Grammer AG Shares Change Hands

AMBERG, Germany--July 20, 2005--More than 8.7 million shares of Grammer AG stock, previously purchased by Deutsche Bank, have been placed with institutional investors throughout Europe. The shares were sold by Deutsche Bank at 23.50 euros as part of an accelerated auction process on July 13, 2005.

The volume of stock represents 83% of the company's outstanding shares and the transaction is consistent with Grammer's plans for its business operations and its shares, including a broader shareholder base.

"The placement of our shares in the open market will provide the ideal conditions for the company to develop its business on a forward-looking, independent basis," says Alois Ponnath, chief financial officer for Grammer AG. "Our strategy will not be affected by this change of ownership, which we regard as the best-possible exit for our financial investor."

Deutsche Bank had previously acquired Grammer Holding GmbH and SV Holding GmbH, Grammer AG's two major shareholders. These firms are owned by Willibald Grammer GmbH & Co. KG, their management and private equity funds advised by Permira.

Permira originally acquired its investment in the company in 2001 and notified Grammer in June of this year that it planned to sell its stake.

At the beginning of 2005, the company adopted International Financial Reporting Standards (IFRSs), and in June switched from the General Standard stock market segment to the top-quality Prime Standard.

Grammer AG is a world leader in the development and manufacture of innovative components and systems for automobile interiors. Wherever people use vehicles, Grammer, based in Amberg, Germany, sets the standards for safety, comfort and ergonomics. Automotive is the company's largest division and supplies headrests, armrests, center consoles and integrated child-booster seats to vehicle manufacturers and their tier 1 systems suppliers.

The company's second division, Seating Systems, provides driver seats for heavy trucks and off-road vehicles (tractors, construction machinery, fork-lifts) as well as passenger seats for trains and buses. Grammer Seating Systems is active both as a first-time supplier and as a retrofitter.

As a global player, the Grammer Group operates with a strong customer focus that includes location of development and production facilities close to clients and relies on an international network of partners. In fiscal 2003, Grammer Group sales were $992 million; North American sales totaled $145 million. With over 7,500 employees, Grammer and its 20 consolidated companies operate in 13 different countries worldwide.

Additional information is available by e-mail at AutomotiveInfo.Troy@grammer.com.