Pfleiderer and Vossloh in exclusive negotiations for Pfleiderer track systems

Neumarkt, July 26, 2005 - The boards of management of Pfleiderer AG, Neumarkt/Opf. (ISIN DE0006764749) and Vossloh AG, Werdohl (ISIN DE0007667107) have consented to exclusive negotiations for the sale and acquisition of Pfleiderer track systems. Both parties already have reached agreement on the main legal and commercial conditions, and are confident that negotiations will reach a successful conclusion soon.

Ad hoc Notification under Sec. 15 WpHG (German Securities Trading Act):

As part of its strategy of focusing on its core activities, Pfleiderer AG now wishes to concentrate solely on the international expansion of its Business Center Engineered Wood.

About the PCM RAILONE Group

The PCM RAILONE Group has been manufacturing concrete sleepers and track systems for urban transit and long-distance rail transportation for over 60 years. The technology leader also offers its expertise in the fields of engineering and plant construction. Its customer-driven innovations fulfill the highest quality standards and are installed around the world

The PCM RAILONE Group is comprised of several companies and eleven production facilities with a presence in Germany, Romania, Saudi Arabia, Spain, South Korea, Hungary, Turkey, the United States, Canada and lndia. lt maintains annual capacities of over 5 million track sleepers and 840,000 linear meters of turnout sleepers. RAILONE produces optimized products and custom solutions with over 550 employees around the world.

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