Press release of Varioboard GmbH, Industriestraße 7, 39126 Magdeburg)

Due the economic rejection in the markets we served and the continued dramatic increase in our production and raw material costs (particularly timber, further adhesive and electricity), the shareholders felt compelled to take the decision to discontinue production of Varioboard GmbH per 02/05/2011 and to well-ordered shut down the plant. Due to the events in the market for electricity and renewable energy in the wake of the devastating accident at the Fukushima nuclear power plant an improvement of the frame conditions of our main raw material wood and our main energy source electricity will appear extremely unlikely. Against this background the in the next few years become necessary follow-up and upgrading investments are not feasible as in the light of economic conditions no funding of the project accompanying banks can be expected. A vision for a restart of the plant is not given under the current conditions. The final operating position has forced us to terminate the existing employments. The employments will be completed well-ordered. Regarding the existing apprenticeships, we will take care that this can be continued at other companies. We will give the employees the possibility to prematurely retire from their employment, if that is necessary for starting a new job.

We deeply regret this move but we do not see another alternative.

The management in April 2011