SCHWING GMBH

GESCHÄFTSFÜHRUNG

SCHWING and XCMG agree on strategic partnership

Dear Sir or Madam,

The market and several media have for some time been speculating about a potential partner for the
SCHWING Group. Now that a letter of intent has been signed after intensive talks and a careful
selection process, I am very pleased to inform you that SCHWING and the Chinese construction
machinery manufacturer XCMG (Xuzhou Construction Machinery Group) have agreed on a strategic
partnership.

Before explaining the features of our future strategic partnership in more detail, I would like to take the
opportunity to thank you for our cooperation over the past years. We know that the period that followed
the financial and economic crisis has taken a great toll on all of us. I have been honoured by your
loyalty and your trust in our company. With the decision to place the economic future of SCHWING on
a solid foundation together with a strategic partner, we can now look optimistically into the future.

The partnership between SCHWING and XCMG is aiming to pool the strengths of two market leaders
that optimally complement each other. Under the deal, XCMG - the number 1 construction machinery
manufacturer in China - will take over a majority share in my company, the globally leading systems
provider of premium products for the production, transportation and pouring of concrete. Our operating
responsibility and organisational structures under my leadership as general manager will remain
largely unchanged. This applies both to SCHWING and to Stetter. We will of course retain both brands
globally.

Outside of China, SCHWING has been present for decades in all major market regions, either with
SCHWING production facilities or offices. Since XCMG is only starting out in its globalisation effort, we
have no redundancies in these areas, which enables us, here again, to follow a concerted joint
approach. In addition, you as our customer can be certain that you can continue to fully rely on the
SCHWING quality and service as well as the related assistance you have become accustomed to.

Both SCHWING and XCMG clearly view the other company as their partner of choice: For us, the
cooperation with XCMG protects our growth perspectives and gives us a financially strong industrial
partner. The Asian market offers the biggest growth potential globally. Together with XCMG, we will
also sustainably position the expertise and experience of our company in this region. Both partners will
benefit from the transaction long term. Together with our employees and XCMG, we will substantially
strengthen our internationally leading market position.

SCHWING GMBH

GESCHÄFTSFÜHRUNG

You, our customer, will also benefit from the current development. You will continue to receive
premium quality from an economically stronger, long-term reliable partner. Your contacts won't
change. Your contracts will remain in full force and effect.

In a joint press release with XCMG, we have also publicly announced the letter of intent for a
partnership today. We are attaching the related press release to this letter for your reference. Before it
can be completed, the partnership requires the approval by the competent regulatory authorities.
Naturally, we will let you know as soon as this has been obtained.

We hope that you share our positive expectations for the future development of our company. Please
do not hesitate to get in touch with us with any questions or suggestions you may have.

With best regards

Gerhard Schwing

Gerhard Schwing is one of the greats in the world of concrete pumping. His name will always be respected as one of the fathers of the Concrete Pumping industry. I wish I could of spent a bit of time with him. I wish him the best and thank him for all he has done over the years.

He was the pioneer in this business, and he is still going strong (impressive), even though, he is an highaged hero now.

I think you are talking aboutg his dad as pioneer of the industry!