Supervisory Board of Demag Cranes AG Grants Approval for Restructuring - Impact of the Financial and Economic Crisis Makes Up to 750 Job Cuts Necessary Worldwide

DÜSSELDORF, Germany--(Business Wire)--
At its most recent meeting, the Supervisory Board of Demag Cranes AG granted
approval for the restructuring measures proposed by the Management Board. This
will involve up to 750 job cuts worldwide. In the current financial year,
provisions in mid-range double digit euro millions will be made to implement
these packages of measures so as to achieve significant savings in the following
years to ensure that the Group will be able to meet the challenges of the
future. As has already been announced on several occasions, with these measures
the Management Board has responded to the worsening of the economic and
financial crisis that has had adverse consequences for the business development
of the Demag Cranes Group.

This action has become necessary due to the significant fall in demand for
products both in the Industrial Cranes and Port Technology segments. As the
crane and material handling sectors are affected late in the economic cycle, the
Demag Cranes Group is only now feeling the full impact of the global economic
and financial crisis with a delay of around six months. As a result, Group order
intake in the second quarter of financial year 2008/2009 was down by more than
40 percent from the previous year. As the extent and duration of the crisis
still cannot be predicted, these packages of measures will now be implemented to
secure the financial stability of the Group on the basis of its sound balance
sheet. In particular, it is necessary to lower the break-even points in order to
improve the Group's ability to operate in a highly competitive environment.

Consequently, the Company believes that capacity adjustments cannot be tackled
using labour policies such as shedding temporary workers or implementing
short-time working alone. The Supervisory Board of Demag Cranes AG supports this
view.

About Demag Cranes AG

The Demag Cranes Group is one of the world's leading suppliers of industrial
cranes and crane components, harbour cranes and terminal automation technology.
Services, in particular maintenance and refurbishment services, are another key
element of the Group`s business activities. The Group is divided into the
business segments Industrial Cranes, Port Technology and Services and has strong
and well-established Demag and Gottwald brands. Demag Cranes sees its core
competence in the development and construction of technically sophisticated
cranes and hoists as well as automated transport and logistics systems in ports
and terminals, the provision of services for these products and the manufacture
of high-quality components.

As a global supplier, Demag Cranes manufactures in 16 countries on five
continents and operates a worldwide sales and service network that is present in
over 60 countries through its subsidiaries, representative offices and a joint
venture. In financial year 2007/2008, the Group, with its 6,093 employees,
generated revenue of EUR 1,225.8 million. Since the end of June 2006, the Demag
Cranes share (WKN: DCAG01) has been listed in the Prime Standard of the German
Stock Exchange and is traded on various indices including the MDAX®.

Demag Cranes AG. We Can Handle It.

Conditions for Forward-Looking Predictions

This press release contains forward-looking statements relating to the business,
financial performance and earnings of Demag Cranes AG and its subsidiaries and
associates. Forward-looking statements are based on current plans, estimates,
projections and expectations and are therefore subject to risks and
uncertainties, most of which are difficult to estimate and which in general are
beyond the control of Demag Cranes AG. Consequently, actual developments as well
as actual earnings and performance may differ materially from those which are
explicitly or implicitly assumed in the forward-looking statements. Demag Cranes
AG does not intend or accept any obligation to publish updates of these
forward-looking statements.

Demag Cranes AG
For media representatives
Nikolai Juchem
Head of Corporate Communications and Marketing
Phone: +49 (0) 211 7102-1019
E-mail: nikolai.juchem@demagcranes-ag.com
or
For investors and analysts
Horst Thelen
Head of Investor Relations
Phone: +49 (0) 211 7102-1210
E-mail: horst.thelen@demagcranes-ag.com

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