Demag management rejects Terex offer

June 3, 2011 – The management and supervisory board of Demag Cranes has
advised shareholders to reject a tender offer from Terex. The
management board and supervisory board said it did not consider the
offer price of 41.75 Euros per share to be appropriate. Demag Cranes
plans sustained and profitable growth in the years ahead, and the
company says Terex has not yet offered any dialogue on the tender offer.

The management board and supervisory board of Demag Cranes AG
regard the offered price of 41.75 Euros to be inadequate from a financial
point of view. Deutsche Bank and Rothschild have confirmed this
assessment to the management board and Lazard & Co. has
independently confirmed the assessment to the supervisory board in their
respective fairness opinions.

The Demag Cranes Group says it pursues a clear and successful strategy,
which is geared to sustained and profitable growth. Given the positive
economic outlook and the strategic positioning of Demag Cranes, the management board and supervisory board expect to regain strong rates of
revenue growth in the next two financial years. As of today, the company
anticipates generating a group revenue in the ongoing financial year of
approximately 1.06 billion Euros, up from the previous target of 1.02 to 1.05 billion Euros. For the financial year 2010/2011, the company
anticipates an operating EBIT margin of approx. 6.4 per cent (previous
target: 6.1 to 6.5 per cent; financial year 2009/2010: 5.8 per cent). No
later than financial year 2012/2013, group revenue is forecast to grow
to 1.3 billion Euros and therefore to exceed the record level reached in
financial year 2007/2008. There are plans for new
emerging market product families, among others, to deliver another sharp
jump in revenue in financial year 2014/2015 to approximately 1.7 billion Euros.
Subject to meeting the revenue target, we expect the group operating
EBIT margin to be above 10 per cent by as early as financial year
2012/2013. The operating EBIT margin is set to climb again sharply with
the significant projected revenue growth in financial year 2014/2015.

In its statement, the management board and supervisory board refer
expressly to the fact that Terex Industrial Holding AG published its
decision to submit an offer to the shareholders without solicitation and
that no agreements or arrangements with Demag Cranes in advance to the
offer or the statement have existed. It said it is not possible at the current
time to conclusively assess the strategic aims pursued in the offer or
any other intentions of the bidder – including with regard to locations
and jobs – especially in light of the fact that Terex has not initiated
any discussions with the management board or the supervisory board of
Demag Cranes AG relating to the offer until the date of this statement.