery, pile driving machinery, road
construction machinery etc, among which concrete machinery is the
world class brand and excavator, crawler cranes and pile-driving
machine are all first brands in China.The company went public on July
3, 2003, with a market capitalization of more than USD20 billion, has
become the first industrial enterprise in China to be counted among
the FT Global 500. Sany Heavy Industry employs a total staff of
49,876 in China and its four research and production sites in the
USA, Germany, Brazil and India. The company operates business in 120
countries and regions, and sells its products via 24 subsidiaries. In
2010, Sany generated sales revenue of more than RMB50 billion which
corresponds to approx. EUR6.1 billion. Every year, around 5per cent
of Sany's sales revenue is re-invested in research and development.
Sany is listed on the Shanghai stock exchange.

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About PALFINGER AG For many years PALFINGER has been one of the
world's leading manufacturers of hydraulic lifting, loading and
handling systems. As a multinational group headquartered in Salzburg,
the Company's 6,000 employees generated total sales of EUR 846
million in 2011.

The Group has production and assembly facilities in Europe, in North
and South America as well as in Asia. The pillars of corporate
strategy comprise innovation, and the further internationalisation
and diversification of products and services. PALFINGER is regarded
not only as the market leader, but also the technology leader, in the
global market for hydraulic knuckle boom cranes. PALFINGER is always
in proximity to its customers due to its over 4,500 sales and service
centres located in over 130 countries across five continents.

Further inquiry note:
Hannes Roither, PALFINGER AG
Unternehmenssprecher
Tel.: +43 662 46 84-2260
mailto: h.roither@palfinger.com
www.palfinger.com

end of announcement euro adhoc
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issuer: Palfinger AG
F.-W.-Schererstraße 24
A-5020 Salzburg
phone: 0662/4684 2261
FAX: 0662/4684 2280
mail: c.rendl@palfinger.com
WWW: www.palfinger.com
sector: Machine Manufacturing
ISIN: AT0000758305
indexes: ATX Prime, Prime Market
stockmarkets: official market: Wien
language: English