Extraordinary General Meeting of RHI AG approves capital restructuring (ad hoc)

15. February 2002

The extraordinary general meeting of RHI AG on February 15, 2002 approved the issue of convertible bonds by a large majority. Thus the last obstacle to the capital restructuring of RHI has been overcome, and the financial and balance sheet reconstruction is secured.

The restructuring is based on the high-profit refractories business in Europe, Asia, Central and South America, and Canada. The core elements agreed with the banks are: EUR 400 million mezzanine capital free of interest and repayment, a reduction of interest for bank loans, as well as convertible bonds in the amount of EUR 144 million.

With the shareholders’ support for the restructuring, a long-term and future-oriented concept has been passed, which enables RHI to defend its position as the market leader for refractories even without the US companies, thus laying a lasting and solid foundation again for all business partners, on which the successful cooperation with RHI can be continued.

At the election to the Supervisory Board of RHI AG, the extraordinary general meeting approved Mr. Michael Gröller, Chairman of the Board of Management of Mayr-Melnhof Karton AG, as well as Mr. Gerd Klaus Gregor, Member of the Supervisory Board and partner in Schoeller-Bleckmann Oilfield Equipment AG (SBOE) as new members of the Supervisory Board.