EANS-News: SHW AG: One-off proceeds in the mid double-digit million range from sale of stake in Canadian STT

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Corporate news transmitted by euro adhoc. The issuer/originator is solely
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Joint Ventures/Cooperation/Collaboration

Aalen (euro adhoc) - High proceeds from the sale of the Canadian
participation - Arbitration proceedings settled amicably - Further
internationalisation with wholly-owned subsidiaries

Aalen, 28 September 2012. SHW AG, one of the leading automotive
suppliers for CO2-relevant pumps and engine components as well as
brake discs has reached an agreement with its joint venture partner
for the sale of its 50% stake in STT Technologies Inc., Canada. The
sales price in Euro will be in the mid double-digit million range.
The closing of the transaction is planned until the end of October
2012.

The proportionately consolidated STT achieved a sales contribution of
EUR 31.2 million in the first six months of fiscal year 2012. This
equals approximately 15 percent of group sales.

"We shall amicably settle the arbitration proceedings and hence
strengthen considerably our financial basis for the
internationalization of our business," says CEO Dr. Wolfgang Krause,
who is responsible for the Pumps and Engine Components business
segment.

International market development with wholly-owned subsidiaries

SHW AG will follow through its internationalisation strategy with
wholly-owned subsidiaries. With the sale of its joint venture SHW
gains free access to the North American market. Therefore the NAFTA
region will be a special focus point besides the existing activities
in China and Brazil.

"We still consider the North American vehicle market as very
interesting. Based on our CO2-relevant products we see good growth
opportunities there," emphasises Dr. Krause. We also gain tailwind
from the latest initiative of the Obama administration, requiring
from the OEMs to cut fuel consumption by approximately 50 percent
until 2025.

Sale proceeds enable repayment of bank liabilities

With the sales proceeds we shall repay our bank liabilities (30 June
2012: EUR 21.4 million). "At the same time, we gain considerable room
for further growth through acquisitions," says CFO Oliver Albrecht.

About SHW The enterprise was established in 1365, making it one of
the oldest industrial enterprises in Germany. Today, the SHW Group is
a leading supplier for the automotive industry with products that
contribute to a reduction of fuel consumption and consequently CO2
emissions. In its Pumps and Engine Components business segment, the
SHW Group develops and produces pumps for passenger vehicles and
truck and off-highway applications, e.g. trucks, farm and
construction vehicles, stationary motors and wind power stations. The
Brake Discs business segment develops and produces monobloc
ventilated brake discs made of cast iron and lightweight brake discs
made from a combination of an iron friction ring and an aluminium
pot. Customers of the SHW Group include leading producers of
passenger cars and commercial vehicles with manufacturing facilities
in Europe and North America. The SHW Group has four manufacturing
sites in Germany, located in Bad Schussenried, Aalen-Wasseralfingen,
Tuttlingen-Ludwigstal and Neuhausen ob Eck. Via its 50 percent
interest in the Canadian company STT Technologies Inc., the company
also has production sites in Canada and Mexico. With more than 1,000
employees, the SHW Group generated approx. EUR 360 million in sales
in 2011. Further information is available at: www.shw.de

Future-oriented statements This press release contains certain
future-oriented statements that are based upon current assumptions
and forecasts made by the management of SHW AG. Various known and
unknown risks, uncertainties and other factors may lead to the actual
results, financial position, development or performance of the
company deviating considerably from the appraisals specified here.
The company assumes no obligation to update future-oriented
statements of this nature or adapt them to future events or
developments.

Note This announcement does not constitute an offer to sell
securities in the United States of America, Canada, Australia, Japan
or any other jurisdictional territory where offers are subject to
statutory restrictions. The securities named in this announcement may
only be sold or offered for sale in the United States of America
following their prior registration in accordance with the provisions
of the version of the US Securities Act of 1933 currently in force
(the "Securities Act") or, without prior registration, only on the
basis of an exemption. Unless provided for by certain exceptions
within the Securities Act, the securities named within this
announcement may not be sold or offered for sale in Australia, Canada
or Japan, nor may they be sold or offered for sale to or for account
of residents of Australia, Canada or Japan. No registration of the
offer or sale of the securities named in this announcement will take
place, as stipulated by the relevant statutory provisions in Canada,
Australia and Japan. There is no public solicitation to buy
securities in the United States of America.

Further inquiry note:
Michael Schickling
Head of Investor Relations & Corporate Communications
SHW AG
Telephone: +49 (0) 7361 502 462
Email: michael.schickling@shw.de

end of announcement euro adhoc
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company: SHW AG
Wilhelmstrasse 67
D-73433 Aalen
phone: +49 7361 502-1
FAX: +49 7361 502-674
mail: ir@shw.de
WWW: http://www.shw.de
sector: Automotive Equipment
ISIN: DE000A1JBPV9
indexes:
stockmarkets: free trade: Düsseldorf, Stuttgart, regulated dealing/prime
standard: Frankfurt
language: English