TURKISH DEMIRDÖKÜM FACTORIES, ONE OF THE COMPANIES IN KOÇ GROUP AND THE LEADER OF TURKISH HEATING SECTOR AGREED ON THE TRANSFER OF ITS SHARES TO THE GERMAN COMPANY VAILLANT.

Koç Group has come to an agreement to sell its shares at Demirdöküm, one of its subsidiaries, parallel to the strategic plan it has been carrying out since 2002, to German Vaillant Group. The agreement was signed by Dr. Bülent Bulgurlu, Koç Holding CEO, and Claes Göransson, Vaillant CEO. Transfer of shares shall be completed after obtaining the required approvals.

Demirdöküm, which has a background of over 50 years in the heating sector as a pioneer and leader, realized sales about 420 million Euro in 2006. Being the leader of the market in its sector in Turkey with its combi boiler, water heater, gas and electrical heater as well as radiator production with its own technology, the Company has also exported its products to the Middle East and North Africa in addition to tough markets such as England, Germany, Italy thanks to its aggressive push in exports since 2004. Demirdöküm, which is one of the largest panel producers in Europe producing under a single roof, increased its radiator capacity and renewed its technology in its premises in Bozüyük by means of the lines it had bought from German Schaefer Company. Possessing a company in China also, Demirdöküm also takes place in the growing air condition market with various products and brands. Demirdöküm has also made investments in the future technologies such as solar energy, fuel battery, micro generation and is carrying on its intense works in R & D in these fields.

The German Vaillant Group which is going to be the new shareholder of Demirdöküm is one of the leading heating and air-conditioning companies in the world with its background over 100 years. Vaillant, which has a sales volume of more than 2 billion Euros, production and research units in 14 countries and more than 10 thousand employees, is determined to make investments in the future in this field. Making business in Turkey over 20 years, the Company desires to achieve Demirdöküm because of both its production capabilities and also the attractive Turkish as well as surrounding markets.

Having realized big purchases in 2005 in the sectors it wishes to focus on parallel to its strategic plan, Koç Group declared that it was going to withdraw from some business fields last year and also announced that it was going to sell Demirdöküm.

Participation of Demirdöküm, which is currently the leader in Turkey in its area, in Vaillant which is a world giant in the same business field will certainly enable Demirdöküm to become more powerful and grow larger. Competition Authority will be promptly applied to realize the share transfer.