Niederweningen, 19 December 2008

Bucher Industries is expanding the specialised agricultural machinery business of its Kuhn Group division and acquiring Kverneland Group's baler operations based at the Dutch plant in Geldrop. The company manufactures balers, bale wrappers, drum mowers and maize choppers sold under the Vicon and Kverneland Taarup brands. It employs 400 people and expects sales of approximately EUR 140 million for 2008. The purchase price for the debt-free company is EUR 115 million.

Baling and wrapping hay, straw or other crop residues with balers is a crucial stage in the hay and forage harvesting process. The world's growing population, increasing consumption of meat and dairy products, and the substitution of biomass for fossil fuels are sustainable growth drivers for balers. The modern baling technology used in the machines for producing various sizes of round and square bales of hay, straw and crop residues enables medium to large sized farms, in particular, to increase the efficiency of fodder production and improve storage of animal feed. The acquisition will allow Kuhn Group to penetrate the baler market with a complete line of products, while further consolidating its current leading position in hay and forage harvesting and significantly strengthening its own distribution network.

The acquired company, Kverneland Group Geldrop BV in Holland, maintains a high pace of innovation in developing and producing a complete range of state-of-the-art balers and bale wrappers. It also manufactures drum mowers, maize choppers and universal tedders at the same site. The products fully complement those of Kuhn Group and close a significant gap in Kuhn Group's product range. The profitable company employs some 400 people and expects sales of approximately EUR 140 million for 2008. Its large know-how in developing baling technology is protected by a strong patent portfolio.

After the acquisition, the company will be renamed Kuhn-Geldrop BV and will be headed by the previous managing director, Anthony van der Ley. The current management and all employees will be retained. The acquisition is still subject to the approval of the relevant competition authorities and advice by the employee representatives in Holland. The transaction is expected to be completed in the first quarter of 2009.

Within just a short time, Kuhn Group has managed to close several gaps in its product range. The purchase of Blanchard SA in November 2008 added modern sprayers to round out the offering in Europe. With the acquisition of balers, Kuhn Group will now boast an extremely complete range of forage harvesting equipment. This will enhance Kuhn Group's attractiveness to dealers and substantially strengthen its position in the market. The combined expertise in balers and mixer feeder wagons will allow organic growth to be driven by in-house development of new products. With Kuhn Group's global distribution network, market share can be expected to increase in the years ahead.

To make the changeover as smooth as possible for farmers and dealers, the balers will still be distributed through Kverneland's dealer network in parallel with the Kuhn brand and distribution network for a transitional period of up to two years. All dealers are assured of a supply of spare parts.

Bucher Industries will largely finance the acquisition with internally generated funds. The Group's liquidity will be ensured through a combination of short- to long-term bank loans and committed credit facilities above CHF 500 million. Bucher Industries will therefore retain a solid financing base even in these uncertain times of the financial crisis.

Philip Mosimann, CEO, and Roger Baillod, CFO, will host a press conference on the acquisition of Kverneland Group's baler operations at 11.30 a.m. today at the Hotel Savoy Baur en Ville, Paradeplatz, Zurich.

Kverneland ASA in Norway has also published a press release today - www.kvernelandgroup.com

Kuhn Group is the world's leading manufacturer of specialised agricultural machinery, with focus on hay and forage harvesting, livestock feeding, bedding and tillage. It has manufacturing facilities located in France, the USA and Brazil. Kuhn Group markets its products on five continents and generated sales of CHF 929 million in 2007 with some 3 000 employees. In the first nine months of 2008, Kuhn Group posted a 29% increase in sales over the same period a year earlier.

Contact
Philip Mosimann, CEO
Roger Baillod, CFO

Bucher Industries AG
Phone +41 43 815 80 88
Fax +41 43 815 80 81

Last year, Bucher Industries celebrated its 200th anniversary commemorating its successful evolution from a blacksmith's shop to a global technology group with leading market positions in speciality areas of mechanical and vehicle engineering. The company's operations currently include specialised agricultural machinery, municipal vehicles, wine and fruit juice production equipment, hydraulic components, and manufacturing equipment for the glass container industry. Bucher Industries' shares are traded on the SWX Swiss Exchange (SWX: BUCN).