Deutsche Beteiligungs AG Divests Babcock Borsig Service

FRANKFURT AM MAIN, Germany, March 9 /PRNewswire/ --

- Bilfinger Berger to purchase power plant service business

- Value appreciation realised in first quarter

Deutsche Beteiligungs AG, Frankfurt am Main, and its co-investment fund (DBAG Fund IV) announced that they will sell Babcock Borsig Service GmbH, Oberhausen, to Bilfinger Berger AG, Mannheim. The parties signed a contract to that effect this morning; the transaction is subject to approval by the regulatory authority. The purchase price was not disclosed. Deutsche Beteiligungs AG's extensive financial expertise and knowledge of the machine and plant construction industry were key assets for its investment in Babcock Borsig Service. The major part of the realised appreciation was recognised in the quarterly closing at 31 January 2005. This interim report, to be presented on 17 March 2005, will show a rise in the net asset value per share of approximately one euro to about 13.40 euros.

The acquisition of the Babcock Borsig Service group will allow Bilfinger Berger AG to expand its commitment and competence in the service business. Bilfinger Berger's strong international presence creates additional potential for Babcock Borsig Service, particularly through its sales network. Bilfinger Berger is thus an ideal new partner for Babcock Borsig Service to exploit further opportunities for growth.

The Babcock Borsig Service group recorded a total output of 350 million euros in the past financial year (30 September 2004). With a staff of 2,700, Babcock Borsig Service GmbH und its subsidiaries provide service and maintenance for fossil-fuelled power plants. In addition to its home-based business in Germany, the company's core market regions are Europe, the Near and Middle East as well as Africa. The acquisition of the former Steinmüller power-plant service activities in South Africa this past financial year further expanded the group's international presence.

Babcock Borsig Service provides a broad range of services. One part of its operations encompasses an on-going inspection, maintenance and spare-parts business. Activities in this field are distinguished by customer focus and customer relations, resulting from the company's permanent presence at many of the power plants. Babcock Borsig Service is also a highly-skilled provider of services such as modernisation, efficiency up-grading or prolongation of these plants' life cycles. Engineering competence, process know-how, efficient project management and model projects are key factors for success in these areas. Babcock Borsig Service has a leading market position in its core regions.

Deutsche Beteiligungs AG (www.deutsche-beteiligung.de) is a leading publicly listed private equity firm. With a track record of 40 years, it is the oldest private equity company in Germany. Currently (31 October 2004), Deutsche Beteiligungs AG has provided capital totalling 294 million euros to 40 portfolio companies; another 239 million euros have been invested by funds managed by Deutsche Beteiligungs AG. In its investment strategy, Deutsche Beteiligungs AG focuses on market-leading mid-sized enterprises in Germany, select European countries and the United States.

SOURCE Deutsche Beteiligungs AG