Paul Pendorf Appointed President of Hitco Carbon Composites

WIESBADEN, Germany - SGL CARBON GROUP (NYSE:SGG) is to strengthen its aerospace composites business by appointing Paul W. Pendorf, CEO and President of its US subsidiary HITCO CARBON COMPOSITES Inc. in Gardena (California).

As a result, Pendorf will acquire a minority stake in HITCO. The company is part of SGL CARBON's newly founded SGL TECHNOLOGIES GmbH. Pendorf is founder and majority owner of the AMT II Corporation, a company based in Marina del Rey, California. AMT II and SGL CARBON will act as strategic partners in further acquisitions and restructurings in the aerospace supply industry.

Robert Koehler, Chairman of the Executive Committee of SGL CARBON AG, welcomed the deal, saying: "With Mr. Pendorf, we have been able to attract not only an expert in state-of-the-art composites technology for the aerospace industry, but also one of the leading entrepreneurs in the field. This confirms that we are on the right growth path with SGL TECHNOLOGIES."

Pendorf will also contribute his long-term contacts in the aerospace industry in the USA and Europe to the business. He formerly served as an executive officer with Cytec Fiberite Inc. (USA). In 1995, he founded the American Materials & Technologies Corporation (AMT) and acquired a composites business as part of a management buy-out. AMT expanded to a business of $50 million in annual sales and 300 employees. After taking AMT public on the NASDAQ exchange in 1996 and selling it in 1998, Pendorf founded AMT II at the end of 2000 as a holding company for the international aerospace, composites and defense industries. Pendorf obtained a degree in chemical engineering and spent over 20 years in a variety of production and management positions at Pfizer, American Cyanamid and ICI. During this time, he specialized in the development and marketing of composite materials.

The transformation of the SGL CARBON GROUP into a leading materials and technology supplier is seen by Koehler as a long-term process. SGL CARBON GROUP's carbon-ceramic brake discs and fuel cell components projects are central to this. These two projects were transferred to a separate company, SGL TECHNOLOGIES, at the beginning of the year together with the carbon fibers, industrial composites and aerospace businesses. SGL CARBON GROUP also intends to further develop its industrial composites business for new applications in the transport industry in parallel establishing its composites business for the aerospace industry. Carbon fibers form the basis for the entire value chain of these growth projects. This is why SGL CARBON GROUP has expanded and modernized its fiber production facility in Inverness (Scotland). The aim is to run the individual businesses as independently as possible and, after examining their potentials, to create supportive organizational and financial structures for sustained growth. This will include not only organic growth but also strategic alliances and joint ventures. The alliance with Pendorf in the aerospace supplies business is an important step in this direction.

Important Notice:

This press release contains forward-looking statements as defined in the US Private Securities Litigation Reform Act of 1995. It contains forward-looking statements and information relating to sales and earnings figures, based on currently available information. Actual future results and trends could differ materially from those set forth in such statements due to various factors. Such factors include unforeseeable alterations in electric steel production, the possibility of changing economic and competitive conditions, changes in currency rates, technological developments, unanticipated developments relating to recently acquired businesses and Group companies, unforeseen developments related to the proceedings by the North-American and European antitrust authorities and the civil actions related to these proceedings and other risks and uncertainties, including those detailed in the Company's filings with the U.S. Securities and Exchange Commission. SGL CARBON does not intend to update these forward-looking statements, and does not assume any obligation to do so.