Press release

Demag Cranes AG announces details related to its IPO:
Shares are offered in a bookbuilding range from € 26 to € 31

Bookbuilding period will commence on 7 June and is expected to end on 19 June 2006.
Trading is expected to commence on 20 June.
Management will not sell shares in the IPO.
Offer size of approximately € 426 million, based on mid-point of the price range (incl. greenshoe).
Free float expected to be around 71% after placement of all shares (incl. greenshoe).

Dusseldorf, 7 June 2006 - The IPO of Demag Cranes AG enters its final phase as the Company's owners and the syndicate banks have determined the key terms for the share offering. The bookbuilding price range is € 26 to € 31 per share. Interested investors may submit offers to purchase shares within this bookbuilding price range during the period that commences 7 June and is expected to end on 19 June 2006. Trading is expected to commence on the Frankfurt Stock Exchange's official market segment (Prime Standard) on 20. June. Including the greenshoe, a total of up to 14.95 million bearer shares will be offered by the selling shareholders. The shares bear full dividend rights for the fiscal year 2005/2006. Assuming all of the shares (including the greenshoe) are sold at the mid-point of the bookbuilding price range, the total placement volume would amount to around € 426 million.

Demag Holding S.à r.l., Luxembourg, in which private equity investment funds advised by Kohlberg Kravis Roberts & Co. LP (KKR) indirectly hold 81% and Siemens AG holds 19%, will significantly reduce its indirect stake in the Company, and is expected to indirectly hold an 18.3% stake in the Company after the IPO (assuming the greenshoe option is exercised in full). After placement of all of the shares, including the greenshoe, the free float is expected to be around 70.6%.

The CEO of Demag Cranes AG, Harald J. Joos, is confident. "Demag Cranes is well-prepared for the stock market. I expect that our clear focus on sustained profitable growth will convince investors. Good general economic conditions in our markets generally support our growth. We look forward to going public", said Joos.

Prior to the IPO, the management of the Demag Cranes Group (Management Board and executives) have been shareholders in companies which own approximately 11.1% of the shares in Demag Cranes AG. Management will not sell any of their shares in the Company as part of the IPO.

The IPO comprises a public offering to retail and institutional investors in Germany and private placements outside of Germany.

Trading in the shares of Demag Cranes AG is expected to commence on 20 June 2006 under the ticker symbol 'D9C' on the official market segment of the Frankfurt Stock Exchange (Prime Standard). The International Securities Identification Number (ISIN) for Demag Cranes is DE 000 DCAG01 0, and the German Securities Identification Number (WKN) is DCAG01.

About Demag Cranes AG

The Demag Cranes Group is one of the world's leading providers of industrial cranes and crane components, harbor cranes and port automation technology. Services, in particular maintenance and refurbishment services, are another core element of its business activities. The Group, which is divided into the Industrial Cranes, Port Technology and Services segments, has strong brands - 'Demag' and 'Gottwald'. Demag Cranes believes that it is a global market leader, by virtue of its innovation and technology leadership, its excellent product and service quality and its close and long-term customer relationships. 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.

For the fiscal year 2004/2005, the Group reported total sales of € 881.6 million and an adjusted EBIT of € 64.0 million (Combined Financial Statements prepared in accordance with IFRS).

For further information, please contact

Media Enquiries:

Nikolai Juchem
phone: +49 211 7102-1019
E-mail:

Investors and analysts:

Torsten Fischer
phone: +49 211 7102-847
E-mail:

Important advisory notice

The information contained herein is not for publication or distribution to persons in the United States. Any securities referred to herein have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the "Securities Act"), and may not be offered or sold without registration thereunder or pursuant to an available exemption therefrom. Any public offering of securities of Demag Cranes to be made in the United States would have to be made by means of a prospectus that would be obtainable from Demag Cranes and would contain detailed information about the issuer of the securities and its management, as well as financial statements.

Neither this document nor the information contained herein constitutes an offer to sell or the solicitation of an offer to buy any securities. Any offer will be made exclusively through and on the basis of an offering circular that must be published in Germany. The offering circular can be obtained free of charge from Demag Cranes AG (Ruhrstrasse 28, 58300 Wetter, Germany) and also from the Company's website at http://www.demagcranes-ag.de.

This document does not contain an offer of securities for sale in the United States; the securities may not be offered or sold in the United States absent registration or an exemption from registration.

No money, securities, or other consideration is being solicited, and, if sent in response to the information contained herein, will not be accepted.

Cautionary note regarding forward-looking statements

This press release contains forward-looking statements. These statements are based on the current views, expectations and assumptions of the management of Demag Cranes AG and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements. Actual results, performance or events may differ materially from those described in such statements due to, among other things, changes in the general economic and competitive environment, risks associated with capital markets, currency exchange rate fluctuations and competition from other companies, changes in international and national laws and regulations, in particular with respect to tax laws and regulations, affecting Demag Cranes AG, and other factors. Many of these factors may be more likely to occur, or more pronounced, as a result of terrorist activities and their consequences.

Demag Cranes AG does not assume any obligation to update any forward-looking statements.