KTG Agrar AG’s corporate bond fully placed within a few days

- EUR 25 million issue fully placed

- Top up announced

Hamburg, 7 September 2010 – The corporate bond issued by KTG Agrar AG has met with strong interest from private and institutional investors. On 6 September 2010 the EUR 25 million issue of the “KTG Biowertpapier” was fully placed within three days of the start of subscription in the Bondm segment of the Stuttgart Stock Exchange. The subscription was closed ahead of schedule and the bond was listed at the exchange. “We are delighted to see this strong interest in the promising sector that is agriculture and appreciate the confidence shown in our company’s strength and competitiveness. In light of the strong demand we have decided to top up the issue. This means that we will use the corporate bond as another important pillar of company funding. We will increase our financial scope further as we continue to pursue our dynamic and solid growth course,” said Siegfried Hofreiter, CEO of KTG Agrar. “

The bulk of the issue proceeds will be used to fund the company’s growth in its core business segments. Its objectives include an expansion of the farmland portfolio in eastern Germany and Lithuania from 30,500 hectares to 40,000 hectares. In order to benefit from the appreciation of the scarce resource that is farmland, KTG Agrar also intends to raise the percentage of company-owned farmland from today’s approximately 18.5 percent to more than 20 percent. The biogas sector offers excellent growth prospects, too. By mid 2012, biogas production capacity is to be more than doubled from the present eleven megawatts to 25 megawatts. Prospective investors in the corporate bond can continue to contact the company directly (free info line 0800 898 62 62, www.ktg.ag). The bond is also listed and traded in the Bondm mid-market segment of the Stuttgart Stock Exchange. 

About KTG Agrar:

With cultivable land of more than 30,000 hectares, KTG Agrar AG is one of the leading producers of agricultural commodities in Europe. The Hamburg-based company’s core area of expertise is the organic and traditional cultivation of market products such as cereals, maize and rapeseed. For organic market products KTG Agrar is the European market leader. The company mainly produces in Germany but has also operated production in the EU full member state of Lithuania since 2005. The third mainstay is the production of bio-energy. At present, KTG Agrar operates biogas plants with a total capacity of around eleven megawatts. In the year 2009, KTG achieved a total output of EUR 59,7 million and EBIT of EUR 9.2 million. Since November 2007 the company is listed on the Frankfurt Stock Exchange and currently more than 200 employees.

Further information can be found at www.ktg.ag.

Contact:
Investor Relations / Press
Fabian Lorenz
IR.on AG
Tel: +49 221 914097 - 6
E-Mail: fabian.lorenz@ir-on.com