DEUTZ AG : DEUTZ successfully implements Asian strategy and adds a further joint venture in China

DEUTZ AG and Shandong Changlin Machinery Group Co., Ltd. - a Chinese manufacturer of agricultural machinery and construction equipment - have today signed an agreement to set up a joint venture for the production of engines.

This joint venture, which will trade under the name of DEUTZ (Shandong) Engine Co., Ltd. and whose day-to-day management will be performed by DEUTZ, will manufacture engines for the highly successful million-selling 2011 series at the beginning of 2013. These engines are designed for use in agricultural machinery, construction equipment and industrial applications. By producing these engines with capacities of less than four litres, DEUTZ is significantly scaling up its operations in China, where the DEUTZ (Dalian) Engine Co., Ltd. joint venture has been manufacturing DEUTZ- branded four to eight-litre engines since 2007.

DEUTZ AG holds a 70 per cent stake in DEUTZ (Shandong) Engine Co., Ltd., which will be based in Linyi in Shandong province, while Shandong Changlin Machinery Group Co., Ltd. owns 30 per cent. The plant being located there is designed to achieve an annual capacity of around 65,000 engines over the medium term.

"The Chinese market offers us the greatest potential for growth in Asia. By starting to produce engines with capacities of less than four litres in China we are therefore making a logical and beneficial addition to our existing operations in a region where we have been building larger engines for many years. DEUTZ has gained a reliable and experienced partner in Shandong Changlin Machinery Group Co., Ltd. This publicly traded company has been manufacturing construction equipment and agricultural machinery for the past 30 years and is one of the organisations that have already benefited substantially from the stellar growth generated by this region to date", stressed Dr Helmut Leube, the chairman of DEUTZ AG's Board of Management.

DEUTZ (Shandong) Engine Co., Ltd. is the third joint venture that DEUTZ AG has set up in China. DEUTZ AG and FAW Jiefang Automotive Co., Ltd. run the Dalian-based joint venture DEUTZ (Dalian) Engine Co., Ltd., while DEUTZ and Weichai Power operate their Weifang Weichai-Deutz Diesel Engine Co., Ltd. joint venture in Weifang. DEUTZ AG is also represented in the form of a sales and service company in Beijing.

For further information on this DEUTZ press release, please contact:

Public Relations Georg Diderich Tel.: [phone] Fax: [phone] E-Mail: [e-mail]

Investor Relations Christian Krupp Tel.: [phone] Fax: [phone] E-Mail: [e-mail]