07.12.2006 – 14:38

RHI Magnesita

euro adhoc: RHI AG
Capital measures
Conversion of convertible bond improves RHI’s equity by EUR 25.76 million

  Disclosure announcement transmitted by euro adhoc. The issuer is responsible
  for the content of this announcement.

07.12.2006

In the year 2002 RHI issued 1,809 subordinated convertible bonds of
tranche B and another 1,809 convertible bonds of tranche A. For
tranche B it has been possible since January 1, 2003 to convert a
convertible bond to 5,500 shares of RHI AG at the beginning of each
quarter until the end of 2009; for tranche A this will be possible
for the first time on January 1, 2007 and then anytime until the end
of 2009. Of the 1,809 convertible of tranche B, a total of 1,302 have
been converted to 7,161,000 RHI shares to date; the number of RHI
shares currently amounts to 27,081,039.

266 convertible bonds of tranche A and 378 convertible bonds of
tranche B have been registered for conversion to a total of 3,542,000
new RHI shares at the next possible conversion date on January 1,
2007. As of January 2, 2007, the total number of RHI shares will
increase to 30,623,039 subject to all approvals required and entry of
the capital increase in the company register. RHI’s equity will
improve by EUR 25.76 million as a result to the conversions
registered.

New shares from the conversion of convertible bonds are entitled to
participate in profits from the beginning of the financial year in
which they were issued. A dividend payment for the new shares, which
results from a corresponding resolution, will thus only be effected
in the following financial year. Therefore, all new shares of RHI AG
issued through conversion between January 2, 2007 and the ex dividend
day will receive a separate international securities identification
number (ISIN). In the following years the same procedure will be
applied. The new shares will be admitted to official trading at the
Vienna Stock Exchange under ISIN AT0000A03FL5 in 2007. With the
expiry of the ex dividend day the new shares will receive the same
ISIN as the existing RHI shares.

end of announcement                               euro adhoc 07.12.2006 13:59:46

Further inquiry note:

RHI AG
Investor Relations
Dkfm. Markus Richter
Tel: +43-1-50213-6123
Email: markus.richter@rhi-ag.com

Branche: Refractories
ISIN: AT0000676903
WKN: 874182
Index: ATX Prime
Börsen: Wiener Börse AG / official dealing