Volkswagen Supervisory Board Approves Contracts of Implementation Relating to Comprehensive Agreement with Porsche

BOTANY, AUSTRALIA - November 20, 2009: Further important step towards an integrated automotive group

The Supervisory Board of Volkswagen Aktiengesellschaft took a further important step towards the creation of an integrated automotive group with Porsche at its meeting today when it approved the contracts of implementation negotiated by all the parties which set out the details of the previously concluded comprehensive agreement.

The Supervisory Board of Porsche Automobil Holding SE will also consult on the contracts of implementation when it meets on Friday. These contracts specify the binding provisions governing the organizational, structural and legal details of the union between the two companies and the individual transaction steps. The multi-stage process is to culminate in the merger of Volkswagen AG and Porsche SE during the course of 2011.

The next milestones are a 49.9 percent participation of Volkswagen in Porsche AG which is planned for realization by the end of 2009, and the Extraordinary General Meeting of Volkswagen AG on December 3, 2009, where the agenda includes a proposal to shareholders to adopt a resolution authorizing the issue of new preferred shares. This allows the Volkswagen Group to maintain its medium term financial flexibility while safeguarding its good rating over the long term. At the same time, it would bring a marked increase in the number of preferred shares in circulation, thereby significantly enhancing the liquidity of this class of share to the benefit of shareholders.

The creation of an integrated automotive group with ten strong brands follows a compelling industrial logic. It represents a unique opportunity for Volkswagen and is in the best interests of all shareholders. Volkswagen will further expand its position as the leading global multibrand group with the inclusion of Porsche AG and the automobile trading business of Porsche Holding Salzburg.