STATEMENT: KTG Agrar SE statement on Fosun and interest payment on 2011/2017 bond

Hamburg, 10 June 2016. KTG Agrar SE (ISIN: DE000A0DN1J4) has issued the following statement to clarify its cooperation with Fosun: As was announced in 2015 by KTG Agrar, the purchase agreement was to be completed following the fulfilment of certain economic and legal framework conditions. In the context of the closing of the transaction, the parties agreed the implementation of a new transaction structure to be executed following the publication of KTG Agrar's 2015 Annual Report; this implementation is still pending, however. A partnership remains an option within the context of the ongoing refinancing process, even though negotiations with other investors are at a further advanced stage.

The refinancing negotiations have so far not been influenced by the outstanding interest payment on the 2011/17 bond. KTG Agrar believes that its efforts to make the interest payment on the 2011/2017 bond - as announced last Monday - are progressing well.

KTG Agrar SE CEO Siegfried Hofreiter said: 'We would like to once more apologise sincerely and assure everyone that we are working flat out to resolve this issue. A harvest worth a good EUR 60 million is currently growing on our approximately 46,000 hectares of farmland, and this value is set to grow further thanks to the precipitation in recent weeks as well as the pick-up in the prices of grain, maize, rapeseed and soy. We are consequently very optimistic that both the volume of the harvest and sales prices will clearly be up on the previous year. The harvest is about to begin in a few weeks and this positive outlook is an important factor in the current talks on an arranging interim finance.'