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17.01.2003|For the first time: locating outside Europe in China’s growth market

GILDEMEISTER to open new production site in Shanghai

Bielefeld. With a ”Grand Opening” GILDEMEISTER opens its first production site outside Europe today, January 15, 2003. GILDEMEISTER will be building its innovative turning and milling machines for the Chinese market in Shanghai.

The steady growth of the Chinese economy offers good prospects for machine tools. To open up new markets and to mark its globalisation strategy, GILDEMEISTER has acquired a production site in the Southwest of Shanghai. The new location covers a total area of 15,000 square metres and includes a usable area of 10,000 square metres that will be available for the installation of machine tools and will also be used as a technology centre.

It is planned to initially produce the modern CTX 310 and DMC 64 V universal lathes as the first vertical machining centres with linear drive at the Chinese production site. The two machines are pure production machines and geared towards the growing market segment of small and medium-sized private companies in China. Within the production and logistics association of GILDEMEISTER and based on existing contacts, it is intended to develop an optimal supply structure. Machine components will be obtained locally. The production site in Shangai forms the technical basis for the Chinese market. Together with DMG China Vertriebs & Service Organisation, a company of long standing, GILDEMEISTER intends to achieve a business volume in China of around Euro 50 million for the year 2003.

GILDEMEISTER has accomplished the forecast sales figures for the financial year 2002. The provisional figures for the past reporting year will be published on February 6, 2003.

GILDEMEISTER Aktiengesellschaft
The Executive Board

Disclaimer, Forward-looking statement

Disclaimer, Forward-looking statement

Statements relating to the future:

This press release contains forward-looking statements, which are based on current estimates of the management of future developments. Such statements are based on the management's current expectations and specific assumptions. They are subject to risks, uncertainties and other factors, which could lead to the actual future circumstances, including the assets, liabilities, financial position and profit or loss of GILDEMEISTER, differing materially from or being more negative than those expressly or implicitly assumed or described in these statements. The business activities of GILDEMEISTER are subject to a series of risks and uncertainties, which may result in forward-looking statements, estimates or forecasts becoming inaccurate. Should one of these factors of uncertainty or other unforeseeable event occur, or should the assumptions on which these statements are based prove incorrect, the actual results may differ materially from the results stated, expected, anticipated, intended, planned, aimed at, estimated or projected in these statements. Forward-looking statements must not be understood as a guarantee or assurance of the future developments or events contained therein.