STRABAG SE extends market leadership in Poland and Germany, aquires german construction SME KIRCHNER

Vienna, 18 April 2008 STRABAG SE, the market leader in the construction industry in Central and Eastern Europe, has acquired 80 % of KIRCHNER Holding GmbH, one of Germany’s leading construction SMEs. The company, which was founded in 1926 and is largely active in the infrastructures and environmental technologies segments, generated an output volume of € 373.4 million in 2007 with 1,500 employees. KIRCHNER has an important international presence – particularly in the transportation infrastructures segment in Poland. Additionally to its core activities, KIRCHNER is active in the fields of project development, building construction and raw materials.

Following a planned capital increase, STRABAG SE will hold 80 % of KIRCHNER. The company, which enjoys an excellent reputation in the transportation infrastructures segment in Germany, will focus increasingly on this original core segment in the future. At the same time the brand KIRCHNER as well as its autonomy will be kept and even further developed. KIRCHNER’s presence in the field of road construction in Poland represents an important addition to the capacities of STRABAG’s current activities in this rapidly growing rapid market. In the area of resources and construction materials, KIRCHNER has investments in five asphalt mixing facilities and six quarries in the states of Hesse and Thuringia and owns three asphalt mixing plants in Poland. The use of the STRABAG Group’s reserves of resources and construction materials will allow for further growth.

The search for a strategic partner was preceded by a reorientation of the company at the initiative of the owning families and by the desire for a stronger capital structure. Dr. Hans Peter Haselsteiner, CEO of STRABAG SE, is pleased with the acquisition: “This acquisition is a further step in the expansion of STRABAG’s nationwide presence in Germany. We are convinced that our presence in Germany is appropriate and therefore we don´t have ambitions for further acquisitions. The stake in KIRCHNER also strengthens our position in the Polish market considerably. The company enjoys an excellent reputation and fits perfectly into the STRABAG Group. We are very pleased that the previous owners will remain on board as partners and co-owners.”

Dipl.-Ing. Jürgen Henschel, co-managing director of KIRCHNER Holding and representative of the owning families, sees the merger similarly: “The collaboration with STRABAG goes back a long way. STRABAG has for decades been a competent and trusted partner in many joint projects. Therefore the STRABAG SE board appreciates collaboration with KIRCHNER as an independent company with its present management team. We are particularly pleased that, with a group of this magnitude, nothing will stand in the way of the continuous successful development of our traditional company.”

The transaction is pending approval by the competent cartel authorities.

STRABAG SE is one of Europe’s leading construction groups. With nearly 60,000 employees, STRABAG expects to post revenue from construction work of around EUR 11 billion in the financial year 2007. From its core markets of Austria and Germany, STRABAG is present via its numerous subsidiaries in all countries of Eastern and South-East Europe, in selected markets in Western Europe and the Arabian Peninsula, as well as in Canada, Chile and India. STRABAG’s activities span the entire construction industry (Building Construction and Civil Engineering, Road Construction, Tunnelling) and cover the entire value-added chain in the field of construction. More information is available at www.strabag.com.