ElringKlinger AG / Key word(s): Investment 27.10.2016 07:25 Disclosure of an inside information according to Article 17 MAR, transmitted by DGAP - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement. --------------------------------------------------------------------------- ElringKlinger sets progressive course for mobility of the future - Acquisition of interests in hofer powertrain Engineering Group and hofer powertrain products GmbH - Strategic advancement of ElringKlinger in the area of innovative drive systems for hybrid and all-electric vehicles Dettingen/Erms (Germany), October 27, 2016 +++ ElringKlinger AG is to acquire a strategic interest of 27% in the engineering company hofer AG. The transaction also encompasses a 53% majority interest of ElringKlinger in the subsidiary hofer powertrain products GmbH operating within the Nürtingen-based group of companies. The purchase price of the entire transaction is a double-digit figure in the million euro range and will be settled subsequent to closing, which is to take place no earlier than January 1, 2017. As from closing date, the subsidiary will be fully consolidated within ElringKlinger. Hofer AG is an expert system developer to the automotive industry, focusing on systems within the drive train as well measuring, testing, and installation technology. In acquiring the ownership interest, ElringKlinger will benefit from the aforementioned innovatory abilities, particularly in the development and production of alternative drive technologies. The focus in particular is on small-series production within the sports and luxury car segment. Therefore, alongside battery and fuel cell technology, the group's portfolio will include expertise in the field of transmission systems, electric engine, electronics and software. "In taking this logical step, ElringKlinger is further expanding its activities in the area of innovative drive technologies," says Dr. Stefan Wolf, CEO of ElringKlinger AG. "Alongside lightweight components that are independent of the drive system, electromobility will represent an additional key pillar for the future development of the Group." As regards e-mobility, ElringKlinger has until now mainly been operating in the area of and cell contact systems and battery housing. The transaction underscores the strategic direction taken by ElringKlinger, the ambition being to act as one of the first points of contact for automobile manufacturers when it comes to developing and implementing new ideas. The above-mentioned acquisition of an ownership interest extends the Group's key competencies to include drivetrain solutions for hybrid and all-electric systems. For further information, please contact: ElringKlinger AG Dr. Jens Winter Investor Relations / Corporate PR Max-Eyth-Straße 2 D-72581 Dettingen/Erms Phone: +49 7123 724-88335 Fax: +49 7123 724-85 8335 E-Mail: [email protected] About ElringKlinger AG ElringKlinger has focused its efforts on developing forward-looking green technologies. These are designed not only to reduce CO2 emissions but also to scale back the level of harmful nitrogen oxides, hydrocarbons, and soot particles. ElringKlinger is one of the few automotive suppliers worldwide with the capabilities of developing and producing high-tech components for all types of drive system - whether for downsized combustion engines or for electric vehicles driven by batteries or fuel cells. Drawing on our expertise in lightweight engineering, we can make a decisive contribution to efforts aimed at further reducing vehicle weight and thus fuel consumption. The company's portfolio centered around emissions reduction also includes particulate filters and end-to-end exhaust gas purification systems used in ships, commercial vehicles, construction machinery, and stationary engines as well as in power stations. This is complemented by products made of the high-performance plastic PTFE supplied by ElringKlinger Kunststofftechnik, which are marketed to a wide range of industries - also to those operating beyond the vehicle manufacturing sector. Applying its abilities as an innovator, ElringKlinger is committed to sustainable mobility and earnings-driven growth. These efforts are supported by a dedicated workforce of more than 8,200 people at 45 ElringKlinger Group locations around the globe. About hofer AG The hofer Group was established in 1980 in Germany as an engineering company and today employs more than 800 people worldwide. Development and industrialization of systems within the powertrain, coupled with measuring, testing, and installation technologies, form an integral part of hofer's core competence. The company's facilities are located at sites of strategic importance and operate as independent limited liability companies (GmbH). This ensures efficiency, speed, and the ability to respond at short notice. Hofer maintains fair and professional business relationships with its customers - with a commitment to entrepreneurial risk and the highest possible quality standards as regards its products and services. At the same time, its management and employees are fully aware of their responsibilities as role models. More than 75% of the workforce is made up of engineers and technicians, all of whom are experts and specialists within the automotive industry. They draw on many years of experience from turn-key projects. Despite the fact that Hofer develops state-of-the-art drive solutions, it has never forgotten its roots. The company's commitment to service is as strong as ever: Hofer sees each task through the eyes of its customers. As an independent developer, the company is able to produce customized solutions for its customers - tailored precisely to their production, cost, and sales requirements. Hofer thinks in solutions, considers the function of an entire system, and sees the end-to-end process of development as well as the product life cycle - and it continues to evolve each and every day. Many employees and managers have a background from well-known tier 1 large-scale manufacturers for powertrain systems, there is no comparable team composition of expertise in the field of mechatronics, electronics and software. 27.10.2016 The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Archive at www.dgap.de --------------------------------------------------------------------------- Language: English Company: ElringKlinger AG Max-Eyth-Straße 2 72581 Dettingen/Erms Germany Phone: 071 23 / 724-0 Fax: 071 23 / 724-9006 E-mail: [email protected] Internet: www.elringklinger.de ISIN: DE0007856023 WKN: 785602 Indices: SDAX Listed: Regulated Market in Frankfurt (Prime Standard), Stuttgart; Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Munich, Tradegate Exchange End of Announcement DGAP News-Service ---------------------------------------------------------------------------